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kmi

kmi
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  • The U.S. budget deficit should rise to $1.48T, or 9.8% of GDP, by the end of the current fiscal year, largely because of the extension of lower tax rates, the Congressional Budget Office says. Zero Hedge believes the U.S. will need to issue some $5T in debt during the next three years to fill the gap, meaning "QE3 is guaranteed, and we are stunned that the market continues not to realize this."  [View news story]
    " we are stunned that the market continues not to realize this."


    "QE3 is gooooood!" said Mr. Market.
    Jan 26, 2011. 01:02 PM | Likes Like |Link to Comment
  • Morgan Stanley says the market is in the middle of a “multi-year bull cycle for equities,” according to its most recent global investment report. It expects U.S. and global EPS growth near 15%, remaining overweight in equities, commodities and REITs, and underweight cash and bonds.  [View news story]
    Yeah!

    Multiyear bull! Anyone not know this yet? Let's all ride the bull!

    Where's the dumb money?

    What do you mean there is no more dumb money left...

    Damn...
    Jan 26, 2011. 10:37 AM | Likes Like |Link to Comment
  • Many CEOs react with skepticism about Obama's ability to deliver on State of the Union proposals to lower corporate taxes, but they appreciate his changed tone. His speech was "business focused" and a welcome move to the center, Blackstone (BX) CEO and Obama critic Stephen Schwarzman says.  [View news story]
    " a welcome move to the center, "

    Let me add the context to make this clearer:

    "...from the right..."
    Jan 26, 2011. 10:32 AM | Likes Like |Link to Comment
  • Google's (GOOG) leadership shuffle doesn't change its need for "adult supervision," Bill Saporito writes. Google's "engineers still can devote 20% of their time to doing their own thing. That’s entrepreneurial, but in a company that now has tens of thousands of employees it makes for a lot of unfocused work." Larry Page would seem to be "everything Google doesn't need right now."  [View news story]
    Yep I've seen it a lot, it's an issue of needing someone who knows how to move around the business world.

    I have family who have employed a similar strategy with their tech company - they know the tech end but needed an experienced seasoned corporate guy to actually run the thing.

    These guys didn't go to business school, they studied engineering and tech, it takes a while to catch up.
    Jan 25, 2011. 01:18 PM | Likes Like |Link to Comment
  • Google's (GOOG) leadership shuffle doesn't change its need for "adult supervision," Bill Saporito writes. Google's "engineers still can devote 20% of their time to doing their own thing. That’s entrepreneurial, but in a company that now has tens of thousands of employees it makes for a lot of unfocused work." Larry Page would seem to be "everything Google doesn't need right now."  [View news story]
    Meh, I think the change in leadership was precisely what everyone is claiming it was NOT - part power struggle, part new direction.

    To illustrate the point: Microsoft was known for copying what it couldn't acquire. In techie circles this was considered "evil." Google's original mantra was "do no evil." The Groupon situation - with Google now copying what it couldn't acquire shows how Google is now breaking the mantra.

    Apparently, prior to the change in leadership, precisely this sort of issue was rising more and more frequently, either, pushing Google as an innovative tech giant while giving elbow room to startups - or playing the big tough incumbent, crowding out competitors and stepping on the newbies. The prior management structure favored the former, this structure favors the latter.

    I expect Google to become more aggressive, acquisitive, and push hard to monetize its businesses in a way it hadn't before. This is why Google is now "grown up".

    It's not a about a tech guy trying to run a business, it's about a businessman who has learned what it takes to takes to run a successful tech company.
    Jan 25, 2011. 01:02 PM | Likes Like |Link to Comment
  • Hedge fund Paulson & Co. told investors it made over $1B from its Citigroup (C) stake over the last 18 months. In its end-of-year letter, the fund reiterates its bullish view on the U.S. economy, and says the recently extended Bush-era tax cuts "will be an additional trigger for higher growth in 2011."  [View news story]
    So much trash talking on C here at SA from the folks having a political to grind, hope those of you actually "seeking alpha" didn't miss this one...
    Jan 25, 2011. 07:40 AM | Likes Like |Link to Comment
  • A view on China's building boom in a single stark visual: Look at Shanghai in 1990 and again in 2010.  [View news story]
    Looks like they ran out of land to build on!
    Jan 20, 2011. 02:14 PM | Likes Like |Link to Comment
  • Wal-Mart (WMT) plans to reformulate thousands of products to make them healthier, and will push its suppliers to do the same. Sources say first lady Michelle Obama will join Wal-Mart executives at an event today to launch the effort.  [View news story]
    End result: lower national cholesterol levels lead to higher national productivity and GDP! Go Walmart!
    Jan 20, 2011. 10:42 AM | Likes Like |Link to Comment
  • Big airlines see 15% higher fuel costs this year, but they aren't the only businesses likely to be impacted by commodity price inflation in 2011, 24/7's Doug McIntyre writes - it will hurt industries from restaurants to automakers to home builders to retailers that sell cotton clothing. "Time to drop earnings estimates," he warns.  [View news story]
    That's a good point, watch for the guys who haven't hedged or who's hedges are expiring, higher energy should also hurt utilities since utility rates can't fluctuate.
    Jan 20, 2011. 10:38 AM | Likes Like |Link to Comment
  • Fear of falling home prices and credit availability is only part of what's holding down the housing market; distrust of the mortgage industry is right up there, FHA's Dave Stevens says. "Servicers did not build their operational capabilities; they're not treating consumers fairly with the right trained staff with the right processes."  [View news story]
    The mortgage industry is screwed since underwriting standards are super tight, refinancings to take advantage of historically low rates are all but done, and lots of products have been taken off the market.

    Stick a fork in it, it's done.
    Jan 19, 2011. 05:40 PM | Likes Like |Link to Comment
  • Rising inflation pressures in emerging market nations will make the U.S. and Europe better investments in 2011, Marc Faber says, since monetary authorities in China, India, et. al., will need to tighten or let inflation accelerate, weakening their equities. Investors looking for an inflation hedge should buy oil, which Faber says will rise regardless of what happens in the global economy.  [View news story]
    Yeah Brazil is already crying....

    www.businessweek.com/n...
    Jan 19, 2011. 03:35 PM | Likes Like |Link to Comment
  • GE's latest deal with China "sounds as if one of America's leading technology companies has decided to sell some of this country's crown jewels to ensure access to China's rigged market, potentially jeopardizing the competitive advantage enjoyed by this country's leading export industry [avionics]," Steven Pearlstein writes. "What's good for GE [is] certainly not good for America."  [View news story]
    Yes I'll disagree. The belief that a wholesale transference of US wealth to China can happen after a decade of Chinese growth is flawed on lots of levels. Let's chat again 10 years from now.
    Jan 19, 2011. 03:31 PM | Likes Like |Link to Comment
  • FDIC's Sheila Bair rejects a controversial idea to require home buyers to make a 30% down payment to purchase a home, arguing the traditional 20% figure should remain the industry standard. Bair is one of several regulators attempting to create a new standard for "safe" mortgages in the wake of the financial crisis.  [View news story]
    Agreed; at the top no doc no money down 107% mortgages were being sold, that extra 7% was for closing costs.

    Is it any wonder someone with no money in their house whatsoever would be willing to walk away from it?
    Jan 19, 2011. 03:25 PM | Likes Like |Link to Comment
  • Rare earth exports from China dropped only 9.3% less year, far less than the 40% cuts bandied about. Did China mess up its quotas, or was all that talk for the benefit state-owned miners who saw the value of their holdings skyrocket. (MCP) -4.37%. (REE) -5.67%. (SHZ) -19.36%. (AVL) -5.6%.  [View news story]
    Perhaps China's shutdown of the black marketeers reflects on that remaining 31%....
    Jan 19, 2011. 03:18 PM | Likes Like |Link to Comment
  • Bearish bets on Apple's (AAPL +1.3%) stock price surged last Friday, the final day of trading before the announcement that Steve Jobs would take a medical leave of absence. The action could have reflected investors' attempts to protect themselves ahead of Apple’s earnings report, but it also raises questions over whether news about Jobs had leaked.  [View news story]
    Yep those announcements typically fall under his purview.
    Jan 19, 2011. 03:16 PM | Likes Like |Link to Comment
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