Comments on: Cost of Banks

By: d4winds

d4winds — Mon, 22 Dec 2008 13:58:50 +0000

Many of these banks have received taxpayer cash. The really interesting comparison is their market cap net of that cash. The implication of the comparison would be insolvency or near to it, re Citi, GS, MS.

By: DOW_1500

DOW_1500 — Sat, 20 Dec 2008 09:07:43 +0000

Wait 2 more years and you can buy all this stuff above, and get a 50 B. change, not only 8 B.

By: Andy Tabbo

Andy Tabbo — Sat, 20 Dec 2008 05:53:16 +0000

I’ve seen several BP posters talking about the SRS…..

So, I checked it out tonight. I can see the allure. Um. It “looks” like a buy, buy I must say these “ultra” anything ETFs are sort of a scam, so I’d be real careful on longer term plays. However….the Dollar looks bullish, gold looks bearish, oil is terrible, and the S&P is struggling…so I sort of like this SRS action next several days.

That being said, I still don’t like these “ultra” anything etfs….

- AT

By: Mike in Nola

Mike in Nola — Sat, 20 Dec 2008 04:39:49 +0000

KJ: I hear ya. Bought SRS in the 80’s and was stupid enough to sell calls at 105. Didn’t think it could go up that fast. Someone else got a bargains.

By: rww

rww — Sat, 20 Dec 2008 02:45:48 +0000

KJ, you have many silent brethen here.

By: KJ Foehr

KJ Foehr — Sat, 20 Dec 2008 01:43:18 +0000

SRS is a screaming buy, IMO. The CRE depression will lag the recession as it takes time for retailers to throw in the towel, leases to expire, etc. But it is coming, of that I feel almost certain.

I’ve got a big chunk in two different accounts and I’m holding on for dear life, rally or no. The risk reward is highly favorable at $59.

I feel the same about EEV at this price level.

Now, having spouted of about it, it will probably fall another 30% or more, but I would not give up on it. I gave up on SKF after the shorting ban, but it went on to peak at $303 in November after trading as low as $87 in September!

By: Winston Munn

Winston Munn — Sat, 20 Dec 2008 01:11:30 +0000

Mike in Nola,

Milton’s Billions have not worked the magic Uncle Milt thought they would – but then I never expected it to work as I believe the Austrians and their psychologically-based ideas have it closer to correct than monetarists and their equations.

The Y in Y=MV isn’t valid when it stands for Y spend it now?

By: Moss

Moss — Sat, 20 Dec 2008 01:06:49 +0000

The plan is to re-capitalize the whole country with the Fed’s balance sheet and ZIRP. Who needs China or anyone else to buy the paper?
I don’t think we will see inflation for a while.. at least that is what the fed is hoping. If the banks did think we would see much inflation they would not be making loans at 4.5%.

By: Mark E Hoffer

Mark E Hoffer — Sat, 20 Dec 2008 00:40:48 +0000

@Winnie, and Jeff,

I hear ya, though, that’s part of the program..the IMF refers to it as ‘Shock Therapy’–meant to destabilize, disorganize, and destructure the ‘old’ system.

We forget, too convienently, there are, but, two choices: Liberty or Tyranny. It will be, as it always has been, a tough slog..
~~

Chief Tomahawk,

no prob, saw their ad during WWEx, this morning, and previously..

Bob A,

you answered your own Q, IOW: to make it seem unique, there’s, still, too much fruit in the Orchard..

By: Mike in Nola

Mike in Nola — Sat, 20 Dec 2008 00:18:28 +0000

I suppose that is an example of the deflation they keep talking about.

Question: Would anyone want to buy these banks at these prices? I haven’t seen anything about Warren or Bill sniffing around.

Winston: The problem with the secret gifts of money is that it didn’t increase liquidity because the recipients are just sitting on it. Would have been better suited to their purpose (which I don’t agree with) if the government had just written mortgages and car loans directly. The money they have given away is like the carbon dioxide that people theorize can be trapped on the bottom of the ocean.