Seeking Alpha


Send Message
View as an RSS Feed
View snakyjake's Comments BY TICKER:

Latest comments  |  Highest rated
  • The Solution To The European Problem? [View article]
    I see two main problems:
    1) Debt.
    2) Spending.

    1) Europe will need to write down debt.
    2) Greece (and other PIIGS) will need to control spending so they don't repeat this problem.

    I think #1 is doable, as the governments can monetize the loss. #2 gives me the most concern. What will Greece do when the free flow of money is reduced?
    Oct 7, 2011. 02:05 PM | Likes Like |Link to Comment
  • Is A Flood Of Money About To Be Unleashed? [View article]
    I think the best way out of all these messes is by inflation.
    Oct 1, 2011. 06:54 PM | Likes Like |Link to Comment
  • How Dare Those Banks Charge Fees! [View article]
    BoA and consumer responses are part of how capitalism works. Both banks and consumers are going to search out the most efficient use of resources. For me, I've found BoA to be less efficient of my resources, and moving my accounts to a more efficient bank that does not charge me fees. If all banks are going to charge fees, then I'll know we've reach an equilibrium and new fees is the cost of services.
    Oct 1, 2011. 06:42 PM | Likes Like |Link to Comment
  • Operation Twist In The Wind - Don't Expect Much From Fed's Effort To Spur Economy [View article]
    Great article. As the Fed/Gov keep pumping $100's of billion into the US economy, $100's of billions are being pumped out.

    There's a bit of conflict of interest. Those dollars going to China come right back to the US Treasury making it cheaper for the US to borrow and grow gov or middle east wars. A sweet setup for the governments.
    Sep 23, 2011. 05:09 PM | Likes Like |Link to Comment
  • FOMC Statement: Much Ado, Little Impact [View article]
    With the Fed trying to drive down interest rates, how does this affect Treasury demand by purchasers like China? If I were China, I would be trying to find something else. I wonder if the Fed is going to permanently crowd out the buyers.
    Sep 23, 2011. 04:24 PM | Likes Like |Link to Comment
  • FOMC Statement: Much Ado, Little Impact [View article]
    I like the idea. Unfortunately the politicians like to support the ultra rich and the underdogs. I hear there're programs already as you described for minorities (something like ACORN or something ran by the State and funded by Fed Gov).
    Sep 23, 2011. 04:19 PM | Likes Like |Link to Comment
  • What Weapons Does The Fed Have Left? [View article]
    Great outline. I didn't fully understand why the reduction of the interest rate payments to banks is a problem?

    It just seems strange that the Fed/Gov is trying stimulate the economy, but doesn't want to give incentives for the banks to loan their reserves. So the Fed gives all this money to the banks, and many others are depositing with the banks. Then the money sits in reserves and taken out of the economy. And then people wonder why the economy is having problems.

    If the Fed/Gov wants to stimulate the economy, they need to get the money flowing. I figure they can start by taking away incentives for storing their money at the Fed. And maybe instead of Gov spending, the banks can spend/loan.

    What am I missing?
    Sep 23, 2011. 04:09 PM | 1 Like Like |Link to Comment
  • Roubini: It's Time For Greece To Leave the EU [View article]
    I'd like to understand these options better. I equate Greece leaving the EU the same as a default. I see Greece going through a depression no matter what choice they make. So which choice is better: leave or default?

    It seems to me the best choice is default, go through a mild depression, and restructure. I'm sure if labor became cheap enough, investment would grow, and so would their GDP.

    And maybe next time investors won't be so easy to hand out money. Just look how many people invest in their 401K/IRA and don't give a thought about the problems they create by where the money goes. They just pass it off to a portfolio manager.

    Maybe investors should demand collateral. I do when I loan my money out. Or if I don't have collateral, I understand the loss, and I live with it. This is why I wonder if Greece is the problem, or the investors!
    Sep 22, 2011. 02:14 PM | Likes Like |Link to Comment
  • Why Is The Fed Keeping So Quiet About The Dollar Liquidity Bailout? [View article]
    I wonder how long it takes for that 600-700 billion dollars to leave the U.S. in the form of imports?

    I see a lot of problems between trade imbalances, deficits, and there's a lot of power right now in investment institutions. Investments are good, but what happens when there's too much surplus money? Inflation is only part of it, and I believe too much money can chase speculation, or create bubbles. Instead of the bubbles inflating the private sector, we are now seeing the public sector bubble.
    Sep 20, 2011. 11:10 AM | Likes Like |Link to Comment
  • Why Is The Fed Keeping So Quiet About The Dollar Liquidity Bailout? [View article]
    "ultimately it pollutes the value of the dollar"

    Not necessarily. The Fed can always withdraw those dollars anytime it wants.
    Sep 19, 2011. 11:25 AM | Likes Like |Link to Comment
  • Why Is The Fed Keeping So Quiet About The Dollar Liquidity Bailout? [View article]
    It's not just the US labor market that makes the USD valuable. Since it is a global currency, it is the value of global labor that makes it valuable. Everything sold in USD makes it valuable (like oil and other commodities).
    Sep 19, 2011. 11:13 AM | Likes Like |Link to Comment
  • Why Is The Fed Keeping So Quiet About The Dollar Liquidity Bailout? [View article]
    Since the USD is a global reserve currency, it isn't just the US labor that makes them valuable.

    US benefits by giving those dollars to Europe, because Europe uses the USD to purchase products.

    The Fed and USGov also have the ability to "tax" money outside the U.S. borders. So if they ever want to reduce USD, they can use other tools to solve any problem of too much USD circulation.

    Right now I don't think the USD is anywhere near a situation of the USD devaluing against the Euro. If anything, the Fed may want to make sure the Euro doesn't devalue and hurt US exports. So the Fed will prop up the Euro currency to keep the Euro from crashing.

    Another way to think about this: Since the USD is a global currency, the Fed not only manages the currency for US, but also the world.
    Sep 18, 2011. 11:21 AM | 2 Likes Like |Link to Comment
  • Why Is The Fed Keeping So Quiet About The Dollar Liquidity Bailout? [View article]
    Exposure to what? The Fed has zero risk exposure, as it can always call up the Treasury for as many dollars as needed.

    A tax? It isn't anything U.S. tax payers will have to pay back.

    If Europe doesn't pay back the dollars, the Fed can create replacement dollars.
    Sep 18, 2011. 01:51 AM | 2 Likes Like |Link to Comment
  • 5 Reasons The U.S. Economy Won't Collapse [View article]
    Just like the banking freeze because no one trusted each other, and no one trusted a borrower, I see the same between countries, and that's the risk I'm waiting to pay out. Just wait until we hear of odious debt...and then see what happens to the global economy.
    Sep 11, 2011. 10:30 PM | Likes Like |Link to Comment
  • How Europe Can (And Eventually Will) Avert Collapse [View article]
    Thanks Lawrence for added explanation. The way China funds the U.S. consumer is very similar to how I see Germany funding Greece to be a consumer. It's an interesting debt cycle.
    Sep 11, 2011. 10:21 PM | Likes Like |Link to Comment