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faustius

faustius
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  • Big Banks Hit With Monster $250 Billion Lawsuit In Housing Crisis [View article]
    I don't really understand why so many comments have to do with the homeowners, which are irrelevant in this case.

    If you issue a bond, and then violate it's provisions, you should expect to get sued.

    Whether it's backed by sub-prime mortgages, or lottery tickets doesn't matter.
    Jul 16 11:25 PM | 3 Likes Like |Link to Comment
  • Big Banks Hit With Monster $250 Billion Lawsuit In Housing Crisis [View article]
    We'll have to see how the case plays out. If the subsidiaries can be found to have been violating the law to hide their breach of contract, I don't believe the statute of limitations will begin until those actions ceased.

    While the holding companies may not be liable for their subsidiaries breaching a contract, they will suffer losses when the value of those companies goes to zero after bankruptcy.

    This assumes the holding companies won't be found to be complicit in hiding the breach. In that case they could get hit directly, I believe.
    Jul 16 11:12 PM | Likes Like |Link to Comment
  • That's A Lot Of Burritos! [View article]
    Ehh, the people who really clean up up are the property management companies that lease prime locations to the highest bidder. The corner restaurant at the bottom of our building is a Chipotle. Over the past few years that same location has been a Baja Fresh and Johnny Rockets, before Chipotle leased the property.

    I fully expect that within a couple years at most, the public will lose interest and move on to the next new thing. When that happens same store sales for Chipotle will decline, and then that location will become some other trendy chain restaurant. The stock will meanwhile nosedive. Five years from now there will still be a Chipotle chain, just as there still are Baja Fresh's around. However it will be a shadow of it's former self, likely picked up by a private equity firm, just as Baja was a few years ago.
    May 31 12:29 AM | 1 Like Like |Link to Comment
  • Precious Metals Stuck In Neutral, But That Could Soon Change [View article]
    Well Barclays was just slapped with a "Massive" :rolls eyes: fine of $44 mil for fixing the London gold price. So now everyone who has claimed gold prices are fixed has proof, and all problems with the gold market are solved right?!?
    May 24 12:33 AM | 1 Like Like |Link to Comment
  • What If Lowflation Isn't A Trap? [View article]
    quality has been inversely related to cost in the US for the past couple decades, so it's probably worse.
    May 12 06:52 PM | Likes Like |Link to Comment
  • Wal-Mart sues Visa for $5B over swipe fees [View news story]
    Monopolies have no need to innovate, only collect rent.
    Mar 28 12:44 AM | 2 Likes Like |Link to Comment
  • A New Direction At The Yellen Fed [View article]
    We can save a financial system without saving the golden parachutes of a firm's management.

    We can also ensure transparency so that the level of assistance offered to different firms isn't used to take down competitors. Did Goldman and Morgan receive more assistance than Bear and Lehman? I believe the answer is yes. Without knowing why, Paulson and Dimon's positions become a possibility.
    Mar 20 12:03 AM | 1 Like Like |Link to Comment
  • Seeking Alpha Crowd Wisdom Predicts Future Stock Returns [View article]
    Congrats to SA.

    Though I have to say, I'm sure the education of the crowd in question matters. I bet if the SA community were to guess the weight of a dressed ox, we'd do far poorer than that 1906 country fair crowd ...and they likely would not have much to offer regarding the future prospects of AAPL.
    Mar 19 11:37 PM | 3 Likes Like |Link to Comment
  • The Three Seven Aught Mystery--March 16 [View instapost]
    Far too complex. I'm no fan of using Occam's Razor as a proof, but he did have a point.

    Scenario #2: Someone smuggled a weapon onboard and attempted to hijack the plane. They got as far as forcing the pilot to turn off the transponders. Someone else wasn't willing to be a hostage in a post 911 world. A fight ensued. The plane tragically is at the bottom of the ocean.
    Mar 18 10:14 PM | Likes Like |Link to Comment
  • Why Bitcoin Matters [View article]
    Hmm..From what I can gather from a bit of googling, transactions are anonymous. However every entity that allows users to cash out bitcoins requires personally identifiable information from users to avoid money laundering charges. So a stolen bitcoin remains anonymous until it's traded for cash.

    There are sites called "Tumblers" that allow users to submit their coins. The bitcoins are then combined and shuffled between a bunch of virtual wallets with coins from other users, and then given back in an effort to make them untraceable. However apparently tumblers only work with small amounts of coins.

    So it could be that whoever stole Mt Gox's coins are simply sitting on them trying to figure out how to cash them out, or they could have been splitting off small chunks to tumble.

    Interesting and complicated.
    Mar 13 11:56 PM | Likes Like |Link to Comment
  • Why Bitcoin Matters [View article]
    I'd also like some clarity on how unique numbers with a public transaction log can be stolen. The facts as reported are contradictory.
    Mar 13 09:10 PM | Likes Like |Link to Comment
  • Why The Fed Won't Save You From The Next Bear Market [View article]
    As difficult as it is for me to understand, gold tends to crash, and oil rally during the last few major corrections.

    So maybe add oil when the time comes. Sell when you start seeing stories of hedge funds buying oil tankers to stockpile physical crude.
    Mar 11 09:29 PM | Likes Like |Link to Comment
  • A Tale Of Two Economies And A Market That Doesn't Care [View article]
    I generally don't like Krugman, but he had an interesting take on what's occurring. Too few companies have too large a share of the market. What we're seeing is simple monopoly rent collection, where revenue not needed for operations is being spent on dividends and share buybacks, rather than cap ex to stay competitive.

    I read an article the other day mentioning that Tyson has such a commanding position in the poultry business that they are growing earnings by simply cutting production. In a healthy economy, that wouldn't be possible. Competition would prevent a production cut from raising overall poultry prices more than it lowered sales.
    Mar 7 10:32 PM | 1 Like Like |Link to Comment
  • Why Bitcoin Matters [View article]
    Poor guy. Whether or not Newsweek is right, they put this man and his family in jeopardy.
    Mar 6 11:00 PM | 1 Like Like |Link to Comment
  • Consequences Of A Farmland Bubble, And Who Gets Hurt When It Bursts? [View article]
    I don't know if it's accurate to say MTBE polluted drinking water. It's just so incredibly foul smelling, it allowed the public to taste when they were drinking water contaminated with gasoline. Drinking gasoline is dangerous regardless.

    Banning it simply allowed the public to go back to sleep...mostly. The bottled water industry depends on public distrust of water companies.
    Feb 18 11:31 PM | Likes Like |Link to Comment
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