Tom B

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  • How to Spend $700B and Actually Solve the Problem
    There are two main problems: 1) "opaque" instruments, like CDO's riddle with shaky mortgages 2) mortgage defaults. I support some intervention to deal with CDO's and a return to regulation of banks to prevent future abuse. As for 2, wages have been stagnant and housing prices did a huge "bubble". I think restructuring loans -- freezing ARM resets for example-- could help a lot. As for the "redlined" poor causing the mess as scrooge opines-- that attitude is contemptible. It is only a small part of the problem. The banks SHOULD have denied bad loans. And people of all income brackets are involved in this mess. Some people got into ARMS and "stretched" too much. Others willfully abused lax credit standards and bought multiple properties, hoping to "flip". The fact that real estate lloked for a long time like a "magic" investment that always goes up, clouded people's judgement. I have long looked at ratios of average salaries to housing prices. And the ratio of renting costs vs ownership costs. I could see years ago that trouble was brewing.
    Sep 26 09:11 am |Rating: 0 0 |Link to Comment |View article
  • Changes in Market Cap for Biggest U.S. Companies
    Oh, cool: Apple's about 12 months away from passing MSFT!
    Jul 29 13:28 pm |Rating: 0 0 |Link to Comment |View article
  • Time To Buy Banks? Proceed With Caution.
    Why do you say BAC looks expensive? What do you think of JPM?
    Jul 18 09:09 am |Rating: 0 0 |Link to Comment |View article
  • Still Too Early For Banks
    "If we wait until all eight of your points are answered, we will be here a long time...."

    Agreed. Right now is still "catching the falling knife". IMHO, a few more quarters, some less negative housing inventory news, and I'm ready THEN to look at banks.

    The economy should trend up when we get someone in the White House who isn't an alcoholic big-oil man.


    Anyone have an opinion on VNQ-- commercial/rental REIT? Less scary than banks and builders, but is it ENOUGH less scary? Nice 5% yield.
    May 01 09:11 am |Rating: 0 0 |Link to Comment |View article
  • Under The Radar News - Monday
    "Microsoft (MSFT) has for all intents gone silent. All this can mean only one thing: A deal between the two has to be getting ever closer."

    Possibly. But not necessarily. People seem to keep forgetting that this merger absolutely DOES NOT benefit EITHER company or their respective shareholders. If it DOES look like it's going forward, expect numerous shareholder lawsuits.
    Mar 31 15:48 pm |Rating: 0 0 |Link to Comment |View article
  • Wall Street Breakfast: Must-Know News
    "Win-win for BAC. Mortgage company at a "fire sale" price, or-- an easy escape clause."

    Assuming Countrywide customer lawsuits won't be arriving in droves, of course.....
    Mar 11 09:20 am |Rating: 0 0 |Link to Comment |View article
  • Wall Street Breakfast: Must-Know News
    "If Countrywide is found guilty of fraud, it could scuttle a planned $4B acquisition of the company by Bank of America (BAC)."

    Win-win for BAC. Mortgage company at a "fire sale" price, or-- an easy escape clause.
    Mar 11 09:19 am |Rating: 0 0 |Link to Comment |View article
  • Under The Radar News - Thursday
    "Then again, does anyone know what Citi's book value is?"

    I don't trust their managemnet. End of story, as an investment.
    Mar 06 10:38 am |Rating: 0 0 |Link to Comment |View article
  • Under The Radar News - Thursday
    "Sources say Microsoft (MSFT) CEO Steven Ballmer is fuming over Yahoo's move yesterday to pre-empt a proxy fight by pushing off its shareholder meeting."

    Maybe monkey-boy threw some chairs around. What does he expect, offering a low-ball hostile offer?
    Mar 06 10:36 am |Rating: 0 0 |Link to Comment |View article
  • Will BofA Really Buy Countrywide?
    I think BoA did a lot of diligence and will squeeze water from this stone. I'm holding-- neither buying nor selling.
    Mar 06 10:10 am |Rating: 0 0 |Link to Comment |View article
  • Time to Short Financial Stocks - Starting with BofA
    I think it's time to buy BAC. I think they factored in the Countrywide risks when they snatched it up.