LRice2

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    • Sat Oct 11th 14:07 PM | Rating: 0 0
      Commented on:
      Nine Months Later: Some Annual Predictions from the Financial Press
      Root Problem: FRE & FNM used up to 100x leverage, AIG & LEH used up to 30X leverage; and that's after the banks used up to 10X Leverage on financial debt. This has to be stopped. The root problem going back to 1912 has to be fixed.

      WWW.GrandfatherReport....

      Richard Fuld, CEO of LEH, admitted to 30x leverage contributing to the problem.

      Now I read on seekingalpha.com about FRE and FNM doing 100:01 leverage on their debt insurance.

      Most investment banks were leveraged by a ratio of 30 to 1, and they were dealing with billions of dollars instead of thousands. Government sponsored mortgage giants Freddie (FRE) and Fannie were using leverage closer to 100 to 1, because of their supposedly stricter lending standards and implicit government backing.

      seekingalpha.com/artic...

      How can "we the people" know the root cause is being "fixed" if we don't know about the root cause. Most of the news is telling us the root cause is a lack of confidence about all those mortgages being paid as agreed.

      And are we sure we understand what happens when 100:01 leverage is applied after the fractional banking reserve requirement is applied? Maybe if this subject needs a spotlight to get people's attention. Then maybe the "lack of confidence" could be better understood.

      GrandfatherReport.Us
      View article »
    • Sat Oct 11th 14:06 PM | Rating: 0 0
      Commented on:
      Nine Months Later: Some Annual Predictions from the Financial Press
      Root Problem: FRE & FNM used up to 100x leverage, AIG & LEH used up to 30X leverage; and that's after the banks used up to 10X Leverage on financial debt. This has to be stopped. The root problem going back to 1912 has to be fixed.

      WWW.GrandfatherReport....

      Richard Fuld, CEO of LEH, admitted to 30x leverage contributing to the problem.

      Now I read on seekingalpha.com about FRE and FNM doing 100:01 leverage on their debt insurance.

      Most investment banks were leveraged by a ratio of 30 to 1, and they were dealing with billions of dollars instead of thousands. Government sponsored mortgage giants Freddie (FRE) and Fannie were using leverage closer to 100 to 1, because of their supposedly stricter lending standards and implicit government backing.

      seekingalpha.com/artic...

      How can "we the people" know the root cause is being "fixed" if we don't know about the root cause. Most of the news is telling us the root cause is a lack of confidence about all those mortgages being paid as agreed.

      And are we sure we understand what happens when 100:01 leverage is applied after the fractional banking reserve requirement is applied? Maybe if this subject needs a spotlight to get people's attention. Then maybe the "lack of confidence" could be better understood.

      GrandfatherReport.Us
      View article »
    • Sat Oct 11th 14:05 PM | Rating: 0 0
      Commented on:
      Nine Months Later: Some Annual Predictions from the Financial Press
      Richard Fuld, CEO of LEH, admitted to 30x leverage contributing to the problem.

      Now I read on seekingalpha.com about FRE and FNM doing 100:01 leverage on their debt insurance.

      Most investment banks were leveraged by a ratio of 30 to 1, and they were dealing with billions of dollars instead of thousands. Government sponsored mortgage giants Freddie (FRE) and Fannie were using leverage closer to 100 to 1, because of their supposedly stricter lending standards and implicit government backing.

      seekingalpha.com/artic...

      How can "we the people" know the root cause is being "fixed" if we don't know about the root cause. Most of the news is telling us the root cause is a lack of confidence about all those mortgages being paid as agreed.

      And are we sure we understand what happens when 100:01 leverage is applied after the fractional banking reserve requirement is applied? Maybe if this subject needs a spotlight to get people's attention. Then maybe the "lack of confidence" could be better understood.

      GrandfatherReport.Us


      On Sep 17 01:17 PM kmca1989 wrote:

      > yep - i'm getting spanked - having only invested @ august 1, i've
      > still managed to catch up w/ the rest of the market's hideous downturn
      > by being overly optimistic (and overweight) concerning financials.
      View article »
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