Pent up demand

Comment Stream

Comment Stream
Filter comments by:
Highest rated Latest comments
Or filter by symbol:
  • The Next Crisis Is on the Horizon
    Exactly right. The "leaders" of the banking industry have completely lost touch with the notion that wealth must be backed by actual economic activity. They have been shoveling abstractions for so long that they think they can stop this freight train with a pile of freshly printed money.

    The USA will declare bankruptcy (default on sovereign debt) before this is finished. This little panic has been the last nail in the coffin for the dollar. And those who have prepared correctly will be punished the same way as "hoarders" in all hyper-inflationary collapses. We will be forced by law to trade hard goods for the worthless scrip.


    On Nov 03 01:33 PM bbzz24 wrote:

    > to whom should banks lend to? the deadbeats on the line after the
    > ones that comprise the sub-prime sector? should we all them sub-sub-prime?
    > or maybe soon-to-be-sub-prime?
    >
    Nov 03 15:59 pm |Rating: 0 -1 |Link to Comment |View article
  • Bubble Logic
    Chris B, many (most?) small-time flippers were not paying a cent in capital gains on their investment properties. They lived in them just long enough to meet the second home requirements.

    Most middle class peoples' productive work is hardly touched by income tax after the various exemptions and deductions are applied. Those people pay mostly payroll taxes. And those payroll taxes are necessary to preserve the fig leaf that social security and medicare are "retirement" systems rather than welfare programs.
    Oct 21 09:30 am |Rating: 0 0 |Link to Comment |View article
  • Bubble Logic
    I'm no fan of Paul Krugman, but I don't know where you get the notion that he was arguing that prices are sustainable. The last sentence in the referenced article says "Part of the rise in housing values since 2000 was justified given the fall in interest rates, but at this point the overall market value of housing has lost touch with economic reality. And there's a nasty correction ahead."

    His piece is arguing, correctly, that median home value is an irrelevant and misleading measure.
    Oct 21 09:24 am |Rating: 0 0 |Link to Comment |View article
  • My Plan to Repair Housing in America
    This plan can be summed up as a "do over" for those with balloon-type payment schedules. Maybe a few people will succeed in "growing" their income in the next few years. How many do you figure will do that in this tough economic climate? Meanwhile, we delay the pain a few more years. No sale here, not that I have any thing to say about it...
    Oct 17 16:11 pm |Rating: 0 0 |Link to Comment |View article
  • John Hussman: Depression Fear Mongering 'Ridiculous'
    "FDR also promised to keep us out of WWII."

    I think you're confusing your populist demagogues. It was Wilson and WWI :)
    Oct 06 17:27 pm |Rating: 0 0 |Link to Comment |View article
  • Time to End Government Dickering Before It's Too Late
    apppro, you cannot do most of the things you listed by simple fiat. A "windfall" tax on short-sellers? So when traders are wrong they get to eat the loss, but when they're right, the government takes the proceeds? I don't care to live in that country, thank you very much.

    Your program amounts to fixing the rules of the game, massive government spending "stimulus", confiscatory taxes, restrictions on speech, and more government agencies. News flash: none of those ideas are new.
    Oct 03 10:07 am |Rating: 0 0 |Link to Comment |View article
  • The Market Cannot Fix the Financial Crisis By Itself
    "Congress chose to put party ideology ahead of the well-being of the American people."

    You say ideology, I say principle. As others have stated, we are going to have a severe recession or depression; the butcher's bill will be paid. The question now is what will we have when we emerge on the other side? Corporatism/national socialism, or some chance at maintaining our freedom?
    Oct 01 15:59 pm |Rating: 0 0 |Link to Comment |View article
  • Nixing 'Mark to Market' Won't Solve the Problem
    I agree that Lehman, Wachovia, et.al. would probably have failed even under looser accounting rules. However, I think at this point we have to give cashflow positive financials a bit of breathing room. Let private capital gamble on whether the higher marks are correct or not. It serves nobody but the vultures to force an otherwise going concern to mark their stuff at the price of the most distressed player in the industry.
    Oct 01 15:54 pm |Rating: 0 0 |Link to Comment |View article
  • New Game, New Rules
    "These decisions have likely deflected the misery that Americans would be subjected to if the disruptive short selling (rape and pillage )continued. "

    Oh, yes, by all means. We're Americans, we like our rape and pillage at the hands of duly elected officials.
    Sep 19 15:03 pm |Rating: 0 0 |Link to Comment |View article
  • Armageddon Postponed
    Past Tense, I am a big reader of history, so yes I agree.

    Tricky, I am betting on repudiation followed by hyperinflation.
    Sep 19 15:01 pm |Rating: 0 0 |Link to Comment |View article
  • Banning 'Terrorism'
    Who said shorts have no effect on prices?

    Those "5 sigma" blasts are a disruption to the market's balance. You remove the weight on one side of a balanced scales and the same thing happens. They can change the reality for a few days, but no longer.

    I am selling into this make believe rally and I will buy it all back for 20% less in a week or two when these wacked out regulations are lifted.

    As a sop to the whiners they should bring back the short-uptick rule, and counterbalance that with a buy-downtick rule.

    And go back and re-read your Shakespeare. Everyone uses the "protest too much" quote in the incorrect sense.
    Sep 19 14:28 pm |Rating: 0 0 |Link to Comment |View article
  • Banning 'Terrorism'
    The "evil" short sellers would not be able to drive these stocks to zero if there wasn't a widespread suspicion that they are insolvent.

    I bet all of the people whining about "massive leverage" (which does not exist in the first place, see: collateral) have no problem with investors buying on margin. Hypocrites one and all.
    Sep 19 12:52 pm |Rating: 0 0 |Link to Comment |View article
  • Armageddon Postponed
    So now the question becomes whether the United States is too big to fail.
    Sep 19 12:36 pm |Rating: 0 0 |Link to Comment |View article
  • Who Killed Frannie?
    "ONLY A FOOL would disagree that the last 8 years has been utterly inverse between what is said and done"

    Keep believing that this has been going on only the last 8 years. And it will all be better with a different "current occupant". Right.

    Wake up. They have been lying to you for 80 years, not 8. And the current turmoil is the work of decades. We will not get out of this without war, because we will either fight our creditors, or be reduced to seizing resources by force that we are no longer able to pay for legitimately.
    Sep 09 11:49 am |Rating: 0 0 |Link to Comment |View article
  • The Fed - A True Haven for Capitalism?
    This was inevitable. Do you think Paulson wants to be up late pulling his hair (wait...) every time Fannie and Freddie have to roll over a big chunk of short term debt? Bureaucrats hate uncertainty. And now they have "fixed" it so that the GSE cannot go into a liquidity seizure. Of course the equity gets to pound sand.

    I'm anxiously waiting for follow up postings from all of the SA "contrarians"... who were long the GSEs due to their "strong earnings potential". Oops! That's gonna leave a mark.
    Sep 09 08:30 am |Rating: 0 0 |Link to Comment |View article

Pent up demand's Comments Stream Stats

  • 113 Comments, 12 , 5
  • Total Comment Stream rating - = 7