Truth in Equity

News Report -

Colossal Financial Collapse: The Truth behind the Citigroup Bank "Nationalization"
[Center for Research on Globalization]
However, if we compare the value of the equity share that $125 billion bought with the market price of those banks’ stock, US taxpayers have paid $125 billion for bank stock that a private investor could have bought for $62.5 billion, according to a detailed analysis from Ron W. Bloom, economist with the US United Steelworkers union, whose members as well as pension fund face devastating losses were GM to fail.

GM: Bankruptcy Is No Longer An Option
[Seeking Alpha]
He made an excellent analogy about the amount of equity in a home in contrasting Citigroup (C) to Apple (AAPL). I agree with Felix that many investors and certainly most non-investors don't understand fully that the value of a company consists of both its stock as well as its debt obligations.

Reflation Is the Only Option
[Seeking Alpha]
Then jump on board the equity market rocket. There will be another lift-off, and there are many stocks – I have listed over 100 – that will be passengers on what will be seen as another moon-shot. One of these events will result in the new Bull market being as obvious to you all as it is to me today.

Berkshire's CDS and Counterparty Hedging
[Conde Nast Portfolio]
On the other hand, what if it's not Goldman at all, but rather the investor who is buying the CDS? That, I think, would make much more sense. Shitting alpha, I think, is closer to the truth here, but his post is quite cryptic, so let me try to expand it a little.