Demonizing sources of capital has consequences. The same is true of creating a market environment that is so unpredictable and subject to the slings and arrows of populist ire that no one wants to dip a toe in. Consider the current TALF situation:
“I can do very well for my clients without venturing into federal waters which are inhabited by sharks,” said David Kotok, the chairman of Cumberland Advisors Inc. in Vineland, New Jersey, who manages about $1 billion. “We are leery of doing anything with the federal government.”
While Wall Street has been slow to take up the cautionary baton, pulling the rug out over and over again has some effect, after all.
Fed Struggling to Win TALF Investors Wary of ‘Sharks’ [Bloomberg]
We need a bigger boat …
There’s no populist ire or populist rage. Just plain ire or rage by the public.
So the government goes out and scathingly insults Wall Street (and our ilk) with their “best & brightest” comments for “bullying” Joe the Plumber into the mortgages that he couldn’t afford and then they try to “bully” us into buying into their PPIP & TALF plans… But we are doing exactly what Joe should have done with that adjustable rate mortgage… Declining.
That’s funny to me.
This is on par with jumping into a game of chinese checkers with a far-sighted man and a young, inexperienced referee who can’t decide whether he wants to play by “Connect Four” rules or “Trouble.”
Believe me, that made sense in my head.
There’s more than one shark?
That’s why stocks are higher for the fourth consecutive week, credit spreads are tighter, treasuries are weaker, and gold is down. Because those rocket scientists on Wall St. are afraid of Uncle Sam. Yeah right.
Circle jerks are bound to soil most participants
Awww… democracy sucks, doesn’t it?
Tough talk after a good couple of weeks on the markets. But I’ll bet my mortgage that if we have a double dip, Cumberland Advisors and the other whiners will come crawling back to the trough.
Who knew hedge fund managers were such delicate flowers? You would think the scheme is economic or not and they would or wouldn’t participate on that basis.
Now they want us to believe they can’t make money because they’re afraid people will get angry at them? B please. This is just working the ref.
We have angered the economy…
You can pick up good companies at 3-4x cash flow. This is truly a great time.
At these levels, you barely need leverage -and- you are buying below a conservative DCF.
Get a little more creative and you can take another half to full turn off the PP.
What do you think EP?
you are retarded if you think the government is creating this populist rage. get out of new york city and talk to some taxpayers on the streets. people are fucking pissed, plain and simple.
Obama started the populist rage which was further fueled by the likes of Barney fag et al. hedge funds and other asset managers are right to be afraid of the government- does anyone with an iq over 100 think that if these distressed assets result in huge wins for the investors that the government will try to impose some after the fact confiscation scheme like they did with Tarp? You only need to watch congressional testimony once to see how fucking stupid our congressmen are..
that skinny muslim sure can dance