Foreign Holders of U.S. Treasury Debt

April 24, 2009

We have all heard that there is a great deal of U.S. debt owned by China and other Asian countries, but here is the breakdown of over $3 trillion that is on loan to the world. Obviously Ben and the team need to keep a lot of people happy and are continually juggling the needs of America with the concerns of the world. Read more

Why Do We Protect The Rapists?

December 29, 2008

It is like a bad dream that keeps on returning for a daily encore. Recently, GMAC won approval to become a bank holding company allowing them to borrow more and prolonging their existence. Of course without this, it was going to be game over in quick measure as their ability to access money from any sane investor is, shall we say…limited.

Earlier this month, there were several Read more

Video: Shocking Repo Riviera Predictions

December 16, 2008

While this is clearly a very concerning account of what may  lie ahead, there are a few interesting items that need to be considered.

  1. There is the lack of any counter argument. No matter how accurate and believable it may be, why didn’t CBS have an opposing point of view? Certainly there is someone out there that thinks that there is something wrong with these projections.
  2. Tilson’s mutual funds have not had an easy time of it lately. In fact, Tilson claims that stocks are now at the best pricing he has seen. He goes on to say that they are at bargain basement pricing and implies that we should back up the truck and essentially buy NOW. How long has he had this same idea? (see below)
  3. The ending commentary (above) by Tilson appears to contradict his basic premise. If Alt-A, option-arm and commercial real estate are going to show significant foreclosures into 2011, how can the markets, or an investor price that into any reliable model?

From Tilson’s website:

  • The Tilson Mutual Funds follow a long-term-oriented, value-based investment strategy, seeking to identify stocks that are trading at a substantial discount to their intrinsic value.  The Tilson Focus Fund seeks maximum capital appreciation, while the Tilson Dividend Fund, while also seeking capital appreciation, seeks to generate current income from dividends and selling covered calls.

Muni Money Markets at 5.25%+

October 7, 2008

Take a look at these tables ripped right from the pages of Schwab Institutional. Amazing ? Mistake ?

With “normal” taxable money markets are yielding less than 1%:

Look at the raw tax-free muni money market rates now….

Morgan Stanley’s “Private” Email to RIAs

September 27, 2008

Isn’t it terrible that even before I read this I was looking for where the lies and the manipulative discussions were hidden? I am on high alert as I feel lied to and cheated and surely I am not alone.

Below is a note that appeared in my email this morning and I though that it would be interested to review and dissect. See below with inline comments.

Dear Registered Investment Advisor,

I am writing to update you on two significant announcements that Morgan Stanley made on September 22, 2008. First, the U.S. Federal Reserve approved our application to become a Federal Bank Holding Company. As a result, Morgan Stanley will become the fifth largest Bank Holding Company with almost $1 trillion in assets and will be regulated by the Federal Reserve. Second, we entered into a letter of intent for a global strategic alliance with Mitsubishi UFJ Financial Group, Japan’s largest banking group and the world’s second largest commercial bank with more than $1.1 trillion in deposits.

Good news here as they now have the blessing of the U.S. government to feast on the rotting carcasses of the smaller and regional banks. International companies will continue to have a greater stake in our financial system. Read more

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