Shades, I was issuing warnings too - see the Mindless Zombie stream.
The cause of the problem wasn't derivatives and the lack of regulation as the mispricing of houses and mortgages. Rumour has it that the government was instrumental in that failure by insisting on sub-prime loans to get people to own houses whether they were in a financial position to do so or not.
<The program concluded with Born sounding another warning: "I think we will have continuing danger from these markets and that we will have repeats of the financial crisis -- may differ in details but there will be significant financial downturns and disasters attributed to this regulatory gap, over and over, until we learn from experience."[9]>
Good, that means more volatility and more profits. I have got a short on J P Morgan. I've been making money on PHR Prudential preferred shares which are paying very Happy Meal dividends. Qualcomm's technology is selling like hot cakes and dividends are rolling in. The QCOM share price doesn't matter though it's always fun to see it higher than lower.
Anyone who wanted to had warnings from Warren Buffett and me, among others. If they didn't think Warren was high enough in stature, they could have read my warnings, cut their borrowings and had no debts. Being debt free, with no OTC counter parties to worry about, they would have been fine, provided their job wasn't a feather-bedded party-time occupation dependent on people throwing around ill-gotten gains or borrowed money.
The legions of government spivs and bludgers are going to have to get real jobs more suited to their talents now that the tax base has dwindled.
<
Dec. 24 (Bloomberg) -- California Governor Arnold Schwarzenegger, anticipating a $21 billion budget deficit, plans to ask President Barack Obama to ease mandates and minimums on social programs to save as much as $8 billion.
The Republican governor plans to seek the relief, according to a California official who asked not to be identified because details haven’t been resolved. Instead of seeking one-time stimulus money or a bailout, the most-populous state wants the U.S. to reduce mandates and waive rules stipulating expenditures on programs such as indigent health care, the official said. >
Upcoming harsh lesson about Virtuous Victorian Values and biblical verities.
Mqurice |
