Cincinnatus BLOG *** Political Commentary - Social Commentary

  The Democrat Party is in the hands of the Pelosi-Obama extreme left, the Republican Party is in the hands of the Bush-Limbaugh fanatic religious right and the mindless party faithful gleefully sing along, ours is not to reason why, ours is but to do or die. The Congressional Budget Office (CBO) estimates that there will be trillion dollar annual deficits for the next decade if the Pelosi-Obama left prevails, and the response from the right, narrow-minded religious platitudes. Maybe its time for a third party that represents the rational, pragmatic majority of the country. I believe the founders would approve if we called our new party, The Enlightenment Party. First let's look at what we can expect from the left: In 2010 federal outlays will be a breathtaking $3.6 trillion, or 24.1% of… Continue reading | 15 Comments

  The stress tests appear to be boiling down to one critical measurement of bank capital, Tangible Common Equity (TCE). While the assets themselves may be tangible, the intangible result could be a tectonic shift to a politicized banking system. To avoid any confusion it is probably best that I define my terms at the outset: 1. Tangible Common Equity  (TCE) equals book value minus intangible assets, goodwill, and preferred equity. Essentially this is the most conservative measure of bank capital and represents what common shareholders would have left if a bank were liquidated. 2. Tangible Book Value (TBV) equals book value minus intangible assets and goodwill. This measure would include preferred shares held by the government and private investors and gives a broad view of… Continue reading | 3 Comments