JP via RSS
Noah and the Ark
Who hoards more wealth, the rich man, middle class consumers, or poor people, now over a quarter of the American population and growing? Eventually there may be as many empty homes in cities and suburbs as exclusive gated resorts.
Short selling legally requires borrowing a security and paying dividends or interest to the owner, selling it, and buying it back later at a lower price.
This provides depth, liquidity and stabilizes markets. Studies of futures with trading range limits and weekly Commitment of Traders reports incorrectly suggested the uptick rule and naked shorts had no effect on securities markets. Selective enforcement created serious economic problems.
Not many people realize the Treasury Secretary did not pay taxes when he sold $480 million of Goldman stock and bought Treasury Bonds to enter public service. Did he have an incentive to lower interest rates and realize capital gains? You betcha!
http://blogs.wsj.com/law/2006/06/02/law-blog-breaking-news-the-rich-eg-hank-paulson-get-richer/
More know a former GS Chairman turned Treasury Secretary became Special Counselor and Director of Citigroup, earning $115 million as C imploded from 57 to 3, firing more than 50,000 employees, who then had less money for the economy.
Another former Treasury Secretary owns 80% of Chrysler and 51% of GMAC/Ditech, which may both receive bailouts.
125% ARM (adjustable rate mortgage) reset teasers, 64% credit card cash advances and 84 month auto loan credit defaults exploded. They imploded the automotive and real estate industries with unintended blowback, cannibalizing future sales and creating black holes in balance sheets.
Pages: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55