Posts Tagged ‘Debt forgiveness’

The Implications Of The Stuytown Default

The Implications Of The Stuytown Default

Courtesy of Tom Lindmark at But Then What

Stuytown

In many respects, the non-news of the day  was the decision by Tishman Speyer Properties to hand back to the lenders its Peter Cooper Village and Stuyvesant Town apartment complex. This particular train wreck has been a foregone conclusion for the better part of a year. Yet, it generated considerable attention in the blogosphere.

Why did it get so much play? Well the short answer is that it raises the question of why shouldn’t the average American avail themselves of the same remedy that Tishman and other big real estate players are opting for. Most pundits seem to think that they should do precisely the same thing if they think it’s in their best interest. I find it hard to disagree.

We may well look back at 2010 as the year in which American society underwent a sea change in how it views its obligations to repay borrowed money. You see, there isn’t really any reason that this should be confined to mortgage debt. It’s not beyond reason or imagination to suppose that millions burdened by credit card debt will opt for the same solution. Ditto for students with crushing debt taken out to finance an education that isn’t producing any job or income to service the debt. There’s no reason to believe that with the stigma of being classified as a dead beat removed that default won’t become the new financial rage. Just as Americans clued each other in on the ins and outs of gaming mortgages during the boom so too are they likely to pass on the dirty little secret that you can walk from your debts with no consequences.

One of the best quotes I read today on the subject came from the Curious Capitalist:

But the larger take away from Tishman Speyer’s spectacular news is that it is just the latest entry in an expanding log of debt forgiveness that is transforming America’s economy. Whether it is residential homeowners walking away from mortgages they can no longer afford or want, or a super-sized borrowers kissing their assets goodbye, debt written off


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Obama Selling Military Secrets To China For Debt Forgiveness?

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Obama Selling Military Secrets To China For Debt Forgiveness?

Courtesy of Zero Hedge
 
Ran across this article posted in Jumping In Pools. Not sure how credible it is, but allegedly Barack Obama will provide the blueprints for the B-2 stealth bomber to China in exchange for $50 billion in debt relief. According to author Richard Hogarty:

According to the Administration, this proposal will help the United States resolve its debt issues. They point out their belief that the B-2 bomber is "strategically obsolete", according to a source in the White House Press Office. In addition, the source claims that the Chinese would be unable to create their own functioning stealth bomber fleet for "at least eight years."

American allies Taiwan, Japan, and South Korea are very wary of the proposal. Koo Syi, a geopolitical analyst from South Korea, points out that this technology could be passed to China’s allies. This was the case when Chinese nuclear technology was transferred to Pakistan and North Korea. According to Koo, Obama has rendered US allies’ opinions as "irrelevant."

While this proposal is controversial, it is not being presented to Congress, where it could meet with stern opposition. Instead, the State Department has been informed to assisted the Defense Department with the transfer of materials.

A little skeptical here as frankly $50 billion is less than a drop in the bucket of Chinese Treasury holdings which are easily well over $1 trillion. The economic impact of this transaction would be negligible to zero. On the other hand, if this ends up being true, it is quite frightening, as it merely demonstrates, aside from all the scary geo-political considerations, just how bad of a dealmaker our President is.

In other China-related news, Reuters reporting that Tim Geithner’s soothing words from his Beijing whirlwind tour that "Chinese assets are very safe," drew loud laughter from the audience.

"Chinese assets are very safe," Geithner said in response to a question after a speech at Peking University, where he studied Chinese as a student in the 1980s.

His answer drew loud laughter from his student audience, reflecting scepticism in China about the wisdom of a developing country


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Zero Hedge

Leaked Docs Reveal TTIP Trade Deal In Jeopardy As "Irreconcilable Differences" Emerge

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Several weeks ago we learned that not all is well in the ongoing negotiations to impose Obama's landmark Transatlantic Free Trade Agreement, also known as the TTIP, when unexpectedly Europe threatened to impose visas on Americans and Canadians.

As we commented at the time, this latest tension may have been driven "by the fact that the United States hasn’t yet lifted visa requirements for so...



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Phil's Favorites

John Oliver: Puerto Rico Deserves Relief

 

John Oliver: Puerto Rico Deserves Relief

Courtesy of Joshua Brown, The Reformed Broker

You may not agree with this stance, but it’s a really good explanation for how Puerto Rico got into the mess it’s in.

There are headlines crossing wire tonight that the government will not be making a bond payment tomorrow. PR is calling out to the US to make a deal for relief – not necessarily a bailout but the buying of time for a restructuring.

John Oliver explained why the current situation can be blamed mostly on the Puerto R...



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All About Trends

Mid-Day Update

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To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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ValueWalk

Berkshire Hathaway 2016 Meeting - Resources And Highlights

By Jacob Wolinsky. Originally published at ValueWalk.

We are going to have a TON of coverage on the annual meeting but in the meantime I wanted to put some of the best material and coverage I have seen on the meeting – I hope I do a decent job

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Get the entire 10-part series on Warren Buffett in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues.

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Market News

News You Can Use From Phil's Stock World

 

Financial Markets and Economy

Buffett Says Bonds Unattractive, If Not Terrible for Reinsurers (Bloomberg)

Warren Buffett, who built Berkshire Hathaway Inc. by reinvesting premiums from insurance units, said low bond yields have hurt the prospects of that strategy.

A Leak Wounded This Company. Fighting the Feds Finished It Off (Bloomberg)

The first phone call that changed Michael Daugherty’s life came in May 2008. Daugherty was a happy man, running a good business in a nice place. That’s how he talks about it, like the opening five minutes of a movie, setting up how...



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Chart School

First Majastic Silver Wyckoff Friendly

Courtesy of Read the Ticker.

Sometimes is just works! Wyckoff logic is excellent when all the evidence supports your view.

The traditional Wyckoff logic traders will see the Wyckoff accumulation in this stock. Notice the NetVolume divergence with price, very telling. Point and Figure chart showing off an excellent 'CAUSE', that exploded into a fantastic 'EFFECT'. Some times winning is just too easy!


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PnF Chart, love the 'CAUSE' that was the base for the 'EFFECT'

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NOTE: readthe...

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Kimble Charting Solutions

Nasdaq 100- Potentially Very Dangerous Pattern!

Courtesy of Chris Kimble.

CLICK ON CHART TO ENLARGE

This chart looks at the Nasdaq 100 index over the past 10-years.

A potential “Head & Shoulders” (H&S) topping pattern could be in play, highlighted in red.

Even if this is NOT an H&S topping pattern, the following situation has me watching Tech very closely; the index broke 5-year rising support line (A) last fall and the rally over the past couple of months has it kissing the underside of lines (A) and (B) at (1).

The NDX “Kissed” the underside of dual resistance of late and has turn...



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Biotech

PRGO, VRX and an Overpriced Papa

Reminder: Pharmboy and Ilene are available to chat with Members, comments are found below each post.

By Ilene 

Remember this? It was Monday. PRGO is down from around $130 to under $100 since I started following it LAST WEEK. That's down almost 25% in a week, and almost 50% in the last year. So I wrote, 

"Perrigo CEO Joseph Papa leaves Perrigo (PRGO) to lead Valeant (VRX) while PRGO issues a warning about missing earnings expectations. Not surprisingly, PRGO stock plummeted today. 

Robert Ingram, Chairman of the [Valeant] Board, stated, "The Board has conducted a thorough search process and believes that Joe is the ideal leader for Valeant at this time. He has a strong shareholder orientation,...



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OpTrader

Swing trading portfolio - week of April 25th, 2016

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Digital Currencies

Is Bitcoin About To Soar?

Courtesy of ZeroHedge. View original post here.

Back on September 2, 2015 when bitcoin was trading at $230, we laid out the simplest and most fundamental reason why, irrelevant of one's ideological persuasion with "alternative" or digital currency - bitcoin would soar.

it was earlier this summer when the digital currency, which can bypass capital controls and national borders with the click of a button, surged on Grexit concerns and fears a Drachma return would crush the savings of an entire nation. Since then, BTC has dropped (in no small part as a result of the ...



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Mapping The Market

About that debate last night

Although we try to stay focused on finding and managing promising trade ideas, the comments in the comment section sometimes take a political turn (for access, try PSW — click here!). So today, Jean Luc writes,

The GOP debate last night was just unreal – are these people running to be president of the US or to lead a college fraternity! Comparing tool size? The only guy that looks semi-sane is Kasich. The other guys are just like 3 jackals right now. 

And something else – if Trump is the candidate, that little Romney speech yesterday is probably already being made into a commercial. And all these little snippets from the debate will also make some nice ads! If you are a conservative, you have to be scared now. 

Phil writes back,

I was expecting them to start throwing poop at each other &n...



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Help One Of Our Own PSW Members

"Hello PSW Members –

This is a non-trading topic, but I wanted to post it during trading hours so as many eyes can see it as possible.  Feel free to contact me directly at jennifersurovy@yahoo.com with any questions.

Last fall there was some discussion on the PSW board regarding setting up a YouCaring donation page for a PSW member, Shadowfax. Since then, we have been looking into ways to help get him additional medical services and to pay down his medical debts.  After following those leads, we are ready to move ahead with the YouCaring site. (Link is posted below.)  Any help you can give will be greatly appreciated; not only to help aid in his medical bill debt, but to also show what a great community this group is.

http://www.youcaring.com/medical-fundraiser/help-get-shadowfax-out-from-the-darkness-of-medical-bills-/126743

Thank you for you time!




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