Collateral Summary
At December 31, 2007 and March 31, 2008, we had $4.0 billion of collateral finance facility obligations relating to the HSBC II, Orkney I, Orkney Re II, Ballantyne Re and Clearwater Re transactions. In connection with these transactions, we have assets with a fair value of approximately $5.3 billion that represent assets supporting the economic reserves, excess reserves, additional funding amounts and surplus in the transactions. These assets are managed in accordance with predefined investment guidelines as to permitted investments, portfolio quality, diversification and duration.
Calculated Risk writes:
Bubba2Friday, ROFLOL. There are plenty of places to hide in the Sierras. I could disappear for months - but I'd miss my internet connection!
President Bush, speaking at a White House news conference that coincided with the Fed chairs testimony, urged Americans to take a deep breath.
The president said that the economy and the pillars on which it rests were basically sound. And he dismissed questions about reports that wholesale prices rose 1.8 percent in June, the fastest 12-month inflation rate in more than a quarter century.
In his testimony, he was especially pessimistic about any easing of energy prices, dismissing suggestions that they were being driven by speculation in futures markets.
And quit whining! Who cares if inflation is 24%. Stop eating and start walking and you wont notice this! Or join the army and we wil pay for you to eat! WHINERS!
Pretty compelling visual and person-on-the-street talk from outside an Indymac branch this morning, via the LA Times and KTLA. Disinformation is fueling customer anger --
Roubini just sent out a media alert with the headline
"RGE Monitor MEDIA ALERT: Nouriel Roubini predicts the worst financial crisis since the Great Depression and the worst U.S. Recession in the last few decades."
What about digging into the retail sales numbers a bit?
Seems like a story there, as being below expectations, big slump in auto sales and most all of the increase went to increased prices at the pump...down ex-energy?
The two pillars of the U.S. mortgage market, Fannie Mae and Freddie Mac, wobbled again yesterday. The U.S. market shuddered. It shows you how important mortgage finance has become to the whole U.S. financial system, and how precarious things are today.
Shares in Freddie were down 24% yesterday while Fannie's shares fell 13%. Investors are now convinced that the firms are going to have to raise new capital and that existing shareholders face massive dilution.
All of this has Craig James, the lead economist at ComSec, perplexed. "Something has to give unless you are going to have people in their 30s and 40s still living at home with mum and dad...The situation is unsustainable...More homes will need to be built to house our growing population." The Two Pillars of the U.S. Mortgage Market, Fannie Mae and Freddie Mac, Wobbled Again Yesterday
Yah, the reason the use of the word pillars is retarded, is because pillars need support and they can fall over, and thus, the use of that iconic image sends the wrong message, thus using that as a term, is retarded! One would have been better off to subscribe to a concept that speaks to the image of foundation or bedrock, i.e, something stable and not prone to vibrational wobbles, something where accounting has been used properly, where something has been well managed, something that is sound and has future value...pillars...retarded!
More "robust and direct" responses are needed by local and federal governments to counter the current foreclosure crisis in the US, which will likely have "profound" impacts on low-communities and effects that extend beyond the housing sector, San Francisco Federal Reserve President Janet Yellen said today.
Thanks for the reminder, I need something cool. My daughter forced me to buy some Kona brewing Company Wheat Ale with passion fruit, and much to my shock it was ok, but that was then, and now I need something new. Too bad beer has gone up, has Bush gone out and bought a friggn six pack lately, or have his CIA butlers told him that a gallon of milk is $4.00 and that gas and bread are above $4.oo huh, huh .....? Punk!
I just finished a long conversation with my youngest daughter in which I had to advise walking on her mortgage. The house has been for sale for 8 months with no serious lookers and no offers. She is trapped with a HELOC that probably puts her at 110% loan to value. The lender will not negotiate and tells her that they will give no relief. She has transferred to a new job and cannot make two payments any longer. She has her new loan on a house and has her car. It kills me, but she has no real choice but to walk. Never thought that I would have to tell my kids that. Tough times, tough choices.
Nah, try parsing it this way: The pillars are basically sound, that is to say, for the most part they're fundamentally "noise", possibly statistical in nature but we can go with more traditional meaning of noise too, that is to say stuff you hear with your ears, so it could mean that those pillars are basically blah blah blah, or talk (what is what usually comes out of your mouth after you take a deep breath) and talk recently means spin and now I've worked my way around to Elvis knocking the planet off its axis again with The Heart of Gold Standard. God, I'm babbling. I need to go home.
Speaking of IndyMac...How the FDIC handles the bank failures could be just as important as the number of bank failures. FFDIC hasn't given me much cause for optimism. FEMA and Brownie come to mind.
Bernanke Is Pessimistic, but Bush Urges a Deep Breath
OK, I took a deep breath. Now I just want to buy more SKF. Until I hear somebody start using the words "balance sheet" along with "unwinding", "purging", or "cleansing", I just want to keep buying.
One of the local news stations interviewed some of the people in line and they all said that they had over $100k in their accounts and were trying to take out as much as they could because they were worried they would get less out if they waited. I can understand that line of reasoning and it's not like most of them didn't have the time on their hands.
Kasriel needs to go back to middle school and learn to count on his fingers and not waste the value of time in attempting to look like he understands basic economics; he joins a brotherhood of monkey's that as a collective work as a team to study the physics of falling bananas; retards, one and all!
Expect bank closing activity in the SW probably NV or AZ on Friday or sooner if depositor runs occur. A one bank holding co operating three separate banks perhaps in two states.
... As losses mount, a clause in the TPG agreement makes it more costly for WaMu to raise capital or be acquired. If WaMu is sold for less than $8.75 a share or is forced to raise more than $500 million in equity, it must compensate TPG for the difference, according to filings with the U.S. Securities and Exchange Commission. ..."
"Expect bank closing activity in the SW probably NV or AZ on Friday or sooner if depositor runs occur. A one bank holding co operating three separate banks perhaps in two states."
Oh joy. Well at least it's not CA based. Whew...dodged a bullet there
Bush sez its all the Democrats fault! Democrats sez its all Bush's fault!
Char says its all our fault for letting these idiots control our fiscal policy for the past decade. Get the silver platter ready. There is a revolution to be had.
"I still don't get why people were lining up after the bank failed."
One reason is the dollar still has SOME purchasing power left, when FDIC runs out of funds and the PRINTING PRESSES get fired up Hum...... To bad most of these folks haven't got a clue what awaits them from this insanity.
I can't wait until next year at this time when oil is at, say, $155. But, the YOY change is so small that the PPI shows a decrease in inflation. I am sure Bernanke will say "see, what inflation problem?!"
"I still don't get why people were lining up after the bank failed."
Because, if my understanding is correct, at $100,000.01 you are no longer insured. As in, you don't lose just the penny. I may be wrong, and it may depend on the account structure. But I wouldn't...ahem...bank on it.
Holdings of Treasuries by oil producers and institutions such as U.K. banks that are proxies for Middle East nations rose 44 percent this year to $510.8 billion through April, four times faster than the rest of the world, according to the Treasury Department's most recent data. At the current pace, they'll surpass Japan, which holds $592.2 billion, as the largest owner this month.
Jackpot:
ompass Bank is a Sunbeltbased financial institution which operates 420 fullservice banking centers including 166 in Texas, 90 in Alabama, 76 in Arizona, 44 in Florida, 33 in Colorado and 11 in New Mexico. Compass Bank is a subsidiary of Compass Bancshares, Inc., a whollyowned subsidiary of BBVA. BBVA is a global financial services company with more than $698 billion in total assets. When combined with BBVA's three other U.S. banking companies, Compass will rank as the largest regional bank in the Sunbelt region and among the top 25 banks in the U.S. by total deposits.
Misean, you are wrong. You are insured up to $100K. The penny is not insured. The FDIC announced that the uninsured amounts would be paid out at 50 cents on the dollar.
I don't believe that all of these people have over $100K in Indy. A nail technician? Come on. And as for those who, like one person in the story claims, have half a mill in Indy... what the hell were they thinking? Why would anyone ever do that? It doesn't matter that they thought Indy was safe... Why NOT just put it in different banks?
So bottom line, to be misanthropic, pretty much everyone rioting outside the IndyMacs are idiots.
"January 31, 2010 writes:
I can't wait until next year at this time when oil is at, say, $155. But, the YOY change is so small that the PPI shows a decrease in inflation. I am sure Bernanke will say "see, what inflation problem?!""
And he would be correct. If the price stops going up, it means that the rate of inflation is zero. Once the delayed impact of the price rise passes through the system, there will be nothing to drive up the inflation rate.
Wow, the FDIC really needs to put together a press release to clear up all the misunderstandings about the insurance.
Misean if it is a single owners account they would get back $100,000.01 if the FDIC rounds up to the penny. Anything over 100K per depoister will get an immediate $0.50 on the dollar and I think it has been estimated around $0.70 on the dollar when all said and done.
The new brand, BBVA Compass, will be rolled out progressively in coming months through an investment of $30 million, recycling the name of Compass Bank. BBVA acquired Compass Bank, an Alabama-based regional bank, for $9.6 billion last year.
"Even though the business environment is getting more difficult, the timing is actually quite favorable for us," said José María García Meyer, head of BBVA's U.S. division. "Some banks are pulling out of some markets because they don't have the liquidity or because they are refocusing on core businesses. Some are selling branches, and retrenching in businesses such as consumer or car loans. Some players will disappear."
BBVA's push mirrors the emerging presence of Spanish banks in the global arena.
Along with rival Santander, BBVA is one of the few big international banks that have been able to duck the subprime-mortgage crisis, because conservative Spanish regulation prevented financial-services companies from making significant investments outside their balance sheet.
After expanding aggressively across Latin America over the past decade, BBVA started to focus north of the Rio Grande, creating a $65 billion bank franchise that after consolidating will be No. 4 in terms of market share in Texas, behind established players such as J.P. Morgan Chase & Co., Bank of America Corp. and Wells Fargo & Co.
Democrats, who found themselves in an unusual alliance with the Bush administration, immediately criticized the Republicans for endangering the economy by trying to stall the housing legislation.
Democratic leaders have said they would incorporate the Treasury plan to aid the mortgage giants into a package of housing legislation that also includes a plan to help hundreds of thousands of borrowers at risk of foreclosure to refinance their mortgages. Mr. Frank had initially predicted that the House would add the administrations plan and act on the housing package this week.
"Average Joe writes:
If westbury is even close to right that is very bad.
It will mean that GDP is virtually useless as a barometer for economic activty and health.
The last thing this market needs is to have the old yardsticks disappear.
Talk about a shot to confidence."
Umm, GDP is a fairly useless barometer for economic growth. Heck, as Sebastian has pointed out endlessly, the thing hasn't even gone negative.
Recent GDP numbers are almost 60% guesswork - implied by continuing previous trends, etc. It takes years for the GDP data quality to improve.
For this reason, the markets don't trade off GDP.
Anyway - a 4% growth print only means that there is a 1% increase in growth over the 3 months - the number is annualized. Given the cash they threw at the consumer, and the noise associated with the oil price rise (huge impact on short term growth nunmbers), getting a 1% jump in the level is not a big deal. If it continued for a few more quarters, however, that would be interesting. (And probably not gonna happen.)
Completely off-topic, anyone know where I find 20 years of 90 day Libor rate info for a chart I'm putting together. Also need 2 and 3 year Interest rate swaps. Any sites in the public domain where I could download? Not finding what I need with the Google machine.
Following the merger of State National Bank, Texas State Bank, Laredo National Bank and Compass Bank, BBVAs U.S. affiliate ranks as the fourth largest bank in Texas and among the top 25 largest banks in the U.S. based on deposit market share. The company has total assets of approximately $58.6 billion and operates 593 branches across a six state Sunbelt Region including: 328 in Texas, 91 in Alabama, 76 in Arizona, 44 in Florida, 33 in Colorado, and 21 in New Mexico.
bond guy writes:
"January 31, 2010 writes:
I can't wait until next year at this time when oil is at, say, $155. But, the YOY change is so small that the PPI shows a decrease in inflation. I am sure Bernanke will say "see, what inflation problem?!""
And he would be correct. If the price stops going up, it means that the rate of inflation is zero. Once the delayed impact of the price rise passes through the system, there will be nothing to drive up the inflation rate.
bond guy | 07.15.08 - 8:54 pm | #
Yes, he will be correct. But isn't the outcome the very definition of embedded inflation?
"RhodesianRidgebackinAZ writes:
Completely off-topic, anyone know where I find 20 years of 90 day Libor rate info for a chart I'm putting together. Also need 2 and 3 year Interest rate swaps. Any sites in the public domain where I could download? Not finding what I need with the Google machine."
The Fed H.15 release has tons of data (fed reserve website). They have generic eurodollar rates which go way back. Their swap data does not go back as far, probably to the mid-1990s at most. But that reflects the fact that the swap market was pretty small until then.
LIBOR fixes (rather than generic eurodollars) are available at the BBA web site. The data are in messed up Excel spreadsheets, and recent data are not available for free.
"January 31, 2010 writes:
bond guy writes:
"January 31, 2010 writes:
I can't wait until next year at this time when oil is at, say, $155...
And he would be correct. ...
Yes, he will be correct. But isn't the outcome the very definition of embedded inflation?"
No, its what the economists call a "price level shift" - the price level jumps, but the rate of change stops.
There were central bankers/economists who wanted to target the price level. I.e., if the CPI rises from 100 to 110, you gotta deflate the economy until it goes back to 100.
Those people are hard to find nowadays. It would put the economy back on something resembling the gold standard, which would be a pretty disastrous policy at this point.
Would I be correct in assuming a rising price level tends to lead to wage inflation--or at least an attempt by workers at wage inflation.
Thanks!"
The relationships between prices and wages have been treacherous. The quick summary is that price increases led to wage increases in the 1970s, probably as a result of the fact that the labor force was more unionized. (The euro area has much greater wage inflation than the U.S. now, presumably the result of this effect.)
So far, in the U.S., all that has happened is that the standard of living has fallen - wages are not keeping up with inflation.
But the terminology I used may have been misleading - the "price level change" (as per economist speak) is viewed as a one-off upward shift. If it is not repeated, it is not really inflationary; at best it was a one-time adjustment to previous inflationary pressures.
And if we are looking at oil in particular, there's nothing stopping it from going up while the rest of the CPI is falling. But if it sticks at $150 and does not continue its parabolic rise, the economy will have no choice to adapt to the new level, and the impact on other prices will die out.
So for those of you who short, let's take this brief decription of shorting, except we'll substitute "car" for "stock".
As a short, you borrow a car without the actual owner's knowledge or permission. Then you sell it. At some point undefined point in the future you buy the owner another car.
As a naked short, you don't even bother to borrow the car. You just point to a car on the street and sell it. Then you don't even have to buy another car.
Try either of those with a car and you're looking at 5-10 for grand theft auto or fraud. Do it with a stock and you can go on a blog and boast not only about how smart you are, but how somehow the world should thank you.
As to previous thread, what's the middle class to do?
Adapt to changing transport constraints.
You can't buy a scooter in this area and I'm seeing them cropping up all over the place. Also know that more folks are comparing trips so that doubling/tripling up. Told one of my sons today that wouldn't buy into his doing something since would require too much travel/cost to be worthwhile so suck it up. Local public transport is getting major fed grant to install add'l bays in main terminal.
Push the kids.
You want to get ahead, think hard as well as work hard. The asian kids have done it, you can too so pull your head out of your ass and deal. Make them get out and volunteer, get a job, take on additional projects, whatever, but days in front of electronics are done. Do as jg has done and involve them in the financial arena.
As an aside, I was stunned to find out from my daughter this morning that during the stock market exercise she did in 1Q08, she made an 18% return. In further conversation, I realize that she was utilizing the Peter Lynch model - buy what you know - and she's a technosavvy mallrat.
Pay much closer attention to the world/finances around you.
Dear friends of our will die in their traces since they left the monetary decisions on savings/investments to the "pros". Spend a certain amount each day on the financial stuff and learn. Exercise common sense.
Learn the rules so that you can learn how to use the rules.
I learned as a work comp adjuster many years ago that if I knew the state laws on managing a case, I could figure out how to manuever within those rules accordingly. Cynical perhaps, but true.
I won a hell of a lot more cases that went to an ALJ than my peers. Routinely.
It's just going to take a much more nose to grindstone approach than we've had to do.
So I'm missing something. Are you upset that people short?
Think of it this way. This is the realist's response to the market mantra that everything will go up. There are a lot of companies that have sat on the laurels and are letting others eat their lunch but the stock stays static or goes up 'cuz everybody buys them.
You want to keep the stock up, then stop letting others eat your lunch and stop doing stupid things. Like giving 110% loans to people that you know have no hope of ever paying back, just so you can make some commission. If you really produce results, then you won't have much of a problem; but shorting is, in a sense, an avenue for those paying attention to reallocate resources to those who can actually do something worthwhile with it.
What's wrong with that? Hell, the financials are losing their collective shirts. Do you think that the people - me included - are ultimately going to spend the next 20 years sitting with it in a mattress? Once the dust settles, we'll find a new and healthier home for the money.
Given that banks are getting killed in share price and that a fair amount is due to desire to bail the sinking ship. How much could be due to desire to get out before they have to recap with additional offerings, followed by a reentry.
I've been looking around for those that will not only be around but would be good candidates once things shake out further.
PNC? FHN (which has divested its national mortgage biz to MetLife - great, I get to pay Snoopy)?
If that's the case, might there not be some "pop" to the upside after new issuance?
So I'm missing something. Are you upset that people short?
Think of it this way. This is the realist's response to the market mantra that everything will go up. There are a lot of companies that have sat on the laurels and are letting others eat their lunch but the stock stays static or goes up 'cuz everybody buys them."
Well, naked shorting (shorting without borrowing the shares) is illegal (already, even without this new crackdown), from what I recall. But his complaint about borrowing and then selling is silly - if the owner wants to lend the shares, why not let them?
Adding shorts to a market makes it more robust. However, it is a riskier proposition than it looks. You are essentially short an option - you have finite updside, and unlimited downside. Definitely not a product I would recommend for most retail investors.
homedad-If you don't like a stock, don't buy it. If you own it sell it. You can find a stock you do like, or buy bonds, CDs, gold, whatever you like. There will always be sellers, even for reasons that have nothing to do with the stock (pay for college, buy a house, etc.), As soon as new buyers stop coming in, the stock will go down. If sellers sell en masse
because the company sucks, it will go down fast. You don't need shorts.
The fact that some people make money shorting doesn't make it pro-social. If I borrowed your car while you slept tonight and sold it, you would call the cops and rightly so. So why should someone be able to borrow someone else's shares and sell them?
There is an economic translocation occurring. What is it?
1930s went from Lassie Fair to near socialism
1970s went from net exporter of oil to importer, off the gold standard, cold war peak, president resigns, Vietnam war ends, start of the decline of manufacturing industry.
early 1980s High interest rates to lower inflation, repeal of security laws that were enacted in 1930s, drill for oil, oil price peaked, repeal conservation initiatives of late 1980s.
bond guy-The owner of the shares is not asked if the shorter can borrow them-no rational owner would allow someone else to lower the value of his shares. Nor is the owner compensated for the use of the shares, though the broker collects interest. How is this reasonable or just?
I would not object to shorting IF the owner agreed to it. Just as if you wanted to lend me your car to sell, that's OK. But if I borrow it wiithout your permission-that's theft in most jurisdictions.
This morning on NPR a woman was complaining about losing money in their account at a bank that was closed by FDIC because they had over 100,000 bucks in that bank.
I have no sympathy. How does someone that dumb obtain $100,000?
ShortShorts, Do you have a margin account? If you short stock or buy/sell options you do. Most accounts are set up that way. When you sign the agreement you offer to loan your shares out with the broker at will. I am certain istitutional shares are also available to sell.
First off, I'm not into naked shorts nor am I advocating. Yeah, it's illegal and no question there. My neighbor's car is my neighbor's car.
But I stand by my earlier comment. It is a means of keeping company management sharp re share price. Given that we're seeing an apparent increase in question of management honesty/morality/laziness - as noted in other arenas as well as commentary here - I view it as another tool for the reallocation of resources.
Yes, there's room for abuse - as in all areas - but I think that those instances are on the outer ends of the Bell Curve.
That said, I'm not yet shorting individual firms given experience levels, although I'm studying. I am however, utilizing SKF/TWM/RWM in measured amounts.
And yeah, when the time's right, I'll once again go long.
barely-That's not what I would call a freely entered into agreement, since as far as I am aware every brokerage firm uses the same clause in their agreement. I would like to see an opt in/opt out. They're my shares, not my brokers, so I should have the say in whether they can be shorted or not. I might allow it for the right compensation.
I never thought I would approve of anything Chris Cox did, as he has been totally useless until now. But he's right on base here, if late.
Again homedad-I'm not suggesting shorting be banned. But if you want to short MY shares, you should have to get my permission, just like if you want to use anything else that belongs to me.
Why don't we just apply the same logic to the fractional lending/reserve system? If you want to borrow money from my bank, then you have to talk to me and get my permission first.
@Why don't we just apply the same logic to the fractional lending/reserve system? If you want to borrow money from my bank, then you have to talk to me and get my permission first.
Checkmate is going to happen. There won't be any meaningful deflation in energy prices. You read it here first.
Energy, especially oil does not have a demand growth issue from developing countries, rather a supply issue because of scarcity.
The report by NT is flawed in their assumptions, it did contain interesting stats however, especially what fueled consumption between '01-'06, cheap money and the house ATM. Shocking actually.
Even the "Checkmate" scenario is overly simplistic.
There isn't any one overriding problem, and there isn't any one overriding solution. It's like whack-a-mole without the whacker and all the moles coming up at once.
Outside of the two mortgage-finance agencies, credit is getting more expensive and harder to get. The assets of commercial banks fell 5.8 percent annualized in the three months ended June, the second-largest contraction in the 60-year history of the data, according to Paul Kasriel, chief economist at the Northern Trust Corp. in Chicago.
1_
First ? among 314
3rd first.
CR, on the hike, were there any identifiable places for one to hide? I'm not feeling to "boo-yeah" at the moment....
Collateral Summary
At December 31, 2007 and March 31, 2008, we had $4.0 billion of collateral finance facility obligations relating to the HSBC II, Orkney I, Orkney Re II, Ballantyne Re and Clearwater Re transactions. In connection with these transactions, we have assets with a fair value of approximately $5.3 billion that represent assets supporting the economic reserves, excess reserves, additional funding amounts and surplus in the transactions. These assets are managed in accordance with predefined investment guidelines as to permitted investments, portfolio quality, diversification and duration.
"Helping the financial markets to return to more normal functioning will continue to be a top priority of the Federal Reserve," Bernanke said.
And how, pray tell, does this fit into the the Fed's dual mandate of protecting employment and price stability?
I think Bernanke needs to re-read the Fed charter. It says nothing about protecting his friends in financial services.
Bubba2Friday, ROFLOL. There are plenty of places to hide in the Sierras. I could disappear for months - but I'd miss my internet connection!
Best Wishes.
I think improved bandwidth will pull us out of the depression. That or Xanax.
Calculated Risk writes:
Bubba2Friday, ROFLOL. There are plenty of places to hide in the Sierras. I could disappear for months - but I'd miss my internet connection!
Best Wishes.
Calculated Risk | Homepage | 07.15.08 - 6:06 pm | #
Ya then we'd all have to come looking for you and that would just wreck the serenity.
Bernanke Is Pessimistic, but Bush Urges a Deep Breath
Bernanke Is Pessimistic, but Bush Urges a 'Deep Breath' - NY Times
President Bush, speaking at a White House news conference that coincided with the Fed chairs testimony, urged Americans to take a deep breath.
The president said that the economy and the pillars on which it rests were basically sound. And he dismissed questions about reports that wholesale prices rose 1.8 percent in June, the fastest 12-month inflation rate in more than a quarter century.
In his testimony, he was especially pessimistic about any easing of energy prices, dismissing suggestions that they were being driven by speculation in futures markets.
"urged Americans to take a deep breath.
And quit whining! Who cares if inflation is 24%. Stop eating and start walking and you wont notice this! Or join the army and we wil pay for you to eat! WHINERS!
Pretty compelling visual and person-on-the-street talk from outside an Indymac branch this morning, via the LA Times and KTLA. Disinformation is fueling customer anger --
Confusion at IndyMac fuels customers' anger - Los Angeles Times
"fueling customer anger"
QUIT Whining! Dam Americans!
Roubini just sent out a media alert with the headline
"RGE Monitor MEDIA ALERT: Nouriel Roubini predicts the worst financial crisis since the Great Depression and the worst U.S. Recession in the last few decades."
I guess he's not listening to Bush.
I still don't get why people were lining up after the bank failed. Why doesn't some one come out and educate these people lined up?
Ministry-
If you watch the video the news reporters (one has an acct @ IMB) explain that the ATM"s are not working and online was down.
Per IndyMac's website I can still get a 1 year CD at 4.15% APR.
"The president said that the economy and the pillars on which it rests were basically sound."
What is it about that word, "basically", that scares me so much?
No, no, what your missing is the key word, ""were"
The pillars "were" basically sound, as in the pillars used to be sound; pillars, pillars...hmmmmm, that sounds starnge
CR,
What about digging into the retail sales numbers a bit?
Seems like a story there, as being below expectations, big slump in auto sales and most all of the increase went to increased prices at the pump...down ex-energy?
The two pillars of the U.S. mortgage market, Fannie Mae and Freddie Mac, wobbled again yesterday. The U.S. market shuddered. It shows you how important mortgage finance has become to the whole U.S. financial system, and how precarious things are today.
Shares in Freddie were down 24% yesterday while Fannie's shares fell 13%. Investors are now convinced that the firms are going to have to raise new capital and that existing shareholders face massive dilution.
All of this has Craig James, the lead economist at ComSec, perplexed. "Something has to give unless you are going to have people in their 30s and 40s still living at home with mum and dad...The situation is unsustainable...More homes will need to be built to house our growing population."
The Two Pillars of the U.S. Mortgage Market, Fannie Mae and Freddie Mac, Wobbled Again Yesterday
... he dismissed questions about reports that wholesale prices rose 1.8 percent in June ...
Ignore it and it will go away.
"President Bush, speaking at a White House news conference that coincided with the Fed chairs testimony, urged Americans to take a deep breath.
I bet the air's sweet at his new ranch in Paraguay.
I still don't get why people were lining up after the bank failed. Why doesn't some one come out and educate these people lined up?
Because some people don't trust the word of the government ? (even tho they appear to trust the greenback, at least for now)
Yah, the reason the use of the word pillars is retarded, is because pillars need support and they can fall over, and thus, the use of that iconic image sends the wrong message, thus using that as a term, is retarded! One would have been better off to subscribe to a concept that speaks to the image of foundation or bedrock, i.e, something stable and not prone to vibrational wobbles, something where accounting has been used properly, where something has been well managed, something that is sound and has future value...pillars...retarded!
Speaking of Americans taking a deep breath, I need to use this link one last time: YouTube -
Excellent analysis - oil prices are key. Unfortunately, peak oil is real.
Paul Kasriel (and Northern Trust at large) has, for years, been a pillar of sober second thought. I think I need a drink.
Democrats Are Weighing More Tax Rebates, Pelosi Says
Democrats Are Weighing More Tax Rebates, Pelosi Says (Update3) - Bloomberg.com
More "robust and direct" responses are needed by local and federal governments to counter the current foreclosure crisis in the US, which will likely have "profound" impacts on low-communities and effects that extend beyond the housing sector, San Francisco Federal Reserve President Janet Yellen said today.
Business finance news - currency market news - online UK currency markets - financial news - Interactive Investor
Inflation rises at fastest pace since early 1980s as Fed chair warns of more trouble
Expired
Bye,Bye, Bucky.
theyieldcurv,
Thanks for the reminder, I need something cool. My daughter forced me to buy some Kona brewing Company Wheat Ale with passion fruit, and much to my shock it was ok, but that was then, and now I need something new. Too bad beer has gone up, has Bush gone out and bought a friggn six pack lately, or have his CIA butlers told him that a gallon of milk is $4.00 and that gas and bread are above $4.oo huh, huh .....? Punk!
I just finished a long conversation with my youngest daughter in which I had to advise walking on her mortgage. The house has been for sale for 8 months with no serious lookers and no offers. She is trapped with a HELOC that probably puts her at 110% loan to value. The lender will not negotiate and tells her that they will give no relief. She has transferred to a new job and cannot make two payments any longer. She has her new loan on a house and has her car. It kills me, but she has no real choice but to walk. Never thought that I would have to tell my kids that. Tough times, tough choices.
Ya know, they could just send me a set of those beyoootiful new Buffalo proof coins.
That would make me happy.
I would feel better about buying my next $80 tank of gas.
Speaking of which, I had best go and get some new tires before the prices go up.
Someday this war's gonna end...
Lionel -
I think your problem might be that "basically" sounds so much like "fundamentally", as in:
"The economy is fundamentally sound" -- Herbert Hoover, 1929
You guys will love this, I primise you.
Just look at Paulson's face and Bernanke's body language.
Bing Video: Sen. Bunning Spars with Paulson
Democrats Are Weighing More Tax Rebates, Pelosi Says
Great, a stimulus/price inflation spiral...
argento - classic!
Nah, try parsing it this way: The pillars are basically sound, that is to say, for the most part they're fundamentally "noise", possibly statistical in nature but we can go with more traditional meaning of noise too, that is to say stuff you hear with your ears, so it could mean that those pillars are basically blah blah blah, or talk (what is what usually comes out of your mouth after you take a deep breath) and talk recently means spin and now I've worked my way around to Elvis knocking the planet off its axis again with The Heart of Gold Standard. God, I'm babbling. I need to go home.
Bing Video: Sen. Bunning Spars with Paulson
try this
Just look at Paulson's face and Bernanke's body language.
These guys aren't qualified in their own field.
Speaking of IndyMac...How the FDIC handles the bank failures could be just as important as the number of bank failures. FFDIC hasn't given me much cause for optimism. FEMA and Brownie come to mind.
Can someone please go to Ms. Pelosi's house and explain to her what sending out a bunch of "free money" will do to inflation? I think she lives in SF.
Bernanke Is Pessimistic, but Bush Urges a Deep Breath
OK, I took a deep breath. Now I just want to buy more SKF. Until I hear somebody start using the words "balance sheet" along with "unwinding", "purging", or "cleansing", I just want to keep buying.
Stop me before I buy again.
SKF has had a good week. Time for a little covering -
Minitrue:
One of the local news stations interviewed some of the people in line and they all said that they had over $100k in their accounts and were trying to take out as much as they could because they were worried they would get less out if they waited. I can understand that line of reasoning and it's not like most of them didn't have the time on their hands.
Hanging by a thread, you did the right thing.
I recently had the same conversation with my parents - advising them to walk out on their mortgage. That was pretty surreal.
"The pillars were basically sound."
b: for the most part
basically - Definition from the Merriam-Webster Online Dictionary
As long as they need take on any new stresses.
Whew...guess we dodged that bullet. No new stresses on the horizen then. Good.
--tap on shoulder...points opposite direction--
Holy Hell! Run!!!!
Cheers,
Westbury on Kudlow's show just called for a Q2 GDP of close to +4.0%.
Westbury is a raving lunatic. I can't believe anyone has paid any attention to him much less allowed him to provide advice.
FZ writes:
Westbury on Kudlow's show just called for a Q2 GDP of close to +4.0%.
I'll be surprised if nominal GDP growth is +4.0%.
Kasriel needs to go back to middle school and learn to count on his fingers and not waste the value of time in attempting to look like he understands basic economics; he joins a brotherhood of monkey's that as a collective work as a team to study the physics of falling bananas; retards, one and all!
If westbury is even close to right that is very bad.
It will mean that GDP is virtually useless as a barometer for economic activty and health.
The last thing this market needs is to have the old yardsticks disappear.
Talk about a shot to confidence.
Average Joe,
"Talk about a shot to confidence."
Just had one. I think I'll have another.
Cheers,
erm...oh shot TO confidence. My bad. I though you wrote shot OF confidence.
Cheers,
Expect bank closing activity in the SW probably NV or AZ on Friday or sooner if depositor runs occur. A one bank holding co operating three separate banks perhaps in two states.
Washington Mutual Drop Wipes Out Most of TPG Holding (Update5) - Bloomberg.com
... As losses mount, a clause in the TPG agreement makes it more costly for WaMu to raise capital or be acquired. If WaMu is sold for less than $8.75 a share or is forced to raise more than $500 million in equity, it must compensate TPG for the difference, according to filings with the U.S. Securities and Exchange Commission. ..."
FFDIC,
"Expect bank closing activity in the SW probably NV or AZ on Friday or sooner if depositor runs occur. A one bank holding co operating three separate banks perhaps in two states."
Oh joy. Well at least it's not CA based. Whew...dodged a bullet there
--tap on shoulder....
Go away...I know! Sheesh.
Cheesr,
Bush sez its all the Democrats fault! Democrats sez its all Bush's fault!
Char says its all our fault for letting these idiots control our fiscal policy for the past decade. Get the silver platter ready. There is a revolution to be had.
"I still don't get why people were lining up after the bank failed."
One reason is the dollar still has SOME purchasing power left, when FDIC runs out of funds and the PRINTING PRESSES get fired up Hum...... To bad most of these folks haven't got a clue what awaits them from this insanity.
>
I can't wait until next year at this time when oil is at, say, $155. But, the YOY change is so small that the PPI shows a decrease in inflation. I am sure Bernanke will say "see, what inflation problem?!"
"I still don't get why people were lining up after the bank failed."
Because, if my understanding is correct, at $100,000.01 you are no longer insured. As in, you don't lose just the penny. I may be wrong, and it may depend on the account structure. But I wouldn't...ahem...bank on it.
Cheers,
ForeclosureS.com: One Million Foreclosures By Year's End
1. ForeclosureS.com: One Million Foreclosures By Year's End [Housing Tracker] -- Seeking Alpha
Oil Brings Americans Closer to OPEC Debtor Dependence (Update3) - Bloomberg.com
Holdings of Treasuries by oil producers and institutions such as U.K. banks that are proxies for Middle East nations rose 44 percent this year to $510.8 billion through April, four times faster than the rest of the world, according to the Treasury Department's most recent data. At the current pace, they'll surpass Japan, which holds $592.2 billion, as the largest owner this month.
ompass Bank is a Sunbeltbased financial institution which operates 420 fullservice banking centers including 166 in Texas, 90 in Alabama, 76 in Arizona, 44 in Florida, 33 in Colorado and 11 in New Mexico. Compass Bank is a subsidiary of Compass Bancshares, Inc., a whollyowned subsidiary of BBVA. BBVA is a global financial services company with more than $698 billion in total assets. When combined with BBVA's three other U.S. banking companies, Compass will rank as the largest regional bank in the Sunbelt region and among the top 25 banks in the U.S. by total deposits.
Misean, you are wrong. You are insured up to $100K. The penny is not insured. The FDIC announced that the uninsured amounts would be paid out at 50 cents on the dollar.
I don't believe that all of these people have over $100K in Indy. A nail technician? Come on. And as for those who, like one person in the story claims, have half a mill in Indy... what the hell were they thinking? Why would anyone ever do that? It doesn't matter that they thought Indy was safe... Why NOT just put it in different banks?
So bottom line, to be misanthropic, pretty much everyone rioting outside the IndyMacs are idiots.
"January 31, 2010 writes:
I can't wait until next year at this time when oil is at, say, $155. But, the YOY change is so small that the PPI shows a decrease in inflation. I am sure Bernanke will say "see, what inflation problem?!""
And he would be correct. If the price stops going up, it means that the rate of inflation is zero. Once the delayed impact of the price rise passes through the system, there will be nothing to drive up the inflation rate.
Wow, the FDIC really needs to put together a press release to clear up all the misunderstandings about the insurance.
Misean if it is a single owners account they would get back $100,000.01 if the FDIC rounds up to the penny. Anything over 100K per depoister will get an immediate $0.50 on the dollar and I think it has been estimated around $0.70 on the dollar when all said and done.
The new brand, BBVA Compass, will be rolled out progressively in coming months through an investment of $30 million, recycling the name of Compass Bank. BBVA acquired Compass Bank, an Alabama-based regional bank, for $9.6 billion last year.
"Even though the business environment is getting more difficult, the timing is actually quite favorable for us," said José María García Meyer, head of BBVA's U.S. division. "Some banks are pulling out of some markets because they don't have the liquidity or because they are refocusing on core businesses. Some are selling branches, and retrenching in businesses such as consumer or car loans. Some players will disappear."
BBVA's push mirrors the emerging presence of Spanish banks in the global arena.
Along with rival Santander, BBVA is one of the few big international banks that have been able to duck the subprime-mortgage crisis, because conservative Spanish regulation prevented financial-services companies from making significant investments outside their balance sheet.
After expanding aggressively across Latin America over the past decade, BBVA started to focus north of the Rio Grande, creating a $65 billion bank franchise that after consolidating will be No. 4 in terms of market share in Texas, behind established players such as J.P. Morgan Chase & Co., Bank of America Corp. and Wells Fargo & Co.
Democrats, who found themselves in an unusual alliance with the Bush administration, immediately criticized the Republicans for endangering the economy by trying to stall the housing legislation.
Democratic leaders have said they would incorporate the Treasury plan to aid the mortgage giants into a package of housing legislation that also includes a plan to help hundreds of thousands of borrowers at risk of foreclosure to refinance their mortgages. Mr. Frank had initially predicted that the House would add the administrations plan and act on the housing package this week.
Opposition, From Both Parties, Over Bailout Plan: Financial News - Yahoo!
Finance
Oh, great GoogaMooga, can't you hear me talking to you.
"Average Joe writes:
If westbury is even close to right that is very bad.
It will mean that GDP is virtually useless as a barometer for economic activty and health.
The last thing this market needs is to have the old yardsticks disappear.
Talk about a shot to confidence."
Umm, GDP is a fairly useless barometer for economic growth. Heck, as Sebastian has pointed out endlessly, the thing hasn't even gone negative.
Recent GDP numbers are almost 60% guesswork - implied by continuing previous trends, etc. It takes years for the GDP data quality to improve.
For this reason, the markets don't trade off GDP.
Anyway - a 4% growth print only means that there is a 1% increase in growth over the 3 months - the number is annualized. Given the cash they threw at the consumer, and the noise associated with the oil price rise (huge impact on short term growth nunmbers), getting a 1% jump in the level is not a big deal. If it continued for a few more quarters, however, that would be interesting. (And probably not gonna happen.)
Completely off-topic, anyone know where I find 20 years of 90 day Libor rate info for a chart I'm putting together. Also need 2 and 3 year Interest rate swaps. Any sites in the public domain where I could download? Not finding what I need with the Google machine.
Following the merger of State National Bank, Texas State Bank, Laredo National Bank and Compass Bank, BBVAs U.S. affiliate ranks as the fourth largest bank in Texas and among the top 25 largest banks in the U.S. based on deposit market share. The company has total assets of approximately $58.6 billion and operates 593 branches across a six state Sunbelt Region including: 328 in Texas, 91 in Alabama, 76 in Arizona, 44 in Florida, 33 in Colorado, and 21 in New Mexico.
bond guy writes:
"January 31, 2010 writes:
I can't wait until next year at this time when oil is at, say, $155. But, the YOY change is so small that the PPI shows a decrease in inflation. I am sure Bernanke will say "see, what inflation problem?!""
And he would be correct. If the price stops going up, it means that the rate of inflation is zero. Once the delayed impact of the price rise passes through the system, there will be nothing to drive up the inflation rate.
bond guy | 07.15.08 - 8:54 pm | #
Yes, he will be correct. But isn't the outcome the very definition of embedded inflation?
Tanya Stafel,
"Misean, you are wrong. You are insured up to $100K."
As I said, I am unsure. You have linkage for the proof. I can't find it.
Cheers,
"RhodesianRidgebackinAZ writes:
Completely off-topic, anyone know where I find 20 years of 90 day Libor rate info for a chart I'm putting together. Also need 2 and 3 year Interest rate swaps. Any sites in the public domain where I could download? Not finding what I need with the Google machine."
The Fed H.15 release has tons of data (fed reserve website). They have generic eurodollar rates which go way back. Their swap data does not go back as far, probably to the mid-1990s at most. But that reflects the fact that the swap market was pretty small until then.
LIBOR fixes (rather than generic eurodollars) are available at the BBA web site. The data are in messed up Excel spreadsheets, and recent data are not available for free.
Misean:
http://www.fdic.gov/deposit/Deposits/deposit/faqs/index.html#commo
"January 31, 2010 writes:
bond guy writes:
"January 31, 2010 writes:
I can't wait until next year at this time when oil is at, say, $155...
And he would be correct. ...
Yes, he will be correct. But isn't the outcome the very definition of embedded inflation?"
No, its what the economists call a "price level shift" - the price level jumps, but the rate of change stops.
There were central bankers/economists who wanted to target the price level. I.e., if the CPI rises from 100 to 110, you gotta deflate the economy until it goes back to 100.
Those people are hard to find nowadays. It would put the economy back on something resembling the gold standard, which would be a pretty disastrous policy at this point.
argento,
TY.
I retract.
Must've been some MM account I was thinking of.
I'll give:
I'm not worthy...I'm not worthy.
Cheers,
Misean,
Don't back down, she'll come back and degrade you
Anonymous | 07.15.08 - 9:14 pm,
It's ok. I was very wrong. I take my lumps.
Cheers,
It's ok. I was very wrong. I take my lumps.
Misean. Its a big man who admits he's wrong... I think that calls for another shot of confidence even if it is only Tuesday.
Enjoy this:
YouTube - Hey, Bernanke, Paulson, and, Bush: Pay off OUR Loans!
If I were you, I'd buy $1 million worth. After all, the FDIC isn't going to default, right?
All these people have an uncle who is saying: "FDIC insurance? SHEEEIT! It aint' worth the paper it's printed on. You don't know that, dummy??"
To Bond Guy...
Thanks for the follow up on the "price level."
Would I be correct in assuming a rising price level tends to lead to wage inflation--or at least an attempt by workers at wage inflation.
Thanks!
"January 31, 2010 writes:
To Bond Guy...
Thanks for the follow up on the "price level."
Would I be correct in assuming a rising price level tends to lead to wage inflation--or at least an attempt by workers at wage inflation.
Thanks!"
The relationships between prices and wages have been treacherous. The quick summary is that price increases led to wage increases in the 1970s, probably as a result of the fact that the labor force was more unionized. (The euro area has much greater wage inflation than the U.S. now, presumably the result of this effect.)
So far, in the U.S., all that has happened is that the standard of living has fallen - wages are not keeping up with inflation.
But the terminology I used may have been misleading - the "price level change" (as per economist speak) is viewed as a one-off upward shift. If it is not repeated, it is not really inflationary; at best it was a one-time adjustment to previous inflationary pressures.
And if we are looking at oil in particular, there's nothing stopping it from going up while the rest of the CPI is falling. But if it sticks at $150 and does not continue its parabolic rise, the economy will have no choice to adapt to the new level, and the impact on other prices will die out.
All these people have an uncle who is saying: "FDIC insurance? SHEEEIT! It aint' worth the paper it's printed on. You don't know that, dummy??"
I still want to know what bank is benefitting from all these "hot money" withdrawals. Does PBoC has an office in the LA region ?
there are a lot of livers failing out there tonight - not just banks!
cheers!
So for those of you who short, let's take this brief decription of shorting, except we'll substitute "car" for "stock".
As a short, you borrow a car without the actual owner's knowledge or permission. Then you sell it. At some point undefined point in the future you buy the owner another car.
As a naked short, you don't even bother to borrow the car. You just point to a car on the street and sell it. Then you don't even have to buy another car.
Try either of those with a car and you're looking at 5-10 for grand theft auto or fraud. Do it with a stock and you can go on a blog and boast not only about how smart you are, but how somehow the world should thank you.
Missed a hell of a day. Interesting comments...
As to previous thread, what's the middle class to do?
You can't buy a scooter in this area and I'm seeing them cropping up all over the place. Also know that more folks are comparing trips so that doubling/tripling up. Told one of my sons today that wouldn't buy into his doing something since would require too much travel/cost to be worthwhile so suck it up. Local public transport is getting major fed grant to install add'l bays in main terminal.
You want to get ahead, think hard as well as work hard. The asian kids have done it, you can too so pull your head out of your ass and deal. Make them get out and volunteer, get a job, take on additional projects, whatever, but days in front of electronics are done. Do as jg has done and involve them in the financial arena.
As an aside, I was stunned to find out from my daughter this morning that during the stock market exercise she did in 1Q08, she made an 18% return. In further conversation, I realize that she was utilizing the Peter Lynch model - buy what you know - and she's a technosavvy mallrat.
Dear friends of our will die in their traces since they left the monetary decisions on savings/investments to the "pros". Spend a certain amount each day on the financial stuff and learn. Exercise common sense.
I learned as a work comp adjuster many years ago that if I knew the state laws on managing a case, I could figure out how to manuever within those rules accordingly. Cynical perhaps, but true.
I won a hell of a lot more cases that went to an ALJ than my peers. Routinely.
It's just going to take a much more nose to grindstone approach than we've had to do.
Okay, I'll shut up now.
homedad - sage advice
ShortShorts:
So I'm missing something. Are you upset that people short?
Think of it this way. This is the realist's response to the market mantra that everything will go up. There are a lot of companies that have sat on the laurels and are letting others eat their lunch but the stock stays static or goes up 'cuz everybody buys them.
You want to keep the stock up, then stop letting others eat your lunch and stop doing stupid things. Like giving 110% loans to people that you know have no hope of ever paying back, just so you can make some commission. If you really produce results, then you won't have much of a problem; but shorting is, in a sense, an avenue for those paying attention to reallocate resources to those who can actually do something worthwhile with it.
What's wrong with that? Hell, the financials are losing their collective shirts. Do you think that the people - me included - are ultimately going to spend the next 20 years sitting with it in a mattress? Once the dust settles, we'll find a new and healthier home for the money.
OT question.
Given that banks are getting killed in share price and that a fair amount is due to desire to bail the sinking ship. How much could be due to desire to get out before they have to recap with additional offerings, followed by a reentry.
I've been looking around for those that will not only be around but would be good candidates once things shake out further.
PNC? FHN (which has divested its national mortgage biz to MetLife - great, I get to pay Snoopy)?
If that's the case, might there not be some "pop" to the upside after new issuance?
"homedad43 writes:
ShortShorts:
So I'm missing something. Are you upset that people short?
Think of it this way. This is the realist's response to the market mantra that everything will go up. There are a lot of companies that have sat on the laurels and are letting others eat their lunch but the stock stays static or goes up 'cuz everybody buys them."
Well, naked shorting (shorting without borrowing the shares) is illegal (already, even without this new crackdown), from what I recall. But his complaint about borrowing and then selling is silly - if the owner wants to lend the shares, why not let them?
Adding shorts to a market makes it more robust. However, it is a riskier proposition than it looks. You are essentially short an option - you have finite updside, and unlimited downside. Definitely not a product I would recommend for most retail investors.
homedad-If you don't like a stock, don't buy it. If you own it sell it. You can find a stock you do like, or buy bonds, CDs, gold, whatever you like. There will always be sellers, even for reasons that have nothing to do with the stock (pay for college, buy a house, etc.), As soon as new buyers stop coming in, the stock will go down. If sellers sell en masse
because the company sucks, it will go down fast. You don't need shorts.
The fact that some people make money shorting doesn't make it pro-social. If I borrowed your car while you slept tonight and sold it, you would call the cops and rightly so. So why should someone be able to borrow someone else's shares and sell them?
There is an economic translocation occurring. What is it?
1930s went from Lassie Fair to near socialism
1970s went from net exporter of oil to importer, off the gold standard, cold war peak, president resigns, Vietnam war ends, start of the decline of manufacturing industry.
early 1980s High interest rates to lower inflation, repeal of security laws that were enacted in 1930s, drill for oil, oil price peaked, repeal conservation initiatives of late 1980s.
2000s, terrorists attacks, Iraq war, tortured prisoners, $4/gas, mortgage crisis, banking crisis.
bond guy-The owner of the shares is not asked if the shorter can borrow them-no rational owner would allow someone else to lower the value of his shares. Nor is the owner compensated for the use of the shares, though the broker collects interest. How is this reasonable or just?
I would not object to shorting IF the owner agreed to it. Just as if you wanted to lend me your car to sell, that's OK. But if I borrow it wiithout your permission-that's theft in most jurisdictions.
This morning on NPR a woman was complaining about losing money in their account at a bank that was closed by FDIC because they had over 100,000 bucks in that bank.
I have no sympathy. How does someone that dumb obtain $100,000?
I believe the end is near.
ShortShorts, Do you have a margin account? If you short stock or buy/sell options you do. Most accounts are set up that way. When you sign the agreement you offer to loan your shares out with the broker at will. I am certain istitutional shares are also available to sell.
ShortShorts:
First off, I'm not into naked shorts nor am I advocating. Yeah, it's illegal and no question there. My neighbor's car is my neighbor's car.
But I stand by my earlier comment. It is a means of keeping company management sharp re share price. Given that we're seeing an apparent increase in question of management honesty/morality/laziness - as noted in other arenas as well as commentary here - I view it as another tool for the reallocation of resources.
Yes, there's room for abuse - as in all areas - but I think that those instances are on the outer ends of the Bell Curve.
That said, I'm not yet shorting individual firms given experience levels, although I'm studying. I am however, utilizing SKF/TWM/RWM in measured amounts.
And yeah, when the time's right, I'll once again go long.
barely-That's not what I would call a freely entered into agreement, since as far as I am aware every brokerage firm uses the same clause in their agreement. I would like to see an opt in/opt out. They're my shares, not my brokers, so I should have the say in whether they can be shorted or not. I might allow it for the right compensation.
I never thought I would approve of anything Chris Cox did, as he has been totally useless until now. But he's right on base here, if late.
Again homedad-I'm not suggesting shorting be banned. But if you want to short MY shares, you should have to get my permission, just like if you want to use anything else that belongs to me.
ShortShorts:
Why don't we just apply the same logic to the fractional lending/reserve system? If you want to borrow money from my bank, then you have to talk to me and get my permission first.
homedad- Let's just cut out the middleman. Can you lend me $50?
@Why don't we just apply the same logic to the fractional lending/reserve system? If you want to borrow money from my bank, then you have to talk to me and get my permission first.
LOL Homedad
ShortShorts:
LOL.
Checkmate is going to happen. There won't be any meaningful deflation in energy prices. You read it here first.
Energy, especially oil does not have a demand growth issue from developing countries, rather a supply issue because of scarcity.
The report by NT is flawed in their assumptions, it did contain interesting stats however, especially what fueled consumption between '01-'06, cheap money and the house ATM. Shocking actually.
Even the "Checkmate" scenario is overly simplistic.
There isn't any one overriding problem, and there isn't any one overriding solution. It's like whack-a-mole without the whacker and all the moles coming up at once.
Outside of the two mortgage-finance agencies, credit is getting more expensive and harder to get. The assets of commercial banks fell 5.8 percent annualized in the three months ended June, the second-largest contraction in the 60-year history of the data, according to Paul Kasriel, chief economist at the Northern Trust Corp. in Chicago.
hell hath no fury like the scorn of haloscan.
anyone else encountering problems with haloscan this morning?