Jason Z

Countrywide Exec Warned the Fed About Toxic Mortgages

Well this guys certainly can't pick good employers. After Countrywide folded, he joined WAMU as chief risk officer, then 5 month later, WAMU imploded and was sold to chase.


On Jun 10 12:15 PM HBWOW wrote:

> Where is McMurray now??? Why not place him at the head of TARP administration
> or better yet, head of SEC. We need honest people like him in a
> position of regulation and scrutiny.

Why Shorting the Market Makes Sense Above 980

Household income is not equal to individual income. There is usually 2 income earners in a household. But I agree $10 hour is too low. Average individual income is more likely around $15-$20.


On Jun 05 09:11 AM Steve in Greensboro wrote:

> Thanks, GD, for the interesting article. I was 100% with you in
> the first paragraphs (about the camoflaged weakness in U.S. banks),
> but you lost me with the numerical example.
>
> Median annual household income in the U.S. in 2007 was roughly $50k
> (wikipedia: household incomes in the U.S.) which translates into
> $24/hour or $4,200 per month. Your $10/hour value translates to
> $20k per year.
>
> Housing values are going to be crippled going forward not so much
> due to slow income growth (although that will be a factor), but rather
> due to demographic changes (slower population growth in the U.S.)
> and huge increases in long term interest rates due to monetary inflation.
> We are beginning to see this play out now.

The Bailout Index Soars Past the Market Indexes

When they are oversold, they can be a good investment opportunity. For example BBT was selling for $13 a share back in March, now $21.65. BBT received tarp funds but it is still a great bank.

On Jun 03 03:54 PM Prudent Man CFA wrote:

> To need a bailout you by definition have terrible management. Who
> with a brain would knowingly invest in a poorly managed company.
> If they were to "outperform" would really be a perversion of reason.

The Danger of Leveraged ETFs

Well, in the long run, all the 2X, 3X ETF will go to near zero, because the underlying instrument is options, not stocks, there is time decay.

It's the First of the Month

Past performance is meaningless for future results. The trend has reversed and we will see more up days than down days.

Actually, Americans Are Not Saving Yet

Sometimes you have to sacrifice in the short term to gain in the long term, or that's what Obama said.

This Rally Might Still Have a Chance

This rally is a trend reversal, of course it still have a chance.

Three Main Reasons for GM's Slow Decline

I think the main reason is that most GM vehicles are ugly, they fail at design :)