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The Citigroup Rescue: Exit Financials Under State Capitalism

The obvious pairs trade here is long GLD and long UDN. The US balance sheet is about $64T. Saving it will require more than the $7T already allocated. As the dollar collapses UDN will rise and so will GLD. Things look bleak for our grandchildren.
Nov 24 10:42 am |Rating: 0 0 |Link to Comment |View article
Financials Continue To Feel the Hurt

I agree. A quiet stealth bear market is depressing the whole sector.
Nov 11 19:25 pm |Rating: 0 0 |Link to Comment |View article
AIG and the Free Lunch Myth

1 of 4 is right, all contracts, that is the side bets, should be cancelled and premiums returned. Bond holders on the other hand need to be paid off if they have lost on their bonds.
Nov 05 20:09 pm |Rating: 0 0 |Link to Comment |View article
Will Insurance Companies Be Part of the Bailout?

Today Loews(L) stock is being slammed because of troubles with its flagship holding CNA Financial Corp. If James Tisch has to inject $1B into CNA, then we had better hunker down for a long financial storm.
Oct 27 12:34 pm |Rating: 0 0 |Link to Comment |View article
The $60 Trillion Nightmare of Credit Default Swaps

I can guarantee you if we get out of this mess, a)margin will be required by all writers, and b)buyers will have to own the the bonds they insure, and c)these contracts will be traded on transparent exchanges. As it started out, if you are a big bank no margin is required, others put up margin as required by the banks. Settling the LEH CDS obligations in a day or two may cause financial chaos, maybe this is why BA is trembling.
Oct 08 11:41 am |Rating: 0 0 |Link to Comment |View article
Lehman's Lies

If the charges of lies, misrepresentation etc. can be proven these executives will wind up in federal prison with the Enron and WorldComm liars. LEH issued $114 million of debt shortly before declaring bankruptcy so these holders along with a host of other victims will go to court and demand redress. Such fraud cannot be ignored, but the wheels of justice move slowly.
Oct 06 10:20 am |Rating: 0 0 |Link to Comment |View article
How Banks Hedge Counterparty Risk

Another advantage to a bank is if the bond it holds is insured it can be claimed at a higher tier in list of capital assets. This one reason the debt insurance companies were propped up so long as the walking dead.
Oct 03 16:41 pm |Rating: 0 0 |Link to Comment |View article
Goldman Says "Trust Us"

I agree with venivindivici and was stunned when GE finds itself bleeding badly and needing a costly infusion. Sold my GE on the news at a loss, but my $8k will be around to fight another day. Wow, if this can happen to AAA rated GE what about F and GM? For what its worth we need to use taxpayer money to inject funds into the banks, capital accounts, forget about buying the toxic waste to improve their capital accounts. My prediction, in a year the $700k will be gone and banks will still be in trouble.
Oct 02 13:39 pm |Rating: 0 0 |Link to Comment |View article
AIG: The CDS Market Bailout

Broker to customer: Good news we just made a fortune on Lehman CDSs. The bad news we sold them thru AIG.
Sep 22 20:56 pm |Rating: 0 0 |Link to Comment |View article
The Real Reason Behind the Global Financial Crisis

Super post and unusually excellent comments. Shah, AIG is struggling and so far a CDS trigger(a credit event)has not occurred. Maybe you should write about LEH where CDSs have experienced a credit event.
Sep 19 09:11 am |Rating: 0 0 |Link to Comment |View article
The Financials, the Automakers, and the Call That Cramer and All of CNBC Got Wrong

My experience shows Detroit does make reliable cars. My 1995 Chevy Lumina ran 110,000 miles without anything other than routine repairs. Now driving my wife's castoff 1999 Dodge Intrepid. Smooth, quiet as a whisper and gets 27 miles per gallon. With 115,000 miles it has need a EGR valve, $300, and a transmission speed sensor, $160. Its engine has been serviced with Mobil 1 oil, and all other owner manual recommendations have been followed including belts and cooling system hoses, critical items for an all aluminum engine.
Sep 19 00:47 am |Rating: 0 0 |Link to Comment |View article
It's Ugly Out in the Markets

Everyone should be concerned with the bear raids on European Banks. They might just let a couple fail and clean out accounts in U.S. Banks.
Sep 17 13:54 pm |Rating: 0 0 |Link to Comment |View article
The AIG Bailout: Advice from Buffett, Munger and Grantham

Buffett cleaned up Gen Re's CDS positions after buying the company. This is where he learned his lessons on swaps. His paper loss now is on put options he wrote on the SP 500 due in 20 years, real long term leaps! We are in year eight of a secular bear market, with eight more years to go with the SP index range bound between 900 and 1500. This means by 2020 we will be in a new secular bull market and the puts he sold will expire worthless. In the mean time he will use his $4M premium to generate earnings for BRK shareholders.

Sep 17 13:45 pm |Rating: 0 0 |Link to Comment |View article
Positive Analyst Call Should Give AIG a Lift

FBR needs to do something for their own shareholders. Their stock is the pits.
Jul 14 12:33 pm |Rating: 0 0 |Link to Comment |View article
AIG May Need More Than $20 Billion to Survive

AIG like the bond insurers has gambled and lost on CDS bets. Berkshire had 23,000 contracts to unwind with General Re and lost his shirt. Same with AIG, only more contracts to unwind.
May 29 16:29 pm |Rating: 0 0 |Link to Comment |View article

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Jim Cramer's Picks -
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Better Choices - Cramer's Lightning Round (10/15/08)

by SA Editor Rachael Granby

Stocks discussed in the lightning round session of Jim Cramers Mad Money TV program,
Wednesday, October 15.

Bullish Calls:

Continental Resources (CLR) -- "This is a remarkable decline. All of the high quality ones are down so much, I can't go against it. This is where you pull the trigger.
3M (MMM) -- The moment this stock starts yielding 5%, I'm a buyer. Until then, keep your powder dry.

Bearish Calls:

Computer Sciences (CSC) -- This is a company that was going to be bought, but they passed up the chance. Now I don't want to buy it."
Annaly Mortgage (NLY) -- I think this is a business model that needs to borrow money. Definitively do not buy."
Northrop Grumman (NOC) -- You can't own the defense stocks right now. If I had to own one, I'd look at Lockheed Martin (LMT) with its good dividend.
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