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  • President Obama speaking on events in Egypt. "There are very few moments when we get to witness history. This is one of them." EGPT +4.7%.  [View news story]
    I hope Obama is history soon.
    Feb 11, 2011. 03:11 PM | 7 Likes Like |Link to Comment
  • The U.K.'s massive household debt, much of it tied to short term rates, may give the BoE no choice but to let inflation get out of control. Even a modest rise in rates would cause such a hike in debt service payments as to squelch any recovery. Of course, savers would benefit, but they don't count.  [View news story]
    "Of course, the obverse of this is that savers would gain. But savers have a lower propensity to spend than borrowers, which means any rate hike would slow growth."

    Spending is not growth it is only the result of growth. The increase of productive capacity (aka saving, investment, and production) is true growth.

    This is simple economics yet somehow Western countries have it 100% backwards. Amazing.
    Feb 11, 2011. 03:02 PM | 3 Likes Like |Link to Comment
  • Jim Cramer shouldn’t get off easy with his transformation from “short Exxon” (XOM) to “it has much more room to run” without saying he's wrong, Todd Sullivan writes. Little has changed at XOM, so Cramer might as well have "just use[d] a coin" in offering his opinion, Sullivan says. Where's the responsibility of a commentator when changing his mind on a stock?  [View news story]
    Cramer is essentially a weather man. He makes forecasts that he has no accountability for and then changes course when he is wrong.
    Feb 9, 2011. 10:05 AM | 2 Likes Like |Link to Comment
  • Obama will ask Congress next week to approve a six-year, $53B program for construction of a national high-speed and intercity rail network. GE Transportation President Lorenzo Simonelli, whose company is the leading manufacturer of diesel electric locomotives, welcomes the plan.  [View news story]
    This wreaks of fascism. The government controlling big corporations. Obama is micromanaging the economy. He knows better than millions of market participants. This makes me sick.

    And don't even want to hear the argument that we're falling behind China. China is a completely different land mass with large cities separaated by thousands of miles with literally nothing in between. Most of their population doesn't own cars. Maybe it makes sense for them but not us. They are also somewhat centrally planned. What a joke.

    Feb 8, 2011. 06:12 PM | 4 Likes Like |Link to Comment
  • "I'll go anywhere anytime to be a booster for American businesses, American workers, and American products," Pres. Obama tells the U.S. Chamber of Commerce. Companies need to take an active role in lifting the shaky economy, and the government needs to 'knock down' obstacles to business growth.  [View news story]
    He can remove obstacles by getting the government out of the way! Let the free market allocate resources. The government only has what it takes from other businesses and citizens.
    Feb 7, 2011. 02:36 PM | 10 Likes Like |Link to Comment
  • "It is important to understand the Fed's role in creating today's unemployment crisis, while also highlighting that high unemployment and low economic growth can persist even in the face of tremendous monetary inflation," says Ron Paul, announcing hearings into the Fed's impact on job creation.  [View news story]
    I've seen Ron Paul grill Bernanke before and this should be good. I can't wait to hear how he answers the inflation question.
    Feb 2, 2011. 06:20 PM | Likes Like |Link to Comment
  • If You're Going to Do Economics, Don't Do Macro [View article]
    Couldn't agree more. If you are thinking of taking Economics in college, save yourself 100K and pick up a book written by an Austrian economist.
    Feb 2, 2011. 04:58 PM | 5 Likes Like |Link to Comment
  • The Fed is beyond reform until we "end up with a real crisis," Ron Paul tells Business Insider. "I'm not optimistic that all of a sudden the Fed's going to be restrained, but when this inflation hits us and we see prices going up and interest rates going up, I think then they're going have to [change]."  [View news story]
    Hey bbro,

    If you implement the Austrian solution after decades of Keynsian policies created huge problems then of course you will have a depression. The economy must rebalance. We are addicted to artificially low rates, stimulus, government spending, bailouts, federal guarentees all a result of Keynsian policy. Once you stop taking the drugs you will have some withdrawal. But it is needed and must be done ASAP.
    Feb 1, 2011. 03:36 PM | 4 Likes Like |Link to Comment
  • China's Inflation Problem Looms Large [View article]
    In addition the all the excess Yuan bidding up consumer prices it has also inflated a pretty large real estate bubble. The average Chinese do not have access to many investment options so they see buying a house as a store of wealth. Many are calling for a collapse in this bubble but it will be interesting to see how it plays out. The bubble is much more stable than ours due to stringent lending practices, and consumption habits. Nonetheless, the Chinese economy has gotten extremely out of balance in many areas. They have the tools to absorb it but need to stop current policies fast.
    Jan 20, 2011. 08:38 AM | 1 Like Like |Link to Comment
  • As President Hu visits Washington, it's worth asking what Plan B is if U.S.-China relations take a turn for the worse and China dumps its trillion-dollar holdings of U.S. Treasurys. China could justify pulling back if the dollar were to plunge due to a U.S. failure to curb its budget deficit and debt; "we could be at a tipping point," one economist says.  [View news story]
    To your points:

    1.) If interest rates go up it will increase the cost of servicing our debt exponentially. Remember that our deficit is funded with mostly short term debt. This would also crush all the other debtors in our economy which, unfortunately, is the majority of people.

    2.) They have to cut their losses eventually. A bank will not keep lending to a bankrupt company just so it doesn't have to right off their losses. They won't keep throwing good money after bad. Also, if they stay on this path their economy will eventually blow up causing them to be forced to stop buying our debt because they won't have the money.

    3.) Dropping the dollar peg is the best thing they can do and will cause prices of all goods made in China purchased in America to rise substantially.

    All of these seem pretty bad to me.
    Jan 19, 2011. 03:21 PM | 2 Likes Like |Link to Comment
  • Goldman Sachs (GS) will only allow non-U.S. investors to take a stake in Facebook, saying it "concluded the level of media attention might not be consistent with the proper completion of a U.S. private placement under U.S. law." Whoops.  [View news story]
    Facebook valued at 50 billion is absurd so let foreigners buy shares of another bubble. Just like GS packaged all those mortgages together and sold them overseas.
    Jan 17, 2011. 01:30 PM | 11 Likes Like |Link to Comment
  • The most revealing statement from Goldman's (GS) report on its business standards: “We consider our size an asset that we try hard to preserve.” Conspicuously absent from the report, Simon Johnson says: How big banks can have big negative effects on the overall economy. "The entire 67-page report reads like an exercise in misdirection."  [View news story]
    The only size that is a problem is size of government. Big banks are not a problem by themselves if they are allowed to grow in a capitalistic and competitive environment. The problem comes when government overregulates the banks and creates huge moral hazards and an unlevel playing field. When regulations are introduced big banks have a huge advantage because they have the resources to pay for the compliance. This creates an uncompetitve and facist state.
    Jan 13, 2011. 09:49 AM | 1 Like Like |Link to Comment
  • Quepasa: The Only Publicly Traded Social Network (Part 3) [View article]
    According to this website - - Quepasa or someone using Quepasa is stealing gmail contacts and using them to spam emails send friend requests, etc. This may explain the disparity between new users and unique visits per user. If people are signing up just because they got spammed and not truly interested in the site then they are probably less likely to revisit the site.
    Jan 12, 2011. 08:42 AM | Likes Like |Link to Comment
  • Minneapolis Fed President Narayana Kocherlakota defends the Fed from charges it caused the housing bubble and says GDP would have fallen even more and unemployment would have been well above 10% if the Fed hadn't increased the monetary base. The U.S. economy probably will grow “slightly more rapidly” in 2011 than last year, he adds.  [View news story]
    Sure bbro the American consumer is to blame as well but when you serve alcohol to a party full of teenagers and then they all get drunk, who do you really blame? The parents or the teenagers?

    The Fed set interest rates low after the Nasdaq bubble and penalized savers. Then sent out stiumlus checks, welfare checks, unemployment checks, etc. So when noone saves, are you surprised?
    Jan 11, 2011. 04:00 PM | 4 Likes Like |Link to Comment
  • Minneapolis Fed President Narayana Kocherlakota defends the Fed from charges it caused the housing bubble and says GDP would have fallen even more and unemployment would have been well above 10% if the Fed hadn't increased the monetary base. The U.S. economy probably will grow “slightly more rapidly” in 2011 than last year, he adds.  [View news story]
    Of course...

    When you increase the monetary base by 2 Trillion and keep rates artificially low, more money gets spent and buoys GDP. But at what cost? All we are doing is going deeper into debt to spend money and use resources while not addressing the structural issue of our economy - we don't produce enough and spend too much.

    All the Fed is doing is keeping the music playing for a while longer by sacrificing our future for fake GDP growth now. The bigger crises still looms.
    Jan 11, 2011. 03:46 PM | 7 Likes Like |Link to Comment