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  • Cyprus Seizure Is Dawn Of European Bank Run [View article]
    a free market is a free market. a libertarian wouldn't "yank" any money out of a bank. it does have a right to do business. however, it might require100% reserve, which would slow down lending... but it also would slow down debt [take your pic which is better]

    you don't actually need debt to banks to expand a business... hence the stock market, bond market?

    but i know you were just kidding. but in case some diehard liberal leftist democrat reads your comment and reaffirms their utter terror and fear of a libertarian party takeover and ousting of the crony capitalism that is going on in Washington, I had to respond.

    i know you're smarter than that, but ... it's those other looney americans that voted for a 2nd term of Obama, I don't trust.
    Mar 24, 2013. 11:41 PM | 1 Like Like |Link to Comment
  • The Cyprus Threat [View article]
    people are not paying enough attention to what is going on in Cyprus. And, by people I mean you and me. Russia is not part of the EU and the EU is trying to make deals behind closed doors, excluding Russia, who is a major depositor in Cypriot banks, to the tune of $30B. When they proposed that all depositors take a haircut of ~10% tax for deposits, Russia was infuriated. They had been excluded from the discussions. Luckily the Cypriot parliament voted it down. Russia has come back with its own bailout proposal, which includes giving it rights to Cyprus' off shore natural gas.

    This has the potential to spark another European war (euphemistically called world wars) The first European war started with less than this.
    Mar 20, 2013. 08:27 PM | Likes Like |Link to Comment
  • Cyprus Seizure Is Dawn Of European Bank Run [View article]
    There's the leftist way of looking at this and the libertarian way of looking at this.

    The leftist ways says that depositors should be untouched and their deposits made whole. The view is that the depositors are peripheral participants in the banks.

    The libertarian way of looking at it, is that depositors are direct participants in the banks and by making them take a haircut, they will take an active future role in the shaping of the financial policies and endeavors of the banks.

    That is to say that depositors will actively monitor the actions of the banks and should the bank endeavor into risky ventures, the depositors will cry foul and / or remove their assets from the banks, which will lead for conservative bank behavior.

    By having 100% deposit insurance, the depositors not only don't have a say in a bank's behavior, they could care less what the bank gets itself into.
    Mar 19, 2013. 03:26 PM | Likes Like |Link to Comment
  • GDP Q4 : -0.1% vs. +1.0% consensus, +3.1% prior. [View news story]
    From my very unskilled analysis, I think a few things are going on here.

    1. I think this number is completely manipulated. I don't think GDP went down 0.1% I would venture GDP is down3% - 7%.

    2. we are still not getting anywhere near the real unemployment / labor rates. millions have fallen out of the labor pool and are not being counted. not only are they not counted, they will not be returning because their jobs are not returning. The millions of jobs we lost almost none will return.

    3. the 3% tax hike on payroll / income is not new, but you then have to remember back to 2008 when Obama promised to "lower" taxes, only to lower the front end and raise the back end, so that paychecks did not go down, but up. in the aggregate, main street is on the chopping block.

    4. there is no 0% tax rate bracket any longer. this is unprecedented. i don't even know what they hope to gain from people that make $10,000 / yr. it will push them to get onto public assistance, which will be more than they could ever hope to contribute in income taxes. its a shot to the groin area, in my opinion.

    This tiny bit of news is just one piece in a very large puzzle. we cannot concentrate on this one piece and make judgments just based on this one pice, but must fit it into the entire tapestry and then make judgments.
    Jan 30, 2013. 06:53 PM | Likes Like |Link to Comment
  • Dividend Yield Update For Dow Jones And NASDAQ As Of February 2012 [View instapost]
    sitting for my cfa next year, i was trying to practice on real world numbers. this might be a stupid question but... so I calculated the total yield on the s&p 500 - p/e ratio inverse yield + dividen yield @ 7.99% or ~ 8%, but I can't seem to do the same thing for the dow 30?
    Sep 11, 2012. 05:44 AM | Likes Like |Link to Comment
  • Why the U.S. Prefers Quasi-Nationalization of Big Banks [View article]
    I guarantee this is all The Federal Reserve Bank's doing. At the heart of the matter the bankers want to control the entire economies of many nations, including the U.S. economy. If you disagree, please see Argentina. And, if you still think that's some isolated case please see other South American countries and other 3rd world robust once rich nations. They are now trying to visit the same strategies on U.S. soil. The only thing is, the previous stuff was just practice. The U.S. economy is so huge that local economies can nearly be autonomous to the goings on in Washington.

    In the end they want even small businesses to have to answer to Bernanke. If you think this is far fetched, in Argentina by changing bank rates, credit rates, interest rates, they wiped out entire city economies overnight. Shops that had been in business for decades closed down, industries closed down, there was no intermediary market credit to make payroll or buy supplies.
    Apr 24, 2009. 12:00 PM | Likes Like |Link to Comment
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