Nick Rao

Homebuilders Reap Uncle Sam's Largesse

Johnny Issacson, the senator from Georgia was a co-sponser with Dodd of Connecticut. Issacson made his fortune in the real estate business and still has a close relationship with developers. He should have been discouraged by the senate republican leadership. These tax credits were not needed. Low interest rates will provide incentive enough for those who are buying a home and have good credit. This will result in transfering money that the government doesn't have to those who would have purchased homes without the stimulus.

First-Time Homebuyers Proliferate: What Are the Consequences?

The incentive is being introduced in the Senate by Chris Todd (OMG not again) and Johnny Isacson (the Atlanta real estate mogul). These senators seem clueless on the negative impact that these incentives will have on the buying mentality and the inevitable fall after they expire (eg cash for clunkers). Combine this with the FHA's current lending practice ("there was a bad loan housing bubble?" FHA), creates a recipe for another disaster. It seems we've entered a new age of self destructive behavior and I am afraid that there is nothing to be done except us crying from the wilderness.

Market Outlook: Inside vs. Outside View

Don't be fooled by recent good economic data, such as, 3.2% increase in GDP. This has been driven in part by the cockeyed stimulus. The market has not reflected the real economy. Business have been cutting costs to drive earnings. However revenues are down. Once the all the cost cutting is done, we will be left with a down earnings and continued dropping in revenues. My outside view is down, down, down.

Social Security Trust Fund Shocker: $6 Billion August Deficit

It's trite to say that this is unsustainable. I am a boomer. I have never planned for SS to be a key element of my retirement plan. However, that is not the case for millions who are about to retire. We have reached a point where there are hard limits to government spending. Our children and grandchildren will not be able to support this.

IBM Files Patent for TV Remote that Tweets

interesting concept, however, IBM won't foray back into the consumer business. They will license the technology and let others market to the consumer market.

9 Stocks Giving Dividend Raises in Q209

There are a lot of companies that pay dividends whose price might be low but have stock prices down due to the general market conditions. Depends on the company fundamentals and position in industry whether to invest in them or not. I do like the point made by the author. Companies paying dividends deserve a good look by investors.


On Jul 05 09:42 AM BlueOkie wrote:

> Dividend yield is not the big metric in my opinion. What percentage
> of eps is it? A drop in stock price causes dividend yield to go
> up.

Wal-Mart and Offering Employees 'Strategic' Healthcare

Instead of identifying the root cause for the rise in healthcare costs and remedy them, we'll bash business because they are responding to these costs by curtailing benefits. The liberal response is to throw a government program at it.

Why Are Employment Numbers So Bad?

The Obamites and their philosophy that well timed government spending can cure all economic ills. Their $1T stimulus drippled a little bit at a time over the next few years, was a horrible mistake. Immediate tax incentives to businesses and consumers were needed. Thus immediate stimulation would have resulted. The investment tax credit for first time home buyers was a week attempt at this type of stimulus. However, first time home buyers are the most vulnerable to job cuts and scared them away. Besides the housing market is still too volatile for the newbees. No the Obamites, missed the boat for a well timed infusion of incentives that would have been a powerful stimulus.

More Proof that AT&T Needs to Keep Its iPhone Exclusivity

The At&t and Apple partnership has been a success for both firms. At this juncture, the relationship favors At&t. For Apple to accelerate growth in the US, they must expand their coverage model. This is what will drive them to do a deal with Verizon Wireless. Both Apple and Verizon Wireless will realize tremendous leverage from the deal. The loser might seem to be At&t, but they will still have the iPhone and subsequent upgrades. I don't believe that the churn from At&t will be significant. At&t will hold on to subscribers. The real loser will be SPRINT, who is the most vulnerable to a Verizon Wireless - Apple deal.

Wall Street Breakfast: Must-Know News

I agree. However, it appears that this administration is determined to interfere with the entire economic ecosystem. Obama claims he has no interest in running car companies but his political philosophy will push him further into control of multiple industries. Today it is Banking and Auto. Tomorrow it will be Energy, Communications, and perhaps Technology. This administration does not understand many of the ramifications and impacts of government ownership of major components of the private sector.


On May 29 10:58 AM not so dumb blond wrote:

> I remain convinced that the best plan for GM is for the treasury
> to pay off the debt now held by bond holders and UAW - about $50
> billion- and let GM go forward without any bankruptcy, thus avoiding
> the bankruptcy costs that will likely be more than $50 billion.
> This keeps the government out of the car maker business, and saves
> many hundreds of thousands of American jobs. Obama is spending trillions
> to save/create jobs, yet can't see this as an obvious and clearly
> visable job saving plan. I now seriously question the sincerity
> of Obama and his stated plans.

Appetite for U.S. Assets Crashes

China's decision to invest in commodities is one cause for the rise in Treasury bond rates and having a negative impact the value of the dollar.

Why the U.S. Dollar Chart Tells a Drastically Different Story than Financial Pundits

I agree with Mr Kim's general opinions and observations. I also agree with several of the comments. However, taking all facts into account, the safety of commodities and asian stocks is a worthwhile hedge for my money.

Business Intelligence and Data Warehousing: What's Next?

Customers big and small cancel or defer BI/DW projects due to their cost and complexity. The graveyard of IT projects contains a proportionately high number of these projects. In good times, customers are more patient for results. In bad times, they strip down to the must have projects with a short payback.

Gold vs. Housing: 80 Years of U.K. Data

I understand that the author has adjusted for inflation, however, the article does not indicate whether 2 key factors are included in the analysis. One is real income growth during the period, which has been running well ahead of inflation, and available housing inventory in the UK during that period.

The Dawn of Network Infrastructure 2.0

I agree that Cisco entering the clouding computing market is a valid concern for players like IBM. The rumored acquisition of Sun by IBM is a good offensive move against a Cisco incursion in the cloud market. Sun has a major footprint in this space from a software and hardware perspective. IBM has the services, software, and hardware expertise to develop the solution's in the area that few if any other suppliers can match. An IBM - Sun deal will only strengthen those capabilities.