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    • Thu Jul 24th 12:26 PM | Rating: 0 0
      Commented on:
      Bill Gross: The Housing/GSE Bill Is Best Way Out of Credit Crisis
      At the bottom of a recent Bloomberg article, Pimco holds a significant amount of mortgage-bonds guarantee by Fannie Mae. That's why Bill Gross supports Fed's bail-out program.

      Eight of the top 10 holdings in Gross's $128.8 billion Total Return Fund were mortgage-backed securities guaranteed by Fannie Mae, according to data compiled by Bloomberg News as of March 31, the latest date for which figures are available. Mortgage securities made up 61 percent of the fund as of June 30, up from 53 percent a year earlier, according to Pimco's Web site.

      www.bloomberg.com/apps...
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    • Thu Jul 24th 12:06 PM | Rating: 0 0
      Commented on:
      Bill Gross: The Housing/GSE Bill Is Best Way Out of Credit Crisis
      Why use the tax payer's dollar to bailout the GSE? I've a big fan of Bill Gross on his analysis of the economy and future predictions. However, Mr.Gross has to cheer for the bailout because Pimco owes a big shares of bonds in mortgage securities issued by GSE. If Fed doesn't step in to guarantee those bonds, his portfolio will suffer bigger losses.

      I am a middle-class worker who lives in New York City. For the past 5 years housing has gone up so much that a $100k salary will not sufficient to buy a 1 bedroom condo in Manhattan. Let the housing bubble burst and let younger middle class buyers get a home to start his/her family. Rather than using our tax dollar to stabilize the credit market and support high home prices.
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    • Fri Feb 29th 13:19 PM | Rating: 0 0
      Commented on:
      Inflation's Power: The Dollar in 25 Years
      The real inflation rate is really high like Dr.C stated. Look at M3 growth at Shadowstats or nowandfutures.com/key_... In the long term, inflation will not be tamed. US has a current liabilities of $53 trillion for social security and medicare discounted in present value based on the US Controller. Therefore, the US has no choice but to inflate. Look at video below from US Controller, our top Accountant/auditor for the US government.

      www.youtube.com/watch?...
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    • Fri Feb 29th 12:37 PM | Rating: 0 0
      Commented on:
      Applauding Hank: Treasury Secretary Rejects Keynesian Mortgage Bailout
      The Bush, Ben B. and Paul H. are not to be trusted. They say a strong Dollar is in the best interest of US. In the meanwhile, Ben lowered interest rate by 225bp to save banks from collapsing. Inflation based on PPI is almost 8% yoy. Yet, Ben told us inflation is under control while food, energy, healthcare and real estate price went up the roof in th e past few years. The Fed was established to maintain a stable currency, their job is to fight inflation, yet they create inflation with its loose monetary policy and low interest rate.

      If Ben B. and Paul H. want a bailout, it's intention is to bailout wall St. and banks. For an average middle class living in New York, I can't even afford to buy a house nor a condo in NYC. Average price for a 2bedrm condo in Manhattan is $1.1million. In better locations in Queen or Brooklyn, a 2bedroom condo cost over $600K. Yet, these fools wants to a bailout the irresponsible lenders and borrowers. How can first time home-buyers can afford these houses. Let it come down and let some of these banks fail. Business and some home owners need to be responsible for their actions. Sadly Based on history (the S&L crisis and LTCM), the government will bailout the banks. My bets are weaker dollar, strong commodities and gold prices for years to come. Can't afford a condo for the next few years with my average NY salary even with an MBA. Just keep working....
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    • Tue Jan 22nd 18:53 PM | Rating: 0 0
      Commented on:
      Think This is a Bear Market? This is Nothing!
      Mark, NASDAQ stocks has extremely high PE (many in their 50s). Most stocks are not even earning any money. However, the S&P500 and DJ are composed of company with solid earnings and average PE of 15. Consumers may slow their purchases due to tight budgets. Companies in S&P500 and DJ still not crash like the NASDAQ. Stocks may drop but not to the same degree. Relax and be patience
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    • Thu Apr 12th 20:24 PM | Rating: 0 0
      Commented on:
      The US Dollar: Worthless - Or Just Worth Less?
      Brian,

      I do agree with you on the CPI is not really showing the really inflation rate at least in my part of the town. I live in New York City and the price for rent, gas, health care, and grocery bills had went up more than 3% per year. However, you comments on how the Bernanke and Bush Adm are stealing money from the working class sounds unreasonable. How do they steal money from the working class? Is it by inflating the price of health care, gasoline, etc? Well, the price of Health care and Gasoline are driven mostly by supply and demand not by pumping extra money in the market. The gasoline price was driven up because the global demand of the product. Countries like China and India are bidding up the price for this limited resource. The cost of health care are driven up higher by things like legal insurance and R&D cost.

      Is a loose monetary policy good for the economy as a whole? Your assumption is printing excessive money is bad for the economy because it leads to a weaker dollar or higher inflation, bad for the working class who's salary doesn't catch up with rate of inflation. A loose monetary policy is good for the economy as a whole for the following reasons. First, weaker dollar will lead to a more export of goods. This will create more jobs in the US and decrease the US trade deficit. Second, a loose monetary policy creates more money in the market which business can borrow at a lower cost. Businesses, home borrowers, and investors can borrow money to make more money which again create more jobs, increase in stock prices, and housing price. When investors and house owner realized their investments/house had gone in price, they will spent. It's this consumers spending creating more jobs. When the job market is tight, the wage will go up which now will benefits the working class.

      BTW, China also has a loose monetary policy to avoid yuan's appreciation and protect their huge exports business. I still don't know how the Fed and Bush try to steal money from the working class. Please educate me. As the Chairman of the Fed, he's objective is to do what's is good for the economy as a whole rather than what's good for certain class of people.
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