http://5minforecast.agorafinancial.com/extend-and-pretend-understanding-the-fed-biometric-ids-and-more/ http://5minforecast.agorafinancial.com Fri, 19 Mar 2010 23:33:29 +0000 http://wordpress.org/?v=2.9.1 hourly 1 http://5minforecast.agorafinancial.com/extend-and-pretend-understanding-the-fed-biometric-ids-and-more/comment-page-1/#comment-2766 Steve Canzoneri Wed, 11 Nov 2009 20:41:04 +0000 http://5minforecast.agorafinancial.com/?p=857#comment-2766 Is it time to short the banks? In response to your “Extend and pretend” post, I have some first hand knowledge of a $100m loan that was taken out by a developer friend in Arizona in 2005. The developer ran out of money and stopped making payment in Feb. 2008. The lender, rather than initiating foreclosure, began advancing money to the developer in order to allow them to resume making payments. The "reason" the lender is "cooperating" with the developer is if the lender recognized the loan as impaired, it would send the lenders capital below some threshold that would cause it to become insolvent. How many more "performing" loans like this are out there and how long can this go on? Is it time to short the banks? In response to your “Extend and pretend” post, I have some first hand knowledge of a $100m loan that was taken out by a developer friend in Arizona in 2005. The developer ran out of money and stopped making payment in Feb. 2008. The lender, rather than initiating foreclosure, began advancing money to the developer in order to allow them to resume making payments. The “reason” the lender is “cooperating” with the developer is if the lender recognized the loan as impaired, it would send the lenders capital below some threshold that would cause it to become insolvent. How many more “performing” loans like this are out there and how long can this go on?

]]> http://5minforecast.agorafinancial.com/extend-and-pretend-understanding-the-fed-biometric-ids-and-more/comment-page-1/#comment-2749 Kimberley Kalesnik Mon, 09 Nov 2009 03:07:55 +0000 http://5minforecast.agorafinancial.com/?p=857#comment-2749 The Disney Shanghai deal was already signed 5 years ago. There was quite outcry because Hong Kong government negotiators found out they did not include geographic exclusivity clause (but Disney knew). An agreement was made to let HK park get up and running before going ahead with Shanghai. However HK knows they got hosed on this deal! Disney cost them a bundle and more. The Disney Shanghai deal was already signed 5 years ago. There was quite outcry because Hong Kong government negotiators found out they did not include geographic exclusivity clause (but Disney knew). An agreement was made to let HK park get up and running before going ahead with Shanghai. However HK knows they got hosed on this deal! Disney cost them a bundle and more.

]]> http://5minforecast.agorafinancial.com/extend-and-pretend-understanding-the-fed-biometric-ids-and-more/comment-page-1/#comment-2739 Jack Ryan Fri, 06 Nov 2009 07:53:38 +0000 http://5minforecast.agorafinancial.com/?p=857#comment-2739 Regarding Thursday's 5: What silver lining do you see in giving businesses who were profitable in 2003-07 to get refunds on the taxes they paid for those years just because they lost money in 2008-09? If they were profitable, they should pay taxes. You seem disgusted by the extra government charity toward the unemployed but find something good about a refund that businesses don't deserve. What's that logic? I enjoy your daily column; keep up the good work. Regarding Thursday’s 5: What silver lining do you see in giving businesses who were profitable in 2003-07 to get refunds on the taxes they paid for those years just because they lost money in 2008-09? If they were profitable, they should pay taxes. You seem disgusted by the extra government charity toward the unemployed but find something good about a refund that businesses don’t deserve. What’s that logic? I enjoy your daily column; keep up the good work.

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