Yes, countries should allow traders to do what ever they want. As long as they think they can make money on it. The value that paper contracts create for a country really shouldn't be considered.
After all governments sanaction systems just to make sure people can make money, governments are not set up to look out for what benefits of society.
I am so glad I can come to Seeking Alpha and learn so much how a great nation should be managed. This whole idea of laws, justice, regulation, what a bunch of out dated thinking.
Mr. Delong please move to Cuba, where they sanction stealing private property. How you can defend the utility of this crap, after this mess, is beyond me.
Let me know what country you are shorting next, since I can't beat you I might as well join you.
Does Freddie Mac Deserve Another $10.6 Billion? [View article]
Good bank, bad bank it.
Give all of the performing loans to JP Morgan and then give the Chinese the homes that aren't paying. Then have the US accept about 3 million new Chinese home owners. They have a population problem, we have a NPA problem. Its fixed just like that. No more Freddie, Fannie.
The problem with the above is the end of cheap money and the US crashes.
Derivatives of Mass Destruction: From 'Fat Man' to 'Fat Finger' [View article]
Great post.
We really shouldn't regulate these things though, trading them and god forbid the ablity to transfer this risk to others might leave our country. Oh, no.
Buffett can't spare any of his float, they need to ban naked shorting, naked CDS, naked anything. They need to ban some things.
Buffett, Munger Support Regulation and Consequences – For Others [View article]
I would like to retract portions of my above comment. The mean names I have called Buffett and Mr. Gates on this board are inappropriate and incorrect. The good they are doing to eradicate diseases around the world is inspiring to mankind.
I may disagree with the constitutionality of a State Income Tax in Washington State, so please consider withdrawing your support for this new tax. It will crush immigration, one of the main economic drivers in our State. Do you have any idea the depth of the housing crisis in your community? Half of our state chartered banks are being put out of business right now, today.
What are you trying to do? Why now to release this new tax?
The voters need to hear 3 things across the board from government right now today….10% less tax, 10% less government employees, and 10% less government pension benefits. How you cannot see this I do not understand? Our economy booms, people keep moving into the State, and we pay your income tax 3 years from now.
Does Freddie Mac Deserve Another $10.6 Billion? [View article]
The Chinese and other bond holders can be replaced with T-Bills or new state bonds with federal guarantees. The structure of Freddie Fannie could move to state advised agencies. Even the Chinese would agree its easier to see the credit issue if its broken out for them. Then rates can rise or fall as they need to to match the risk. The feds could put a collar around this so nothing floats more than say 25 to 50 basis points. This is the true power of a federalist system.
No national write offs are coming. Our system, with its pension, taxes, and banks are built for inflation. Even just a touch of it over time is awesome.
Why isn't the government following Canada's leadership and offering 45 year loans. Hell, for the elderly bankrupt builders we should offer 100 year am's if the kids will sign the new paper. Its just math folks, please allow the income side to rule the day, the balance sheet will follow. Get out your loan calculator and start running the payment on a 200 year loan, who cares, at least it is a start to seeing cash.
Why they are not recommending this trick is beyond me. When the Fed President gets up tells us he supports relief, let's all do it, it's just math......
FDIC Takes a Hit in Puerto Rico. Are the Agencies Next? [View article]
I agree with you but the government needs to make it look like a continuation of cheap/always available financing. That was their initial purpose and no politician wants to be remembered as the guy that took away your home loan.
What do you think of the idea to split them into 50 state agencies? Or do you think over time this business should just go back to the originating bank? Wouldn’t they need close to 5 trillion in new deposits to make these loans?
FDIC Takes a Hit in Puerto Rico. Are the Agencies Next? [View article]
Bruce great quote:
"If we ever get around to addressing the problems of the Federal Government’s role in the mortgage market"
Republicans need to make this the big sticking point in the debate about financial reform. They may have wasted time being drawn into other parts of the debate but how are they going to bring this back to the center?
You can't replace something with nothing, so at minimum they should ask to break these lenders up into regional or state lenders. At least then the underwriting, work-out, servicing, etc would be closer to the collateral. It would be a start but not a fix to cheap easy money.
Do you know of any other solutions to unwinding Freddie and Fannie? Everything I read shows them getting bigger and more insolvent.
The role these consolidated lenders have played in the nation’s recession is huge. Every unemployed home builder who worked their way through other recessions have talked about in the past they just got and moved their business to a different state that was healthy. By having one single national lender it got rid of this safer more distributed lending structure. And it created a system whereby risky Nevada home speculators paid the same rate as safe North Dakota home owners.
Nowhere to Hide From the Volcker Rule [View article]
Great post Bo.
I think the Witnesses in all of the congressional testimony endorsed the Volcker Rule better than any other supporter has so far. They sat there all week long and explained to the Congress how they screwed people out of their money legally by being the house, bookie, and better all at the same time.
I suspect that if Congress doesn't bring back Glass-Steagall new companies should. They should just come out and explain they either are market makers or regulated banks, not both.
This change will be a great new opportunity for independent hedge funds and will shrink these massive TBTF’s.
Buffett, Munger Support Regulation and Consequences – For Others [View article]
Great point Ravi, we should judge them on their actions.
They don't want to regulate derivatives. They ignore the role derivatives played in the meltdown.
Instead of offering up a solution to this mess they just said “Don't regulate me, don't touch my float, I am honest, honestly, you can trust me, I didn't cause this problem so I shouldn't have to pay for any new regulation.”
Please point me to a link that describes how the great leaders of BRK would suggest our nation move forward on this complicated mess. Assuming you think this is a mess?
Buffett, Munger Support Regulation and Consequences – For Others [View article]
Yes Ravi it was just pure chance that Buffett's Senator broke with every other democrate to nix the new regulations.
But Senator Nelson didn't do anything wrong. Conflict of interest and ethics have no legal standing in democracy they only matter in corporate law. By being a shareholder in BRK Senator Nelson didn't break any law by killing policy that would hurt the company he owns shares in.
If I did this on any board I serve on I would be asked to resign and subject myself to shareholder lawsuits but in democracy as you point out its fully legal.
What a great system we have and it's working so well. Given enough Keynesian cash we can keep this going and going and going............f...k common sense, logic and conflict of interest these things just don't matter......
Buffett, Munger Support Regulation and Consequences – For Others [View article]
Buffett and Munger need to explain to our nation how BRK is any different than AIG, Lehman, and LTCM. All three of those very ex-distinguished business are gone thanks to derivatives.
BRK is a regulated insurance company.
Buffett and Munger are forgetting that 10% of our nation is unemployed right now, deficits and debt are at record levels, a record number of people have lost their homes.
The taxpayers saved Buffett from having to "stare into the abyss" now it’s his turn to repay us.
Buffett is showing his true colors, this man hasn't created anything in his whole life, he has only made good bets. When he is gone his company will be run by folks that will start making bad bets. What a great legacy to leave.
He gave all of his money to the Gates family, so they could impose an income tax on the State of Washington, build a half a billion dollar headquarters, try to save sick people in Africa, and re-prop up America’s booming welfare system. Why don’t these f…ckers just pay their taxes like good American’s are suppose to, and leave policy up to the democracy that gave them so much.
Please support a 1% levy on all non-profit endowments and support a capital gains tax on foundations.
Also watch the effect of Buffett having to redo all of his, my stock is too holy to buy crap now that he needs to unload his fortune on the market. Hence a lower stock price, dividends, and every other trick he can use so people will let him give away his money. All actions he has argued against his whole life.
Bair and the FDIC are playing by 2 different rule books. One for the TBTFails and one for the rest of the nation’s banks. TBTF's get 4% cap ratios + TARP + interest free lines from the FED. Everyone else gets 10-13% cap ratios, no lines, stiff mark to market accounting standards, and put out of business with no respect to the bankruptcy laws or bond holders. What a bunch of BS?
How can this end well?
After all of this crap why can't she see that the American public needs to be told that justice is coming, fair play is coming. Not consumer protection BS. She tells us we need derivative trading within regulated banks because the system worked so well. How does she sleep at night, who does she work for, where does she think the 180 billion that went to AIG came from? Why does she think the system is working?
People in my State are retiring to Mexico, moving to Costa Rica, my peers are moving/doing more business in Canada. This ends badly for the US.
Through all of this the state department of financial institutions sit there and take it. So what does Bair and the FDIC do, they put the squeeze on harder and harder.
I thought by joining the Democrats I might be part of a larger reform movement. HaHa. I guess I better start supporting Ron Paul. He needs to support moving the Fed to St. Louis or something. Our state Republicans might have been right by nominating him over McCain.
Thanks for letting me vent, now I’ll get back to my midlife crisis.
Should We Ban Naked CDS? [View article]
After all governments sanaction systems just to make sure people can make money, governments are not set up to look out for what benefits of society.
I am so glad I can come to Seeking Alpha and learn so much how a great nation should be managed. This whole idea of laws, justice, regulation, what a bunch of out dated thinking.
Mr. Delong please move to Cuba, where they sanction stealing private property. How you can defend the utility of this crap, after this mess, is beyond me.
Let me know what country you are shorting next, since I can't beat you I might as well join you.
Does Freddie Mac Deserve Another $10.6 Billion? [View article]
Give all of the performing loans to JP Morgan and then give the Chinese the homes that aren't paying. Then have the US accept about 3 million new Chinese home owners. They have a population problem, we have a NPA problem. Its fixed just like that. No more Freddie, Fannie.
The problem with the above is the end of cheap money and the US crashes.
Derivatives of Mass Destruction: From 'Fat Man' to 'Fat Finger' [View article]
We really shouldn't regulate these things though, trading them and god forbid the ablity to transfer this risk to others might leave our country. Oh, no.
Buffett can't spare any of his float, they need to ban naked shorting, naked CDS, naked anything. They need to ban some things.
Buffett, Munger Support Regulation and Consequences – For Others [View article]
I may disagree with the constitutionality of a State Income Tax in Washington State, so please consider withdrawing your support for this new tax. It will crush immigration, one of the main economic drivers in our State. Do you have any idea the depth of the housing crisis in your community? Half of our state chartered banks are being put out of business right now, today.
What are you trying to do? Why now to release this new tax?
The voters need to hear 3 things across the board from government right now today….10% less tax, 10% less government employees, and 10% less government pension benefits. How you cannot see this I do not understand? Our economy booms, people keep moving into the State, and we pay your income tax 3 years from now.
FDIC Takes a Hit in Puerto Rico. Are the Agencies Next? [View article]
Does Freddie Mac Deserve Another $10.6 Billion? [View article]
No national write offs are coming. Our system, with its pension, taxes, and banks are built for inflation. Even just a touch of it over time is awesome.
Why isn't the government following Canada's leadership and offering 45 year loans. Hell, for the elderly bankrupt builders we should offer 100 year am's if the kids will sign the new paper. Its just math folks, please allow the income side to rule the day, the balance sheet will follow. Get out your loan calculator and start running the payment on a 200 year loan, who cares, at least it is a start to seeing cash.
Why they are not recommending this trick is beyond me. When the Fed President gets up tells us he supports relief, let's all do it, it's just math......
Does Freddie Mac Deserve Another $10.6 Billion? [View article]
Do you have any insight on how they are going to break them up or wind them down and still keep lowering the cost of home financing?
FDIC Takes a Hit in Puerto Rico. Are the Agencies Next? [View article]
What do you think of the idea to split them into 50 state agencies? Or do you think over time this business should just go back to the originating bank? Wouldn’t they need close to 5 trillion in new deposits to make these loans?
FDIC Takes a Hit in Puerto Rico. Are the Agencies Next? [View article]
"If we ever get around to addressing the problems of the Federal Government’s role in the mortgage market"
Republicans need to make this the big sticking point in the debate about financial reform. They may have wasted time being drawn into other parts of the debate but how are they going to bring this back to the center?
You can't replace something with nothing, so at minimum they should ask to break these lenders up into regional or state lenders. At least then the underwriting, work-out, servicing, etc would be closer to the collateral. It would be a start but not a fix to cheap easy money.
Do you know of any other solutions to unwinding Freddie and Fannie? Everything I read shows them getting bigger and more insolvent.
The role these consolidated lenders have played in the nation’s recession is huge. Every unemployed home builder who worked their way through other recessions have talked about in the past they just got and moved their business to a different state that was healthy. By having one single national lender it got rid of this safer more distributed lending structure. And it created a system whereby risky Nevada home speculators paid the same rate as safe North Dakota home owners.
Not a good thing.
Buffett, Munger Support Regulation and Consequences – For Others [View article]
I still think it is a bit of a double standard to say their paper doesn't stink but others require more regulation.
I hope clearer heads prevail on this one.
Nowhere to Hide From the Volcker Rule [View article]
I think the Witnesses in all of the congressional testimony endorsed the Volcker Rule better than any other supporter has so far. They sat there all week long and explained to the Congress how they screwed people out of their money legally by being the house, bookie, and better all at the same time.
I suspect that if Congress doesn't bring back Glass-Steagall new companies should. They should just come out and explain they either are market makers or regulated banks, not both.
This change will be a great new opportunity for independent hedge funds and will shrink these massive TBTF’s.
Buffett, Munger Support Regulation and Consequences – For Others [View article]
They don't want to regulate derivatives. They ignore the role derivatives played in the meltdown.
Instead of offering up a solution to this mess they just said “Don't regulate me, don't touch my float, I am honest, honestly, you can trust me, I didn't cause this problem so I shouldn't have to pay for any new regulation.”
Please point me to a link that describes how the great leaders of BRK would suggest our nation move forward on this complicated mess. Assuming you think this is a mess?
Buffett, Munger Support Regulation and Consequences – For Others [View article]
But Senator Nelson didn't do anything wrong. Conflict of interest and ethics have no legal standing in democracy they only matter in corporate law. By being a shareholder in BRK Senator Nelson didn't break any law by killing policy that would hurt the company he owns shares in.
If I did this on any board I serve on I would be asked to resign and subject myself to shareholder lawsuits but in democracy as you point out its fully legal.
What a great system we have and it's working so well. Given enough Keynesian cash we can keep this going and going and going............f...k common sense, logic and conflict of interest these things just don't matter......
Buffett, Munger Support Regulation and Consequences – For Others [View article]
BRK is a regulated insurance company.
Buffett and Munger are forgetting that 10% of our nation is unemployed right now, deficits and debt are at record levels, a record number of people have lost their homes.
The taxpayers saved Buffett from having to "stare into the abyss" now it’s his turn to repay us.
Buffett is showing his true colors, this man hasn't created anything in his whole life, he has only made good bets. When he is gone his company will be run by folks that will start making bad bets. What a great legacy to leave.
He gave all of his money to the Gates family, so they could impose an income tax on the State of Washington, build a half a billion dollar headquarters, try to save sick people in Africa, and re-prop up America’s booming welfare system. Why don’t these f…ckers just pay their taxes like good American’s are suppose to, and leave policy up to the democracy that gave them so much.
Please support a 1% levy on all non-profit endowments and support a capital gains tax on foundations.
Also watch the effect of Buffett having to redo all of his, my stock is too holy to buy crap now that he needs to unload his fortune on the market. Hence a lower stock price, dividends, and every other trick he can use so people will let him give away his money. All actions he has argued against his whole life.
Regulatory Capture Defined: FDIC's Sheila Bair [View article]
How can this end well?
After all of this crap why can't she see that the American public needs to be told that justice is coming, fair play is coming. Not consumer protection BS. She tells us we need derivative trading within regulated banks because the system worked so well. How does she sleep at night, who does she work for, where does she think the 180 billion that went to AIG came from? Why does she think the system is working?
People in my State are retiring to Mexico, moving to Costa Rica, my peers are moving/doing more business in Canada. This ends badly for the US.
Through all of this the state department of financial institutions sit there and take it. So what does Bair and the FDIC do, they put the squeeze on harder and harder.
I thought by joining the Democrats I might be part of a larger reform movement. HaHa. I guess I better start supporting Ron Paul. He needs to support moving the Fed to St. Louis or something. Our state Republicans might have been right by nominating him over McCain.
Thanks for letting me vent, now I’ll get back to my midlife crisis.