<p>As to Cyprus, I read in Krugman’s blog this AM something I didn’t know at all, that Cyprus is not so much a money-laundering haven for Russians as it is essentially the service center for Russian firms, particularly commodity firms, as they do what multi-nationals do, which is minimize taxes and look for favorable exchange situations. So this gambit really is a taking of Russian assets.</p>
<p>On the humorous side, it’s interesting to note how perspective matters. So for example, German money flowed hot into the south of Europe, particularly Spain and Portugal, and fed the bubble. But Germans want their cash back. I’m not sure Cyprus is the same; it looks like a some of the money in Cyprus is passing through as part of what business normally does. But the lesson is clear: I want mine and I’ll take some of yours if I can and I’ll justify myself morally whilst I do that.</p>
<p>I’ve never really heard of any money-laundering connections with Cyprus and it would make sense that they have a banking economy. It looks like their location would be useful for Russian companies and individuals.</p>
<p>It would be funny if Ben Bernanke said we’re going to print $100 billion and bail them out and we get to take discounted vacations there in the future. It would be win-win all the way.</p>
<p>I was momentarily worried that I might be on the same side of an issue as Krugman, but then I realized he has once again taken no testable position.</p>
<p>I’m looking at what I made in interest in various accounts. Basically single-digits stuff. In the past, these accounts generated enough interest for us to live off of.</p>
<p>“I’m looking at what I made in interest in various accounts. Basically single-digits stuff. In the past, these accounts generated enough interest for us to live off of”</p>
<p>Yeah…</p>
<p>Now I sell puts in company’s like aapl. </p>
<p>After seeing the Cyprus tax proposal, maybe selling puts is less risky. Lol</p>
<p>I bought 300 of a Euro short. I want to be a contrarian but regardless of what happens with Cyprus there are just too many signs that the EU/ECB cant get their act together.</p>
<p>BCEagle91, the post on the Canadian housing was interesting to me. Bernanke says mortgage lending is too tight in the US. He also says the Fed is not targeting asset prices; although they monitor asset prices. Said stock market is not at highs in real terms and the market valuations look ok based on historical numbers.</p>
<p>I’m not really sure. I don’t like the idea of anyone being able to borrow thousands of dollars without having much skin in the game. If a mortgage borrower promises to repay he or she should repay or suffer serious consequences. Right now that is not the case. The best way to prevent this is through rigorous lending standards. </p>
<p>I think the market is fairly valued but if the economy gets significantly better, it should go higher. </p>
<p>I am really afraid of what happens when the Fed stops juicing the economy. If it unwinds its balance sheet, it will push interest rates up and we will suffer a material reduction in economic growth for a long time.</p>