tag:blogger.com,1999:blog-7982981413278241287.post3699983150593164323..comments2023-10-28T17:54:39.467-06:00Comments on The Golden Truth: "New Price"Dave in Denverhttp://www.blogger.com/profile/03016238915167131989noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-7982981413278241287.post-11349392696420572272011-10-05T20:09:31.494-06:002011-10-05T20:09:31.494-06:00It’s Too Hard to Know Who Is Too Big to Fail: Jona...It’s Too Hard to Know Who Is Too Big to Fail: Jonathan Weil<br /><br /><br />What gives? One possible explanation is that the government keeps sending mixed signals about its intentions, mainly because it has no idea what they are. The Dodd-Frank Act passed by Congress last year prohibits equity injections of the sort we saw under the $700 billion Troubled Asset Relief Program. Yet it doesn’t end taxpayer-supported bailouts.<br /><br />Consider the liquidation plan outlined in Dodd-Frank for dismantling a systemically important bank. The act would let the Federal Deposit Insurance Corp. borrow money from the Treasury to finance a company’s operations for as long as five years, shielding bondholders and counterparties from immediate losses as a way to promote calm and head off bank runs. Putting CIT on the important list would tell creditors they might get special protections unavailable at most other companies. <br /><br />http://www.bloomberg.com/news/2011-10-06/it-s-too-hard-to-know-who-is-too-big-to-fail-jonathan-weil.htmlAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-8975169960048581302011-10-05T19:35:46.364-06:002011-10-05T19:35:46.364-06:00Is Morgan Stanley's Biggest Asset Their Debt?
...Is Morgan Stanley's Biggest Asset Their Debt?<br /><br />Is MS planning on taking a massive gain on marking their own bonds? There were stories of MS buying back their own bonds - a great move if they though they were cheap, but a critical move if they were planning on taking a gain and didn't want to have to give it back in the future if their credit spreads tightened.<br /><br />http://www.zerohedge.com/news/morgan-stanleys-biggest-asset-their-debt<br /><br />Guest Post: Dear James Gorman (CEO of Morgan Stanley), <br /><br />http://silvergoldsilver.blogspot.com/2011/10/guest-post-dear-james-gorman-ceo-of.htmlAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-25024093124544354292011-10-05T17:23:37.310-06:002011-10-05T17:23:37.310-06:00(Dave)
Ya I know of people who are living like th...(Dave)<br /><br />Ya I know of people who are living like that as well. One of them even goes out and pays for $20 glasses of wine. It's appalling. It's a huge moral hazard problem.<br /><br />But the worst part of that is that ulitmately the Taxpayer will be footing the bill for that. It's just another symptom of a country collapsing and another symptom that will "treated" eventually with the voting in candidates who implement totalitarian policies.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-30773674864649243962011-10-05T15:45:50.491-06:002011-10-05T15:45:50.491-06:00I know of several people who haven't made a mo...I know of several people who haven't made a mortgage payment in over 2 years and still live "for free" in the same house. If the banks can't keep up with evictions as it is what negative consequences will anyone suffer besides crashing their credit score? Could be "free housing" for years while the banks try to catch up.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-66183098064610749952011-10-05T14:36:54.466-06:002011-10-05T14:36:54.466-06:00I remember an old rule of thumb
home value should ...I remember an old rule of thumb<br />home value should be 2 times annual income (in the 1970s)<br />at that rate I think either incomes need to rise a lot or prices need to fall a lot more.<br />the house I live in is worth around 5 times my annual income<br />I think most people have too much housebix1951https://www.blogger.com/profile/12256493734572696478noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-86124260662155482962011-10-05T12:15:49.923-06:002011-10-05T12:15:49.923-06:00No price...
Banking’s Self Inflicted Wounds
The ...No price...<br /><br />Banking’s Self Inflicted Wounds<br /><br />The bottom line is this: Investors do not really have a clear idea of how healthy any of these banks truly are. We do not know the state of their balance sheets. We do not know what their exposures are to mortgages, to Europe, to Greece, etc. They could all be technically insolvent, as far as any investor can tell.<br /><br />And that is exactly how the bankers wanted it.<br /><br />But given the trouble in Europe, and the likely problems in housing if the US goes into a recession, Investors have decided they cannot take the risk of a holding an opaque, possibly under-capitalized probably over-leveraged financial firm blindly. They are telling the banks no thanks, we are not interested, we are going to be prudent and we have to assume the worst. Hence, for the second half of 2011, they have been selling off their holdings in these opaque, potentially insolvent too big to succeed entities.<br /><br />Bankers, enjoy your beds. You made them, now lay in them . . .<br /><br />http://www.ritholtz.com/blog/2011/10/bankings-self-inflicted-wounds/Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-35169758540492841782011-10-05T09:50:29.450-06:002011-10-05T09:50:29.450-06:00PS--my kid thrives on saving almost her entire pay...PS--my kid thrives on saving almost her entire paycheck-and yes-she is into PM. <br /><br />She wants to find a place where the current owner would rent to her with her option to buy. Should be doable. She just can't see staying with us too much longer.Halnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-19895376055891555092011-10-05T09:47:23.830-06:002011-10-05T09:47:23.830-06:00kind of the same thing in the chicago area--one ap...kind of the same thing in the chicago area--one apparent strong segment is in the city near north not for big condos or big houses, but smaller townhouses or 2 flats where the owner has less risk of empty units not paying maintenance in a building with hundreds of units.<br /><br />Very little on the market in that definition-good stuff, location, quality, well maintained--goes fast--the rest though sits. <br /><br />Remember we do have a growing population and not all kids are staying home with parents (just mine)Halnoreply@blogger.com