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Archive for May, 2011

Larry Fink Calls for ‘Bailing Out’ European Banks

Posted by Larry Doyle on May 31st, 2011 7:43 AM |

Here we go again.

Who is going to pay for the massive embedded losses in the European sovereign credits of Greece, Portugal, and elsewhere? Will it be the bondholders, primarily the European banks, or will it be the European citizens and taxpayers?

While this European “can was kicked down the road” over the last few years, the market pressure is increasing on Greece primarily but other European sovereigns as well. What might happen in this ultimate game of “financial chicken”? Who and what will break first?

Well the “king of Wall Street”, Larry Fink, just stated on a Bloomberg interview that prior to any restructuring of sovereign credits occurring, the European banking system as a whole needs to be recapitalized and restructured. Fink actually stated that the European banks need what we here in America know as TARP (Troubled Asset Recovery Program). The TARP was in actuality nothing more than a massive bailout of the banks by the government. (more…)

I Will Be Reading ‘Reckless Endangerment’

Posted by Larry Doyle on May 26th, 2011 5:49 AM |

Reckless Endangerment: How Outsized Ambition, Greed, and Corruption Led to Economic Armageddon There are only a few books written on our financial crisis that I have felt compelled to read. I thoroughly enjoyed The Big Short by Michael Lewis. I strongly recommend 13 Bankers by Simon Johnson and James Kwak. Ruthless by Phil Trupp explores and exposes the largest scam on Wall Street, that is the auction-rate securities travesty, without parallel.

What is the next book I will be reading? After having listened to a Bloomberg Radio interview yesterday with The New York Times’ Gretchen Morgenson and Graham Fisher’s Josh Rosner, I will next be reading Reckless Endangerment.

I did not want the Bloomberg interview to end yesterday as Morgenson and Rosner were pulling no punches in naming names and exposing the stench of what I have defined as the Wall Street-Washington incest.

I have no doubt that America continues to suffer at the hands of so many intimately engaged in this incestuous activity. Will anything be done to expose and eradicate the incest? (more…)

President Obama, “Are You In?”

Posted by Larry Doyle on May 25th, 2011 7:57 AM |

Information is everything.

Regular readers of Sense on Cents are well aware of my having written that statement on many an occasion. Those on Wall Street who gain early access to critical information have a decided advantage. Those in Washington who gain the upper hand in controlling the flow of information are also at a decided advantage.

As these realities become ever more prevalent, Americans and people worldwide are working harder and digging deeper to attain unbridled access to information in order to determine the truth and promote transparency. With major media outlets often failing us in these pursuits, where do we turn for this information? The internet.

Against this backdrop, I am not surprised to see political powers in Washington accept and embrace the reality of the power of the information superhighway and put an ‘eye in the sky’ in order to monitor the traffic. To what do I allude?  (more…)

Rep. Michael Grimm (R-NY) Inducted Into Sense on Cents Hall of Shame

Posted by Larry Doyle on May 24th, 2011 7:17 AM |

Michael Grimm. Do you ever wonder how certain individuals in Washington might be so tone deaf as to miss the din and the roar of the American public screaming for increased transparency in our financial markets? Might these individuals be doing the bidding of the financial industry in return for the payoff of political campaign contributions?

How else could we explain why any individual in our nation today would promote a policy which would stifle the pursuit of badly needed transparency and real integrity in our financial markets? (more…)

Increasing Pressure on DSK and the Euro-Zone

Posted by Larry Doyle on May 23rd, 2011 8:58 AM |

Despite areas of concern both here at home and around the world, most eyes remain fixated on developments within the Euro-zone at large and specifically on the case of former IMF head Dominique Strauss-Kahn.

The temperatures are rising on both the dethroned former international banker extraordinaire and the peripheral countries of the EU. Our market is opening sharply lower this morning on the heels of weakness in the EU. Let’s navigate.

People the world over want to know what really happened a week ago this past Saturday in the suite occupied by DSK at the Sofitel Hotel in New York City.  (more…)

Real Evidence That ‘Hope Springs Eternal’

Posted by Larry Doyle on May 21st, 2011 6:23 AM |

The world did not end today. In fact, America begins today anew as a land steeped in greatness. What makes America great?

Plenty of things but wouldn’t you agree that at our core, the true greatness of America is founded upon our competitive spirit and sense of optimism? I strongly believe that.

That said, I fully acknowledge that our national spirit and optimistic outlook have taken real hits and have been undermined over the recent past. However, I wake this morning to a glorious sunshine here in Connecticut and real evidence that for our nation ‘hope springs eternal’.

Are you wondering where I see this evidence? Is it deeply embedded in a forward looking research piece on our economy? No, not there. How about indications of an economic rebound projected by the best analytical models? Nope, I do not see the evidence there either.

Then where you may ask do I see a fabulous example and real evidence that all of America can and should embrace that the indomitable American spirit lives and better days are ahead? Let’s look no further than what transpired just last evening. As reported by every credible media outlet this morning,

Cubs logo Chi. Cubs 5 Final
Winner Red Sox logoBoston 15
Winner Mets logo N.Y. Mets 2 Final
Yankees logo N.Y. Yankees 1
Tampa Bay 25 20 .556 11-13 14-7 191 168 +23 Lost 2 5-5
Boston 24 20 .545 .5 15-9 9-11 201 194 +7 Won 7 8-2
NY Yankees 23 20 .535 1 13-12 10-8 219 179 +40 Lost 1 3-7
Toronto 22 22 .500 2.5 10-10 12-12 199 189 +10 Lost 1 7-3
Baltimore 19 24 .442 5 10-14 9-10 171 218 -47 Lost 4 5-5

With these developments just last evening, the Boston Red Sox, which had started the season with a 2-10 record, have now overtaken the Evil Empire, aka The New York Yankees, in the American League East standings. Yes, boys and girls, the world did not end today as many had projected and ‘hope springs eternal’.

Life is good and at least for today, all is well.

Enjoy the weekend and …GO SOX…or dare I say, GO SAWX!!

To add a nice twist on the legend that makes baseball a great part of our national spirit, check out the love along with the mutual disdain for the Yankees captured in this short clip:

Larry Doyle

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Please get your friends and colleagues 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 so that investor confidence and investor protection can be achieved.


Let’s Go To the Videotape: “Attorney Claims Wall Street’s Cop, FINRA, Invested in Madoff”

Posted by Larry Doyle on May 20th, 2011 9:02 AM |

Did you ever have one of those days where you just feel like watching a movie or perhaps checking out a preview?

I feel like today, a Friday in the latter part of May, is one of those days.

I am guessing that market activity may be muted so let’s go into our “archives” for a clip in which numerous questions posed by an attorney bringing suit against Wall Street’s self-regulator, the head of the Madoff Investors Coalition, and yours truly are on display. Former SEC chair Harvey Pitt provides a rejoinder. The bulk of the questions raised in this clip are key points in the aforementioned suit, voluminous details of which are included in this compendium, Amerivet Securities v FINRA.

Be careful not to spill your popcorn or your soda because some of what you may see and hear during this 18 minute clip might truly disturb you.  (more…)

ECRI Forecasting Global Economic Slowdown

Posted by Larry Doyle on May 19th, 2011 8:30 AM |

What lies ahead on our global economic landscape?

Pack lightly because the economic road ahead appears to be increasingly challenging. While government mouthpieces and their media friends are wont to look in the rear view mirror for hints of easier traveling, the wise travelers amongst us always keep our eyes on the road ahead.

Who can help us navigate the upcoming terrain and is forecasting a steep economic slope? I thank one of this blog’s most loyal supporters for introducing the Economic Cycle Research Institute to Sense on Cents.

What exactly makes the ECRI so special?

ECRI is the world’s foremost predictor of recessions and recoveries. (more…)

Wall Street’s Meaningless ‘Mea Culpas’

Posted by Larry Doyle on May 18th, 2011 8:56 AM |

“I’m sorry. No, really I am. I did not mean to do it….er, I mean we did not mean to do it. I hope nobody got too badly hurt. Oh, sorry if you did. Really, I mean it and we mean it. I think we were well intentioned but things just got a little out of control. We will definitely try to make sure this stuff NEVER happens again…no, really. This time we definitely mean it. Will you still trust us? Please?”

Are you kidding me? Is “sorry” the best America gets for the ineptitude, incompetence, reckless and abusive behaviors of those on Wall Street and their regulatory overseers in Washington after driving our markets and economy over the cliff?

Who is issuing these meaningless mea culpas? (more…)

Sense on Cents Calls Out Jamie Dimon, Vikram Pandit, Brian Moynihan, Michael Carpenter, and John Stumpf

Posted by Larry Doyle on May 17th, 2011 9:30 AM |

(This commentary is a little lengthy, but not overly so. I strongly encourage you to read and ponder the details embedded here as I firmly believe America’s core principles of decency and justice are on the line. Let’s stand up for America!!)

What would be the outcry in America if a foreign government or corporation knowingly and willingly abused the personal finances of multiple tens of thousands of our fellow citizens? Imagine if that entity were a large Chinese national bank or a Russian financial conglomerate? What if it were a division of an organization involved in illicit activities or even worse?

Do you think the United States government would intervene very aggressively on behalf of our fellow brethren? Might the media be up in arms with headline stories on a daily basis? Would the personal assaults precipitate an international trade embargo or a discontinuation of diplomatic relations? Does this sound like the stuff of a Harrison Ford virtuoso performance? Even better, this must be the plot to the next James Bond thriller, right?  (more…)

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