Hey everyone
Recently there has been an idea and execution of getting a debit card for your 401K plan. Stay away from that! It is simply another way for the banks to get at your hard earned dollars through fees, fines, and penalties. There is a plethora of articles on the subject with this one from genxfinance as an example.
Speaking of the banks, it has been noted here before how they have been saved by the federal government. I read in the Wall Street Journal today how Citi might be letting go of over 25,000 employees! Can you imagine what the damage might be had the feds not covered their butts?
PBW is trading at the low end of the range.
Showing posts with label Federal Reserve. Show all posts
Showing posts with label Federal Reserve. Show all posts
Tuesday, March 4, 2008
Thursday, February 14, 2008
PBW's situation
Hey
PBW is continuing its way up. The 22-24 call spread moving forward. A recent article in Seeking Alpha mentions PBW.
Look to start buying the banks. The rebates are headed their way. The Fed chief just mentioned possible rate cuts again.
PBW is continuing its way up. The 22-24 call spread moving forward. A recent article in Seeking Alpha mentions PBW.
Look to start buying the banks. The rebates are headed their way. The Fed chief just mentioned possible rate cuts again.
Monday, January 28, 2008
Alliance of Banks and Government
Hey everyone
The recent government actions have shown why the banks have a stranglehold on government. I feel that the recent infusion of capital, the allowance of foreign governments to purchase large interests into our banks, and the rebate bill currently proposed will benefit nobody more than the credit card companies and banks. The idea that this money will get to consumers and will get into the economy is wrong because the banks will not release the money either because they are using the money to cover their own losses or they have tightened their credit limits.
When the fed dropped over forty billion into the system and initially dropped rates, they said it was for making the consumer be better able to handle the growing housing and credit issues. In reality, what they did was make it easier for the banks to cover their own losses in the housing and credit issues! Do you really think the CEO's of Citi and Merrill Lynch would get their golden shoots if it were not for the US government? There is a trader in France who is up against charges for losing 7 billion. I know for sure the heads of Citi and Merrill knowingly supervised losses that dwarf 7 billion dollars and still received their retirement! In the meantime, the banks are tightening their lending standards so that they don't make the same mistakes. By doing that, the money train stops at bank station. So the percentage of the billions of dollars that the Federal Reserve released into the banking system actually getting to the consumer is very small.
Speaking of not servicing the American consumer, I would like to bring Congress into the discussion. I am not a little surprised with the fact that the Congress did almost nothing to confront the fact that the banks have sold large portions of themselves to other countries government run financial organizations. The same government that wanted to handle the ports and had to back out has now purchased a large portion of Citibank. There is an article in the Washington Times that quotes Senator Chuck Schumer as saying "this deal will keep New York as a financial center." Now I know they were not given voting rights. But really, do you think they need voting rights to get what they want? They have the oil we need. I don't think they were too concerned with voting rights. With this deal, it is my opinion that the financial center has moved a little closer to asia, not stayed in New York, like Senator Schumer has suggested. Senator Schumer might want to find out how the Morgan family and other bankers were able to wrestle the financial capital away from London and bring it to New York. He and the rest of the Congress might want to find out how those hefty dividends will be used.
The rebate deal passed by the House that is going to give taxpayers like myself a few hundred dollars is almost certainly going to be going to put into credit card bills or house payments. That is all well and good, but the only benefiters of this in the short run are the banks and the credit card companies. I am all for paying those credit cards off. I will be doing the same with my check. I mean people would be stupid to go to Best Buy or Macy's with that money if they have existing debt to pay off.
The fact that the Fed had to drop rates drastically and infuse cash has been a one two punch on the dollar. The value of our currency is in such bad shape, the Canadian dollar is worth more! American manufacturers have seen a bounce because of the low dollar. That is good. But overall, I think there is a long term prospect of having too much money into the system.
So let see. The fed saves the banks by issuing more cash. Foreign government run financial organizations are allowed to buy into our banks, and the rebates will be put towards banks and credit cards. I've heard the tale of the oil companies running this government, but the banks need to be included into the conversation.
Now, with that all said, I do believe that the recent half point rate cut will finally start to put money into the consumers hands. But the simple fact is that it took over 40 billion in cash, two percentage points on fed rates, and a rebate completely designed for the banks to get over the mistakes of the banking industry. I also feel that the banks would probably make a good investment as we now know there business is insured by the US Government.
The recent government actions have shown why the banks have a stranglehold on government. I feel that the recent infusion of capital, the allowance of foreign governments to purchase large interests into our banks, and the rebate bill currently proposed will benefit nobody more than the credit card companies and banks. The idea that this money will get to consumers and will get into the economy is wrong because the banks will not release the money either because they are using the money to cover their own losses or they have tightened their credit limits.
When the fed dropped over forty billion into the system and initially dropped rates, they said it was for making the consumer be better able to handle the growing housing and credit issues. In reality, what they did was make it easier for the banks to cover their own losses in the housing and credit issues! Do you really think the CEO's of Citi and Merrill Lynch would get their golden shoots if it were not for the US government? There is a trader in France who is up against charges for losing 7 billion. I know for sure the heads of Citi and Merrill knowingly supervised losses that dwarf 7 billion dollars and still received their retirement! In the meantime, the banks are tightening their lending standards so that they don't make the same mistakes. By doing that, the money train stops at bank station. So the percentage of the billions of dollars that the Federal Reserve released into the banking system actually getting to the consumer is very small.
Speaking of not servicing the American consumer, I would like to bring Congress into the discussion. I am not a little surprised with the fact that the Congress did almost nothing to confront the fact that the banks have sold large portions of themselves to other countries government run financial organizations. The same government that wanted to handle the ports and had to back out has now purchased a large portion of Citibank. There is an article in the Washington Times that quotes Senator Chuck Schumer as saying "this deal will keep New York as a financial center." Now I know they were not given voting rights. But really, do you think they need voting rights to get what they want? They have the oil we need. I don't think they were too concerned with voting rights. With this deal, it is my opinion that the financial center has moved a little closer to asia, not stayed in New York, like Senator Schumer has suggested. Senator Schumer might want to find out how the Morgan family and other bankers were able to wrestle the financial capital away from London and bring it to New York. He and the rest of the Congress might want to find out how those hefty dividends will be used.
The rebate deal passed by the House that is going to give taxpayers like myself a few hundred dollars is almost certainly going to be going to put into credit card bills or house payments. That is all well and good, but the only benefiters of this in the short run are the banks and the credit card companies. I am all for paying those credit cards off. I will be doing the same with my check. I mean people would be stupid to go to Best Buy or Macy's with that money if they have existing debt to pay off.
The fact that the Fed had to drop rates drastically and infuse cash has been a one two punch on the dollar. The value of our currency is in such bad shape, the Canadian dollar is worth more! American manufacturers have seen a bounce because of the low dollar. That is good. But overall, I think there is a long term prospect of having too much money into the system.
So let see. The fed saves the banks by issuing more cash. Foreign government run financial organizations are allowed to buy into our banks, and the rebates will be put towards banks and credit cards. I've heard the tale of the oil companies running this government, but the banks need to be included into the conversation.
Now, with that all said, I do believe that the recent half point rate cut will finally start to put money into the consumers hands. But the simple fact is that it took over 40 billion in cash, two percentage points on fed rates, and a rebate completely designed for the banks to get over the mistakes of the banking industry. I also feel that the banks would probably make a good investment as we now know there business is insured by the US Government.
Monday, October 29, 2007
trouble brewing ahead
I have been keeping up with recent news and feel out of whack with what is going on in the economy. I see the stock market is moving up but don't feel confident in why the market is up while the economy slows. I have a few reasons
1) The fed is trying to cover up the foreclosure disaster by lowering interest rates. In the meantime, commodity prices are flying through the roof and the dollar is getting its butt kicked like its an opponent of the New England Patriots. Ultimately, this action will create longer lasting economic problems for the US. I don't see a problem with the rise in foreclosures. People who bought houses without even reading what the adjusted interest rate would be were stupid and deserve some short term pain. Let them go back to renting.
2) The price of oil is skyrocketing. And there is no end in sight. The instability in the middle east is growing. Iraq cannot govern itself, Iran continues on its nuclear mission, and Turkey has joined in the mess with their squabbling with the Kurds. I feel that this is just the tip of the iceberg as Russia and China will become more involved. A barrell of oil currently costs over 90 dollars a barrell. The silver lining in this issue is that research and development into other sources of energy have also skyrocketed.
3) A larger percentage of the GDP is covering health care costs. To be fair, more Americans are living longer. But that is inconsequential to other issues like prescription drug legislation or the profiteering of HMO's and insurance companies on the health of Americans. Unless we find a way to curb these costs, they will impact our work productivity in the long term.
1) The fed is trying to cover up the foreclosure disaster by lowering interest rates. In the meantime, commodity prices are flying through the roof and the dollar is getting its butt kicked like its an opponent of the New England Patriots. Ultimately, this action will create longer lasting economic problems for the US. I don't see a problem with the rise in foreclosures. People who bought houses without even reading what the adjusted interest rate would be were stupid and deserve some short term pain. Let them go back to renting.
2) The price of oil is skyrocketing. And there is no end in sight. The instability in the middle east is growing. Iraq cannot govern itself, Iran continues on its nuclear mission, and Turkey has joined in the mess with their squabbling with the Kurds. I feel that this is just the tip of the iceberg as Russia and China will become more involved. A barrell of oil currently costs over 90 dollars a barrell. The silver lining in this issue is that research and development into other sources of energy have also skyrocketed.
3) A larger percentage of the GDP is covering health care costs. To be fair, more Americans are living longer. But that is inconsequential to other issues like prescription drug legislation or the profiteering of HMO's and insurance companies on the health of Americans. Unless we find a way to curb these costs, they will impact our work productivity in the long term.
Subscribe to:
Posts (Atom)
