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Thread: 10% earnings per share - 13% RoE. Get some NOW!

  1. #1
    Ultimate Member herosrest's Avatar
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    10% earnings per share - 13% RoE. Get some NOW!

    Quote Originally Posted by herosrest
    The lender valuing that asset is a conflict of interest.
    The lender as trustee, manipulating that asset to destroy its value is a breach of trust.
    This isn't logic at all, it's hopeless idealism. If you think for one second that a lender doesn't know the approximate value of a collateral item and price his money accordingly, you're dreaming.

    Get with the concept - the important thing here isn't the money being loaned, but that the loan itself is a commodity that is being sold. The borrower is buying the opportunity to obtain the money for a certain amount of time. The seller of the opportunity sets his own price, regardless of whether someone else values it higher or lower. The buyer/borrower can accept or decline the terms. There's no such thing as a third party to a loan, except in an ancillary role as witness.
    Quote Originally Posted by Herosrest
    The lender valuing that asset is a conflict of interest.
    A property purchase is a transaction between the owner of a property and a buyer.
    Finance of the sale is usually offered by a third party, who will hold title to the property in TRUST until the loan they finance, is repaid.
    The lender, DOES NOT own the property being financed.
    This small but vital aspect of home purchase finance has been overlooked recently.
    It remains the underlying basis and fact of property purchase financing.
    The Lender DOES NOT OWN THE PROPERTY.

    Finance people think a certain way. They do not operate in the common interest. That is fact of business. They are subject to law, legal process and financial accountability. Trustees hold a responsibity to defend the value of the home buyers asset. The agreement between the lender and buyer allows them to treat the property as an asset, the assumption being one of common interest between the property buyer and the lender. A twisted mind decided it would be terrific to unlock the value of housing markets by getting lenders to trade these 'assets held in trust' as commodities. They are not commodities. They are peoples homes. Even so, with responsible behaviour and proper control, this is a very good idea. In practise it has been turned into a game of Casino and Governments and taxpayers are picking up the tab for a game of roulette which was rigged from the very start by criminal minds who realised the potential for profits unlimited from chaotic market trading of unregulated Financial Trading Derivative contracts.

    How in the name of God does anyone think that Hedge Funds are able to maintain "earnings per share target of 10 percent and return on equity of 13 percent.''

    Finance is a service, it does not make the world go around.
    It attracts the most unreasonable and obnoxious and unscrupulous people on earth. The derivatives that are causing the huge headache with Banks are going to continue for the next 7 to 10 years. That is the contract term of them. The Banks are not writing these things off........... they are writing them down.
    When it suits them - they will be written back up again. It is a huge multi- Trillion dollar CON.
    writedown
    A reduction in the value of an asset carried on a firm's financial statements.
    For example, the firm's accountants, believing the inventory is overvalued,
    may decide to take a writedown by reducing inventory valuation.
    Unlike a writeoff, a writedown does not result in elimination of the asset.


    Property values, as opposed to sale price, cannot be allowed to fluctuate.
    That they can is a lie. Current property value is constant and defined by Insurance Rebuild cost.
    The whole thing going on now is a conceptual CON that destroys economies and leads to wars.
    It is a flawed and illegal process.


    Property Value has nothing to do with the price it sells for.

    I shidt you not!
    Last edited by herosrest; 02-04-2009 at 04:06 PM.

  2. #2
    Registered User mireland's Avatar
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    more toilet paper material..

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    It remains the underlying basis and fact of property purchase financing.
    The Lender DOES NOT OWN THE PROPERTY.
    In practise it has been turned into a game of Casino and Governments and taxpayers are picking up the tab for a game of roulette which was rigged from the very start by criminal minds who realised the potential for profits unlimited from chaotic market trading of unregulated Financial Trading Derivative contracts.
    what?

    This isn't logic at all
    You can say that again.
    Surely it could be written in a way that makes it easier to understand.

  4. #4
    Ultimate Member herosrest's Avatar
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    Quote Originally Posted by mireland View Post
    more toilet paper material..
    Quote Originally Posted by werz View Post
    what?
    You can say that again.
    Surely it could be written in a way that makes it easier to understand.

    Certainly Gents. PULL & wipe. Simple really. Childs play.

  5. #5
    Ultimate Member herosrest's Avatar
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    Brought down the sheet to current and Written UP! - Click to inflate this dormant - 'WRITE DOWN'

    I do not imply that Banks etc, lend in bad faith or ill will. However, the means of trading loans as commodities is wide open to abuse by anyone bright enough to properly understand their accounting process and worth, to a Business balance sheet. Where the problem lies is in the concept of commodities.

    If property is traded as a commodity which fluctuates in price - it's asset value is 'ALLOWED' to be destroyed by a party with no interest or responsibilty to the lenders obligation as a Trustee of the property. Two concepts of business have collided and there is a HUGE problem.

    lnsurance rebuild value HAS to be, the ACCOUNTING VALUE of the property as contracted by the lender and any traders. If this simple accounting rule change is not made - the system of derivative financing is wide open to total abuse. It is happening and has been for some time. Traders' values fluctuate - that is the name of their game. The accounting rules which apply to traders, destroy value in the property market at will, whenever a trading business runs into loss or difficulty they write down values. It is a corrupt process. It is an irresponsible practise. A trader will defend their position. They are wrong.

    Witness the current financial problems which are still not properly understood.

    A property purchase is not a commodity trade. The loan is.


    Last edited by herosrest; 02-05-2009 at 03:44 PM.

  6. #6
    Registered User mireland's Avatar
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    Complete & Utter Member j.m@talk's Avatar
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    Nooooooooooooooooooooooooooo


  8. #8
    Ultimate Member herosrest's Avatar
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    Traders..... deal makers, the Barrow Boys - have got their hands on the property market and are raping it.

    They will tell you all day long that those fins on their back are an illusion and get away with it.

    Sharks are harpooning whales.
    How do you think the Hedge Funds are turning those pretty pennies.
    It ain't the TAX dodges doing it.

    People sign up for 25 years for this rubbish.. no funckin WAY! Lock them up! - with Insurance rebuild values.
    Last edited by herosrest; 02-05-2009 at 04:11 PM.

  9. #9
    Ultimate Member herosrest's Avatar
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    The issue is not an argument in ways of doing things or points of view. The issue is one of abuse and decency. Home owners are being abused. How many of them are there. The penny WILL drop.
    During deep sleep IT came to me and the future of processing is clear.
    Future processors will primarily be digital tuning radios acting as grid computing nodes.
    Voila. See ya in hell.
    PROCESSING

  10. #10
    Ultimate Member herosrest's Avatar
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    There ya go - A WiKi on CDO's - Rather well done and more than any reasonable person will browse.
    Gobbledygook from Dr. Mumbo Jumbo. An interesting read for a minority.


    The reason a mess exists is this - Mumbo Jumbo method of assigning a value. Accounting or actually more accountology.
    lt is pure and utter bollox. -
    Mark-to-market accounting

    The entire system of trading is a very basic spread bet. This is because all (yes 100%) of CDO's will default. That is their inherent nature. What people do not get or advertise is that they are an insurance. You, l and every other bugger on the planet is picking up the tab to the tune of Trillions. Now here is some no-brainer logic that has escaped everyone with the remotest responsibilty for CDO's.

    Help the borrower meet payments and there is NO risk. There is no DEFAULT.

  11. #11
    Ultimate Member herosrest's Avatar
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    The practice of mark to market as an accounting device first developed among traders on futures exchanges in the 19th century. It was not until the 1980s that the practice spread to big banks and corporations far from the traditional exchange trading pits, and beginning in the 1990s, mark-to-market accounting began to give rise to scandals.


    beginning in the 1990s, mark-to-market accounting began to give rise to scandals. "Mark to market"

  12. #12
    Ultimate Member herosrest's Avatar
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    _
    Chaos is not all it promises. Human reaction during chaos is predictable through experience.
    Chaos breeds stress, worry, indecision and herding.
    People combine and amplify doubt. Need i go on..................... why not, eh?

    Situations and circumstances of chaos can be brought about by design. Chaos can be designed. Such capability is of limited intent and ironic in focus. Enabling chaos for specific limited goals is a very well understood practise. Surprisingly though, there are always unpredictable unforseen residual dominants.
    Post chaotic torpor is a release as people escape chaos when a system or routine stabilises.
    This time around - the designed economic chaos of recent years sucked big time...
    Yup - it wasn't REAL chaos. Call that chaos, ya wimps.
    Stand aside..... watch now, Growth stood still - Money doubled - credit doubled - RoI doubled - RoE doubled - Profit doubled - Pay halved - Property value halfed
    (yet to fully materialise itself) and
    wonder of wonder Small and medium sized Hedge Funds exploded,
    blossoming levels of return neither chaotic or unplanned.

    They will now perform the impossible.
    Completing the 'two stage' Union that is mark-to-market property re-valuation write down.
    Double and double down though in practise double down occurs first.
    Those of you still roiling through this text will be realising by now that ice does melt - given long enough.
    _

  13. #13
    Ultimate Member herosrest's Avatar
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    THE POINT OF IT ALL.

    Controlled deflation and insurance against trading losses.
    Market place, risk based trading - without risk.
    Real wealth does not deflate unless it is squandered. Incredibly the wealth of recent years was not squandered. So where has it all gone, eh?

    Work that one out - 'bet' ya can't.
    _

  14. #14
    Ultimate Member herosrest's Avatar
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    THOUGHT FOR THE DAY.

    EVEN GENII (plural ) get caught out only half way to the s*itter!
    "One RULE to rule them all!" - A. Hobbit
    _

  15. #15
    Ultimate Member herosrest's Avatar
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    On a very much brighter note - now,
    What is it all about, if - you can't have a good old laugh at a bunch of daft, drunken idiots
    who loose several trillion dollars and lunch and get away with it. SMILE.
    Y'az got to laugh at that one. All their own work. Titter.

    What do you call a drunken CEO? - Responsible.
    _
    Last edited by herosrest; 02-07-2009 at 07:48 AM.

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