Rick S.

Weekly Market Notes: Don't Fight the Fed

Did Senator Bunning actually say "systematic risk"? Twice?

When you don't have the right word, you very likely don't have the correct concept either.

Wall Street Breakfast: Must-Know News

I am surprised that all the investment banks aren't maintaining superstratispheric leverage and not just Goldman, in light of the fact that the Federal Reserve has shown it will bail anybody out that's big enough. Talk about moral hazard.

The new leverage limiting factor, if there is any, might just be the size you can puff up to and stay within the limits of the Fed's ability to bail out rather than its willingness to do so.

Wall Street Breakfast: Must-Know News

Only in America can a group of "former executives" who drove their company into bankruptcy turn around a month later and borrow $2 billion to float a scheme patterned after the one that bankrupt their previous operation. And of course it won't be Black Rock itself that ponies up the $2 billion. They will borrow it from someone like Citi or Bank of America that will lend it to them no-questions-asked.

And five years from now the Federal Reserve will buy the toxic waste the new scheme generates, leaving the taxpayer to foot the bill. As I say, only in America.