Myth465

LOL looks about right for me at least minus the sell at the bottom.

LOL you cant be serious after last week and this week. Asset prices only represent supply and demand......

Just watched today, will likely buy what I own and perhaps ESV and AIG....

I have been buying all last week, and am still bloody from raising that 10% cash lol. My holdings have been dropping by 15% per day for 3-4 days now. They are all irrationally priced but all went up quite a bit over the year so still may fall. People inmo are selling what they can. If a fund is down 20% in a week Joe and Jane are going to want out inmo. I think things will rally 10% in beat up stocks on paper thin volume or there will be take over offers by strong hands (I am deep in energy, and majors / wealth funds have to be sniffing around inmo). Having gone through 4 days of 15% drops I am fine with missing out on the first 10% rally...... Im tiny should be easy to get my bid filled, I think the rally will be on paper thin volume...

I feel that Parsad you and some of the other fund managers are correct. This is a huge margin and redemption call. Fund Managers and Retail investors are having to sell for various reasons. I have 10% cash and wont buy until it settles down. This inmo could go on for a few days due to a feedback loop. Berkowitz will likely be selling in the morning causing pressure on AIG, BAC, and MBIA.....

I think Bronco deserves royalties. ;D

It seems like your argument is a moving target and just shifts with the conversation.... bmichaud was right regarding Tier 1 and the original argument inmo (which isnt worth much). Now it seems like its on to a new tangent.

But what is the risk you are highlighting isnt an actual risk. Bmichaud has outlined perfectly what happens in accounting terms. Can you not admit you might have been off?

Berkowitz must be in a world of hurt..... I am sure he is the reason for the drops in MBIA and AIG. He has to sell something at this point I am guessing.

Perhaps they start with Equity because its Assets - Liabilities = Equity Thats basically shorthand for Assets - Liabilities. It seems that after that, all the junk such as intangibles are removed to come up with a hard real number. Thats what it looks like is happening below with Citi Tier 1 Common Citigroup common stockholders' equity $176,052 Less: Net unrealized losses on securities available-for-sale, net of tax (603) Less: Accumulated net losses on cash flow hedges, net of tax (2,567 ) Less: Pension liability adjustment, net of tax (4,065) Less: Cumulative effect included in fair value of financial liabilities attributable to the change in own credit worthiness, net of tax 243 Less: Disallowed deferred tax assets 35,392 Less: Intangible assets: Goodwill 26,621 Other disallowed intangible assets 5,023 Other (649 ) Total Tier 1 Common $ 115,359

This pains me to type but I slightly see where Munger is coming from. I believe Munger's point is that equity is neither an asset or liability, its basically an accounting plug when you issue stock. He is basically wondering why its included in Tier One.... Citigroup common stockholders' equity $176,052 In accounting A - L = E I know accounting but nothing about banks - which is why I dont and havent invested in them. I have looked at AIG and BAC off and on, but they always stay in the too hard pile.

It is interesting. S&P is late at the switch. I would have downgraded the US when politicians talked openly about preferring to default on the debt. There is just no room for crazy talk like that. We have earned this one. I still predict there will be blood, and it will be on S&P. If there is one entity you dont want pissed at you, its the US Government...

That's right. There's a really bad sentiment towards some of the companies in the TA25 these days (7 pct. down today). All in all, I've had much (much) more intensive days adjusting derivative positions. LOL you and me both......

Israel is also having massive protests...

Interesting Take. http://www.gurufocus.com/news/141278/the-downgrading-of-americans

OMG! I didn't realize it was that bad! :D Lol

I agree with the downgrade.... Triple A credits dont discuss willingly defaulting on their debts. Congress is off its rocker (blame the Tea Party perhaps). S&P has probably overreached and their may be blood (probably for S&P inmo), but Congress and the American public need a wake up call and this is a pretty good way to give one.

Personally I think the solutions are easy. You have outlined a few. This will require logical decision making and auctual sacrifice. The problem is easy to fix but no one wants to sacrifice - Not the rich, poor, unions, corporations, politicians, military industrial complex, or major industries. You cant solve a problem like this and leave everyone whole. Trying to take half a loath from one or two stakeholders also doesnt work. Its an easy problem to fix, it just requires good old fashion sacrifice. Why are we spending billions nation building in two tribal countries when ours is falling apart? Why are hundreds of thousands of dollars spent trying to help an 87 year old man live an extra year? Why are we spending millions locking people up for petty crimes and marijuana? Its time to give up some of these things. America has alot of fat and alot to give so its not too tough.....

This is nuts. I never really saw this happening. S&P has some major balls, I figured that the Gov would simple remove S&Ps role in rating gov paper.

Margin calls I expect. I may get killed but I have to go with my gut. Any winners over the year are being sold to pay for margin calls, and redemptions. Its why I think SD and a host of other names are selling off hard....

LOL I have thought the recovery was false for the last 8 months, but the economy didnt just fall off a cliff this week. Europe will be a basket case until its not and the politicians will be forced or scared into action as metrics and stock prices get worse and worse. This reaction (at least in my stocks lol) is overdone.

LOL Thanks I needed a good laugh.

Smart idea. You are essentially betting this will be resolved (this downturn) in 12 months. Also I have learned a painful lesson, leaps work both ways. With that said I would be doing what you are doing if I had cash...... I am rotating holdings, and improving the mix / pushing out my leaps today.

I have little ammo and will have a huge tax bill this year. Perhaps its time to start harvesting losses and upgrading the quality of my holdings. Also its nice to see those with cash going shopping. Speaks to the quality of the board, hopefully you guys arent early....

I have been looking at MERC again. Its been killed over the last few months.