[carlsbadworker]

I think it is unfair to criticize the fractional reserve system. The banking industry has turned into a commodity business and it is tough to make money in such kind of industry. As HLS points out recently, “I don’t know of any other business that sells something for $400,000 and only makes $1080 gross”. Without fractional reserve system, the banks will all die because they really have no profit margin at all.
I don’t think there is a solution to that. Risk takers in the banking industry will always get awarded for the short term. The government can regulate the hell out of it but there will always be loopholes.
The same will gradually apply to all businesses that turns into commodity business. They make up their margin by quantity… which is essentially excessive inventory that will kill them in times of economy trouble. The only way is for business and the country to innovate itself out of the poor industries (and let the Asian countries deal with it), but American has become too stupid and lazy to make steady innovations.

[carlsbadworker]

I think it is unfair to criticize the fractional reserve system. The banking industry has turned into a commodity business and it is tough to make money in such kind of industry. As HLS points out recently, “I don’t know of any other business that sells something for $400,000 and only makes $1080 gross”. Without fractional reserve system, the banks will all die because they really have no profit margin at all.
I don’t think there is a solution to that. Risk takers in the banking industry will always get awarded for the short term. The government can regulate the hell out of it but there will always be loopholes.
The same will gradually apply to all businesses that turns into commodity business. They make up their margin by quantity… which is essentially excessive inventory that will kill them in times of economy trouble. The only way is for business and the country to innovate itself out of the poor industries (and let the Asian countries deal with it), but American has become too stupid and lazy to make steady innovations.

[carlsbadworker]

I think it is unfair to criticize the fractional reserve system. The banking industry has turned into a commodity business and it is tough to make money in such kind of industry. As HLS points out recently, “I don’t know of any other business that sells something for $400,000 and only makes $1080 gross”. Without fractional reserve system, the banks will all die because they really have no profit margin at all.
I don’t think there is a solution to that. Risk takers in the banking industry will always get awarded for the short term. The government can regulate the hell out of it but there will always be loopholes.
The same will gradually apply to all businesses that turns into commodity business. They make up their margin by quantity… which is essentially excessive inventory that will kill them in times of economy trouble. The only way is for business and the country to innovate itself out of the poor industries (and let the Asian countries deal with it), but American has become too stupid and lazy to make steady innovations.

[carlsbadworker]

I think it is unfair to criticize the fractional reserve system. The banking industry has turned into a commodity business and it is tough to make money in such kind of industry. As HLS points out recently, “I don’t know of any other business that sells something for $400,000 and only makes $1080 gross”. Without fractional reserve system, the banks will all die because they really have no profit margin at all.
I don’t think there is a solution to that. Risk takers in the banking industry will always get awarded for the short term. The government can regulate the hell out of it but there will always be loopholes.
The same will gradually apply to all businesses that turns into commodity business. They make up their margin by quantity… which is essentially excessive inventory that will kill them in times of economy trouble. The only way is for business and the country to innovate itself out of the poor industries (and let the Asian countries deal with it), but American has become too stupid and lazy to make steady innovations.

[carlsbadworker]

I think it is unfair to criticize the fractional reserve system. The banking industry has turned into a commodity business and it is tough to make money in such kind of industry. As HLS points out recently, “I don’t know of any other business that sells something for $400,000 and only makes $1080 gross”. Without fractional reserve system, the banks will all die because they really have no profit margin at all.
I don’t think there is a solution to that. Risk takers in the banking industry will always get awarded for the short term. The government can regulate the hell out of it but there will always be loopholes.
The same will gradually apply to all businesses that turns into commodity business. They make up their margin by quantity… which is essentially excessive inventory that will kill them in times of economy trouble. The only way is for business and the country to innovate itself out of the poor industries (and let the Asian countries deal with it), but American has become too stupid and lazy to make steady innovations.

[carlsbadworker]

Dec 23 (Reuters) – John Meriwether’s JWM Partners LLC hedge fund will lose four of its seven active partners and cut 10 of 35 staff after the weak performance of its flagship fund this year, the Wall Street Journal reported.

The Greenwich, Connecticut firm expects to lose four partners next year, including Lawrence Hilibrand and John Tsai, the paper said, citing a letter sent to investors on December 17.

According to the paper, the letter said Arjun Krishnamachar is expected to leave by March 31 and Chief Financial Officer Andrew Geisert after March 31.

JWM’s flagship fund, the Relative Value Opportunity Portfolio, fell 42.78 percent in the first 11 months of this year, the paper said.

Meriwether’s previous hedge fund, Long-Term Capital Management, had to accept a $3.6 billion bailout by U.S. banks in 1998 after it ran aground with leveraged trading strategies.

JWM could not immediately be reached for comment. (Reporting by Eric Yep in Bangalore; editing by John Stonestreet)

[carlsbadworker]

Dec 23 (Reuters) – John Meriwether’s JWM Partners LLC hedge fund will lose four of its seven active partners and cut 10 of 35 staff after the weak performance of its flagship fund this year, the Wall Street Journal reported.

The Greenwich, Connecticut firm expects to lose four partners next year, including Lawrence Hilibrand and John Tsai, the paper said, citing a letter sent to investors on December 17.

According to the paper, the letter said Arjun Krishnamachar is expected to leave by March 31 and Chief Financial Officer Andrew Geisert after March 31.

JWM’s flagship fund, the Relative Value Opportunity Portfolio, fell 42.78 percent in the first 11 months of this year, the paper said.

Meriwether’s previous hedge fund, Long-Term Capital Management, had to accept a $3.6 billion bailout by U.S. banks in 1998 after it ran aground with leveraged trading strategies.

JWM could not immediately be reached for comment. (Reporting by Eric Yep in Bangalore; editing by John Stonestreet)

[carlsbadworker]

Dec 23 (Reuters) – John Meriwether’s JWM Partners LLC hedge fund will lose four of its seven active partners and cut 10 of 35 staff after the weak performance of its flagship fund this year, the Wall Street Journal reported.

The Greenwich, Connecticut firm expects to lose four partners next year, including Lawrence Hilibrand and John Tsai, the paper said, citing a letter sent to investors on December 17.

According to the paper, the letter said Arjun Krishnamachar is expected to leave by March 31 and Chief Financial Officer Andrew Geisert after March 31.

JWM’s flagship fund, the Relative Value Opportunity Portfolio, fell 42.78 percent in the first 11 months of this year, the paper said.

Meriwether’s previous hedge fund, Long-Term Capital Management, had to accept a $3.6 billion bailout by U.S. banks in 1998 after it ran aground with leveraged trading strategies.

JWM could not immediately be reached for comment. (Reporting by Eric Yep in Bangalore; editing by John Stonestreet)

[carlsbadworker]

Dec 23 (Reuters) – John Meriwether’s JWM Partners LLC hedge fund will lose four of its seven active partners and cut 10 of 35 staff after the weak performance of its flagship fund this year, the Wall Street Journal reported.

The Greenwich, Connecticut firm expects to lose four partners next year, including Lawrence Hilibrand and John Tsai, the paper said, citing a letter sent to investors on December 17.

According to the paper, the letter said Arjun Krishnamachar is expected to leave by March 31 and Chief Financial Officer Andrew Geisert after March 31.

JWM’s flagship fund, the Relative Value Opportunity Portfolio, fell 42.78 percent in the first 11 months of this year, the paper said.

Meriwether’s previous hedge fund, Long-Term Capital Management, had to accept a $3.6 billion bailout by U.S. banks in 1998 after it ran aground with leveraged trading strategies.

JWM could not immediately be reached for comment. (Reporting by Eric Yep in Bangalore; editing by John Stonestreet)

[carlsbadworker]

Dec 23 (Reuters) – John Meriwether’s JWM Partners LLC hedge fund will lose four of its seven active partners and cut 10 of 35 staff after the weak performance of its flagship fund this year, the Wall Street Journal reported.

The Greenwich, Connecticut firm expects to lose four partners next year, including Lawrence Hilibrand and John Tsai, the paper said, citing a letter sent to investors on December 17.

According to the paper, the letter said Arjun Krishnamachar is expected to leave by March 31 and Chief Financial Officer Andrew Geisert after March 31.

JWM’s flagship fund, the Relative Value Opportunity Portfolio, fell 42.78 percent in the first 11 months of this year, the paper said.

Meriwether’s previous hedge fund, Long-Term Capital Management, had to accept a $3.6 billion bailout by U.S. banks in 1998 after it ran aground with leveraged trading strategies.

JWM could not immediately be reached for comment. (Reporting by Eric Yep in Bangalore; editing by John Stonestreet)

[carlsbadworker]

capeman, interesting list.

I actually find myself satisfying all your criteria, except:
For 3), I plan to rent the house out if I relocate. Currently, I figure it is cashflow positive at the current rent price (assume 25% rental income for maintenance/management and 5% vacancy). You can argue vacancy will be way up or rents will be way down. But still if I have a job elsewhere, that should allow me to be carry the house even at a small cashflow loss.

For 5), it really depends on how long you think one will be out of job due to the severe recession/depression. I think I can survive if I’m allowed to flip burgers for a while with minimal wages. If you are talking about everyone out of job for 5+ years, then I suggest that the last thing you want to do is pay off your house at that time. Buy ammo and food, shoot everyone who comes into your house to collect the bill. The world will be in different order then and having a paid off house means absolutely nothing.

And if that happens, at least I have enjoyed my house for a few years and I don’t see how the people who have lots of cashed stored by renting stands to gain anything in anarchy (Plus, I doubt how much more cash the renters will have. At least, here in Temecula, it is already cheaper to buy than to rent. So the difference is probably only the 20% downpayment).

[carlsbadworker]

capeman, interesting list.

I actually find myself satisfying all your criteria, except:
For 3), I plan to rent the house out if I relocate. Currently, I figure it is cashflow positive at the current rent price (assume 25% rental income for maintenance/management and 5% vacancy). You can argue vacancy will be way up or rents will be way down. But still if I have a job elsewhere, that should allow me to be carry the house even at a small cashflow loss.

For 5), it really depends on how long you think one will be out of job due to the severe recession/depression. I think I can survive if I’m allowed to flip burgers for a while with minimal wages. If you are talking about everyone out of job for 5+ years, then I suggest that the last thing you want to do is pay off your house at that time. Buy ammo and food, shoot everyone who comes into your house to collect the bill. The world will be in different order then and having a paid off house means absolutely nothing.

And if that happens, at least I have enjoyed my house for a few years and I don’t see how the people who have lots of cashed stored by renting stands to gain anything in anarchy (Plus, I doubt how much more cash the renters will have. At least, here in Temecula, it is already cheaper to buy than to rent. So the difference is probably only the 20% downpayment).

[carlsbadworker]

capeman, interesting list.

I actually find myself satisfying all your criteria, except:
For 3), I plan to rent the house out if I relocate. Currently, I figure it is cashflow positive at the current rent price (assume 25% rental income for maintenance/management and 5% vacancy). You can argue vacancy will be way up or rents will be way down. But still if I have a job elsewhere, that should allow me to be carry the house even at a small cashflow loss.

For 5), it really depends on how long you think one will be out of job due to the severe recession/depression. I think I can survive if I’m allowed to flip burgers for a while with minimal wages. If you are talking about everyone out of job for 5+ years, then I suggest that the last thing you want to do is pay off your house at that time. Buy ammo and food, shoot everyone who comes into your house to collect the bill. The world will be in different order then and having a paid off house means absolutely nothing.

And if that happens, at least I have enjoyed my house for a few years and I don’t see how the people who have lots of cashed stored by renting stands to gain anything in anarchy (Plus, I doubt how much more cash the renters will have. At least, here in Temecula, it is already cheaper to buy than to rent. So the difference is probably only the 20% downpayment).

[carlsbadworker]

capeman, interesting list.

I actually find myself satisfying all your criteria, except:
For 3), I plan to rent the house out if I relocate. Currently, I figure it is cashflow positive at the current rent price (assume 25% rental income for maintenance/management and 5% vacancy). You can argue vacancy will be way up or rents will be way down. But still if I have a job elsewhere, that should allow me to be carry the house even at a small cashflow loss.

For 5), it really depends on how long you think one will be out of job due to the severe recession/depression. I think I can survive if I’m allowed to flip burgers for a while with minimal wages. If you are talking about everyone out of job for 5+ years, then I suggest that the last thing you want to do is pay off your house at that time. Buy ammo and food, shoot everyone who comes into your house to collect the bill. The world will be in different order then and having a paid off house means absolutely nothing.

And if that happens, at least I have enjoyed my house for a few years and I don’t see how the people who have lots of cashed stored by renting stands to gain anything in anarchy (Plus, I doubt how much more cash the renters will have. At least, here in Temecula, it is already cheaper to buy than to rent. So the difference is probably only the 20% downpayment).

[carlsbadworker]

capeman, interesting list.

I actually find myself satisfying all your criteria, except:
For 3), I plan to rent the house out if I relocate. Currently, I figure it is cashflow positive at the current rent price (assume 25% rental income for maintenance/management and 5% vacancy). You can argue vacancy will be way up or rents will be way down. But still if I have a job elsewhere, that should allow me to be carry the house even at a small cashflow loss.

For 5), it really depends on how long you think one will be out of job due to the severe recession/depression. I think I can survive if I’m allowed to flip burgers for a while with minimal wages. If you are talking about everyone out of job for 5+ years, then I suggest that the last thing you want to do is pay off your house at that time. Buy ammo and food, shoot everyone who comes into your house to collect the bill. The world will be in different order then and having a paid off house means absolutely nothing.

And if that happens, at least I have enjoyed my house for a few years and I don’t see how the people who have lots of cashed stored by renting stands to gain anything in anarchy (Plus, I doubt how much more cash the renters will have. At least, here in Temecula, it is already cheaper to buy than to rent. So the difference is probably only the 20% downpayment).

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