Seeking Alpha

Peter Matias

Peter Matias
Send Message
View as an RSS Feed
View Peter Matias' Comments BY TICKER:
Latest  |  Highest rated
  • What Happens When Liquidity Disappears? [View article]
    While it's true that $1.7 trillion in excess reserves slumbers peacefully in the basement at the Fed, the dormant and sterile offspring of Bernanke's QE's.

    Someday this Frankenbaby will awaken and consume us all.
    Apr 26, 2013. 09:31 AM | Likes Like |Link to Comment
  • Do Interest Payments On Government Debt Matter? [View article]
    Please don't confuse raising tax RATES with raising taxes. The two are not the same.

    If an economy booms while tax rates remain unchanged, tax revenues will increase. Did you raise taxes?

    Btw, a countercyclical fiscal policy could also include a REDUCTION in spending during boom times, not just an increase in taxes (whatever that means). Oh I know, perish the thought.
    Apr 26, 2013. 08:56 AM | Likes Like |Link to Comment
  • The 12 Biggest Mistakes The Media Make When Covering Gold Markets [View article]
    Gold does the one thing that paper moneys don't do: it stores value.

    When you attempt to hold your wealth in depreciating assets, the value lost doesn't just disappear, it ends up in someone else's pocket.

    Those someone elses object to Gold.
    Apr 26, 2013. 08:37 AM | 3 Likes Like |Link to Comment
  • Is Abenomics Working? [View article]
    Fortunately for Japan, it's Ivy league trained economic elite will apply the best of contemporary Western economic thought to the problems at hand, as they have for the past twenty years, and formulate optimal solutions based on wide ranging empirical studies from the most brilliant and highly regarded minds in the world.

    What could go wrong?
    Apr 26, 2013. 08:15 AM | 6 Likes Like |Link to Comment
  • Debunking The Food Inflation Myth In 2 Charts [View article]
    1982? Really? You're not really concerned about the truth of the matter, are you?
    Apr 22, 2013. 06:59 AM | 2 Likes Like |Link to Comment
  • Why Does Anyone Listen To Conservative Economists Anymore? [View article]
    Because in the land of the blind, the one eyed man is king.
    Apr 22, 2013. 05:38 AM | 3 Likes Like |Link to Comment
  • Deposits over €100K at the Bank of Cyprus will be taxed at 62.5%, sources tell Reuters. The figure is far greater than officials originally indicated. Customers will get 37.5% of their deposits over the €100K threshold in bank shares while the remainder of their cash "may never be paid back."  [View news story]
    The reporting on Cyprus stinks.

    Why is the Bank of Cyprus bankrupt? Didi it default on a particular debt payment? To whom? When was it due?

    What are its assets worth? What are they? Did they crater? by how much? What is the total of its liabilities? Profits? losses? cash flow?

    Who are the current owner? Is their stake wiped out? Why wouldn't debtors just own the thing proportionally after a bankruptcy, whatever it might be worth?

    Who is paying out on the 100k guarantee, the Gov of Cyprus or the EU? What does the budget of the Cypriot Gov't look like? Debt? Deficit?

    What's it called when you guarantee something and you don't have the money to back it up?

    Who knows? Thanks for the bang up reporting job Reuters/ Bloomberg / CNN whoever; you all suck.
    Mar 30, 2013. 07:53 AM | 9 Likes Like |Link to Comment
  • Reed Hastings' wakeup-call: Carl Icahn isn't beating around the bush on why he's been stockpiling up shares of Netflix (NFLX), revealing in an interview his opinion that there’s going to be acquirers that want to buy it and it's just a matter of corporate governance. That last bit may be a reference to a push by a group of shareholders for board declassification and the right to call special meetings. (Bloomberg TV interview[View news story]
    So he exercised the calls on Monday and therefore the puts expired on Monday as well. How DID he "deal with" them??

    Correct-- he did nothing, and had to do nothing, Just as the 13d stated: the puts expired.

    The put HOLDER was the one that had to "deal with" them. Either let them expire, or exercise them and write Icahn a check for the amount that NFLX was trading above the put strike. Even a Summer intern could have made that decision correctly.

    So my original point stands: the fact that he held some of his stake as options was indeed irrelevant because they did, in fact, become stock at his sole discretion, your objections to the contrary notwithstanding.
    Nov 22, 2012. 10:22 AM | Likes Like |Link to Comment
  • Reed Hastings' wakeup-call: Carl Icahn isn't beating around the bush on why he's been stockpiling up shares of Netflix (NFLX), revealing in an interview his opinion that there’s going to be acquirers that want to buy it and it's just a matter of corporate governance. That last bit may be a reference to a push by a group of shareholders for board declassification and the right to call special meetings. (Bloomberg TV interview[View news story]
    Yes, we know you have to pay for the stock when you exercise a call, that's obvious.

    And exercising calls doesn't require Icahn to "deal with" the short puts at all, as if that complicates matters. The puts make it cheaper to hold either position, until he gets put the stock which then further increases his ownership stake. They were not "sold against" the calls because they don't hedge them.

    As to the other questions I wasn't trying to convince you of their relevance, but the answers would provide clues to his endgame none the less.
    Nov 4, 2012. 06:04 PM | Likes Like |Link to Comment
  • Reed Hastings' wakeup-call: Carl Icahn isn't beating around the bush on why he's been stockpiling up shares of Netflix (NFLX), revealing in an interview his opinion that there’s going to be acquirers that want to buy it and it's just a matter of corporate governance. That last bit may be a reference to a push by a group of shareholders for board declassification and the right to call special meetings. (Bloomberg TV interview[View news story]
    The fact that Icahn holds the other nine percent in options is irrelevant, other than that they are cheaper to hold before exercise. They become stock solely at his discretion.

    I'm more interested in knowing how he acquired them with a 36.05 strike; exchange traded? Flex options? Employee granted? Who wrote them?

    And was the stock purchased first and then the options, or did he add the stock after and why? To reach some preordained threshold before acting?

    In it's current state $NFLX will fail, if change needs to be forced, so be it.
    Nov 4, 2012. 05:57 AM | Likes Like |Link to Comment
  • Twitter, JPMorgan and the Future of Capitalism [View article]
    So when the increasing competition takes the the majority of the volume (of NYSE listed shares) away from the NYSE, it is a bad thing for capitalism?

    Should we be forced to go to that one exchange to trade in listed shares? Should the other alternatives be banned in the name of freer markets?

    If the NYSE or any other exchange loses out in the battle for market share is this evidence that American Capitalism is dying?

    Or evidence that it still exists?

    And how much of that institutional ownership you are dreading is actually pension and retirement money that is ultimately owned by the little guys and just managed by the institutions?

    Don't you think the laws barring "unqualified", i.e., middle class, investors from taking advantage of these opportunities
    the way that "qualified", i.e. rich, investors can is the real culprit here?
    Mar 1, 2011. 02:03 AM | 1 Like Like |Link to Comment
  • Why Germany's Economic Fortress Could Come Toppling Down [View article]
    ...And plenty of government intervention prior to the Federal Reserve which caused them.

    The Fed is not the first central bank in American history. The States created their own fiat currencies and and perverse banking structures from the beginning and these were destined to fail.
    Feb 26, 2011. 04:51 PM | 3 Likes Like |Link to Comment
  • Why Germany's Economic Fortress Could Come Toppling Down [View article]
    Argumentation is coordination, and hardly useless.

    "Context is that no country is on a gold std anymore, all Fx rates are supposed to float, and hence all currencies are entirely fiat; i.e. just local bookkeeping."

    No, the context is that all currencies are depreciating to zero as a consequence of the failures of the respective governments, but depreciating at different rates. It's hard to do accurate bookkeeping when your standard of measure is constantly changing.

    The defining feature of all fiat currencies is that they are unsustainable.

    The context is that we are in a pre-gold standard world and we ought to start acting like it.
    Feb 26, 2011. 04:34 PM | 2 Likes Like |Link to Comment
  • Why Germany's Economic Fortress Could Come Toppling Down [View article]
    In assuming that a capitalist system was inherently unstable, Minsky almost got it right.

    If he'd assumed that a capitalist system with fractional reserve banking and a central bank were inherently unstable, he would have nailed it.

    But what the heck, that's what we've got so let's regulate the stink out of it and then blame the outcomes on the failures of capitalism and the lack of greater government control.
    Feb 26, 2011. 06:52 AM | 5 Likes Like |Link to Comment
  • Why the Sun Is Setting on Gold [View article]
    I quote you:

    "What gold will be worth next week or next month is whatever buyers will pay for it at the time. And that, in technical terms, is a guess."

    Why should anyone take your advice if all you are doing is guessing?
    Feb 22, 2011. 04:41 PM | 9 Likes Like |Link to Comment
COMMENTS STATS
92 Comments
217 Likes