Seeking Alpha

citizenleung

citizenleung
Send Message
View as an RSS Feed
View citizenleung's Comments BY TICKER:
Latest  |  Highest rated
  • The Only Gold Stock I'm Buying [View article]
    Very true. Nixon knew that that American energy policy needed changes, and that was some four decades ago. As long as we stick with "drill, baby, drill," the situation will only become worse and worse as time goes by. Someday in the future, we will have to change. Fortunately, China will be happy to sell us products from its mature alternative energy industries.
    Jul 28 05:13 PM | 1 Like Like |Link to Comment
  • The Only Gold Stock I'm Buying [View article]
    If BP took safety seriously, it would still be making healthy profits in the United States.
    Jul 28 11:22 AM | 6 Likes Like |Link to Comment
  • General Motors is buying AmeriCredit (ACF +22.8%) for $3.5B in cash, in order to "meet customer demand for leasing and non-prime financing for GM vehicles." The deal gives GM an in-house auto lender for the first time since it sold control of GMAC in 2006. (PR)  [View news story]
    Bruce Berkowitz is happy, Fairholme is happy, I'm happy.
    Jul 22 08:26 AM | 1 Like Like |Link to Comment
  • Bank of America: Why It's Scary Being a Bank in America [View article]
    Boo hoo. Plenty of people's portfolios are doing fine. The devastation of your portfolio reflects on your unluckiness, ignorance, and/or stupidity. Perhaps you should channel your bitterness into learning how to achieve better performance instead of crying like a toddler.
    Jul 19 04:08 PM | 6 Likes Like |Link to Comment
  • Apple, Toyota and the Great Media Pile-On [View article]
    The mere appearance of an Apple misstep has been rare in recent years. The media has been holding its breath a long time, and it exhaled loudly.
    Jul 19 11:52 AM | 3 Likes Like |Link to Comment
  • Bank of America: Why It's Scary Being a Bank in America [View article]
    Running a profitable bank is not rocket science. How hard is it for a bank to lend at a higher rate than it borrows, charge fees, do due diligence on its loans, and not overleverage?

    Sensing a friendly political environment, the big banks convinced the government to allow them to run wild. Instead of acting as banks, the big banks put all their energy into lending recklessly, gaming the markets, and peddling exotic financial products. We are all reaping the consequences of three decades of poor decision-making--in Washington and at the banks.

    Big banks cry at lost profits, but how real were those "profits" anyway? How can an industry of pushing paper back and forth grow from 3% of the S&P 500 in 1990 to 22% in 2006? If big banks make less money than they have in the recent past, we will all be better for it.
    Jul 19 11:46 AM | 9 Likes Like |Link to Comment
  • "We seem to be overrun with Austerians, newly minted deficit chicken-hawks who recently have discovered the evils of deficit spending," Barry Ritholtz says. "Their past actions speak far louder than anything they might say today," and the motivation, he believes, is just partisan politics.  [View news story]
    Social Security, Medicare, and defense eat up some 75% of the federal budget. Any serious talk of tackling the deficit must include reforms of all three.

    Let's see if Congressional Republicans are willing to willing to raise the retirement age to 70 and remove the income cap on the FICA tax. Let's see if Congressional Republicans are willing to peg the age of Medicare eligibility to the retirement age. Let's see if Congressional Republicans are willing to cut down on wasteful defense spending. While we're at it, let's see if Congressional Republicans are willing to impose a moratorium on earmarks.

    Wait a minute, I don't see any takers. I guess Congressional Republicans do not want to look like they hate the elderly or like they are weak on defense. Furthermore, Congressional Republicans pontificate on cutting spending unless it affects their states/districts, when suddenly, it's all about jobs.

    Democrats are far from blameless, but the levels of Republican hypocrisy and illogic are reaching bizarro-world proportions. Stay away from that tea--there's something funky in it.
    Jul 13 05:23 PM | 6 Likes Like |Link to Comment
  • Banco Santander (STD +1.6%) would earn the highest rating in the ECB's stress test of 25 major European financial institutions, El Pais reports. Zero Hedge reaction: "Does anyone even pretend to believe these Tim Geithner-inspired lies? What can one do but laugh."  [View news story]
    Perhaps one can say that Santander is the best of a bad lot, but few would dispute, even before the stress test, that Santander is one of Europe's strongest financial institutions.

    I hear Santander's Latin American business is doing quite well ...
    Jun 17 04:05 PM | 1 Like Like |Link to Comment
  • 9 Reasons Why Spain Is a Dead Economy Walking [View article]
    Spain elected Zapatero's socialists in 2004. These socialists ran budget surpluses in 2005, 2006, and 2007. Surpluses. Unfortunately, construction played an outsized role during Spain's rise, so Spain lost tons of jobs when its property bubble collapsed. Spain's current enormous deficits are a product of government spending to increase demand and the dramatic reduction of the tax base, not "socialist" policies.

    Using labels such as "socialist" is convenient but lazy and often incorrect.
    Jun 16 09:22 AM | 2 Likes Like |Link to Comment
  • Moody's downgrades Greece four notches to junk status. The eurozone rescue package eliminates risk of near-term liquidity-driven default, analyst Sarah Carlson writes, but "macroeconomic and implementation risks associated with the program are substantial." Euro now +1.4% against the dollar, to $1.2254.  [View news story]
    I downgrade Moody's to junk status.
    Jun 14 01:28 PM | 7 Likes Like |Link to Comment
  • In response to the BP (BP) oil disaster, Norway says it will not allow new deepwater drilling in the North Sea. Britain may be forced to follow suit, since many of its ventures are in the same region.  [View news story]
    There's no fear mongering going on. I'm merely explaining what I believe Norway is likely thinking. Petroleum is very important to Norway, so it would not have declared a moratorium on a whim. To Norway, some oil and some fish is better than a little more oil and potentially no fish.
    Jun 10 12:17 PM | 1 Like Like |Link to Comment
  • A new report says BP (BP) may have decided that "a line has to be drawn" in covering costs related to the Gulf oil spill. The company can pay for the cleanup and more, but it's not going to provide restitution to the entire $2.2T Gulf economy, as was mentioned at a Senate hearing today.  [View news story]
    When the Administration lets BP take the lead (after all, the government is not equipped to fix the gash), it is accused of being aloof. When the Administration becomes more assertive, it is accused of being Chavez-like. Interesting.
    Jun 9 11:10 PM | 4 Likes Like |Link to Comment
  • A new report says BP (BP) may have decided that "a line has to be drawn" in covering costs related to the Gulf oil spill. The company can pay for the cleanup and more, but it's not going to provide restitution to the entire $2.2T Gulf economy, as was mentioned at a Senate hearing today.  [View news story]
    It was diplomatic payback for how Israel embarrassed Biden. Israel knew that something was coming, and it is lucky that its punishment was a mere dinner snub.
    Jun 9 11:05 PM | 1 Like Like |Link to Comment
  • In response to the BP (BP) oil disaster, Norway says it will not allow new deepwater drilling in the North Sea. Britain may be forced to follow suit, since many of its ventures are in the same region.  [View news story]
    Fishing is important to Norway, much more so than to the United States or the UK (or most developed countries). One of the main reasons Norway has yet to joint the EU is because joining would open its waters to other nations' fishing boats. A BP-like disaster in the North Sea would be devastating to one of Norway's signature industries.
    Jun 9 10:48 AM | 3 Likes Like |Link to Comment
  • A fascinating article by AEI's Peter J. Wallison challenges the very concept of systemic risk - the narrative around which U.S. and global regulatory reform is taking shape, but which "has no basis in fact."  [View news story]
    AIG was the definition of systemic risk. Reinsurance companies would not have been able to handle AIG's vast losses. Without reinsurance companies, insurance companies would not write any new policies because they would be unable to offload some of the risk. I don't want to think what would have happened if the insurance industry collapsed.
    May 30 10:47 PM | Likes Like |Link to Comment
COMMENTS STATS
244 Comments
662 Likes