This sounds like a 700 billion dollar plan drawn up on a napkin.
Showing posts with label henry paulson. Show all posts
Showing posts with label henry paulson. Show all posts
9/23/2008
Hank Speak
I hope the only lesson learned here is not, if you are going to fail, make sure you fail so big we can't afford to have you fail.
Debt should not be used to increase your return on equity numbers, debt is bad, debt is dangerous, debt is to be avoided, always has been, always will be.
I find it odd that companies like Microsoft, that have no debt, grow revenue, grow net income, each and every quarter don't see there stock go up.
While their stock went no where for the last 5 years, leveraged home builders and investment banks saw there stock go through the roof.
For a while.
So now that people are a little "concerned" about their investment holdings a check on the amount of debt a company has may be an idea. I'm an old banker so it's always the first thing I look at.
One reason to check this now is the cost of borrowing is going up, way up, for everyone.
But the best reason to check the amount of debt on the balance sheet is, the last time I checked you can't go bankrupt if you don't have any debt.
Public companies have access to public equity, they don't really need alot of debt. They have taken it on over the past 10 years because it was cheap and they could boost their return on equity number with it.
It looks like those days are over.
Debt should not be used to increase your return on equity numbers, debt is bad, debt is dangerous, debt is to be avoided, always has been, always will be.
I find it odd that companies like Microsoft, that have no debt, grow revenue, grow net income, each and every quarter don't see there stock go up.
While their stock went no where for the last 5 years, leveraged home builders and investment banks saw there stock go through the roof.
For a while.
So now that people are a little "concerned" about their investment holdings a check on the amount of debt a company has may be an idea. I'm an old banker so it's always the first thing I look at.
One reason to check this now is the cost of borrowing is going up, way up, for everyone.
But the best reason to check the amount of debt on the balance sheet is, the last time I checked you can't go bankrupt if you don't have any debt.
Public companies have access to public equity, they don't really need alot of debt. They have taken it on over the past 10 years because it was cheap and they could boost their return on equity number with it.
It looks like those days are over.
9/19/2008
Who Do You Love
I know, let's make stocks going down illegal.
I guess owning banks is now the safest investment in the United States. The government will not let them go under, the government will not let you short them, in fact I don't think you should be able to speak badly of them.
Does this remind anyone of bureaucrats gone wild, aka, Atlas Shrugged by Ayn Rand.
Is there an election going on some where?
Vast Bailout by U.S. Proposed in Bid to Stem Financial Crisis
"The head of the Treasury and the Federal Reserve began discussions on Thursday with Congressional leaders on what could become the biggest bailout in United States history."
Edmund L. Andrews, NY Times
Win McNamee/Getty Images
The Federal Reserve, with help from the Treasury Department, led by Henry Paulson, above, is taking more risk from markets.
Click on the read more icon for the full NY Times story.
read more | digg story
Who Do You Love, written by Bo Diddley
I guess owning banks is now the safest investment in the United States. The government will not let them go under, the government will not let you short them, in fact I don't think you should be able to speak badly of them.
Does this remind anyone of bureaucrats gone wild, aka, Atlas Shrugged by Ayn Rand.
Is there an election going on some where?
Vast Bailout by U.S. Proposed in Bid to Stem Financial Crisis
"The head of the Treasury and the Federal Reserve began discussions on Thursday with Congressional leaders on what could become the biggest bailout in United States history." Edmund L. Andrews, NY Times
Win McNamee/Getty Images
The Federal Reserve, with help from the Treasury Department, led by Henry Paulson, above, is taking more risk from markets.
Click on the read more icon for the full NY Times story.
read more | digg story
Who Do You Love, written by Bo Diddley
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