Dave's Top 10 Reasons This Recession Will Last Forever [View article]
We overconsumed for a long time on almost all private and public levels. Overconsumption (aside from moral and political BS) is simply not a productive use of capital. Our credibility (character, standing) is wrecked. Now we are going to pay for that wasted use of capital, and damamged global respect, for a long time and in many ways. The bailouts are temporary pacifiers, resulting from massive political denial. Future generations will be ashamed of our hubris and foolishness.
China and the U.S. Dollar: Nowhere to Run [View article]
Of course, the PRC and other trade-surplus countries will "spend" dollars as much as possible on other more inflation-friendly assets. But, the spent dollars themselves don't vanish. They simply deflate steadily over time relative to the goods purchased (especially if the goods are either durable and/or in limited supply).
If you sell gold (no matter who "you" are, or why you're doing it), you are buying a (probably your own) currency. "You" may be doing this as much to prop-up your currency as to negatively affect the price of gold. And "you" may be doing it because of a need rather than a desire. The "manipulation", if that's what it is, tells two stories, doesn't it. Besides, gold has been in a rletively flat pattern for some time. Nobody has moved it a lot, for long - yet. Would you rather have more currency of the purported sellers or the gold they are dumping?
Why Congress Is Asking Bernanke Bogus Questions [View article]
The only thing keeping BAC and their poor shareholders afloat was the government funding and guarantees. Otherwise they were gone, with or without Merrill. Lewis had slready broken BAC and given up his soul to the government. The government herded Merrill into a safe harbor, housing it in their ward, BAC. Lewis had nothing to say and no leg to stand on in the situation, which he created for himself by his prior decisions and governance.
Of course, Congress and White House are always, and only and all, about politics. It was pretty clear in Bernake's expressions what he would have liked to have responded to the idiots questioning him.
Nice analogy. I'm willing to guess that your mom: 1) paid cash or used very short-term credit for acquiring her old clothes, and 2) never thought for a moment that her selections were going to go up in value at any time folowing the pruchase. And, the net present value of her personal pleasure in wearing them was always greater than the original cost in current dollars..
Will Najarian's Prediction of a Stock Market Explosion Come True? [View article]
Remeber, accounting (like economics) is an extension of philosophy, not physics. Whether it attempts to represent earnings performance or asset value, accounting is nothing more than a highly complex and concocted opinion. M2M isn't per se a necessarily correct or particularly accutate method of denoting asset value. This is similar to the false hopes associated with the convolutions of Sarbanes Oxley, whcih has done little to improve the quality of earnings reports - other than to diminish them by the added expense of "compliance". There is nothing sacred about M2M. It may or may not be better than other methods of, or opinion of, asset valuation. What the stock market does tomorrow is even furhter removed from the hard sciences.
Latest Bank Leverage Stats - Some Still High [View article]
From a shareholder safety perspective, I would include the preferred funding to get the tangible equity/tangible assets ratio. The preferred funding, unlike debt, is as reliable a source of funds as the common. This changes the gearing or leverage picture substantially for some on the list.
tomburge - The FDIC fees HAVE gone up - for everyone, including banks that didn't need or want TARP funds.
Tarp, IMO, was all about protecting seven orgs: GS,MS,Citi, BAC/ML, AIG, getting Wachovia sold to PNC and bailing FNM/FRE. The rest was political correctness (small banks access) and pork needed to grease the deal. The good news is Bush/Hank/Congress only blew $350B doing it. Now, the real handout process begins.
Cramer's Mad Money - Monsanto's Menacing Monopoly (8/13/09) [View article]
Dave's Top 10 Reasons This Recession Will Last Forever [View article]
Can the U.S. Economy Recover with No Growth in Bank Lending? [View article]
China and the U.S. Dollar: Nowhere to Run [View article]
13 Agriculture Myths Busted: This Bubble Is Ready to Pop [View article]
Gold Price Manipulation: So What? [View article]
Why Congress Is Asking Bernanke Bogus Questions [View article]
Of course, Congress and White House are always, and only and all, about politics. It was pretty clear in Bernake's expressions what he would have liked to have responded to the idiots questioning him.
What to Do About Mark to Market? [View article]
Housing Decline Slowing? Wishful Thinking (Case-Shiller) [View article]
Corn Inflation and the Specter of Unintended Consequences [View article]
Will Najarian's Prediction of a Stock Market Explosion Come True? [View article]
Latest Bank Leverage Stats - Some Still High [View article]
Humility of Realism II: Seven Thoughts about Our Whole System [View article]
Regional Banks Reject TARP Funding [View article]
Tarp, IMO, was all about protecting seven orgs: GS,MS,Citi, BAC/ML, AIG, getting Wachovia sold to PNC and bailing FNM/FRE. The rest was political correctness (small banks access) and pork needed to grease the deal. The good news is Bush/Hank/Congress only blew $350B doing it. Now, the real handout process begins.
Government Risk Rises: Credit Markets Face Structural Collapse [View article]
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Tom