Archive for August, 2013

Fannie, Freddie, EPA And Big Money

If you think reform of the mortgage system which includes ridding the world of Fannie and Freddie  is likely you might want to consider this. Fannie Mae said it will make a $10.2 billion dividend payment in September to the U.S. Treasury for its rescue aid. After that payment, which comes on the heels of [...]

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Does Option Theory Validate The Richmond Eminent Domain Plan

Matt Levine has an interesting take on the Richmond, California eminent domain spat. He uses the conventional model which is floating around of a $300,000 mortgage on a house worth $200,000 and asks the question, “What’s the mortgage worth.” If it’s $300,000 as the mortgage owners contend then assuming they can take it via eminent [...]

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Reversing Fields On The Sun

This worries me. Solar physicist Phil Scherrer, also at Stanford, describes what happens: “The sun’s polar magnetic fields weaken, go to zero, and then emerge again with the opposite polarity. This is a regular part of the solar cycle.” A reversal of the sun’s magnetic field is, literally, a big event. The domain of the [...]

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Another Myth About ObamaCare’s Vulnerabilities Dispelled

I made a soft promise to myself a few days ago not to write anymore about ObamaCare. After all October 1, or O-Day, is right around the corner and just about everything that could be speculated about has been, ad infinitum. Time to wait and see how it all unfolds. I am now going to [...]

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Some Recession Talk

Could this guy be right? 1.Inventories — unsold goods — contributed 0.41 percentage points. Final sales rose by just 1.29%. The inventory accumulation will be a drag on future growth. 2. Q1 ’13 growth was revised down from 1.8% to 1.1% (with final sales just 0.17% — virtually flat). The lower Q1 ’13 base (1.8 [...]

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Randoms From The Past Week

Herewith a few things this week which made me scratch my head or just sigh. Car Dealerships Tesla has famously attempted to end run the traditional automobile sales channel by selling its cars directly to the public via the Internet and local showrooms as opposed to utilizing car dealerships. Given Tesla’s current pop culture status [...]

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SEC Nails Tourre

So the Feds got their man. Fabrice Tourre was convicted of misleading some of the most sophisticated investors in the world. He’s not the kind of guy who generates a lot of sympathy but it does seem a bit sad he’s taking the fall. I think this passage from Dealbreaker sums up the whole affair [...]

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