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How to Invest While the Government Keeps Spending

Not only does this article make perfect sense, but it also points out a fact hidden by GDP. Take away that $2.0 trillion deficit, which should not be there, and the GDP will have decreased by more than 10%--the signal of a Depression. So unlike the 1930s, we get away with masking a Depression by increasing government spending to unimaginable heights. Furthermore, that 2 trillion dollars represents an increaxse in per capita debt of more than $6,000.

Is Sirius XM Positioned for Government Contracts?

How ironic. You propose that the government can use this service, especially the military, yet I have trouble receiving the signal inside my home unless the antenna is placed in a window and is facing it in a special way. I hope the US Military has better luck than I have.

Is Sirius XM Positioned for Government Contracts?

How ironic. You propose that the government can use this service, especially the military, yet I have trouble receiving the signal inside my home unless the antenna is placed in a window and is facing it in a special way. I hope the US Military has better luck than I have.

Too Big to Fail Still Has Defenders

Was Lehman too big to fail? Look at what it did to the stock and credit markets? The question is what are the ramifications of a given banks failure. So many institutions are so interconnected that failure echoes around the world. If we want to prevent these ramifications, perhaps we should regulate how these interconnections take place.

History Lesson and Bear Market Advice

The first real question is whether the scarcity of money will engender a depression which will last longer than 10 years. The second question is whether the $55 trillion in credit default swaps will cause major finance companies to go down. Lehman's downfall has caused a demand for credit default swaps on Lehman debt to pay up. Can all the CDSs be fulfilled? If not what happens? Who goes bankrupt? How many hedge funds? How many insurance companies and banks? What about GMAC and GE Credit? No one knows because there is no transparency. The first thing the government must do is demand detailed transparency on CDSs and set up a database of these securities and a market for trading them or any other synthetic securities.

Bailout Bill Passes; What Happens Now?

Great article, but then what should Paulson now do with the $700 billion? Not all banks deal in SIVs. To do business with the Federal Government, why not have all banks become transparent, including off balance sheet items like SIVs? Those banks like C, GS and MS and perhaps JPM or BAC, who have such derivatives that cannot be eradicated will be excluded from the program. The rest will sell all their junk to Paulson and get the Paulson good banking seal of approval. Then the Paulson plan will work.

IStar's Dividend Appears to Be in Jeopardy

Istar has a long history of dividends and still has $1.5 billion in cash. This company is not having financial problems in terms of liquidity. If anything, it might have problems generating new business and therefore short-term profits. The real question is whether it can raise more capital through debt issues--say convertible bonds--so it can use that money to lend in a market where getting a loan has become so hard.

Plane Lessors Are Headed to the Desert

Air Castle has improving numbers and 92% of its business comes from outside the US, where fuel costs are not compounded by a declining dollar. With increasing leasing revenue, the aircraft are still far from the desert.

Western Wind Energy Powers California

When is this country going to awaken to the fact that solar farms inn the desert will solve the energy crisis as well as the economic drain caused by foreign oil?

LDK Solar: 50% Markdown Appears Excessive

According to SEC documents filed by LDK, they have about 7% virgin polysilicon. They may have a short term inventory problem which can hinder their production. Long term, they will build a facility that eliminates that problem just in time for an industry oversupply of polysilicon according to at least one analyst.

LDK Solar: The Pros, the Cons, the Recap

The real inventory issue regards not this discrepancy, but future inventory commitments needed to fill sales contracts. In a time when polysilicon is scarce and in demand, can LDK generate enough true inventory commitments from suppliers to meet its sales commitments? If what I read is correct, according to SEC filings by LDK, the company's largest supplier (in terms of multiyear future commitments) had not yet sent any material as of July 3rd even though its contracts had called for deliveries to start months earlier. I have sent two emails to Jack Lai asking about this supplier and LDK's other supply commitments in light of all the recent sales commitments. So far neither he nor anyone in his office has responded.