YaddaMinski

Too Big to Fail Banks: A Simple Solution

Did Glass-Steagal prevent the S&L crisis?


On Nov 12 06:02 PM whack'em wrote:

> the solution is very simple; re-instate the Glass Steagal Act in
> it's entirety. the second part is harder- throw all the incumbents
> in the House and Senate out and allow only public financing of elections;
> no PACS, no campaign contributions. take a page from the brits-
> 90 days in which to campaign, then hold elections.

Too Big to Fail Banks: A Simple Solution

The solution is to stop socializing bail out cost that penalize well run banks. So abolish the FDIC! The solution is individual responsibility for managing his money. But the socialists abhor this idea as the father knows best!

Adjusted Jobless Claims Suggest Recession Has Ended

Only companies are not hiring. So if 200,000 are fired each month now and new workers are being added every month, unemployment on the U-3 measure will probably hit 11%. And want if this drags demand down to cause a double dip?

7 Dividend Stocks Increasing Cash Payouts

What about euro foreign companies to get extra juice from exchange rate? I am looking at Metso as a good one, but I don't invest in individual stocks.

Consumer Debt Sets New Records - Again

Remember 2010 elections are around the corner. No way Obama and The Dem Congress is going to not inflate the economy. It will eventually end badly (more so than today), but it won't happen in the next year. To much political will and opaqueness. But what are the banks doing with all the new money? If that uncorks, inflation will be unleashed (maybe what Congress wants to inflate away the debt), and living standards will be hurt across the board. Socializing the losses like this could lead to a Black Swan of resistance.

Stocks, Bonds and Automobiles Outlook

The shorters were not the problem. In fact, without them the credit bubble would have been even worse. Are we really going back to budgeting and vetting credit? If so, three cheers.

Manufacturing, Exported Goods Sharply Up: So What's the Problem?

If currency markets are are allowed to work, the dollar will stay cheap until the Current Account Imbalance is corrected. A weak dollar should provide an incentive to manufacturer more in America to export as its export will be cheaper relative to foreigners' native goods. That is as long as trade wars don't start. Comparative Advantage is not static.

Recovery 2010: Don't Overlook Impact of Continuing Job Losses

Take a look at:
www.rgemonitor.com/fin...

What this writer doesn't understand in his example is the difference between government directed spending and micro determined spending. His example is the latter even if unemployment benefits are involved. The bigger problem is stimulus spending like all the unneeded "construction" projects happening, e.g. where I live there are proejcts to beautify the street as if that will magically bring shoppers to this commercial district.

The massive government/fed spending/bailout is paralyzing lending as banks that bet wrong hope to wait out problems along with moderate lending at an artificial spread. With unemployment still increasing significantly and export market relatively anemic, how can this economy fix the debt issue and get put on solid ground?

The future is very uncertain.

Recession Is Over; Depression Has Just Begun

Mr. Morin, are you familiar with non-linear systems? The economy is a non-linear system: aF(x) <> F(ax) & F(a) + F(b) <> F(a + b). This means that adding something here (Obama stimulus) will usually add something there (employment). The economic system is far too complex for top-down economic planning ala the USSR (why didn't the USSR prosper?). The best that can be done is to do back to the USA's founding principles of individual liberty, small government (respecting the three branches), and transparent law to settle disputes. Incentives must be put in place to encourage individuals to contribute in an optimistic way. What the USA used to be before the grand socialism experiment began in the early 1900's with the Northern European Model.


On Oct 02 03:04 PM Mike Morin wrote:

> I choose socialism, an economic democracy.
>
> We have turned the corner during the week of September 20, 2009.
> The "Financial Fools" of the dying Capitalist economy met in Pittsburgh
> to trivialize and tread water before going under. Meanwhile, the
> emerging socialist economies met in Venezuela and formed a Latin
> American Bolivarian/Union of African States socialist economic coalition
> and announced the formation of an alternative "fair trade" Equity
> Union which will grow as the Maoist tradition being championed by
> Chavez spreads to the OPEC Nations and the Peoples Republic of China
> and to a world unity and cooperation majority that favors peace,
> meeting the needs of the workers and the poor, inclusion, humanity,
> equity, rational planning, ecological economic democracy, village/neighborhood
> sovereignty, inter-community and inter-regional unity and cooperation,
> quality of life, environmental/public health and wellness, and sustainability.
>
>
> Concurrently, the militaristic political sham of the UN Security
> Council was being sufficiently challenged.
>
> There exists a terrible, terrible, opportunity cost relative to the
> militaristic ways of Capitalist Empire (primarily the USA), the resisting
> and/or non-subservient nations and popular movements, the patient,
> but burdened, Communist State (Peoples' Republic of China) and the
> need to dedicate and allocate resources for life needs (habitat improvement
> and sustainability) in the face of unprecedented resource constraints
> (particularly but not limited to the fossil fuel resource), population
> pressures, and the gap between "rich" and poor.
>
> A legitimized UN General Assembly ( a "house of commons") with a
> mission to foster and facilitate a cooperative communitarian, mutualist,
> socialist, peaceful world without divisive borders and banners needs
> to take center stage in our evolution, in our governance, our transition
> to a libertarian economic democracy based on the principles previously
> enunciated.
>
> Meanwhile, the Capitalist Empire must surrender and work out a cooperative
> economic transition strategy.
>
> Much work is left to be done.
>
>
> In Peace, Friendship, Community, Cooperation, and Solidarity,
>
> Mike Morin
> Eugene, OR, USA

Recession Is Over; Depression Has Just Begun

From 2000 on was a fiction. So we have been in the doldrums for almost 10 years already. Outside the banking industry, balance sheet compression is already happening (economy is shrinking). However, this world is not 1930's. We have much more trade and richer societies. Capital allocation by the private sector is much more efficient. So as long as the government doesn't take over the economy, the private debt issue can be dealt with over the next few years. Plus, we will not be able to predict what technology will hit. Just look around and marvel at the technology that makes living life more efficient. I am still an optimist as long as Congress is thrown out in 2010. Congress IS the PROBLEM.

The Federal Reserve Can Not Account for $9 Trillion in Off-Balance Sheet Transactions?

What??? Creating money is not a tax? What happens when inflation kicks in??? That is an implicit tax!!! Governments love to inflate away problems, but that happens when the country is dieing.


On May 11 06:21 PM user396040 wrote:

> An unfair characterization of the situation. This was questioning
> of one office,the Inspector General of the Federal Reserve; it does
> not imply that "nobody at the Federal Reserve has any clue" where
> the money went. The money created by the Federal Reserve cannot
> really be characterized as "taxpayer money." That doesn't mean that
> we shouldn't be careful about its use - but it is not fairly characterized
> as money that has been collected from taxpayers. The federal government
> has been given some very complex tasks and must perform them under
> complex procedures(often mandated by Congress). It is very easy
> to mischaracterize what the government is doing but it does not lead
> to a fruitful discussion of what the hell we should be doing to get
> out of this mess.

Stocks are Overvalued & Overbought

If current profits are due to cost cutting and not revenue growth, how can the S&P500 hit 1,000 when the consumer is going to be tapped out for sometime? Is the FED causing a continuing bubble mania and a disregard for fundamentals?

A System for Trading Closed-End Funds

Let's check back in 10 years and see how this strategy performed. 2.5 years is too short a time to assess an investment strategy.


On 2008 Mar 04 11:14 PM bsharvy wrote:

> The symbols are given in the charts, e.g. ADX. Dis./Fees is the discount/fees.
> It's the basic way of measuring value in this system. Automatic sells
> in this system happen if the dis/fee ratio falls below 5, or there
> has been no insider buying in over a year. Sells that involve more
> judgement are certainly possible, for example if a CEF had a dis/fee
> ratio of 6 and insider buying 9 months ago, and its strategy was
> already held by another CEF, I might dump it and buy something else.
> The basic idea is to narrow the possibilities down to a small pool,
> and then use best judgement within that pool. The best performing
> CEFs that have qualified in this system have been emergining market
> stocks: LAQ, CEE, ETF for example.