More Smelly Emissions From Omaha [Ticker]

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More Smelly Emissions From Omaha in forum [Ticker]

Genesis
Posts: 71432
Incept: 2007-06-26

KD^2

http://market-ticker.org/archives/1348-M....

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"The monetary base in ALL modern monetary systems is the sum of unencumbered assets against which one is both WILLING AND ABLE to borrow." - Me

2009-08-19 10:36:42
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Etz3l
Posts: 9103
Incept: 2007-06-26

Buffett is no stranger to fraud,

Quote:

NEW YORK, Aug 18 (Reuters) - Wells Fargo & Co (WFC.N) has agreed to pay $45 million to settle lawsuits related to work performed for a tax deferral firm whose clients were swindled out of $126 million by now-imprisoned Edward Okun.
...
http://www.reuters.com/article/marketsNe....

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Treating the symptoms of financial corruption isn’t the same as removing the causes.

2009-08-19 10:41:40
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Wawawa
Posts: 104
Incept: 2009-03-18
San Diego, CA

Question:

Some people suggest that the solution to problems in the banking system is to convert debt to equity.

What does "debt conversion to equity" mean? Please explain in simple language, Thanks.

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RAT RACE IS OVER, RATS WON :)

Last modified: 2009-08-19 10:48:24 by wawawa

2009-08-19 10:46:49
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Otiswild
Posts: 1341
Incept: 2009-03-09

Teegeeack

Quote:

What does "debt conversion to equity" mean? Please explain in simple language, Thanks.

Debts become shares in the issuer. Does wonderful things to companies whose outstanding bonds exceed their market cap!

Particularly if the conversion rate is ball-twistingly in favor of the debtors..

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It appears that the yard wolves has grown up. Are we finally finished with the colds dead winters?

2009-08-19 11:00:19
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Genesis
Posts: 71432
Incept: 2007-06-26

KD^2

Wawa: What was said under your request. It essentially wipes out the existing equity (stockholders) and makes the bondholders stockholders.

It is not a panacea but does help. You still have to flush out the bad debt.

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"The monetary base in ALL modern monetary systems is the sum of unencumbered assets against which one is both WILLING AND ABLE to borrow." - Me

2009-08-19 11:03:02
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Cash-out
Posts: 2343
Incept: 2007-10-23

Live Free or Die - NH

You said "Moneyness", I think you should ask Stephen Colbert if you can use his trademarked Language?

I'll send him the Ticker, see if he has an opinion on this ;-))

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More prepared than ready.

2009-08-19 11:07:03
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Wawawa
Posts: 104
Incept: 2009-03-18
San Diego, CA

Genesis

"It essentially wipes out the existing equity (stockholders) and makes the bondholders stockholders."

How eliminating existing stockholders enhances bank's balance sheet?
How eliminating existing stockholders eliminates debt from balance sheet?

I guess I do not undrestand concept of equity.

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RAT RACE IS OVER, RATS WON :)

2009-08-19 11:25:23
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Jstanley01
Posts: 2573
Incept: 2008-07-30

San Antonio, Texas
Online

So we may not have until 2015? ****... I mean shoot... (my wife says I've been cussing too much lately)...

Diminishing Returns

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...so in short, my fellow Texans, we must secede. "For the children..." --Me

2009-08-19 11:28:16
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Genesis
Posts: 71432
Incept: 2007-06-26

KD^2

Wawa, converting the bondholders removes the bond debt from the balance sheet as equity is not debt (it has no "call" on repayment of principal as does a bondholder.)

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"The monetary base in ALL modern monetary systems is the sum of unencumbered assets against which one is both WILLING AND ABLE to borrow." - Me

2009-08-19 11:28:40
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Wawawa
Posts: 104
Incept: 2009-03-18
San Diego, CA

Ok, I get it. Thanks a lot.

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RAT RACE IS OVER, RATS WON :)

2009-08-19 11:38:19
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Perfectstorm
Posts: 188
Incept: 2008-02-25

florida

I'd like to see Buffet use his own money to pay people to buy his products and pay his business partners to fail and see how long he remains a billionaire. What makes the ahole think it is good for the rest of us to own that plan.

2009-08-19 11:39:04
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Jstanley01
Posts: 2573
Incept: 2008-07-30

San Antonio, Texas
Online

Perfectstorm: It's his "inner pigman"...

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...so in short, my fellow Texans, we must secede. "For the children..." --Me

2009-08-19 11:42:52
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Tesla
Posts: 8179
Incept: 2008-04-03

Delaware

One of my favorite lines -

Really, Warren has been outed to be just another crony capitalist.

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"Neither the wisest Constitution nor the wisest laws will secure the liberty and happiness of a people whose manners are universally corrupt." Samuel Adams

I'd rather die on my feet than live on my knees. - Emiliano Zapata

2009-08-19 15:16:00
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Clock
Posts: 863
Incept: 2007-09-18
Green Shoots My Ass.

Quote:

http://market-ticker.denninger.net/
...The "gusher of federal money" has rescued the financial system and the U.S. economy is now on a slow path to recovery, Buffett wrote in a New York Times commentary yesterday. While he applauds measures adopted by the Federal Reserve and officials from the Bush and Obama administrations, Buffett says the U.S. is fiscally in "uncharted territory."...

Gotta hand it to ol' Warren, he's always concerned about what's best for America. (sarcasm)

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...lots of money still on the sidelines ~ CNBC mantra ~

Last modified: 2009-08-19 16:55:08 by clock

2009-08-19 16:54:25
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Ptoemmes
Posts: 79
Incept: 2009-04-13

This ought to REALLY **** you (us) off...

http://www.zerohedge.com/article/obama-r....

"
Archive this one for the funny pages. It has been leaked by administration officials (and sponged up by Bloomberg), that on August 25, when the CBO releases its updated budget estimate, the 2009 deficit is expected to decline from $1.825 trillion to $1.58 trillion. And, get this, one of the reasons for the reduction is the FDIC spending $78 billion less, presumably due to "fewer bank failures than the administration anticipated." Pardon us, but last time we checked, not only did the FDIC have no cash left in the FDIC, and was effectively in a debtor position vis-a-vis the administration, but of the top 4 banks pending for blow up, Colonial was under (granted with some arbitrarily optimistic loss expectations), Guaranty was about to be hawked over to a few siesta loving left midfielders, and Corus was about to... well, we are not quite sure what the hell Corus is doing these days.
"

2009-08-19 18:53:48
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Ptoemmes
Posts: 79
Incept: 2009-04-13

Sorry for the double tap...speaking of smelly emissions...

http://www.cnbc.com/id/32483198

"
Seeing a trend here? While the media can’t seem to admit it, the US economy and markets are enjoying a number of positives right now, not the least of which is growing strength in retail. So anyone who believed these stories missed some great moneymaking opportunities.

“You have to be skeptical when it comes to the press,” Cramer said.
"

Uhh - ****head- you ARE (part of) the press.

Pete

2009-08-19 19:27:33
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Adonaiinfidel
Posts: 69
Incept: 2009-02-18
Fort Worth

I mentioned it before but here's a link to prove it.

http://money.cnn.com/video/markets/2009/....

Warren is either exchanging bodily fluids with {at least}Ben,complicit,or both.
Somehow,Somewhere, Barney is waiting for his turn.

2009-08-19 22:57:24
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