vreporter

Citigroup Makes a Good Move: Preparing to Buy Out Uncle Sam

I think you're confused about what's right and what's good. What's good would be determined by the share price in the near term. need I say more?

Reading the Stress-Test Leaks

This is the beginning of an ALL CLEAR signal for the banks from Treasury and the Fed. The leaks are engineered given that they had to take on a derivatives market which siphoned investors out of their skin last time. There will be no rest for the shorts this time - even though C and BAC have already tripled from their lows. The economy and confidence are tools to get this engine running. These leaks and the consequent setups are part and parcel of this operation. If none of you studied any history on the "plunge protection" mechanisms of past years then you will not understand that some of the most influential "hedge fund" activities are not from hedge funds at all...

Accounting Rule Changes Creating False Rally in Financials

"Without doubt, since fully-informed investors form only a small proportion of the capital markets, the spin and hype surrounding the “inherent evils” of the mark-to-market rule and Level 3 measurements could well take bank shares significantly higher this week."

You must be very smart to be that far ahead of the market! Are you a comedian?

Is Nationalization Contagious?

If you don't know the answer to that question, it shows exactly why you misunderstand the original problem with the choices of solutions - and why nationalization was NEVER a feasible option. A little problem like Lehman and those impacts should wake you up to the reality of nationalizing BofA or Citi. That's assuming that only one or a few can be "executed" that way - WHICH THEY CAN'T without causing more harm than good.

Let me put it this way... you might as well wipe out the financial system and every market in existence. The impact would be the same.

Some Subprime Mortgage Loans Are Actually Current

There is far too much inter-dependence between subprime and everything else that's wrong with the housing situation nationally. There certainly are lots of gloom and doomers to portray the situation in a light that may not eventually happen. But may I remind you that we got to this stage because of the lack of transparency about these portfolio strategies underlying the financings - and that problem still remains. So when all things are considered, the gloom and doomers may still be underestimating the net effect when one begins to address inventories of both new and existing homes, the flippers who are now being issued blindfolds and the layoffs from a slowing economy. You make very valid points about the differences within these tranches but that issue alone turns out to be minute compared to the headwinds that are tipping these into the doom and gloom category for varying reasons. In the current scenario, the big picture matters a lot more than the risk management approach to a few securities.