See, allowing them to hide their losses will only make the problems worse down the road. Who takes the hit in the end? You guessed it, whoever is backing up the system. I agree these banks should be sliced & diced several times over before the whole thing falls flat to the ground. Which is simply a matter of time...
I have seen the article and it made perfect sense. I figured I was paying someone to guard my 401k, so focus on my job instead and keep the contributons going. What happened, many were hit much worse than the averages. In other words, nobody at the wheel when the carnage happens. If you are lucky, you may match the S&P 500 and lose 50% of your retirement.
In the future though, things are more complicated by the baby boomers. They are probably ready anyday now to take what is left off the table. It is over for bull markets, we may be wittnesing the last of a duying breed of bulls.
Many thanks for all your contributions! I have been following all your posts.
The emails Newsletters stopped coming to my inbox on April 12. I have been subscribed for over a year. I did updates to my alerts profile several times and the emails never came. I don't see the emails in spam or trash folders. Could you please check?
Obama Stimulus Plan Will Fail, Here’s the Reason [View instapost]
outstanding summary and right on the mark!
Our first reaction to too big to fail should have been to cut them down to size, where the entire system is not at jeopordy if the situation gets worse.
Instead, we are allowing the big banks to get even bigger, absorbing failed ones no less! Examples are the BAC and Merill/Country-Wide mergers.
I also fail to see the logic here, and how these mergers help stabilize the system.
there were times in history where the dollar was backed by gold. During that period, inflation was kept at bay. The risk for paper money is we can print a lot of it....
gold is a store of value, paper currencies are an IOU's...
many parts of the world, india/middle-east..., value gold. It is cultural, but it has been around for thousands of years!
Earnings Are Horrible, But It May Not Matter [View article]
I do not believe this deflation talk. The reason OIL and commodities tanked was related to de-leveraging. It is artificial, not based on any fundamentals. The fact is, OIL is turning around, which is a base material for all other commodities. Then we can talk inflation again...
The printing of money will only make inflation matters worse .
Big Debt and Big Returns Could Be Spurring This Rally [View article]
I would not doubt if BAC would get broken down into smaller units, after the new regulations... Too big to fail is the key reason why it should be broken up.
Inflation: Is This the Real Danger? [View article]
capitalisthero,
I disagree with your statement:
"inflation is only bad for debtors..."
In reality, deflation is bad for debtors... This is because what you already owe is difficult to come by when wages drop 10%. The wage drops are due to price drops, which is caused by weaker demand.
If you have accumulated savings, deflation is good.
On Mar 29 04:37 AM capitalisthero.com wrote:
> Will someone explain to me why deflation is bad? In deflation, the > purchasing power of my wages is increased. The purchasing power > of my nest egg is increased. Food, water, shelter, and medicine > is cheaper because of deflation. > > As far as I can tell, inflation is only bad for debtors because their > real interest rate is increased. I guess that sucks for the U.S. > government since it's the biggest debtor the world has ever known. > > > Deflation = good. Inflation = bad. Buy commodities as a hedge against > inflation. Divest yourself of dollars; they will become very abundant > very soon. > > Check out my original articles at captialisthero.com
Time to Short Long Term Government Bonds Now [View article]
about this $2T bad bank and it's toxic assets. Suppose the gov. provides loans to banks in exchange for toxic assets. When the economy improves, or the company is on strong footing, they pay the money loaned back in exchange for the same assets. The Fed disposes of the money. In that case, the banks live along with their assets, and the inflation does not happen. Would that be a possibility?
Glass-Steagall: If Not the Cause, Maybe the Cure? [View article]
sorry to say, we should have seen this one coming. We never learned from past mistakes, such as the dot com bubble. That makes 2 busts in less than a decade. Something is seriously wrong fellows...
Remember our reactions to the dot com bust? The CEO was held personally accountable for cooking the books, because of enron scandal. Now we have a totally unrelated issue, but it's effect is much bigger than enron. The real problem is, regulating after the harm is done is as good as no regulation.
" The real question is what are you doing to perpetuate a better America? Keep your posts of our economy in a positive light and you will see the light... However, throw on dire scenarios and focus on the ultimate risk, and you will keep the spirit of recovery in the gutter."
this really sums up everything. If we start to see a glass half full, instead of empty, that would improve the situation a great deal.
prescient11,
I am long ETFC because I like their brand, yes the trading platform and customer service. They have also performed miracles raising capital. However, reading your posts, it definitely learned a lot more... Thank You!
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Latest | Highest ratedToward Greater Bank Transparency: FASB Considering Expanded Mark-to-Market Rules [View article]
See, allowing them to hide their losses will only make the problems worse down the road. Who takes the hit in the end? You guessed it, whoever is backing up the system. I agree these banks should be sliced & diced several times over before the whole thing falls flat to the ground. Which is simply a matter of time...
The Teddy Bears' Picnic: Predicting a Market Crash That May Not Come [View article]
www.zerohedge.com/arti...
Seeking Alpha Stock Market Email Alerts FAQ [View article]
Oh well...
Censored Again [View instapost]
If you are lucky, you may match the S&P 500 and lose 50% of your retirement.
In the future though, things are more complicated by the baby boomers.
They are probably ready anyday now to take what is left off the table.
It is over for bull markets, we may be wittnesing the last of a duying breed
of bulls.
Many thanks for all your contributions! I have been following all your posts.
Seeking Alpha Stock Market Email Alerts FAQ [View article]
Obama Stimulus Plan Will Fail, Here’s the Reason [View instapost]
Our first reaction to too big to fail should have been to cut them down to size, where the entire system is not at jeopordy if the situation gets worse.
Instead, we are allowing the big banks to get even bigger, absorbing failed ones no less! Examples are the BAC and Merill/Country-Wide mergers.
I also fail to see the logic here, and how these mergers help stabilize the system.
How the Gold Game Could End [View article]
How the Gold Game Could End [View article]
gold is a store of value, paper currencies are an IOU's...
many parts of the world, india/middle-east..., value gold. It is cultural, but it has been around for thousands of years!
The article is short sighted in my opinion.
Why Our Credit Crunch Mirrors the Weimar Hyperinflation from 1919-1923 [View article]
I think it is a wealth transfer when the taxpayer is covering the losses.
Earnings Are Horrible, But It May Not Matter [View article]
The printing of money will only make inflation matters worse .
Big Debt and Big Returns Could Be Spurring This Rally [View article]
Inflation: Is This the Real Danger? [View article]
I disagree with your statement:
"inflation is only bad for debtors..."
In reality, deflation is bad for debtors... This is because what you already owe is difficult to come by when wages drop 10%. The wage drops are due to price drops, which is caused by weaker demand.
If you have accumulated savings, deflation is good.
On Mar 29 04:37 AM capitalisthero.com wrote:
> Will someone explain to me why deflation is bad? In deflation, the
> purchasing power of my wages is increased. The purchasing power
> of my nest egg is increased. Food, water, shelter, and medicine
> is cheaper because of deflation.
>
> As far as I can tell, inflation is only bad for debtors because their
> real interest rate is increased. I guess that sucks for the U.S.
> government since it's the biggest debtor the world has ever known.
>
>
> Deflation = good. Inflation = bad. Buy commodities as a hedge against
> inflation. Divest yourself of dollars; they will become very abundant
> very soon.
>
> Check out my original articles at captialisthero.com
Time to Short Long Term Government Bonds Now [View article]
Glass-Steagall: If Not the Cause, Maybe the Cure? [View article]
Remember our reactions to the dot com bust? The CEO was held personally accountable for cooking the books, because of enron scandal. Now we have a totally unrelated issue, but it's effect is much bigger than enron. The real problem is, regulating after the harm is done is as good as no regulation.
Read This Before Buying E*Trade [View article]
" The real question is what are you doing to perpetuate a better America? Keep your posts of our economy in a positive light and you will see the light... However, throw on dire scenarios and focus on the ultimate risk, and you will keep the spirit of recovery in the gutter."
this really sums up everything. If we start to see a glass half full, instead of empty, that would improve the situation a great deal.
prescient11,
I am long ETFC because I like their brand, yes the trading platform and customer service. They have also performed miracles raising capital. However, reading your posts, it definitely learned a lot more...
Thank You!