Name: Bob
Bio: Serial trader. Former licensed broker.
Posts by BobL:
- I slap you in the face
- I kick you in the shin
- I take all of your money
- LCD
- Filtration Systems
- Fiber
Greece falsifying financial data – Next meltdown?
January 13th, 2010
Greece
In the same conversation as the Dubai meltdown, Greece has been mentioned by many as the economy on the least stable footing. However, Greece does not have a family member willing to pony up billions to keep things in tact. It appears that much of their hope lies with the IMF. However, the IMF might not have the financial wherewithal to do so.
The idea that they might be in trouble is one thing, the fact that they are falsifying data is an entirely different deal.
In a damning report published as the eurozone grapples with its worst financial crisis since the euro’s launch in 1999, the Commission said figures from Greece’s were so unreliable that its budget deficit and public debt might be even higher thangovernment had claimed last October.
FT.com / Europe – Greece condemned for falsifying data.
No Surprise Here… NY Fed Told AIG to Limit Disclosure
January 7th, 2010As we have been saying for quite some time, the AIG bailout was an indirect bailout of many entities. This allowed for 1 hated entity (AIG) to take the fall for many that would be better off not tarnished (GS). There would have also been a major backlash due to the foreign entities that benefited from the AIG (100 cents on the dollar) bailout.
The Federal Reserve Bank of New York, then led by Timothy Geithner, told American International Group Inc. to withhold details from the public about the bailed-out insurer’s payments to banks during the depths of the financial crisis, e-mails between the company and its regulator show.
AIG
via Geithner’s New York Fed Told AIG to Limit Swaps Disclosure – Bloomberg.com.
Nokia opens new front in Apple patent battle
December 30th, 2009Apple (APPL) has been on a roll since Steve Jobs returned. This could be their first major bump in the road. A crippling patent victory by Nokia could put a bit of a halt to the meteoric rise of the iPhone.
My hunch is that there is some validity to the counter suit by Apple and there will be a settlement that might not even include licensing fees.
This might just take years to play out unless a judge decides that he/she wants to make a name for themselves.
Nokia opens new front in Apple patent battle| Reuters.
Banks with political ties got bailouts
December 22nd, 2009Shocking! Not really, just sad.
U.S. banks that spent more money on lobbying were more likely to get government bailout money, according to a study released on Monday.
via Banks with political ties got bailouts, study shows | Reuters.
Any outcome will be a bad outcome
December 18th, 2009Not out of the woods by any means yet, folks. In fact, some of the support that the government provided might just prove to be like a financial Vietnam… A bad situation with resolution options that are painful no matter which you choose.
Choices
…Get the picture?
Read the excerpt below. Lovely. The link to the full article continues below.
We still face serious headwinds in the economy and, as I’ve said many times this year, the current market valuations are ignoring the risk factors of owning equities – an amazing thing considering how recently those risk factors showed up and bit people’s faces off both last fall and this spring. For example, according to the NYTimes this morning, American International Group, Fannie Mae, Freddie Mac and GMAC, are not only unable to repay the government, they are in need of continuing infusions that make them look increasingly like long-term wards of the state. The total risk they pose to the taxpayer far exceeds that of the big banks. Fannie and Freddie, in the final days of the year, are even said to be negotiating with the Treasury about greatly expanding the money available to them.
via Fa La La Friday – Scroogy Swap Prices Blacken Christmas | Phil’s Stock World.
Corning Continues to be a Rock
December 16th, 2009I have spoken about Corning (GLW) enough to make you say, “enough already, we get it”.
GLW should be a core long term holding in your portfolio. They had a little hiccup in share price about 6 weeks ago (down to the mid $14’s) but have moved up about 25% since that point. It was kind of odd that they sold off, because Corning has made it a habit over the past few years to pre-announce in a way that essentially says that they are on track. That is what they did on 10/22/2009. After that announcement, they sold off about 7%-8% within a week.
I wish that I would have taken the opportunity to add to my current position. Let me reiterate why GLW is a great long term buy.
A leader in the following core sectors:
Corning - GLW
Those three sectors alone are fantastic long term plays. We haven’t even seen the real impact of climate regulation and the continued move toward larger and flatter TV’s, monitors, and devices will allow the LCD division to generate plenty of cash. Let’s not forget about our constantly growing demand for bandwidth which ultimately leads to more fiber.
There are plenty of other markets that Corning is entering with plenty of R&D money. This is a smart long term play.
U.S. gave up billions in tax money in deal for Citigroup’s bailout repayment
December 16th, 2009The deal that Citi reached with Treasury and the IRS is a potential disaster. I don’t know about you, but if I was in a position to seek a way to avoid taxation during a share transfer, I would certainly ask my tax attorneys to see if we can use this as precedence.
Forget the amount that they just gave up (primarily so that Citi could freely pay its year end bonuses out), this could cost many billions in the future.
The federal government quietly agreed to forgo billions of dollars in potential tax payments from Citigroup as part of the deal announced this week to wean the company from the massive taxpayer bailout that helped it survive the financial crisis.
via U.S. gave up billions in tax money in deal for Citigroup’s bailout repayment – washingtonpost.com.
10% of homes in foreclosure
December 10th, 200910% of all US homes are in foreclosure! That is simply staggering!
US foreclosure filings will hit 3.9M in 2009, bringing the 3-year total to 10% of all US homes.
Foreclosure heat map
via Foreclosure Thursday – The Stealth Stimulus | Phil’s Stock World.
Simon Property to buy Prime Outlets for $700M
December 9th, 2009This deal flies in the face of my continued rant that commercial real estate is in trouble… or does it? Simon could be one of the solid players in commercial real estate. Having the ability to issue shares for a part of this transaction is a big deal. They only need cover costs until the economy rebounds. If they paid pricing based upon current metrics, they can make this work.
Ahh… to be a buyer when everyone else NEEDS to sell. Speaking of that, did you see that the “W” Hotel went for $2 million plus assumption of liabilities? Dubai’s trouble is another’s gain.
Simon Property Group Inc. said Tuesday it will buy the outlet shopping centers owned by Prime Outlets Acquisition Co., solidifying its position as the nation’s largest public real estate company.
via Simon Property to buy Prime Outlets for $700M : 24 Hour Business : The Buffalo News.
Fresh Pay Skirmish Erupts at AIG – WSJ.com
December 7th, 2009The AIG saga is almost funny. I say almost because there are far too many US tax dollars being used like Monopoly money. I feel that the government pay restrictions are a bit ridiculous (who has the say, who picks the arbitrary amount, etc), but it looks like the expected uproar over this issue is coming.
The government has their hands full with AIG. They need to superstar employees to generate enough cash to give the appearance that a payback is possible. Without them, the whole company could come crashing down. This is going to get worse each and every quarter.
Five high-ranking executives at American International Group Inc. said last week they were prepared to quit if their compensation is cut significantly by the insurer's government overseers, according to people familiar with the matter.
