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- Salesforce.com F3Q09 (Qtr End 10/31/08) Earnings Call Transcript
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- Aruba Networks F1Q09 (Qtr End 10/31/08) Earnings Call Transcript
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What's It Going to Be: Inflation or Deflation?
Buffett's Battery Buy
Buffett's Battery Buy
What Citi Gets Out of the Wachovia Deal
An Open Letter to Congress on the $700B Paulson Bailout Plan
Chewing on the FDIC List of 'Problem' Banks
Wells Fargo: The Good, the (Not Too) Bad and the Ugly
Private Equity Deals Wane
Private Equity Deals Wane
Citi's Pandit: Still Going in Circles
Economic Outlook: Cut Out the Noise
20. Washington Mutual agreed to a death spiral cash infusion of $7 billion accepting an offer at $7.85 when the stock was over $13 at the time. Washington Mutual has since fallen in waterfall fashion from $40 and is now trading near $5.00 after a huge rally.
21. Shares of Ambac (ABK) fell from $90 to $2.50. Shared of MBIA (MBI) fell from $70 to $5. Sadly, the top three rating agencies kept their rating on the pair at AAA nearly all the way down. No one can believe anything the government sponsored rating agencies say.
22. In a panic set of moves, the Fed slashed interest rates from 5.25% to 2%. This was the fastest, steepest drop on record. Ironically, the Fed chairman spoke of inflation concerns the entire drop down. Bernanke clearly cannot tell the truth. He does not have to. Actions speak louder than words.
23. FDIC Chairman Sheila Bair said the FDIC is looking for ways to shore up its depleted deposit fund, including charging higher premiums on riskier brokered deposits.
24. There is roughly $6.84-Trillion in bank deposits and $2.60-Trillion of that is uninsured. However, there is only $53-billion in FDIC insurance to cover $6.84-Trillion in bank deposits! Moreover, IndyMac will eat up roughly $8 billion of that $53-billion.
25. Of the $6.84 Trillion in bank deposits, the total cash on hand at banks is a mere $273.7 Billion. Where is the rest of the loot? The answer is in off balance sheet SIVs, imploding commercial real estate deals, Alt-A liar loans, Fannie Mae and Freddie Mac bonds, toggle bonds where debt is amazingly paid back with more debt, and all sorts of other silly (and arguably fraudulent) financial wizardry schemes that have bank and brokerage firms leveraged at 30-1 or more. Those loans cannot be paid back.
What cannot be paid back will be defaulted on. If you did not know it before, you do now. The entire US banking system is insolvent. So much money has been printed with so much more to come that we are in a hyper-inflation period. Wages will not go up much as jobs will continually be lost and loan losses increase. The USA has had its golden years unless we find cheap energy. If not, the terrorist have won, the country is bankrupt, and most don't know it or care to believe it. The dollar will lose another 40%+ within 3 years and silver & gold will become real money again in place of the fiats of the present civilized old world. Because of the cheaping $ jobs will stop being sent over seas as we become the old, new 3rd world. Congress, the Fed, investment banks and dummified citizens are to blame for short term thinking that has destroyed our founders dream and warnings. With out cheap energy we can't work out of this hole. Buy PUTS while short term $ recovery exists, and take delivery of silver bars, eagles, maple leafs, & a gun. Read the silverstockreport.com on FAQ's and butlerresearch.com and save your butt with action. Watching the slide to disaster won't be as painful. The easy life is ending. Don't be fooled by the any near term $ strength just because the euro might stop raising rates or drop a bit. It also has an active printing press. Now, hope liquified coal gets a push to solve energy shortages, the Democrats allow off shore drilling, and Obama sinks in the polls. Can someone make a chart comparing the S&P500 with gold & the $ over the last 5 & 10 years? This should show the Bear market as it really is! How do you like less stock loss write offs and more stock tax on gain just due to inflation and no real value gain ?
The US Dollar Elevator is Going Up!
P/E Ratios and Inflation
No, the Financial Crisis Is Not Over
Banking Sector: Band-Aids Just Won't Do It