Prudent Man CFA

BNY Mellon's Role in the ETF Industry

What should be "dug into" is the insider profits made by the sponsors and insider arbitrageurs who profit dearly with the control of the amount of share outstanding of the ETF and its fundamental make up of issues. You may not be getting what you paid for.

The ability to contract and expand is virtually impossible to do in many ETF portfolios, especially bond and commodities, where positions are not easily executed.

The ETF concept is o.k. it is the execution, in some cases, that are of suspect to me. I am diligent about minimizing my risks should some become "Black Swans" and blow up. It had been falsely claimed that money market funds couldn't and some did.

Bank Stress Tests: Tangible Common Equity a Critical Metric

I look for the so-called "Stress Test", constructed by political lackeys for political purposes, to be rigged. The strong Regional Banks will be put into a non-competitive position so the statists can nationalize the whole system and finally completing their goal of ending Free Enterprise as we have historically know it.

The cost of this silent overthrow of the Free Enterprise System will inexorably be paid for by generations to come. Who else will? Shame on us!

We are seeing that salaries, loans and competition is being directed by closet Socialists so no one should be surprised when loans are made upon political preferences and priorities and not meritocracy, which the statists abhor.

We also saw the Tea Parties, a populist movement to stop government intrusion in the private sector and our lives, being denigrated by the media. Why? Isn't dissent an integral ingredient of Freedom? The same media that supported the Students for Democratic Society (SDS), the violent Communist supported, murderous Weathermen and the Black Panthers do not want the people who support Free Enterprise to have their say. This is not accidental but show how far back the movement to destroy the Free Enterprise System dates.

Where is the anger by the media with the intrusion of government in the financial sector last year has exploding into of government controlled Industrial Policy?

With the foregoing in mind and considering that Tim Geithner, as President of the NY Fed had a major part last year in this intrusion, does any serious observer of markets, economics and politics believe the "Stress Test" will be anything by self-serving the statists agenda? BHO, his Administration and the current Congress makes the timing perfect and the investment is showing fruit of its labors.

Under The Radar News - Friday

Are we seeing where large companies, like the Federal Government, a getting too big to manage? Of course, if they are too big to fail they are, by definition, too big.

Evidently, management appears to be clueless as to what the operations of their companies are doing. This is not good for the country as their size hinders competition and efficiency and hinders a free market.