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  • Banks named in FIFA scandal [View news story]
    Hmmm, FIFA. Latin America. Third world countries. Bribes. Ever tried to do business in these countries without bribing public officials? Banks are named because they have deep pockets and are proven to be patsies for government lawsuits. Next!
    May 28, 2015. 09:51 AM | 2 Likes Like |Link to Comment
  • How The Rising Interest Rate Environment Will Impact AIG's Net Investment Income [View article]
    I'm not sure that the current rate environment is normal and that higher rates would be temporary? What if rates indeed returned to 2006-2007 levels and stayed that way? Yes interest income would rise but wouldn't that be a massive hit to book value?
    May 27, 2015. 09:52 AM | Likes Like |Link to Comment
  • An Analysis Of The Impact Of Treasury Yields On The Price Of REITs [View article]
    I like the article but I'm not sure the short/long term lease analysis is correct in predicting volatility. That only works if during the next rising rate cycle (which we may already be in), lease prices are also rising as they are renewed. The last time we had a secular bear market in bonds the economy was growing and there was great demand for services offered by these REITs. I'm concerned that the cause of the next secular bear market in bonds may be due to a gradual and then sudden loss of dollar hegemony rather than economic growth. Have you considered that scenario, or is that too "macro" for your analysis?
    May 20, 2015. 05:44 PM | Likes Like |Link to Comment
  • Johnson & Johnson And A 'Forever' Lower Share Price [View article]
    I guess most of you are young enough to think long term and buy more. The demographic that actually needs JNJ to preserve their capital and distribute income needed to pay their bills is probably older than the SA crowd? However, I think JNJ is one of the best companies to preserve investment capital so hopefully that's not an issue here.
    May 20, 2015. 11:46 AM | Likes Like |Link to Comment
  • Gilead Sciences: Finally Gaining Momentum [View article]
    Is GILD able to generate organic growth, or only get lucky with another Pharmasett acquisition? In the long run it's hard to bet on luck. I hope GILD is either very smart internally or at least has very smart bizdev guys.
    May 20, 2015. 11:39 AM | 1 Like Like |Link to Comment
  • Why Citigroup Has Left A Bad Taste In Investors' Mouths And How It Can Change [View article]
    Sorry to disagree but when 2014 is a speck in the rear view mirror I think the numbers will drive the price higher. Only macro problems could stop that, IMO.
    May 15, 2015. 02:31 PM | 1 Like Like |Link to Comment
  • Why Citigroup Has Left A Bad Taste In Investors' Mouths And How It Can Change [View article]
    If you can find passbook savings to return 10% or more over the next five years, please post back how I can sign up!
    May 15, 2015. 02:26 PM | Likes Like |Link to Comment
  • 3 Things: The Labor Hoarding Effect [View article]
    Lance, I listened to your radio broadcast for many years and benefited from your sound insights. Somehow I don't think most people voting or being elected fully appreciate what it will take to get people fully employed again. Secular headwinds of technology and regulation and "government help programs" are just too strong and so many are at the wrong end of the barrel on these trends. I fear that if that continues the barrel may eventually be turned the other way by popular demand.
    May 15, 2015. 01:04 PM | Likes Like |Link to Comment
  • Why Can't Gilead Run? [View article]
    Before Gilead bought Pharmasett they were floundering (as I recall). Can they do it again - how do we know? I hope for the best, but swinging for the fence can produce a lot of strikeouts! At least it looks like Gilead is playing small-ball right now.
    May 14, 2015. 03:04 PM | Likes Like |Link to Comment
  • General Electric: Investor Sentiment Has Turned Bullish [View article]
    I have yet to see how giving up $.40 in earnings will benefit GE, especially if the resulting reduction of shares only contributes $.25. Where did the rest of the money go... debt reduction or transaction costs or ...?
    Apr 17, 2015. 04:22 PM | Likes Like |Link to Comment
  • The Winner Of The Cola Wars Is... [View article]
    I was disappointed you didn't compare KO to PEP because every number I look at gives PEP the upper hand. Perhaps KO has a more durable balance sheet which might protect KO shareholders better in a down market? Anyway the title led me to believe there would be a comparison here. Any time you want to do that I would enjoy reading it.
    Apr 17, 2015. 03:04 PM | Likes Like |Link to Comment
  • AT&T Pays To Be Defensive [View article]
    SOME politicians may eventually wake up to the true causes of wage deflation and resulting income inequality and come up with solutions other than "higher minimum wages" or "lower taxes to stimulate growth". If those solutions include removing tax and regulatory incentives to automate and offshore labor, then the premise for wage deflation may eventually fail. I actually heard Marco Rubio mention this recently. Slowing the pace of automation to a more sustainable rate would hurt productivity growth and corporate earnings, but in the long run it's probably best for capitalism.
    Apr 13, 2015. 05:40 PM | 1 Like Like |Link to Comment
  • GE Gets Out At The Top [View article]
    Yes - the explanation is that GE is becoming a bit more "aggressive and shareholder friendly" at the expense of bondholders. GE corporate debt is downgraded to the same rating as GE Capital, which is ironic since they want to distance themselves from that business. As such GE joins the pack of companies that are screwing bondholders to please activist investors. I guess they learned well from their mentors at the Federal Reserve.
    Apr 10, 2015. 07:19 PM | 1 Like Like |Link to Comment
  • GE Gets Out At The Top [View article]
    Thanks - hopefully this is in no way comparable to WaMu in 2009 though! I'm assuming some day it would simply be renamed to something like "Blackstone Capital Bank" or some other entity depending on who ends up owning the accounts. As long as they remain well capitalized (which GE Capital Bank is) we're good.
    Apr 10, 2015. 05:06 PM | Likes Like |Link to Comment
  • GE Gets Out At The Top [View article]
    Does anybody have any idea what will happen to GE Capital Bank and existing GE Capital CDs, will those accounts still be managed by GE Capital or one of the acquiring companies?
    Apr 10, 2015. 04:34 PM | 1 Like Like |Link to Comment