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I think most financials are already close to priced for the worst pending a huge bankruptcy like Lehman. Individual stocks might fall as select bankruptcy in small banks unfolds but I don't see them putting a drag down on the rest for long. ANY news from the big financials thats short of...

I agree it is a coin flip, just because they had cash December doesn't mean they have cash now. Many an investor have been caught by surprise when assets on a balance sheet happen to be worth much less than expected or new liabilities materialize out of no where from off balance. Never a...

GS will be purchasing convertible, preferred notes. What is the price for them to convert to common shares? $15 or the current price? I am kinda confused on goldman's deal, they are only allow to inject no more than 25% of FMD's value including the initial 50 mill. Is this 25% of...

Of the $358 million of loans held for sale at UFSB, $346 million are student loans. The remaining $12 million are mortgages. All of these assets are carried at the lower cost or markets." As per this balance sheet item, their exposure is limited. Even if its written down to 0, they are still...

Where do you see that their exposure is significant compared to their cash position? "Of the $358 million of loans held for sale at UFSB, $346 million are student loans. The remaining $12 million are mortgages. All of these assets are carried at the lower cost or markets." As per this...

FMD originates loans for people who can't get loans from salliemae in addition to that. Whose to say government won't just take full responsibility in originating loans from now on (basically get rid of income cap) given this crisis? It would be easy to just extend the scope of loans from...

I read that there are terms that if the securitization markets shutdown, then FMD is obligated to buy originated loans from the bank. While this is unlikely, I am curious to know if this is the case. Is there any documents on this that anyone knows about? I am also confused that FMD has Loans...

Good point but by that logic, why not have a ETF thats 3x spy? 4x? 8x? BearStearnsx? What if SPY goes down close to 50% or more? Then you are screwed. Also, SSO dividend / expense ratio = 1.60, 0.95% SPY = 2.03, 0.08% So you don't get exactly 2x leverage. So your downside swings are...

best observation ever

I'm sure most people who do their research has had their share reading doomsday, debt deflation, housing bubble, derivative articles. I have seen a lot of economics articles that argue in favor of a severe recession but I haven't seen many if any articles that have a lot of meat in arguing...

US dollar has been depreciating in value and will continue to do so over time. How come then is the Canadian dollar (at least recently in the short term) not having its value rise vs the US dollar? euro, australian dollar is rising like crazy. Is it because Canada is deciding to lower...

Yes but this creation of money by creation of debt will basically be "unwound" by the impending credit contraction associated with the decrease of housing prices and the credit crunch. Since the SOURCE of the inflation and depreciation is this issuing of new credit/debt. Won't the...

Have a question I don't really understand. The article (and whats being observed) talks about stagflation occuring due to cost push inflation + recession. Likewise in 1970s, there was lots of stagflation. Question I don't understand and I hope someone can clearly explain (read the...

JP isn't running a charity

Why would the euro crack anymore than the dollar to cause people to flood back? Also, oil is in for a correction once recession slams at the latest, won't that "deflate" the dollar as well? Isn't gold skyrocketing not due to inflation but due to fear/speculation? In which case using gold...

Will Ben pull out all stops and inflate the hell out of the US to stave off liquidity and monetize every security out there? Will he fail and the ensuing derivative and debt crunch result in massive deflation? Please give your opinions as well as analysis.

So what is your suggestion in order to preserve our existing capital during this depression? Mind you, I am not seeking to profit from it, I just want to put my capital somewhere so that I know it will stay valued in the coming years of this. Commidities? I don't think so... I think it is...