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Quantitative Easing: To Infinity and Beyond?

Posted by Larry Doyle on January 29th, 2012 12:02 PM |

What does the Federal Reserve know that we don’t?

I mean, why would the Federal Reserve commit to keeping prevailing interest rates at next to zero through the end of 2014 if they were not aware of just how weak our underlying economy truly is?

Bernanke and team know our domestic economy and the global economy at large remain in need of significant and steady oxygen support.

Over and above committing to this interest rate policy, one does not have to read the tea leaves too hard to see that Chairman Bernanke is poised to unleash another round —if not many rounds—of quantitative easing. How much QE should we expect?

If we were to listen to Pimco’s Bill Gross, we should start to think of additional QE in terms of “to infinity and beyond”. Really? Read the rest »


Book Review: Fraternity, Ultimately a Love Story

Posted by Larry Doyle on January 27th, 2012 1:03 PM |

In the process of navigating our economic landscape, we are perpetually encountering risks. These risks not only present themselves from the standpoint of the market and the economy but also on a much larger scale from a social, political, and personal perspective as well.

How do we learn to manage risks going forward? We are compelled to study and appreciate the lessons from the past.

To do just that, I strongly encourage people to read a recently published book which takes us back to the volatile days of the late 1960s. This literary masterpiece very personally details how a group of young African American students and the Jesuit mentor who recruited them to college took very real risks. What was the result of managing these great risks?

A foundation for long term and very real rewards. This fascinating book is Fraternity by Diane Brady.  Read the rest »


Still Mad as Hell and Not Gonna Take It Anymore….Open Thread

Posted by Larry Doyle on January 25th, 2012 5:01 PM |

Have you had just about enough? What’s that, you say? You’ve had more than enough. You feel alone and disenfranchised while doing the best to navigate the economic landscape. You now finally appreciate that nobody is there to protect you.

You have a home here at Sense on Cents.  Let’s navigate together.

In late 2009, I asked “What’s Fueling America’s Rage?” and people responded in spades.

In mid-2011, Jim Garvin’s message exploded across America that he was, “Mad as Hell and Not Going to Take it Anymore”.

Just over the last few days, some regular readers, such as Coe and BR, have unleashed as never before. I commend them for speaking their minds so eloquently and aggressively.

On that note, I welcome you to do the same. Are you also “still mad as hell and not going to take it anymore”? Then here’s your chance to unload. For the first time in the three years since launching my blog, here is a Sense on CentsMad as Hell and Not Gonna Take it Anymore” OPEN THREAD.

Who do you want to unload upon? What company? What politician? What faker? What broker? What phoney? Go ahead, be respectful but “Let ‘em have it”!!

Larry Doyle

Isn’t it time to subscribe to all my work via e-mailRSS feed, on Twitter or Facebook?

Do your friends, family, and colleagues a favor and get them to do the same. Thanks!!

I have no affiliation or business interest with any entity referenced in this commentary. The opinions expressed are my own. I am a proponent of real transparency within our markets, our economy, and our political realm so that meaningful investor confidence and investor protection can be achieved.

 


Obama Acknowledges Congressional Insider Trading

Posted by Larry Doyle on January 24th, 2012 10:29 PM |

I will readily admit that I find President Obama to often be disingenuous in much of what he is delivering in his State of the Union.

He plays to an American public which remains severely challenged when it comes to financial literacy.

When he speaks about taxes, would he care to lay out why there is a difference between tax rates on long term capital gains versus ordinary income?

Does he know the difference and why the long term capital gains rate is lower?  Read the rest »


Did Allen Stanford “Forget” State Secrets? Come On!!

Posted by Larry Doyle on January 23rd, 2012 10:09 PM |

Remember Allen Stanford?

Yes, we have waited close to three years for the once, but now dethroned, Sir Allen Stanford to come to trial for the charges brought against him in his management of a supposed Ponzi-scheme centered within his bank in Antigua.

While I imagine most readers of this blog certainly remember Allen Stanford quite well, the key question to be addressed in this trial is just how much does Stanford himself remember as to what truly transpired within his operation.

Scratching your head? Let’s navigate.   Read the rest »


Will Principal Reduction Save Housing?

Posted by Larry Doyle on January 23rd, 2012 12:53 PM |

While Washington has thrown everything and the kitchen sink to support our banking system and our economy over the last few years, Washington has been unable to prop up our housing market.

What do many in Washington and elsewhere believe needs to be done on the housing front?  Read the rest »


Book Review: Reckless Endangerment: A Wall Street-Washington Incestuous Legacy and A MUST READ

Posted by Larry Doyle on January 21st, 2012 3:33 PM |

Years from now when people study what led to the greatest economic crisis since the Great Depression, they will have plenty of material to review. This is good.

Unlike our current era in which we clearly failed to learn from past crises, I hope future generations will not only study what led to our current crisis but then actually do something so it is not repeated. We have yet to begin that process.

On that note, let’s start right now to save our collective future. How so?

If we are to save our future, then let’s be brutally honest about our past and our presentRead the rest »


Rick Davis: Economic Navigator Extraordinaire

Posted by Larry Doyle on January 20th, 2012 11:12 AM |

How does one measure the real health of an economy that continues to adjust to massive structural changes and has become dependent on various lines of cheap funding provided by Uncle Sam?

Not easily.

It has been a little while since we have navigated upstream to get a real read on the pulse of our economy from one of our Sense on Cents favorites. I am speaking of Rick Davis of Consumer Metrics Institute, who recently penned a commentary entitled, Taking a Closer Look at Mixed Signals.

Rick always provides fabulous insights, and with this review he once again does not disappoint. His navigation system offers the following . . . Read the rest »


“Insider Trading Is Rampant and Routine”

Posted by Larry Doyle on January 19th, 2012 1:15 PM |

As much as Wall Street is the center of the financial services industry, it is really a simple business that revolves around people and information.

That basic reality makes this business so fascinating. The personalities, the pace, the flow of data, and ultimately the interaction between counterparties make everyday a fascinating experience.

In order for Wall Street to thrive, though, and for our markets and economy to prosper, there needs to be a premise and a pursuit of fair dealing on a level playing field. Read the rest »


Jon Corzine v Edith O’ Brien: Let’s Rumble

Posted by Larry Doyle on January 18th, 2012 11:41 AM |

Some of the largest financial debacles of our lifetime revolved around individuals who were able to effectively arbitrage, that is knowingly manipulate, their back office operations.

I refer specifically to the financial follies surrounding Joe Jett and Kidder Peabody in the early 1990s, Nick Leeson and Barings in 1995, and Yasuo Hamanaka and Sumitomo in the copper scandal of the mid 1990s.

I would maintain that due to a shortage of quality collateral in our financial system, it is highly likely that over the course of the last few years many of our large financial firms have knowingly manipulated their back offices and accounting operations. Read the rest »


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