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WMARKW

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  • Nikkei soars, yen slides, after BOJ unexpectedly eases monetary policy [View news story]
    Since when....when they were conquered by US in WWII.
    Nov 3, 2014. 06:25 PM | Likes Like |Link to Comment
  • Wall Street Breakfast: LabCorp Agrees To Acquire Covance For $5.6B [View article]
    Corzine is a chameleon. He has, like the body suits that allow him to blend into the background. He can be right there and yet invisible. Today, I am sure he wishes he were more invisible than he actually is.
    Nov 3, 2014. 09:22 AM | 5 Likes Like |Link to Comment
  • Wall Street Breakfast: Global Shares Jump After BOJ Eases Policy [View article]
    By THE WASHINGTON TIMES - - Thursday, October 30, 2014


    "The Army has apparently completed its investigation of the circumstances surrounding the suspected desertion of Army Sgt. Bowe Bergdahl, but no one expects to see the results before Tuesday’s elections. The last thing the Obama administration wants now is a round of attention to the sordid details of another public-relations disaster."


    Read more: http://bit.ly/1pbT6rq
    Oct 31, 2014. 03:39 PM | Likes Like |Link to Comment
  • Wall Street Breakfast: Global Shares Jump After BOJ Eases Policy [View article]
    Actually....you know I was talking about the "administration".

    :-)
    Oct 31, 2014. 01:51 PM | 2 Likes Like |Link to Comment
  • Why Do Banks Want Our Deposits? Hint: It's Not To Make Loans [View article]
    If the Fed had not created the xxxx Trillion it did during the financial crisis, what do you think the prevailing market rate of interest would have been for short term borrowing? What do you think MBS would have sold for in an open market? What do you think banks would have done to pay depositors for cash they desperately needed? What do you think the US Government would have had to pay primary dealers to buy government securities?

    And let me ask a corollary question. If cash is so invaluable, how come people are willing to pay more than 100% APR at the money loan store or more than 24% for their credit card?

    Oct 31, 2014. 01:44 PM | 2 Likes Like |Link to Comment
  • Why Do Banks Want Our Deposits? Hint: It's Not To Make Loans [View article]
    Today yes. When the Fed uses tools like QE to sell and then re-buy at the price they want to pay, issuances of Government Bonds to and then back from POMO dealers.... yes. They also have the ability to determine what maturity profile they want to attack as far as the yield curve is concerned. So, do they set in not directly, but indirectly for sure.
    Oct 31, 2014. 01:39 PM | 2 Likes Like |Link to Comment
  • Wall Street Breakfast: Global Shares Jump After BOJ Eases Policy [View article]
    Bob - Perhaps they should have been more thoughtful about their original decision.
    Oct 31, 2014. 01:34 PM | 1 Like Like |Link to Comment
  • Wall Street Breakfast: Global Shares Jump After BOJ Eases Policy [View article]
    I was thinking about that last night. A lot of stories gone cold. Ex. What ever happened to the AWOL military guy that got released in exchange for Al Queda prisoners?
    Oct 31, 2014. 12:41 PM | 3 Likes Like |Link to Comment
  • Wall Street Breakfast: Global Shares Jump After BOJ Eases Policy [View article]
    Reminds me. Some years ago I entered a Wells Fargo Bank on Halloween. There was a sign posted on the door, "Please remove all masks prior to entering." I wondered if everyone would comply :-)
    Oct 31, 2014. 12:39 PM | Likes Like |Link to Comment
  • Nikkei soars, yen slides, after BOJ unexpectedly eases monetary policy [View news story]
    BOJ move helps the $ and drives down gold. What could be better for Central Bankers who own the world's reserve currency?
    Oct 31, 2014. 11:15 AM | Likes Like |Link to Comment
  • It's Essential The Federal Reserve Discusses Inequality [View article]
    Let's see.... at 12% mortgages, how many new apartment buildings do you think would be built with stagnant real wages?
    Oct 31, 2014. 09:45 AM | Likes Like |Link to Comment
  • Why Do Banks Want Our Deposits? Hint: It's Not To Make Loans [View article]
    And the other point of QE was to increase asset prices. Unfortunately (or probably what they intended anyway) those asset prices were increased to the benefit of people who already have lots of money. So then the question once again is this, "Did the Fed's meddling produce any significant benefit to the 90% of the people who live in this country who hold little or no wealth?"
    Oct 31, 2014. 09:24 AM | 1 Like Like |Link to Comment
  • Why Do Banks Want Our Deposits? Hint: It's Not To Make Loans [View article]
    If you don't believe the Fed sets the market rates by setting the underlying policy rates, and intervening in the markets, then you are welcome to your opinion.
    Oct 31, 2014. 09:21 AM | Likes Like |Link to Comment
  • It's Essential The Federal Reserve Discusses Inequality [View article]
    If I go to buy an Apartment building and capitalize the rents/net income at a 10x rate in 2008 and then at a 6x rate in 2014, the price of the building has increased in nominal terms and rents will go up.

    If I have a house valued at $300,000 and mortgage rates drop, the monthly payment goes down and the seller can sell the house with a higher price (affordable with lower mortgage rates) and the cash due at selling will put more money in the seller's hands (nominally).

    If I have a cash flow from operations in 2008 and I discount it to come up with stock valuation at 6% and then in 2014 at 4%, the nominal value of the enterprise has increase.

    And now famously, if the Fed wants to buy MBS from holders who got in trouble and they decided to price them at 2% yield instead of the existing coupon rate, then the price of those securities goes up.

    If the Fed lowers interest rates and insurance companies receive 50 basis points less in investment income, then new payouts to pension funds will be lower, disposable income lower and thus the relative cost higher.

    If the Fed lowers interest and savers have less income to spend, then the relative cost of all they buy will be a higher proportion of total income.
    Oct 30, 2014. 04:36 PM | Likes Like |Link to Comment
  • It's Essential The Federal Reserve Discusses Inequality [View article]
    Cap rate.
    Discount rate used in DCF analysis.
    Oct 30, 2014. 03:46 PM | Likes Like |Link to Comment
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