A New Voice
May 24th, 2008 by 
reality
I’ve added David Einhorn of Greenlight Capital to my list of plain speakers. To see why, read these pieces (PDFs) - “Accounting Ingenuity” and “Private Profits and Socialized Risk“. Thanks to Mr. Mortgage for hosting them. In addition to the crooks he takes on, read and heed the comments about the SEC, which has pursued Mr Einhorn for his negative remarks. As I have mentioned before, if you are an investor, the SEC is your enemy. It is the industry’s “enforcer”, threatening and pursuing anyone who attacks the securities industry, or does anything the industry does not like, while defending the industry from any attempts at regulation.
Also, an update from Marc Faber (video). Synchronized global bust.
Oh, and Hillary? Don’t call your shots.
Posted in David Einhorn, Government, Marc Faber, Rogues and Rascals | 
May 25th, 2008 at 6:17 am
I expect further weakening of US dollar.
Faber argues US financial assets are now modestly valued and possibly can attract foreign investors. I would doubt.
Real estate crisis isn’t over. Mortgage, commercial real estate credit loses are mounting, derivative losses are rising, and nobody has full knowledge, who is holding the bag. There is clear tendency of socialization of losses in the name of preservation of functional financial system.
This is ugly backdrop, and I can’t imagine, how this can be good for dollar or attract foreign investment better, than other world economies. Buffett is cruising around Europe. Gross is calling investors to leave USA.
Found yesterday Benn Steil’s (Director of International Economics Council on Foreign Relations) presentation to the Senate “Financial Speculation in Commodity Markets”, dated May 20, 2008. Worth reading.
http://hsgac.senate.gov/public/_files/052008Steil.pdf
He dismiss idea of commodities bubble and points instead to busting US_dollar_bubble, and concludes: “To date, far too much of the [interbank credit crisis] burden has been borne by monetary policy, which is threatening to cause higher inflation, and leading individuals and institutions around the world to question whether the dollar will remain a credible long-term store of value. One highly undesirable result of this is soaring global commodity prices.”
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Even being bearish on USD in the middle time frame, I wouldn’t be surprised to see moderation of oil price and strengthening of dollar next week.