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  • Why Eric Hovde Is Wrong About General Growth Properties  [View article]
    be very careful when analyzing via looking in the rear view mirror because it only shows you what is behind you, the past in the case of commercial real estate is likely to be very different that the future, witness Morgan Stanley "giving back" several million square feet and several billion dollars of San Francisco office space acquired in 2007, they are not doing this out of the generosity of the season, some of GP's properties will always be providing free cash flow and others are likely to not return to that lofty position for many, many years : long live the e-tailer
    Dec 17, 2009. 11:50 AM | 1 Like Like |Link to Comment
  • Why Is Bank of America So Bad at Picking Its Leaders?  [View article]
    This guy should have given this topic some more serious thought before spewing. Ken Lewis has made some serious errors, no doubt, but he is not the dolt that he has been painted to be. True Leaders of organizations the size of BofA do not grow on trees. Changing the guard at this company is a delicate balance not to be taken lightly. BofA could do worse than to temporarily hold onto Lewis until "the right" replacement can be found. BofA shareholders do not want the GM Henderson/Whitaker mess repeated here out of the pressure to act quickly.
    Dec 4, 2009. 06:07 AM | Likes Like |Link to Comment
  • The government wants GM back out there trading publicly sooner than later, says auto task force chief Ron Bloom, so that it can cut its near-61% stake in the automaker. The U.S. would like to fast-track an IPO for the fourth quarter of 2010 if targets are hit, though GM chairman Ed Whitacre has fretted about that pace.   [View news story]
    in either case the taxpayer is getting shafted, GM is at best a ten year play, buying an IPO next year is a complete waste of ones liquidity, let the government hold onto the dog
    Nov 18, 2009. 11:58 AM | 1 Like Like |Link to Comment
  • Whitney Gets Bearish: Will She Be Right Again?  [View article]
    like certain body parts everyone has an opinion, in the investing arena as we have seen recently, when it ceases being an opinion it either has become a publicly known fact or it is insider information, i continue to question how Ms. Whitney's and others such as Roubini's opinion carry so much weight, most if not all of what they know and comment on is available to anyone who is interested enough to do the research, who believes that the economy is out of the woods when unemployment in an economy which is 70% driven by the consumer remains well into the double digits with prospects for it climbing higher before declining
    Nov 18, 2009. 09:04 AM | 2 Likes Like |Link to Comment
  • Why the Stock Market Should Crash  [View article]
    The questions I have for the assembled masses are, "What happens to the value of gold and other precious metals IF the premise of this article is correct?" Logic tells me that it collapses as demand collapses along with the purchasing power of the consumer BUT that may not be correct. Also, if I posses gold in such an event, how many rounds of ammunition for my Smith & Wesson do I need to protect it?
    Nov 17, 2009. 11:54 AM | 2 Likes Like |Link to Comment
  • Accounting for Losses at BofA and Fannie  [View article]
    Mr Hempton is a thoughtful analyst but misses the point. The historic loan losses experienced by the bank coupled with the historic loan losses experienced by the entire financial industry set the tone for expected loan losses. This in turn allows a bank to establish a loan loss reserve, which is then reviewed by management, the outside auditors and the federal examiners. The concurrence of these parties is essential to the process. Historically it has been the Feds who have insisted that the banks not salt away excess reserves for the future while understating current period taxable income. The idea that this is an arbitrary decision by the banks in an effort to hide potential losses only holds water if you are a hard core conspirascist convinced that all parties are complicit and involved. There are a lot of dumbbells out there but the conspiracy theory does not hold.
    Nov 6, 2009. 08:24 PM | 2 Likes Like |Link to Comment
  • Regions Financial: Sitting on a $22.8 Billion Sink Hole?  [View article]
    The mere fact that all of the contributors here are debating the likely outcome for a financial institution as large as Regions after reviewing its recently released second quarter results is indicative of the "transparency" problem that exists. Fair Value, Market Value and Book or Carrying Values are all different. There is no accurate means for calculating the true value for any asset other than the sale of that asset and the willingness of a buyer to pay a price. We do not have this and without it we are required to make judgements which are tainted. In the calculation we need to factor our (your) expectations for the economy. If you conclude that the US is in for an extended economic decline all of the above estimates of value are inflated. Take your best shot and pray for Divine Intervention.
    Aug 15, 2009. 07:11 AM | 3 Likes Like |Link to Comment
  • Regional Banks: Toxic Loans Leading to More Toxic Problems  [View article]
    While the regulators seem to feel that BB&T is a strong well capitalized institution and I cannot say otherwise, saddling them with the problems of Colonial doubles down on their exposure to the Florida, Georgia economy. I wonder if it would not have been wiser to have chosen an institution without existing exposure to this economy. One cannot ignore BB&T's exposure to the dying NC textile and furniture industries along with its existing exposure to the Georgia housing market.
    Aug 15, 2009. 05:59 AM | 2 Likes Like |Link to Comment
  • When Insolvent Banks Are Worth Billions  [View article]
    I can't fully digest the continuous bashing of the banking industry. I am either the only person who understands the business or I am completely in a fog about it. By definition every bank in the world is insolvent. They take "demand" deposits, their raw materials, and they make loans, their finished products. The life span of all loans is greater than the life span of a "demand" deposit therefore making banks by definition insolvent. This has been going on since the first bank opened its door. We are acting as if we just discovered this salient piece of knowledge, we have had it for centuries. No bank on earth can meet the demands of its depositors should they all seek to cash out their deposits at once. This is not new, see " It's a Wonderful Life."
    Aug 13, 2009. 09:11 PM | 5 Likes Like |Link to Comment