Comments on: Links 10/12/08

By: John

John — Sun, 12 Oct 2008 20:54:00 +0000

Ya know… We’ve ONLY got a two party state in this country. The Dems are practical socialists the Republicans are practical fascists (or maybe were practical fascists, we’ll see of Palin and her followers imaginary-friend take the country to martial law before this election is over with). 75% of Americans have been perfectly happy with having EITHER a smothering guilt-ridden mommy-party or a kick-ass frat-boy daddy party. This allows the Joe-six-packs to vote without thinking; which is really all he wants. After all, when you talk with the average Joe-six-pack he hasn’t got a clue about the purpose of government other than using it to punishing somebody else. Sadly, the other 25% of the population have to pick from these two parties. That’s been the game for the last ~40 years anyway. Nothing’s going change as long as the two parties have a lock on the political process. Socialist and fascists philosophies of life are too contrasting for compromise and without a third party to force some sanity the US is stuck careening from fascism to socialism, with both parties giving away the country to the ruling party’s owners. Is dis a great country, or what?

By: Richard Smith

Richard Smith — Sun, 12 Oct 2008 17:34:00 +0000

OT but...Morgan Stanley, anyone??

It's been awfully quiet on that front.

Mitsubishi are limited to a maximum 24.9% stake, last I heard, which at market prices is ~$3 Bn of capital injection. Not sure that helps much.

So either the limit goes, or Mitsubishi. Barring miracles, this has to be sorted out by Tuesday, otherwise...it's MS that goes.

By: yoyomo

yoyomo — Sun, 12 Oct 2008 17:31:00 +0000

Bless you Yves,
This picture of the fawn makes up for that heartbreaking picture of the cheetahs traumatizing the baby gazelle. This sort of inter-species harmony is cheering.

Anon,
Don't bother.

By: Anonymous

Anonymous — Sun, 12 Oct 2008 13:16:00 +0000

The link to the Harvard Law School site discussing the ban on short selling is discussing the previous ban, which allowed the SEC to keep the ban in place until October 17. The ban was lifted last week. There is no new SEC ban as you can find by visiting the SEC web site.

By: Anonymous

Anonymous — Sun, 12 Oct 2008 13:12:00 +0000

My husband is originally from England, so he’s a dedicated Republican. However, he has an excellent education, master’s degrees in math, physics, and electrical engineering, and has not had so much as a telephone call for a job interview in the past six years. Rest assured he is NOT voting Republican this year, and that’s a warning balloon to Roger Ailes, Rush Limbaugh, the Swift Boat Veterans for Truth, and Karl Rove. My husband has learned the hard way that the Bush Tax Cuts do not work to create jobs in the US. Remind me what sort of people did Barack Obama associate with in law school?

By: Anonymous

Anonymous — Sun, 12 Oct 2008 13:06:00 +0000

Another fact-free drive by shooting. No support for the Obama corruption assertion, when we have this:

"The McCain/Palin ticket is the first in American history in which both candidates were found to have violated ethics standards before a national election.

McCain, of course, was admonished by Senate Ethics Committee "for exercising 'poor judgment' for intervening" with federal regulators on behalf of Charles Keating, as part of the infamous Keating Five scandal.

And now McCain's running mate has also been found to have violated state ethics laws and abused the powers of her office, as part of the "Troopergate" scandal.

The nation has had 102 major-party tickets covering 51 presidential elections over more than two centuries. And we've never had a ticket in which both candidates on the same ticket were responsible for ethics violations before a national election. McCain/Palin is the first."

By: Anonymous

Anonymous — Sun, 12 Oct 2008 12:54:00 +0000

"you'd rather see elected a corrupt chicago pol with no record at all, a slew of corrupt friends and associates (not one that is honorable), a man with a history that raises so many questions of judgement and character?"

YES. After the last eight years of constant looting & hideous governance, how can any Repulican even say the word "corrupt"?? You will have OBAMA and you might just learn to like it. By the way some feel Paul Volker has just a touch of honor.

By: a

Sun, 12 Oct 2008 12:45:00 +0000

“Another bonus day, just don’t get used to them…”

This reeks of moral hazard.

By: Anonymous

Anonymous — Sun, 12 Oct 2008 12:19:00 +0000

Obama announced that he is looking into changing bankruptcy law to allow individual debtors to modify mortgages on their primary residence. As many of you know, corporations can have mortgage debt modified in bankruptcy, and before the 1970’s, individual debtors also could. http://www.housingwire.com/2008/10/10/obamas-plan-fraud-prevention-bankruptcy-reform/

This will help current homeowners and hurt current lenders. But going forward, stregnthening bankruptcy protections this way will reduce credit lenders are willing to extend. Nevertheless, I am in favor of allowing this because borrowers, lenders, and the brokers and other facilitators involved have tendencies to make imprudent loans, and bankruptcy protection for debtors puts limits on their imprudent behavior.

By: Anonymous

Anonymous — Sun, 12 Oct 2008 12:01:00 +0000

"(the latter notably gives prominent play to Marty Whitman, who has already had his head handed to him in his previous efforts to find bargains in this market. Among his other bottom fishing bets was MBIA, which he declared in March to be worth at least $35 a share. It has traded below $19 all year and closed below $6 on Friday. I had wanted to do a long-form treatment of this and other pieces on bottom fishing, but I am verging on burn out)."

The big problem with Marty Whitman, Chris Davis, and other value investors who tried to bottom fish in financials is that they didn't do enough hard thinking about whether the balance sheets and income statements of the financials massively failed to reflect the economics of the business, regardless of whether the accountants and lawyers say the filings complied with disclosure rules. They got lazy or careless after making lots of money on financials since the early 80's.

The value investors who questioned assumptions about the financials reporting, like folks at FPA and First Eagle, sidestepped the crisis.