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13 years ago @ Credit Writedowns - Seven reasons to be sk... · 1 reply · +1 points

I’m not sure the US has enough money for more stimulus. See the documentary:
<a href="http://www.cbc.ca/documentaries/passionateeyeshowcase/20...target="_blank">http://<a href="http://www.cbc.ca/documentaries/p..." target="_blank">www.cbc.ca/documentaries/passionateeyeshowcase/20...
As for the U.S. government buying up mortgages. I agree that it can keep prices artificially high but they can do so in a way to help keep american’s in their homes.
<a href="http://www.thepeacearch.com/forum/showthread.php?t=12797...target="_blank">http://<a href="http://www.thepeacearch.com/forum..." target="_blank">www.thepeacearch.com/forum/showthread.php?t=12797
These points you mention concern me a lot:
•Obama is silent on prosecuting financial industry villains
•Obama must re-regulate, but not go overboard
•Obama must beat back the protectionists

But I do think China does do currency manipulation and without some appreciation of the Chinese dollar it is going to be harder for things to get into balance.

13 years ago @ Credit Writedowns - Bailouts: catching a f... · 0 replies · +1 points

Anarchus, I hope the house prices don't have another 20-40% to go. However, if they do then maybe they are trying to use currency devaluation to cover the remaining gap.

13 years ago @ Credit Writedowns - Why is General Electri... · 0 replies · +1 points

So GE has a return on Equity of 15.57% and their retained earnings seem to be growing. From that perspective it looks as they can afford it at least from a historical perspective. Not sure about future projections.

However, Their return on Assets is only 2.14%. Their assets seems seem to under perform their 10 year treasury while their equity seems to over perform their 10% dividend. I think I need to learning more to understand why these two numbers are so different.

13 years ago @ Credit Writedowns - Dividends are under pr... · 0 replies · +1 points

That's too bad dividends are coming down. The high dividends were a great opportunity for investors.

13 years ago @ Credit Writedowns - Bailouts: catching a f... · 1 reply · +1 points

I remember reading your past comments when I was watching squeezeplay last night:

And so many of your comments::
Pushing on a string:
Insolvent banks:

today your post remind me of some points I saw on the show. Another point that Kevin made on squeeze play is that the recapitalization of banks dilutes shareholders earnings and for that reason he would rather buy debt the equities. The prospect of banks being insolvent after considering future loan loses is scary is scary. However, is there a chance that future inflation could inflate the value of assets and help counteract loan losses?

13 years ago @ Credit Writedowns - Bernanke speech at the... · 0 replies · +1 points

There are proposals for keeping American’s in their homes: http://www.thepeacearch.com/forum/showthread.php?...And buying up say corporate bonds makes it easier for businesses to borrow money.

13 years ago @ Credit Writedowns - Crony capitalism in U.... · 0 replies · +1 points

Sorry. I read that wrong.

13 years ago @ Credit Writedowns - Bernanke speech at the... · 0 replies · +1 points

I think the move for the FED to buy other types of debt besides treasuries is good. However, if the fed is going to by securities, then I hope that it buys quality securities and not ones which are synthetic/secondary and overly opaque. The Fed should buy debt products that continue to make payments sufficient enough to justify the expenses/risk. The Fed should not by products which have systemically failed due to bad finical engineering.

13 years ago @ Credit Writedowns - Crony capitalism in U.... · 2 replies · +1 points

"A prohibition on acquisitions of solvent banks by firms receiving TARP funds (The acquisition of NCC by PNC Bank and of Chevy Chase Bank by Capital One Financial after the acquirers received TARP funds are two acquisitions that should never have happened.) "

Didn't you say that liquidity shouldn’t be given to illiquid companies not insolvent ones? Isn’t it the propping up of failed companies that creates the moral hazard?

13 years ago @ Credit Writedowns - Links: 2008-01-09 · 0 replies · +1 points

Part of me says that if Obama is getting flack from democrats then it is a sign that he is governing from the center as he should. However, I agree with Kerry. Keep taxes were they are. Wait for a recovery to either rais or lower them. Investment in infrastructure gives something tangible for the stimulus and will be filtered to consumer though the jobs it creates.