Futures Lover

New Treasury Plan - Short Housing and Insurance

Gee! Just think how rich my Grandma and Grandpa Dietrich would have been today if there was FDIC insurance on their savings accounts!!! They lost $7,200 back in final collapse of the banks in SF during the Great Depression. Do you know what that would have been in 2005 US Dollars?!? Well over $278,000! It just shows that you've never lost money in your bank savings account.

At Roberts Realty, 'Charity Begins at Home'

Geez, too bad the IRS hasn't a copy of this wonderful article! I wonder what they would do to this REIT? Maybe revoke it's REIT tax status? I wonder if prison orange would look good on Mr. Charles S. Roberts, CEO? Oops! Did I just hit forward to the IRS? *grin*

'Helicopter Ben' Grounded - For Now

I think Ben will keep rates exactly where they are, letting the economy run at 2% to form a firm compacted base for future growth. The Fed is watching inflation. Don't fool yourself about this. Ben does not want to have inflation to do like it did back in the late 1970s/early 1980s. That was a horrible time for us all! If inflation does not come under control, I think Ben will begin to raise rates to reduce inflation. So, don't think he won't because he will. I do suggest that one prepare one's financial situation to accommodate this scenario.

Cramer Pleads for a Fed Rescue as Bear Stearns Hit

Seems Cramer was right!

From Wall Street Breakfast email:

Bear Stearns Co-President Warren Spector Resigns as Hedge Fund Woes Continue

Bear Stearns co-president Warren Spector's fate was decided last Wednesday, when he reportedly was asked to resign by CEO James Cayne. Over the weekend, Bear Stearns announced Spector's resignation, following S&P's downgrade of its credit outlook from "A+" to "junk" on Friday. Spector was head of fixed income and asset management, and thus, is being held responsible for the firm's hedge fund losses, which now extend across three funds, two of which have filed for bankruptcy (see full summary). Shares of Bear Stearns continued to free fall Friday, dropping 6.3% to $108.35. They are now down 28% since June -- when the hedge fund woes were publicly acknowledged -- and 33% year-to-date. An analyst at Punk, Ziegel & Co. in Florida told Bloomberg that by ousting Spector, management is acting as if it "didn't know what was going on, and that is just totally unsupportable. If there is no oversight system, people should be looking at Jimmy Cayne." Co-president and investment banker Alan Schwartz has been appointed president.
Sources: Press release, Bloomberg, TheStreet.com, Wall Street Journal
Commentary: Another Bear Stearns Hedge Fund Hit with Margin Calls * Brokers Are The New Homebuilders - Forget The Bailouts * Risky Business: Hedge Funds Can Freeze Redemptions
Stocks/ETFs to watch: BSC. Competitors: GS, LEH, MER. ETFs: IAI, KCE

Cramer Pleads for a Fed Rescue as Bear Stearns Hit

>Ever since TV has been banned from our trading room (CNBC and Bloomberg alike), I only get to see these things when they show up online.

You know what they say about mushrooms - they're kept in the dark and feed manure. Sort of makes you wonder as to why they did this, right? Remember, there's always TiVo!

Thanks for the YouTube clip! I wish I can keep that on my hard drive. I think what Cramer ranted about is just the crack in the dam. I think when this whole scenario completely blooms out and we will see the total result of the national subprime / forclosure mess, as it will be worse than the S&L debacle. Personally, I'd stand in cash (hold cash in a CDARS account).

Loved the MP3! Thanks!!

What Happens To Barron's Under Rupert Murdoch?

If Murdoch is allowed to do what ever he wants with Barron's, I'm cancelling my subscription!

US Savings Rate Based On Outdated Methods of Calculation

My Monetary Economics professor told the class that the reason why the Federal Government did not include the profit from stock and house sales were due to the fact that they did not have a reliable way to calculate the "profit" of the sale from the data provided by all sources. In hind sight, it would take too much manpower to generate a number from IRS tax returns in each year. Maybe with the computers that are currently in place, we might be able to, if a valid equation can be devised. Can you imagine the headache in tracking of each house that is bought, sold, refinanced, foreclosed and then resold to a new buyer? Stock data is even worse as according to GAAP accounting rules, depending on how you purchased the shares of an individual stock depends on how you calculate the price per share you paid (dollar cost averaging). So, this is why the Federal Government has done this and yes, it is not an accurate picture of what Americans do to "save" - savings account, buying stocks or bonds, or purchasing a house. BTW, I read in Barrons (or maybe WSJ) that your house is not an "investment" like stocks or bonds. I agree, as it is very ill-liquid. I personally agree that owning one's home is a much better use of one's housing dollars on a yearly basis. I would consider rental property that is leased out to generate income as a valid "investment" where Real Estate is concerned. Living in a duplex and renting out the other side usually can be very profitable if done correctly. With Real Estate values falling, a savvy investor can do this and have the majority of their housing costs covered over time.