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HomeKenneth Rogoff: “A Lot of Insolvent European Banks”
Posted by Larry Doyle on July 7th, 2010 5:30 AM |
Kenneth Rogoff
Should the European Union run bank stress tests or not? While that question has been hotly debated over the last few months, we received an answer today from one of the most highly respected economists in the world. Who might that be? Harvard’s Kenneth Rogoff, a Thought Leader and Sense on Cents Economic All-Star.
I have often referenced Rogoff’s work over the last eighteen months (go here) and hold him in the highest possible regard. So, about those European banks and the hotly debated stress tests? What does Rogoff think? Are you sitting down?
In a Bloomberg commentary, European Banks’ Hidden Losses Threaten EU Stress Test, we learn: (more…)
July 4, 2010: Remembrances and Celebrations
Posted by Larry Doyle on July 4th, 2010 9:02 AM |
Let’s take a day off from thinking about our steep slope and challenging terrain as we navigate the economic landscape. Today is a day of remembrances and celebration.
I remember the love and dedication my father-in-law had for our great nation. He would cherish this day as he would attend his local 4th of July parade to salute the nation he loved. Never one to complain about what our nation should do or could do, my father-in-law saw the beauty and opportunity provided by our great land and he embraced it. He appreciated the values and fiber that made our land the beacon amidst the storm. He resonated with real pride, and his deeply sincere and friendly demeanor were infectious. I love him and miss him. I hope those who read this can feel his pride and will share it. He truly represented the best of America.
I also remember my own Dad today. I will be visiting him in the hospital today as he deals with and recovers from recent surgery. His love of family, his determination, his integrity, and his ethic are the rocks and mortar on which every member of my family has forged our own lives. He speaks with such pride of his family and the stories of his descendants coming to this nation. His awe of his great grandfather Mike Doyle who came to this land as a teen from Ireland back in the mid-1800s is a motivating force for me and all my siblings. His signature farewell is “Keep punchin’.” He embodies real American spirit and virtues.
Behind great men, such as my father-in-law and my Dad, stand even better women. My mother-in-law and my Mom are the glue. As is my own beloved. I love these women.
What is the common thread here? Love. We love each other. We love our families. We love helping people. We love our nation. That to me is what the 4th of July is all about.
I hope you are able to share this day with your loved ones remembering and celebrating that which brings us together and makes us a proud and great land.
LD
Bill Gross Projects The ‘Threshold of Mediocrity’
Posted by Larry Doyle on July 3rd, 2010 7:31 AM |
Pimco’s Bill Gross, a Sense on Cents Economic All-Star, recently released his Investment Outlook for July 2010. In my opinion, Gross is an outstanding writer with an uncanny ability to communicate effectively on a host of financial, social, and psychological topics from both a macro and micro standpoint. Given those skills along with the fact that he manages the largest bond fund in the world, “sense on cents” dictates that we ponder his words of wisdom.
These words focus on the structural changes at work in the world today, and how investors should brace themselves for returns that are on the ‘threshold of mediocrity.’
Gross writes:
Global financial market returns stand at the threshold of mediocrity. With bonds priced not for recession but near depression, most major global bond indices now yield less than 3%, surely a forerunner of returns to come. (more…)
“Hook ’em Horns” Complaint: State of Texas v. Goldman Sachs et al
Posted by Larry Doyle on July 2nd, 2010 12:42 PM |
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Is America supposed to believe that the economic crisis emanating on Wall Street and costing our economy trillions of dollars was all on the up and up and was merely a ‘perfect storm’? Although many on Wall Street and in Washington would have us believe just that, a true measure of ‘sense on cents’ dictates that we not be so naive.
Regrettably, our financial regulators and most state attorneys general have shown themselves to be incapable, unwilling, or incompetent in pursuing the massive financial transgressions and fraud that lie at the foundation of our crisis. Well, it is time for “hook ’em horns!!”
The Democratic candidate for Attorney General in the great state of Texas, Barbara Ann Radnofsky, has written a Legal Complaint and Legal Brief which form the basis for a lawsuit against Wall Street and the underlying fraud which has brought our nation to its knees. (more…)
Review of Unemployment Report July 2, 2010
Posted by Larry Doyle on July 2nd, 2010 9:19 AM |
The release of the Unemployment Report this morning is very much consistent with an economy that is undergoing real structural changes and adjusting to the realities of lessened credit and limited growth. As much as some may like to spin it one way or another, those realities are the simple and straightforward ‘sense on cents’ views as we navigate our economic landscape. I do not envision these realities changing anytime soon.
A quick review:
1. The overall unemployment rate declined from 9.7% to 9.5% while the consensus expectation was for an increase to 9.8%. The underemployment rate declined from 16.6% to 16.5%. Are these positive developments? Nope. Why? The rates dropped as more people, in this case 652k workers, have given up looking for work and have exited the labor force. (more…)
Wall Street Economist v. Rick Davis: Mano a Mano
Posted by Larry Doyle on July 1st, 2010 10:37 AM |
I love a good debate, or at the very least a healthy response to a challenging statement. I witnessed just such an exchange yesterday.
I shared my story, Rick Davis Nailed 1st Qtr 2010 GDP Report on November 30, 2009, with a noted Wall Street economist, with whom I am friendly and whom I hold in high regard. Recall that in the aformentioned story, I highlighted that Rick Davis of Consumer Metrics Institute is projecting a double dip recession with a 2nd Qtr 2010 GDP reading of -1.5% and a 3rd Qtr GDP reading of -2.0%.
In sharing that commentary with this well known economist, I received the following response: (more…)
