goldenhinde's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.comuser/92607/comments http://seekingalpha.com/article/156254-less-government-or-lower-wages-you-choose?source=feed#comment-641395 641395

On Aug 16 06:55 AM optionsgirl wrote:

> I'm willing to endure the pain necessary to return to a fiscally
> responsible, small federal government that recognizes US citizens
> choose capitalism and democracy, the "old normal".
> There is no "greater good" than the protection of our individual
> rights and property.]]> Sun, 23 Aug 2009 00:28:31 -0400

On Aug 16 06:55 AM optionsgirl wrote:

> I'm willing to endure the pain necessary to return to a fiscally
> responsible, small federal government that recognizes US citizens
> choose capitalism and democracy, the "old normal".
> There is no "greater good" than the protection of our individual
> rights and property.]]> http://seekingalpha.com/article/141795-washington-drinking-the-kool-aid-of-incompetent-economists?source=feed#comment-535588 535588
I'd like to suggest that it is a good thing you aren't making policy and merely rant from the sidelines. Please illustrate capacity for thought in your next post.
]]> Sun, 07 Jun 2009 09:53:25 -0400
I'd like to suggest that it is a good thing you aren't making policy and merely rant from the sidelines. Please illustrate capacity for thought in your next post.
]]> http://seekingalpha.com/article/131112-expecting-the-better-than-expected-from-ge-google-and-jpmorgan?source=feed#comment-464659 464659




]]> Thu, 16 Apr 2009 01:42:30 -0400




]]> http://seekingalpha.com/article/130146-200-oil-is-coming-while-we-waste-a-perfectly-good-crisis-part-3?source=feed#comment-459868 459868
I agree with you entirely that without being self sufficient in energy we are screwing ourselves and the future of this country. However, if Iraq comes on line it can replace a lot of what is otherwise drying up and can do it for years to come. This certainly moves the time of $200/barrel oil further out than what might otherwise be expected.

If we were smart, and yes, that is a big if, we wouldn't wait to get ourselves independent. Being a market based economy however, we are likely to stick to our philosophy and walk the tight rope into our own demise. My R friends will blame Obama. My D friends will blame big oil and they'll both be right/wrong.

We don't appear to accept the notion in this country of long range planning. Long range appears to be anything beyond the next mid term or Presidential election. Engage in such planning and the clowns blame government interference in the markets as the basis for why it should not proceed.

It is stunning for its stupidity - it doesn't matter what you call it. The more dependent we allow ourselves to be on others - the more we deserve the pain we create for ourselves.

Forest Gump knew better: "Stupid is as stupid does". ]]> Sat, 11 Apr 2009 12:14:48 -0400
I agree with you entirely that without being self sufficient in energy we are screwing ourselves and the future of this country. However, if Iraq comes on line it can replace a lot of what is otherwise drying up and can do it for years to come. This certainly moves the time of $200/barrel oil further out than what might otherwise be expected.

If we were smart, and yes, that is a big if, we wouldn't wait to get ourselves independent. Being a market based economy however, we are likely to stick to our philosophy and walk the tight rope into our own demise. My R friends will blame Obama. My D friends will blame big oil and they'll both be right/wrong.

We don't appear to accept the notion in this country of long range planning. Long range appears to be anything beyond the next mid term or Presidential election. Engage in such planning and the clowns blame government interference in the markets as the basis for why it should not proceed.

It is stunning for its stupidity - it doesn't matter what you call it. The more dependent we allow ourselves to be on others - the more we deserve the pain we create for ourselves.

Forest Gump knew better: "Stupid is as stupid does". ]]> http://seekingalpha.com/article/130455-rare-market-indicator-sighting-t2108-over-90?source=feed#comment-459856 459856
It seems to me that the landmines left in the field notwithstanding the real issue becomes not one of recovery - but WHAT TYPE of recovery. If the recovery is broad based then Mr. Market will respond in accordance with the commitment of capital on a more classic asset allocation basis. If the recovery is more methodical and slow i.e., GDP growth in 2010 is only 1% then stock picking skills will prevail over asset allocation strategies.

It seems to me that identifying those companies that are not drowning in debt, not relying on a balance sheet filled with good will, not holding on to bloated inventories (like tech companies often do), generating sufficient cash flow to handle their current obligations will come out of this well.

GE is an interesting play in this regard. According to an article in Business Week on GE, the stock is being valued on the basis of all of its industrial businesses. GE Capital is valued at next to nothing. On the one hand they have $45 billion in cash. On the other hand 40% of their consumer loans at the Capital division are of sub prime quality.

If the recovery is long and drawn out I cannot see how a classic asset allocation approach is worth the risk. The upside does not seem to balance the downside risk.

]]> Sat, 11 Apr 2009 11:59:54 -0400
It seems to me that the landmines left in the field notwithstanding the real issue becomes not one of recovery - but WHAT TYPE of recovery. If the recovery is broad based then Mr. Market will respond in accordance with the commitment of capital on a more classic asset allocation basis. If the recovery is more methodical and slow i.e., GDP growth in 2010 is only 1% then stock picking skills will prevail over asset allocation strategies.

It seems to me that identifying those companies that are not drowning in debt, not relying on a balance sheet filled with good will, not holding on to bloated inventories (like tech companies often do), generating sufficient cash flow to handle their current obligations will come out of this well.

GE is an interesting play in this regard. According to an article in Business Week on GE, the stock is being valued on the basis of all of its industrial businesses. GE Capital is valued at next to nothing. On the one hand they have $45 billion in cash. On the other hand 40% of their consumer loans at the Capital division are of sub prime quality.

If the recovery is long and drawn out I cannot see how a classic asset allocation approach is worth the risk. The upside does not seem to balance the downside risk.

]]> http://seekingalpha.com/article/127113-current-popular-argument-against-aig-bonuses-takes-the-wrong-viewpoint?source=feed#comment-434849 434849
I do appreciate the sentiment you express, but you sound awefully naive.


On Mar 21 03:43 PM Jim in Virginia wrote:

> All of this is well and good but had they let the whole thing come
> tumbling down as bad as it would have been with a bankruptcy and
> the following fallout, we would not have been put in the position
> of the government (not a court) retroactively breaking a legally
> binding contract. We are a nation of laws or we are not. If any contract
> can be broken whenever public sentiment deems it necessary, we are
> in much deeper trouble than we are right now.]]> Sun, 22 Mar 2009 00:24:34 -0400
I do appreciate the sentiment you express, but you sound awefully naive.


On Mar 21 03:43 PM Jim in Virginia wrote:

> All of this is well and good but had they let the whole thing come
> tumbling down as bad as it would have been with a bankruptcy and
> the following fallout, we would not have been put in the position
> of the government (not a court) retroactively breaking a legally
> binding contract. We are a nation of laws or we are not. If any contract
> can be broken whenever public sentiment deems it necessary, we are
> in much deeper trouble than we are right now.]]> http://seekingalpha.com/article/125974-the-latest-on-bank-nationalization?source=feed#comment-426283 426283
The taxpayers should act like any other investor would act.

We will not get out of this mess until bank balance sheets are fixed. Recapitalize them, tank the existing holders of the capital structure - but for the secured debt holders and issues new shares. Take those shares and put them into the Social Security Trust where, as banks recover the securities can eventually be resold back into the market and the accumulated value can be used as a real funding source for the payment of future Social Security benefits.

The existing generation will be alleviating the intergeneration burden we otherwise place on our children but engaging in a process in which the promises made by our Social Security system can, in part, be funded rather than unfunded.

see sociallyresponsibleres... for more details.]]> Sun, 15 Mar 2009 09:33:06 -0400
The taxpayers should act like any other investor would act.

We will not get out of this mess until bank balance sheets are fixed. Recapitalize them, tank the existing holders of the capital structure - but for the secured debt holders and issues new shares. Take those shares and put them into the Social Security Trust where, as banks recover the securities can eventually be resold back into the market and the accumulated value can be used as a real funding source for the payment of future Social Security benefits.

The existing generation will be alleviating the intergeneration burden we otherwise place on our children but engaging in a process in which the promises made by our Social Security system can, in part, be funded rather than unfunded.

see sociallyresponsibleres... for more details.]]> http://seekingalpha.com/article/125974-the-latest-on-bank-nationalization?source=feed#comment-426270 426270
To my Republican friends I say this is the legacy of Reagan who took the concept of free markets and allowed them to become anything but free. The net effect of the Reagan years was to leverage balance sheets and replace the "honor" of building a company that will last - with the cleaverness of milking the assets built by others for all one could extract from it. There was no balance in that effort and we have been leveraging ourselves ever since.

By definition, American markets aren't free - or even close. How do I know. Large companies pay billions to lobby Congress and the White House to assure that they are not.

Large companies kill creativity and create a false sense of security. They kill jobs and have a culture that is antithetical to what we otherwise think of as American values.

If we really want to return to a more market based economy then let's bust up all large companies. That will, like the ATT of old, force management and the millions who work in such organizations to think and act like small business people - still the backbone of our economy and still the driver for this country's sense of freedom and liberty. ]]> Sun, 15 Mar 2009 09:26:11 -0400
To my Republican friends I say this is the legacy of Reagan who took the concept of free markets and allowed them to become anything but free. The net effect of the Reagan years was to leverage balance sheets and replace the "honor" of building a company that will last - with the cleaverness of milking the assets built by others for all one could extract from it. There was no balance in that effort and we have been leveraging ourselves ever since.

By definition, American markets aren't free - or even close. How do I know. Large companies pay billions to lobby Congress and the White House to assure that they are not.

Large companies kill creativity and create a false sense of security. They kill jobs and have a culture that is antithetical to what we otherwise think of as American values.

If we really want to return to a more market based economy then let's bust up all large companies. That will, like the ATT of old, force management and the millions who work in such organizations to think and act like small business people - still the backbone of our economy and still the driver for this country's sense of freedom and liberty. ]]> http://seekingalpha.com/article/120811-america-s-insolvent-banks?source=feed#comment-391169 391169
Summary (one page)
US taxpayers are being asked to incur massive debt to recapitalize insolvent financial institutions. While a sound banking system is required to drive economic activity – HOW we implement this rescue is critical. If the rescue of these institutions is adopted as proposed, (the “good” bank / “bad” bank proposal) we will recapitalize the same management, Board of Directors and oversight structure that created these catastrophic circumstances in the first place. If adopted, this proposal will effectively shield them from having to bear responsibility for their actions. In addition, it will impose a debt upon us that is so burdensome it will strangle our capacity for economic growth, threaten our liberty and diminish future opportunity for our children. There is no measure of maturity, honor or decency in encumbering our children with massive debt to pay for our generation’s mistakes and the inept management of our affairs. We must demand an alternative course of action from our government. This Proposal offers such an alternative.

In this Proposal we citizens propose that in exchange for US taxpayer infusions of capital all of the securities representing the ownership of these businesses (see Provision #3 for the exception) will be treated as though the business had actually made a bankruptcy filing. When US taxpayers recapitalize the insolvent institutions, a new class of shares shall be issued. Those securities will: (1) become the property of the US taxpayers and (2) be deposited into a Trust, called the Social Security Trust, for the benefit of all Social Security system participants.

As the business activity of the citizenry revives the economic vitality of these institutions, the value of shares in those rescued institutions will increase. As they increase in value they will become the financial backbone for the Social Security system – a system that now has no real assets but for the social security taxes taken from future payrolls. The SST shall be managed by a FIDuciary Oversight Board (FIDOB) whose members shall; be experienced investment fiduciaries, report directly to the President of the United States and be subject to oversight by the General Accountability Office. When there is clear evidence that the rescued financial institutions are stable, the FIDOB may examine the prudence of selling the securities to the highest bidder in the marketplace. While such a program would require the President’s and GAO’s approval, the proceeds from a sale will remain as SST assets.

By implementing the actions proposed in this Petition, we citizens of the United States will:
• recapitalize the financial infrastructure of the country,
• employ market-based principles consistent with the intent of our laws,
• substantially alleviate (not solve) the financial burden upon our children of paying for Social Security benefits we have promised to give ourselves,
• create a governance model grounded in and guided by an authentic fiduciary standard of care (not how banks or bank regulators operate now),
• establish a Trust with real assets that serve as a financial backbone for Social Security, and
• exemplify our President’s call for individual responsibility.

Please visit sociallyresponsibleres... to read the entire 7 page Petition and sign it.
Pass it along to friends, family and colleagues. Thank You.
]]> Mon, 16 Feb 2009 18:40:23 -0500
Summary (one page)
US taxpayers are being asked to incur massive debt to recapitalize insolvent financial institutions. While a sound banking system is required to drive economic activity – HOW we implement this rescue is critical. If the rescue of these institutions is adopted as proposed, (the “good” bank / “bad” bank proposal) we will recapitalize the same management, Board of Directors and oversight structure that created these catastrophic circumstances in the first place. If adopted, this proposal will effectively shield them from having to bear responsibility for their actions. In addition, it will impose a debt upon us that is so burdensome it will strangle our capacity for economic growth, threaten our liberty and diminish future opportunity for our children. There is no measure of maturity, honor or decency in encumbering our children with massive debt to pay for our generation’s mistakes and the inept management of our affairs. We must demand an alternative course of action from our government. This Proposal offers such an alternative.

In this Proposal we citizens propose that in exchange for US taxpayer infusions of capital all of the securities representing the ownership of these businesses (see Provision #3 for the exception) will be treated as though the business had actually made a bankruptcy filing. When US taxpayers recapitalize the insolvent institutions, a new class of shares shall be issued. Those securities will: (1) become the property of the US taxpayers and (2) be deposited into a Trust, called the Social Security Trust, for the benefit of all Social Security system participants.

As the business activity of the citizenry revives the economic vitality of these institutions, the value of shares in those rescued institutions will increase. As they increase in value they will become the financial backbone for the Social Security system – a system that now has no real assets but for the social security taxes taken from future payrolls. The SST shall be managed by a FIDuciary Oversight Board (FIDOB) whose members shall; be experienced investment fiduciaries, report directly to the President of the United States and be subject to oversight by the General Accountability Office. When there is clear evidence that the rescued financial institutions are stable, the FIDOB may examine the prudence of selling the securities to the highest bidder in the marketplace. While such a program would require the President’s and GAO’s approval, the proceeds from a sale will remain as SST assets.

By implementing the actions proposed in this Petition, we citizens of the United States will:
• recapitalize the financial infrastructure of the country,
• employ market-based principles consistent with the intent of our laws,
• substantially alleviate (not solve) the financial burden upon our children of paying for Social Security benefits we have promised to give ourselves,
• create a governance model grounded in and guided by an authentic fiduciary standard of care (not how banks or bank regulators operate now),
• establish a Trust with real assets that serve as a financial backbone for Social Security, and
• exemplify our President’s call for individual responsibility.

Please visit sociallyresponsibleres... to read the entire 7 page Petition and sign it.
Pass it along to friends, family and colleagues. Thank You.
]]> http://seekingalpha.com/article/120705-bank-nationalization-it-s-just-plain-wrong?source=feed#comment-390280 390280
Proposal from Citizens of the United States of America
It is time that we eliminate the privatization of profits and the socialization of losses.

Summary (one page)
US taxpayers are being asked to incur massive debt to recapitalize insolvent financial institutions. While a sound banking system is required to drive economic activity – HOW we implement this rescue is critical. If the rescue of these institutions is adopted as proposed, (the “good” bank / “bad” bank proposal) we will recapitalize the same management, Board of Directors and oversight structure that created these catastrophic circumstances in the first place. If adopted, this proposal will effectively shield them from having to bear responsibility for their actions. In addition, it will impose a debt upon us that is so burdensome it will strangle our capacity for economic growth, threaten our liberty and diminish future opportunity for our children. There is no measure of maturity, honor or decency in encumbering our children with massive debt to pay for our generation’s mistakes and the inept management of our affairs. We must demand an alternative course of action from our government. This Proposal offers such an alternative.

In this Proposal we citizens propose that in exchange for US taxpayer infusions of capital all of the securities representing the ownership of these businesses (see Provision #3 for the exception) will be treated as though the business had actually made a bankruptcy filing. When US taxpayers recapitalize the insolvent institutions, a new class of shares shall be issued. Those securities will: (1) become the property of the US taxpayers and (2) be deposited into a Trust, called the Social Security Trust, for the benefit of all Social Security system participants.

As the business activity of the citizenry revives the economic vitality of these institutions, the value of shares in those rescued institutions will increase. As they increase in value they will become the financial backbone for the Social Security system – a system that now has no real assets but for the social security taxes taken from future payrolls. The SST shall be managed by a FIDuciary Oversight Board (FIDOB) whose members shall; be experienced investment fiduciaries, report directly to the President of the United States and be subject to oversight by the General Accountability Office. When there is clear evidence that the rescued financial institutions are stable, the FIDOB may examine the prudence of selling the securities to the highest bidder in the marketplace. While such a program would require the President’s and GAO’s approval, the proceeds from a sale will remain as SST assets.

By implementing the actions proposed in this Petition, we citizens of the United States will:
• recapitalize the financial infrastructure of the country,
• employ market-based principles consistent with the intent of our laws,
• substantially alleviate (not solve) the financial burden upon our children of paying for Social Security benefits we have promised to give ourselves,
• create a governance model grounded in and guided by an authentic fiduciary standard of care (not how banks or bank regulators operate now),
• establish a Trust with real assets that serve as a financial backbone for Social Security, and
• exemplify our President’s call for individual responsibility.

Please visit sociallyresponsibleres... to read the entire 7 page Petition and sign it.
Pass it along to friends, family and colleagues. Thank You.



On Feb 15 04:40 PM ClydeDNA wrote:

> Genie. I hate to tell you this but the innocent investors already
> lost their money, Citi for example who merged with the Wacos, is
> mostly owned by the commies (i.e. USA). I'm just kidding, but you
> know of course that Russia and China are not communistic at all.
> Those countries are run by capitalist dictators. Our country is a
> democracy with our leaders chosen by the people. It's too bad that
> human beings on the average are such a bunch of crap, otherwise getting
> rid of the Kings and Queens would have been fantastic! We replaced
> them almost world-wide with a bunch of nincompoops. Human beings
> need to do a better job at choosing leaders and then getting involved.
>
>
> Nitram. I know you want to punish those CEO that still have jobs,
> but except for Madoff, nobody is going to even pay a fine.
>
> The collateral that underwrote all those $trillions in loans is going
> down in value. The banks are broke! Hang the banker CEOs! …that's
> not going to help. What do we do now?
>
> First I want you to cheer up and face the future in a positive manner.
> Unless you got a car with a Flux capacitor, we are going forward.
> You know, this is the very first time that everyone I voted for actually
> won. I've voted a lot of times over the years. I'm going to stay
> involved as much as I can and hope for the best rather than worry
> about the worst. I'm going to stay positive about my life going forward,
> even though as Yogi once said "the future is not as good as it used
> to be".
>
> And I'm going to try to figure where all the money came from so I
> can figure where it's going -- and get some.
>
> video.google.com/video...
> ]]> Mon, 16 Feb 2009 09:02:10 -0500
Proposal from Citizens of the United States of America
It is time that we eliminate the privatization of profits and the socialization of losses.

Summary (one page)
US taxpayers are being asked to incur massive debt to recapitalize insolvent financial institutions. While a sound banking system is required to drive economic activity – HOW we implement this rescue is critical. If the rescue of these institutions is adopted as proposed, (the “good” bank / “bad” bank proposal) we will recapitalize the same management, Board of Directors and oversight structure that created these catastrophic circumstances in the first place. If adopted, this proposal will effectively shield them from having to bear responsibility for their actions. In addition, it will impose a debt upon us that is so burdensome it will strangle our capacity for economic growth, threaten our liberty and diminish future opportunity for our children. There is no measure of maturity, honor or decency in encumbering our children with massive debt to pay for our generation’s mistakes and the inept management of our affairs. We must demand an alternative course of action from our government. This Proposal offers such an alternative.

In this Proposal we citizens propose that in exchange for US taxpayer infusions of capital all of the securities representing the ownership of these businesses (see Provision #3 for the exception) will be treated as though the business had actually made a bankruptcy filing. When US taxpayers recapitalize the insolvent institutions, a new class of shares shall be issued. Those securities will: (1) become the property of the US taxpayers and (2) be deposited into a Trust, called the Social Security Trust, for the benefit of all Social Security system participants.

As the business activity of the citizenry revives the economic vitality of these institutions, the value of shares in those rescued institutions will increase. As they increase in value they will become the financial backbone for the Social Security system – a system that now has no real assets but for the social security taxes taken from future payrolls. The SST shall be managed by a FIDuciary Oversight Board (FIDOB) whose members shall; be experienced investment fiduciaries, report directly to the President of the United States and be subject to oversight by the General Accountability Office. When there is clear evidence that the rescued financial institutions are stable, the FIDOB may examine the prudence of selling the securities to the highest bidder in the marketplace. While such a program would require the President’s and GAO’s approval, the proceeds from a sale will remain as SST assets.

By implementing the actions proposed in this Petition, we citizens of the United States will:
• recapitalize the financial infrastructure of the country,
• employ market-based principles consistent with the intent of our laws,
• substantially alleviate (not solve) the financial burden upon our children of paying for Social Security benefits we have promised to give ourselves,
• create a governance model grounded in and guided by an authentic fiduciary standard of care (not how banks or bank regulators operate now),
• establish a Trust with real assets that serve as a financial backbone for Social Security, and
• exemplify our President’s call for individual responsibility.

Please visit sociallyresponsibleres... to read the entire 7 page Petition and sign it.
Pass it along to friends, family and colleagues. Thank You.



On Feb 15 04:40 PM ClydeDNA wrote:

> Genie. I hate to tell you this but the innocent investors already
> lost their money, Citi for example who merged with the Wacos, is
> mostly owned by the commies (i.e. USA). I'm just kidding, but you
> know of course that Russia and China are not communistic at all.
> Those countries are run by capitalist dictators. Our country is a
> democracy with our leaders chosen by the people. It's too bad that
> human beings on the average are such a bunch of crap, otherwise getting
> rid of the Kings and Queens would have been fantastic! We replaced
> them almost world-wide with a bunch of nincompoops. Human beings
> need to do a better job at choosing leaders and then getting involved.
>
>
> Nitram. I know you want to punish those CEO that still have jobs,
> but except for Madoff, nobody is going to even pay a fine.
>
> The collateral that underwrote all those $trillions in loans is going
> down in value. The banks are broke! Hang the banker CEOs! …that's
> not going to help. What do we do now?
>
> First I want you to cheer up and face the future in a positive manner.
> Unless you got a car with a Flux capacitor, we are going forward.
> You know, this is the very first time that everyone I voted for actually
> won. I've voted a lot of times over the years. I'm going to stay
> involved as much as I can and hope for the best rather than worry
> about the worst. I'm going to stay positive about my life going forward,
> even though as Yogi once said "the future is not as good as it used
> to be".
>
> And I'm going to try to figure where all the money came from so I
> can figure where it's going -- and get some.
>
> video.google.com/video...
> ]]> http://seekingalpha.com/article/111671-four-dying-silicon-valley-companies?source=feed#comment-335178 335178
It is always darkest before the storm and more importantly, if you think market intelligence comes from newspapers - you deserve your fate. ]]> Sun, 21 Dec 2008 16:44:48 -0500
It is always darkest before the storm and more importantly, if you think market intelligence comes from newspapers - you deserve your fate. ]]> http://seekingalpha.com/article/106064-state-default-watch-budget-deficit-heatmap?source=feed#comment-306776 306776

On Nov 15 08:30 AM Mowog wrote:

> It seems like the more financially troubled the budget of a state,
> the more likely it was to vote for Sen. Obama. Expectations of "free"
> money for government bailouts?]]> Sat, 15 Nov 2008 14:12:44 -0500

On Nov 15 08:30 AM Mowog wrote:

> It seems like the more financially troubled the budget of a state,
> the more likely it was to vote for Sen. Obama. Expectations of "free"
> money for government bailouts?]]> http://seekingalpha.com/article/106082-hidden-crash-the-dumping-of-venture-funds?source=feed#comment-306772 306772
Venture funds will not move overseas because no one who has cash will innovate and let them it. The Arabs don't innovate. The Russians - yeah right. The Chinesse don't need our money so the impact of US centric VC firms will be minimal.

There is no other place. WE are it and therefore we had better get to work or our kids are screwed (more than we've already screwed them).

]]> Sat, 15 Nov 2008 14:02:21 -0500
Venture funds will not move overseas because no one who has cash will innovate and let them it. The Arabs don't innovate. The Russians - yeah right. The Chinesse don't need our money so the impact of US centric VC firms will be minimal.

There is no other place. WE are it and therefore we had better get to work or our kids are screwed (more than we've already screwed them).

]]> http://seekingalpha.com/article/101913-why-is-mccain-playing-defense-on-this-market?source=feed#comment-290706 290706
The really scary thing is that Republicans don't recognize that the policies of their beloved Reagan are coming home to roost.

As other citizens wake up to the simplistic but accurate notion that the only thing that is different about Republicans and Democrats is that Republicans borrow and spend while Democrats tax and spend.

Frankly, while neither is a model of leadership, he Republican framework has burst and anyone who thinks that we ought to keep trying it - deserves what they get.

]]> Sun, 26 Oct 2008 09:58:32 -0400
The really scary thing is that Republicans don't recognize that the policies of their beloved Reagan are coming home to roost.

As other citizens wake up to the simplistic but accurate notion that the only thing that is different about Republicans and Democrats is that Republicans borrow and spend while Democrats tax and spend.

Frankly, while neither is a model of leadership, he Republican framework has burst and anyone who thinks that we ought to keep trying it - deserves what they get.

]]> http://seekingalpha.com/article/99576-u-k-limits-quality-of-life-meds-to-30-000-a-year?source=feed#comment-282610 282610
There is no free market in health care. There never has been.

Oh yes, if you are fat, smoke and have other bad habits - you can pay for the consequences of that yourself. Don't bother coming to me to subsidize your bad habits.

]]> Wed, 15 Oct 2008 00:02:32 -0400
There is no free market in health care. There never has been.

Oh yes, if you are fat, smoke and have other bad habits - you can pay for the consequences of that yourself. Don't bother coming to me to subsidize your bad habits.

]]> http://seekingalpha.com/article/97586-bad-idea-a-tax-on-trading?source=feed#comment-266863 266863
How do I know. A friend of mine has an account with Goldman. He recently told me that the same trade that would cost him ,$50 with Schwab was going to cost him $4,000 with Goldman.

Goldman imposes a tax (read unconscionable fee) to do business with them. Rich folks gladly pay it. In that case it is pure self interest. In the case of not wanting a tax I go back to my first statement.

As for cutting spending no one has yet answered the question; Why is the government in the business of keeping old people alive? I say slash Medicare in half. Yes, people will die but they were going to die anyway.

This country would be better off spending money on education and training.]]> Sat, 27 Sep 2008 12:06:05 -0400
How do I know. A friend of mine has an account with Goldman. He recently told me that the same trade that would cost him ,$50 with Schwab was going to cost him $4,000 with Goldman.

Goldman imposes a tax (read unconscionable fee) to do business with them. Rich folks gladly pay it. In that case it is pure self interest. In the case of not wanting a tax I go back to my first statement.

As for cutting spending no one has yet answered the question; Why is the government in the business of keeping old people alive? I say slash Medicare in half. Yes, people will die but they were going to die anyway.

This country would be better off spending money on education and training.]]> http://seekingalpha.com/article/96491-oppose-the-treasury-s-bailout-plan?source=feed#comment-260639 260639
If ML sold such MBS assets for $0.22 on the dollar then THAT price represents the best arms length transaction that the market could make available to a seller at that time. If the US government steps in then the purchase price of such securities or those related should be lower as the taxpayers should demand and be paid a premium for serving as the buyer of last resort.

The era of privatizing profits and socializing losses must end. It is time that the taxpayer win and shareholders, board members and investors too asleep to have any foresight as to what they were doing MUST loose. ]]> Sun, 21 Sep 2008 11:54:59 -0400
If ML sold such MBS assets for $0.22 on the dollar then THAT price represents the best arms length transaction that the market could make available to a seller at that time. If the US government steps in then the purchase price of such securities or those related should be lower as the taxpayers should demand and be paid a premium for serving as the buyer of last resort.

The era of privatizing profits and socializing losses must end. It is time that the taxpayer win and shareholders, board members and investors too asleep to have any foresight as to what they were doing MUST loose. ]]> http://seekingalpha.com/article/94088-obama-s-windfall-profits-proposal-is-dangerous?source=feed#comment-247719 247719
Just how many ultra rich sports team owners built their own stadiums with their own money? Yea, free market my ass.

The entire tax structure of the US favors one type of capital over others - real estate. You can't roll over your stock in an exchange the way you can gains in real estate. It is ALL ABOUT the allocation of capital and tax policy with regards to that. So, back off the ideological crap.

Oh yes, Obama's idea sucks but it comes from a recognition that "the other side" has had a free ride for many years. They are only striking back - so what.

If we don't raise taxes AND cut spending we're screwed.

The politicans are all the same. If we don't demand that they change we deserve what we get. ]]> Sun, 07 Sep 2008 16:47:49 -0400
Just how many ultra rich sports team owners built their own stadiums with their own money? Yea, free market my ass.

The entire tax structure of the US favors one type of capital over others - real estate. You can't roll over your stock in an exchange the way you can gains in real estate. It is ALL ABOUT the allocation of capital and tax policy with regards to that. So, back off the ideological crap.

Oh yes, Obama's idea sucks but it comes from a recognition that "the other side" has had a free ride for many years. They are only striking back - so what.

If we don't raise taxes AND cut spending we're screwed.

The politicans are all the same. If we don't demand that they change we deserve what we get. ]]> http://seekingalpha.com/article/94186-rnc-dnc-crisis-what-crisis?source=feed#comment-246923 246923
We must raise taxes and we must cut expenditures. It is quite simple. The politicans are unwilling to tell the truth in either party and the American people don't know enough about finance to demand answers becasue they don't know what questions to ask.

It was PT Barnham who said: Never overestimate the intelligence of the American people. ]]> Sat, 06 Sep 2008 11:46:09 -0400
We must raise taxes and we must cut expenditures. It is quite simple. The politicans are unwilling to tell the truth in either party and the American people don't know enough about finance to demand answers becasue they don't know what questions to ask.

It was PT Barnham who said: Never overestimate the intelligence of the American people. ]]> http://seekingalpha.com/article/91260-start-looking-for-a-bottom?source=feed#comment-232794 232794
]]> Mon, 18 Aug 2008 00:19:03 -0400
]]> http://seekingalpha.com/article/85914-what-you-can-and-can-t-learn-from-warren-buffett?source=feed#comment-215021 215021
Not all wealthy think this way. No surprise there. No all of anyone thinks one way.

I would argue that estate taxes as applied to a closely held business are uneconomic and make no sense. Few businesses can recapitalize themselves at 55% of their net worth - even over 14 years as the federal estate tax allows.

If your money is tied up in a business the estate tax ought to be minimal - say 10%. so amend SEC 6166 - fine.

It is interesting to note that our sense of obligation to others here is nothing compared to the sense of obligation embedded in Asian or Middle Eastern culture. It is simplistic to say that our selfishness has caught up with us. It is also simplistic to dismiss the value that is generated by having a culture in which citizens felt honor in giving back to their communities and countries - rather than foolishish.

It is not entirely clear - other than from a more middle class perspective - that Buffett has it wrong.

]]> Sat, 26 Jul 2008 10:02:56 -0400
Not all wealthy think this way. No surprise there. No all of anyone thinks one way.

I would argue that estate taxes as applied to a closely held business are uneconomic and make no sense. Few businesses can recapitalize themselves at 55% of their net worth - even over 14 years as the federal estate tax allows.

If your money is tied up in a business the estate tax ought to be minimal - say 10%. so amend SEC 6166 - fine.

It is interesting to note that our sense of obligation to others here is nothing compared to the sense of obligation embedded in Asian or Middle Eastern culture. It is simplistic to say that our selfishness has caught up with us. It is also simplistic to dismiss the value that is generated by having a culture in which citizens felt honor in giving back to their communities and countries - rather than foolishish.

It is not entirely clear - other than from a more middle class perspective - that Buffett has it wrong.

]]> http://seekingalpha.com/article/85743-how-the-u-s-financial-crisis-resembles-japan-8217-s-lost-decade-and-how-to-play-it?source=feed#comment-209391 209391
Is the purpose of "fixing what's broken" to (1) sustain the broadest number of middle class Americans in the lifestyle they are accustomed to, (2) promote investment from the rich, (3) financially put a net underneath those who find themselves in deep financial trouble (4) remain the central banker for the world ...Just what is the end game here.

For whatever it is worth, and in very generalized terms, one observation I have is that rich folks abhor government intervention until they want it for THEIR economic interests. Then, it all seems to make sense to them. Poor folks have developed a mind set in which they are more emotionally comfortable thinking of themselves as victims of someone else's actions rather than digesting the fact that they are architects of their world (as seen from their shoes).

If you want personal responsibility to be part of the game then it ought to apply everywhere. If you are fat, smoke, eat lots of red meat and drink to excess you have that right - just don't ask the citizens of this country to pay for it. Your health insurance should cost you an amount of money that reflects the risk you represent- which on an NPV basis is greater than someone who doesn't engage in such behaviors.

Our entire economic model is substantially unprincipled and I would argue that this is part of the problem. If you don't measure it - it doesn't count in our system. Reality be damned. So if your economic activity causes a certain level of pollution for example in air or water why don't you pay for it. Given that the cost of dealing with the pollution is not zero, then not paying for it is assuming that the responsibility for your actions rightly falls to someone else.

If you run a company and use shareholder's assets to engage in economic activity then, as a manager, you should be made to apply a "rental charge" for the use of shareholder's capital for any project. To have accounting rules which ignores this fundamental prnciple now means that you've structured an enterprise so that management can use shareholder's net worth for "free". You can generate accounting profits that bear no basis in reality for a cost of capital or even a risk free rate of return a shareholder could otherwise earn if they didn't want to take any risk.

Welcome to GAPP accounting.

It is a far differnt lens with which to look through than say an EVA (economic value added) lens. If you aren't familiar with EVA and you are an investor - you are missing something important.

So, if what you measure doesn't match reality (I have presented a few examples) you are building a system which is fundamentally flawed. A wake up call is built into such a system and a systems engineering approach is required to put in the "fix".

It all starts with what are you trying to accomplish.

]]> Sat, 19 Jul 2008 12:10:24 -0400
Is the purpose of "fixing what's broken" to (1) sustain the broadest number of middle class Americans in the lifestyle they are accustomed to, (2) promote investment from the rich, (3) financially put a net underneath those who find themselves in deep financial trouble (4) remain the central banker for the world ...Just what is the end game here.

For whatever it is worth, and in very generalized terms, one observation I have is that rich folks abhor government intervention until they want it for THEIR economic interests. Then, it all seems to make sense to them. Poor folks have developed a mind set in which they are more emotionally comfortable thinking of themselves as victims of someone else's actions rather than digesting the fact that they are architects of their world (as seen from their shoes).

If you want personal responsibility to be part of the game then it ought to apply everywhere. If you are fat, smoke, eat lots of red meat and drink to excess you have that right - just don't ask the citizens of this country to pay for it. Your health insurance should cost you an amount of money that reflects the risk you represent- which on an NPV basis is greater than someone who doesn't engage in such behaviors.

Our entire economic model is substantially unprincipled and I would argue that this is part of the problem. If you don't measure it - it doesn't count in our system. Reality be damned. So if your economic activity causes a certain level of pollution for example in air or water why don't you pay for it. Given that the cost of dealing with the pollution is not zero, then not paying for it is assuming that the responsibility for your actions rightly falls to someone else.

If you run a company and use shareholder's assets to engage in economic activity then, as a manager, you should be made to apply a "rental charge" for the use of shareholder's capital for any project. To have accounting rules which ignores this fundamental prnciple now means that you've structured an enterprise so that management can use shareholder's net worth for "free". You can generate accounting profits that bear no basis in reality for a cost of capital or even a risk free rate of return a shareholder could otherwise earn if they didn't want to take any risk.

Welcome to GAPP accounting.

It is a far differnt lens with which to look through than say an EVA (economic value added) lens. If you aren't familiar with EVA and you are an investor - you are missing something important.

So, if what you measure doesn't match reality (I have presented a few examples) you are building a system which is fundamentally flawed. A wake up call is built into such a system and a systems engineering approach is required to put in the "fix".

It all starts with what are you trying to accomplish.

]]> http://seekingalpha.com/article/85696-was-that-a-bottom-or-the-bottom?source=feed#comment-209367 209367 Sat, 19 Jul 2008 11:05:26 -0400 http://seekingalpha.com/article/84974-is-this-financial-armageddon-or-the-greatest-buying-opportunity-since-2002?source=feed#comment-205887 205887
If the bears are right - you won't regret cash. If the bulls are right and you are paying attention AT ALL, you will see the recovery happen and can join the party.

If you stay diversified you will lose in both directions.

There are some themes that will go on - no matter what happens to the flows of the capital markets. Alternatives to oil will, as an investment theme, not go away for a generation. Food and all the resources that go into its production will not diminsh in stature whether the bears or bulls win. People have to eat and the more people you have and the more inflation rages - the more important food becomes. Its importance relative to discretionary income will only increase. That is what happens in tough times. Lastly but not least WATER. Clean water is only available to 1/3 of the people on this planet and the statistics are getting worse. If you have all the oil you want (we don't) and all the food you want (we don't) but you don't have clean water - you have nothing.

Markets will be strong or weak en masse - but there are ALWAYS themes within markets that exhibit strength or weakness.

I am lucky so far this year being up about 38%. I am neither a rocket scientist nor someone who sits in front of screens all day. Just someone paying more attention than I used to pay. ]]> Tue, 15 Jul 2008 09:39:35 -0400
If the bears are right - you won't regret cash. If the bulls are right and you are paying attention AT ALL, you will see the recovery happen and can join the party.

If you stay diversified you will lose in both directions.

There are some themes that will go on - no matter what happens to the flows of the capital markets. Alternatives to oil will, as an investment theme, not go away for a generation. Food and all the resources that go into its production will not diminsh in stature whether the bears or bulls win. People have to eat and the more people you have and the more inflation rages - the more important food becomes. Its importance relative to discretionary income will only increase. That is what happens in tough times. Lastly but not least WATER. Clean water is only available to 1/3 of the people on this planet and the statistics are getting worse. If you have all the oil you want (we don't) and all the food you want (we don't) but you don't have clean water - you have nothing.

Markets will be strong or weak en masse - but there are ALWAYS themes within markets that exhibit strength or weakness.

I am lucky so far this year being up about 38%. I am neither a rocket scientist nor someone who sits in front of screens all day. Just someone paying more attention than I used to pay. ]]> http://seekingalpha.com/article/84691-semi-upbeat-housing-news?source=feed#comment-204873 204873
IT IS DIFFERENT THIS TIME.

Wow, OK, I've gotten it out.

Energy will not be reduced in cost for 10 years unless something comes out of left field.

If one follows TB Pickens - we will collectively give away $7 trilliion to pay for foreign oil over the next ten years. This comes out of discretionary income - or should I say what we used to call discretionary income.

Before any of the gas prices even began to escalate the Comptroller of the Currency was decrying the sorry state of US financial affairs speaking to anyone who would listen i.e., Petersen Foundation that the US is broke. The NPV of our liabilities both short and long term is somewhere north of $60 trillion.

OH OK, let's eliminate medicare. Sorry, that doesn't work. You transfer the liability from a government balance sheet to a private one. Same problem persists only the government's ability to tax the population is diminished.

Come on left field...]]> Mon, 14 Jul 2008 02:16:20 -0400
IT IS DIFFERENT THIS TIME.

Wow, OK, I've gotten it out.

Energy will not be reduced in cost for 10 years unless something comes out of left field.

If one follows TB Pickens - we will collectively give away $7 trilliion to pay for foreign oil over the next ten years. This comes out of discretionary income - or should I say what we used to call discretionary income.

Before any of the gas prices even began to escalate the Comptroller of the Currency was decrying the sorry state of US financial affairs speaking to anyone who would listen i.e., Petersen Foundation that the US is broke. The NPV of our liabilities both short and long term is somewhere north of $60 trillion.

OH OK, let's eliminate medicare. Sorry, that doesn't work. You transfer the liability from a government balance sheet to a private one. Same problem persists only the government's ability to tax the population is diminished.

Come on left field...]]> http://seekingalpha.com/article/83927-csxs-hedge-fund-battles-a-cautionary-tale-for-pensions?source=feed#comment-199882 199882
The answer to your question is that very few - SORRY, VERY VERY FEW fiduciaries ever exam the issues you brought forth in your article. There are various reasons for this. They aren't that educated on the topic, there is no consequence to them if they ignore the issue and no one is looking over their shoulder with sufficient rigor to have any impact on their collective state of inattentiveness. ]]> Mon, 07 Jul 2008 11:45:14 -0400
The answer to your question is that very few - SORRY, VERY VERY FEW fiduciaries ever exam the issues you brought forth in your article. There are various reasons for this. They aren't that educated on the topic, there is no consequence to them if they ignore the issue and no one is looking over their shoulder with sufficient rigor to have any impact on their collective state of inattentiveness. ]]> http://seekingalpha.com/article/83914-the-world-s-revenge?source=feed#comment-199850 199850
From an economic basis I am interested in your thoughts on what we could collectively do not - not to make ourselves a buck from investing (there will be plenty of opportunties to do THAT) - but to get the US on firmer footing economically. What would you do?
]]> Mon, 07 Jul 2008 11:21:54 -0400
From an economic basis I am interested in your thoughts on what we could collectively do not - not to make ourselves a buck from investing (there will be plenty of opportunties to do THAT) - but to get the US on firmer footing economically. What would you do?
]]> http://seekingalpha.com/article/81249-drilling-in-anwr-what-s-not-to-like?source=feed#comment-185709 185709
Avoiding the pain of the transition to the post-hydrocarbon future is silly at best and absurd at worst. Transitions are painful - mostly because those who are asleep are very disturbed by the nature of change.

Oil and hydrocarbons are not cheap. That is absurd. They appear cheap because under our current economic system one does not have to account for cleaning up the environmental mess one makes. That cost goes on the taxpayers or the next generation's balance sheet. Aside from the morality of it (or lack thereof) it is fundamentally a condition of no integrity.

If you build an economic model which distorts or fails to account for reality (cleaning up the mess one makes) they you will get what you deserve. HINT: It ain't pretty.

ANWR: Sure, why not. It may help a little but helping a little will be of marginal utility. It is more like helping a very little.

Change behavior. There you go. You have to wonder. While SUV purchases are down by 25% - THAT MEANS THAT THEY ARE STILL AT 75% of normal. Now, that blows my mind.

American innovation is the only "thing" that has the real possibility of saving us. It is what we are best at and something the rest of the world cannot duplicate.

All economic and tax activity in this country shoudl be structured to stimulate, support and sustain innovation.

If you want to "sit this out" with your money in cash - big taxes.

Citizens have an obligation to the country and to the next generation. Too bad if you don't like paying for it. Sacrifice means you.- that's right - YOU!]]> Sat, 14 Jun 2008 23:14:55 -0400
Avoiding the pain of the transition to the post-hydrocarbon future is silly at best and absurd at worst. Transitions are painful - mostly because those who are asleep are very disturbed by the nature of change.

Oil and hydrocarbons are not cheap. That is absurd. They appear cheap because under our current economic system one does not have to account for cleaning up the environmental mess one makes. That cost goes on the taxpayers or the next generation's balance sheet. Aside from the morality of it (or lack thereof) it is fundamentally a condition of no integrity.

If you build an economic model which distorts or fails to account for reality (cleaning up the mess one makes) they you will get what you deserve. HINT: It ain't pretty.

ANWR: Sure, why not. It may help a little but helping a little will be of marginal utility. It is more like helping a very little.

Change behavior. There you go. You have to wonder. While SUV purchases are down by 25% - THAT MEANS THAT THEY ARE STILL AT 75% of normal. Now, that blows my mind.

American innovation is the only "thing" that has the real possibility of saving us. It is what we are best at and something the rest of the world cannot duplicate.

All economic and tax activity in this country shoudl be structured to stimulate, support and sustain innovation.

If you want to "sit this out" with your money in cash - big taxes.

Citizens have an obligation to the country and to the next generation. Too bad if you don't like paying for it. Sacrifice means you.- that's right - YOU!]]> http://seekingalpha.com/article/81321-why-today-is-different-from-the-inflationary-1970s?source=feed#comment-185606 185606
OK so maybe you're right, the real value of a blue chip higher education has deflated. ]]> Sat, 14 Jun 2008 15:16:17 -0400
OK so maybe you're right, the real value of a blue chip higher education has deflated. ]]> http://seekingalpha.com/article/80388-thursday-s-rally-has-petrohawk-gotten-too-far-ahead-of-itself?source=feed#comment-181020 181020 Sat, 07 Jun 2008 18:17:53 -0400