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  • Another Reason I Hate Co-Ops

    I know I am talking to myself, but I just needed to post another reason why I hate Co-Op's.

    These include Credit Unions and REI.

    Many times on this site I have argued against these models of ownership.

    In my community there are more and more Non-Profits, Co-Op's, Credit Unions and other non-capitalistic organizations.

    Others on this site have argued that these models are not inherently bad and provide jobs etc.

    Besides not paying taxes, which really gripes me, here is the latest reason these entities shouldn't be allowed in America.

    The above is the link to REI's pension, its a 401 K at Charles Schwab.

    Guess how that money is invested? In for profit companies. This is the long term problem with all of us working for foundations, non-profits, credit unions and co-ops. Who pays for the retirees?

    That is what a for-profit business supplies, a means to retire. A means to pay a non-working partner etc.

    How can our system continue this way, it's not fair. REI doesn't pay tax. Credit Unions don't pay tax, and then on top of all of that they need to suck up to Capitalistic companies to pay for them in old age.

    This is BS, and if the trends continue is another reason the limited for profit stocks will be bid up to higher and higher prices.

    Thanks for letting me rant.

    Nov 12 11:52 AM | Link | Comment!
  • Banks Over Reserved Over Capitalized And Under Valued

    If you think the economy is improving keep reading....if you don't skip this blog.

    Currently banks in my state are holding unprecedented levels of capital and reserves. In some cases 300% more of each. They are also being valued on the stock market today at 75% book where at times in the past they got up to 200% of book.

    What happens now? Has this ever happened before?

    Do you really think these banks can all triple their balance sheets and apply the capital? No they can't? Do you think any board is going to merge and give away this capital at less than par. No way.

    So what happens?

    I bet share buy backs.

    I wish the government would De-Tarp these banks.

    I wish the shareholders could return these excess funds tax free. But they can't so watch for share buy backs. Watch for mergers where by one bank uses the other banks capital and reserves to buy out the stupid shareholders who get out at these prices. Wall street merger advisors where are you when these banks need your advice. Let's get creative and help these bankers spend their money. They have too much in my opinion.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Nov 30 12:08 PM | Link | Comment!
  • Read Kevin Villani

    He has a different take on the crises. Let shorts short

    "markets can become unbalanced, but they generally correct themselves"

    and get the GSE'S out of the market.

    "public protection and the associated prudential regulation had trumped market discipline"

    Rates will go up, commercial banks will grow market share, China will move there money and home ownership rates will drop.

    Jun 06 9:40 PM | Link | Comment!
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