Patrick Farnsley

Patrick Farnsley
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  • Pimco High Income Fund (PHK): Q2 net investment income of $0.24/share, down from $0.27 a year ago (current monthly distribution is $0.12, or $0.36/quarter). Net asset value/share of $7.80, down from $9.09 a year ago. The stock (on June 30) trades at a premium to NAV of 73.6%, up from 49.8% a year ago. (PR[View news story]
    the distributable cash flow goes down and the NAV goes down but the premium goes up - way up. besides irrational behavior what explains the market price ?
    Aug 29, 2012. 04:39 PM | Likes Like |Link to Comment
  • His growth fund underperforming the S&P 500 by about 2500 basis points YTD, John Hussman sounds frustrated, comparing today's investor confidence and enthusiasm to that of Nasdaq 2000 or housing/debt 2007 (perhaps he's not following the continuing flow of money out of equity funds and into fixed income).  [View news story]
    no doubt John is suffering through a tough time - but if the YTD number is bad (off 2500 basis points) the trailing 12 month gap is horrific @ 3900 basis points
    Aug 21, 2012. 02:51 PM | Likes Like |Link to Comment
  • There's no drought in California, but a scarcity of workers in the high unemployment state could send fruit and vegetable prices higher. "We just left them in the ground," says a farmer of some of his crops after being unable to find pickers. How about local residents instead of illegals? "None. Absolutely none (are interested)," he says, even for semi-skilled work paying $12-18/hour.  [View news story]
    wait - do you mean FORWARD. is not the right direction?
    Aug 20, 2012. 03:27 PM | 1 Like Like |Link to Comment
  • U.S. drivers are paying an average of $3.72/gallon today for gasoline, the highest price ever on this date and even higher than the $3.717 average on Aug. 20, 2008, AAA reports. Prices range from a low of $3.43 in South Carolina to $4.32 in Hawaii. Arizona, Mississippi and New Mexico also have average prices below $3.50; California and Illinois are above $4/gallon.  [View news story]
    wham bam obama's my man - we don't need no stinkin new oil supplies
    Aug 20, 2012. 03:21 PM | 1 Like Like |Link to Comment
  • The Consumer Financial Protection Bureau opens for comment a proposal to force lenders to offer no-fee, no-point mortgages, so as to make it easier for prospective borrowers to comparison shop. It would also force lenders to offer rate reductions if consumers elected to pay points. Is anyone aware of a mortgage lender that doesn't already offer all of this?  [View news story]
    I will hold out until they are forced to offer no interest / no principal payback loans ! With this group I will not have too long to wait.
    Aug 17, 2012. 04:02 PM | 1 Like Like |Link to Comment
  • Congressmen Elijah Cummings and Henry Waxman warn Wal-Mart (WMT +0.3%) in a letter that they hold evidence of wrongdoing at the company's Mexico affiliate including tax evasion and money laundering. The finding from the pair of lawmakers is unrelated to any conclusions the DOJ may be making on the issue. On tap for Wal-Mart: Q2 results (earnings preview[View news story]
    I say BRAVO to congressmen Cummings & Waxman - and suggest they enact a multi year on site audit in Mexico - at least they would be out of the USA.
    Aug 17, 2012. 10:11 AM | Likes Like |Link to Comment
  • This Airline Is Controlling Fuel Costs By Buying Its Own Refinery  [View article]
    how about Delta is just adding another cyclical business to the already cyclical airline business it already cannot manage ? the refinery will allow them to eliminate the narrow margin they had been paying to the few refiners still in business - but it WILL NOT allow them to control the price of crude
    May 3, 2012. 02:37 PM | 5 Likes Like |Link to Comment
  • So it's come to this: Investment banks are making their earnings by betting against themselves, as ~25% of JPMorgan Chase's (JPM +0.2%) Q3 profit resulted from debt valuation adjustments. DVA gains of $1B for MS (-1.2%) and $300M for GS (-0.7%) were already forecast; because they faced more severe bond market stress than JPM, they may report even larger DVA figures.   [View news story]
    they are not "betting against themselves". the DVA gains are a result of mandated accounting convention and will be reversed if & when the bonds recover
    Oct 14, 2011. 02:57 PM | Likes Like |Link to Comment
  • Obama-Era Financial Reforms Would Work if Agencies Implementing Them Were Properly Funded  [View article]
    ED - your theme of proper funding for regulators is as correct as suggesting that reducing the time regulators spend on porno web sites would enhance their effectiveness. Throwing more money at the issue (hiring more regulators) is not the solution. The regulators (pushed by the politicians) allowed FNMA & FHLMC and other financial giants ( read AIG ) to stray far from their core business and employ too much leverage. After the last cow left the barn the regulators secured the gate, posted armed guards and put up additional signage prohibiting any other cows from leaving.
    Apr 8, 2011. 10:47 AM | 4 Likes Like |Link to Comment
  • Saying "the government has violated the rights of its people," the State Department supports expelling Libya from the U.N. Human Rights Council. The Council meets in Geneva this weekend to discuss ways of stopping the violence. Sounds like a censure of Israel is coming.   [View news story]
    Wow - just because Libya strafed the populace with fighter jets and called the citizens 'rats". Well as least we know now what the UN considers 'bad behavior'.
    Feb 24, 2011. 02:31 PM | 1 Like Like |Link to Comment
  • Social Security is beginning to pay out more than it takes in, but Robert Reich says there's an easy fix: Raise the ceiling on earnings that apply to the payroll tax. There’s no reason even to consider reducing Social Security benefits or raising the age of eligibility.   [View news story]
    Robert Reich and all his Demoncrat pals always have "an easy fix" and it's always raise taxes and kick the can of responsibility down the road. At some point it becomes immoral to be in positions of responsibility and govern irresponsibly. Raising income limits or rates will simply postpone the inevitable day of reckoning.
    Feb 17, 2011. 11:51 AM | 1 Like Like |Link to Comment
  • The Trouble With Regional Banks  [View article]
    Regions tangible book value is closer to $ 7.00 per share.
    Jan 14, 2011. 11:50 AM | 1 Like Like |Link to Comment
  • The Muni-Bond Meltdown: Sell First, Ask Questions Later  [View article]
    The Tax Exempt market should be "a cold, cold world right now for issuers" - but not all issuers. California is attempting to solve their debt problems by going deeper into debt via this $ 10 billion issue. Buyers of CA's new issue TAN debt will probably get paid - but only if there are more buyers at the next TAN sale. I wonder how many of these CA bonds / notes Tom Dresslar could sell if he paid the interest in IOU's or PIK script ? Yes Tom it is a cold world and it's going to get colder for California before it' over.
    Nov 22, 2010. 05:16 PM | 2 Likes Like |Link to Comment
  • The Obama administration says its top health official will "exercise her discretion" in enforcing a new health law requirement, a move that could prevent McDonald's (MCD) and other employers from disrupting their health care policies. (earlier)   [View news story]
    Command & Control with ObamaCare - Can it get any better than this ?
    Oct 1, 2010. 10:32 AM | 7 Likes Like |Link to Comment
  • Our "dysfunctional and corrupt political culture" may extend the Bush tax cuts for the wealthy, Paul Krugman writes, even though "it’s hard to think of a less cost-effective way to help the economy than giving money to people who already have plenty." But a new BofA (BAC) research note says allowing the cuts to expire could trigger a double-dip.   [View news story]
    Krugman lays bare the liberal-think of the elite....only in their warped universe is maintaining existing tax schedules "giving money to people".
    It's time to flush the Krugman's of the world away and with
    them all of their 1984 doublespeak.
    Aug 23, 2010. 02:23 PM | Likes Like |Link to Comment