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Navigate Accordingly Until Sense on Cents Returns

Posted by Larry Doyle on August 16, 2011 10:20 AM |

With a number of items on my calendar over the next few weeks, I am taking a sabbatical from Sense on Cents for the balance of the month.

While I may not be providing regular commentary, I hope you may want to avail yourself of some of the fabulous resources which I have collated here.

These links are integral to our efforts to help people ‘navigate the economic landscape’. The links include the following:

1. Career Planning

2. Appearances on Fox and CNBC discussing FINRA, Goldman Sachs, and insider trading.

3. For those with a little extra time, peruse our Sense on Cents library of radio interviews.

4. Go into our Reading Room and find one of my favorite reads.

5. Navigate through any of our Economic All-Stars highlighted in the left hand sidebar. If you care more to dig into stories not typically covered in the mainstream media, please check out our Sense on Cents Watchdogs located in the right hand sidebar. For those looking to move further up the learning curve, please avail yourself of the Financial Primers also located in the right hand sidebar.

I look forward to catching up with you shortly after the turn of the month. Until then and in light of the ongoing turmoil and volatility in our economy and markets, dare I say, NAVIGATE ACCORDINGLY while you embrace and spread the ‘sense on cents‘.

Thanks for your ongoing support.

Larry Doyle

Isn’t it time to  subscribe to all my work via e-mail, an RSS 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.

  • Always Learning

    We will miss your posts, LD. Hope you’ll be doing something fun. Maybe a quick post every now and then?

    • LD

      I wish. I have a host of business meetings along with some previously scheduled appointments. Lots of running around but I would not necessarily define it as “fun”.

  • Cate

    We will indeed miss your posts and will be patiently awaiting your speedy return. I’ve been wanting to delve more into the rest of your site so will be doing that until you’re back.

    Thanks for all you do! Be safe.

  • fred

    Here’s my stress test.

    For any mortgage that is not current, valuation should be set at 10 cents on the dollar. Capital should be adjusted accordingly.

    I just don’t buy the argument that U.S. banks are a buy because they’re selling at book vale.

  • fred

    Move it or lose it.

    The debt crisis we are going through has resulted in a transfer of cash from consumers and the gov’t to the financials and industry. The financials and industry are now hoarding the cash rather than investing it.

    The reason the financials are hoarding is because book value is grossly overstated on a mark to market basis and they don’t want to find themselves “under-reserved”. Industry has been able to hoard cash because of cost saving due to artificially low interest rates and employment cuts. Both financials and industry are hesitant to spend and invest because of weak final demand.

    The gov’t needs to “encourage” both financials and industry to move the cash, ie. writeoffs, loans, dividends, capex, or lose the cash through the mechanism of taxation. If the cash moves back to gov’t and ultimately the consumer through entitlement programs, the deficit could be managed lower, consumer spending stimulated and vital infrastructure repaired and replaced.

    Less than 15% of homeowner insurance policies cover damage from hurricanes and floods. I thought the primary reason to carry insurance was to provide for damages due to random catastrophic events. What a scam!

    • fred

      The gov’t just announced an alternative mechanism to shake down the financials, lawsuits. I quess a one time non recurring writeoff is preferred over increased tax payments.

      Final demand, how do we stimulate it? How about trying something new, let’s let prices go down.

      Do you hear me Ben? Maybe deflation isn’t the boogie man you make it out to be.

      Industry had the opportunity to support profits at a reasonable level and retain employees when rates were reduced but instead they opted to maximized profits by maintaining prices at inflated levels and reduce headcount.

      Econ 101. Total revenue is a function of prices paid and units sold. We can stimulate final demand by selling more at lower prices, maybe we could even compete globally without the help of a weak $US.

      Did you see how quickly foreclosed properties sold at below market prices in Florida, California and Nevada?

  • TeakWoodKite

    LD, Where was that wonderful photo taken? What a neat image.

  • Mari Zipkin

    Hi Larry,
    Any thoughts on Jefferson County, Alabama’s
    Chapter 9 bankruptcy filing last week? I notice
    on the list of creditors of the official filing
    that JP Morgan Chase is at the top, but small
    companies who bought those ARS sewer warrants
    from them are not listed as creditors? Why?

  • LD


    This has been one of my GREAT concerns from the very first time that I started writing about the ARS scam/debacle back in early 2009.

    I am VERY concerned that those who were holding Jefferson County ARS and have not yet been made whole may now be holding bonds in default. I am concerned if there will be any sort of meaningful recovery.

    I have not yet seen any developments on this angle but would appreciate if anybody with info may share it here.

    • LD

      In speaking today with an individual involved in the ARS market, he informed me that Jefferson County ARS had been trading at 70 cents on the dollar. With news of this bankruptcy, the ARS are now trading at approximately 60 cents on the dollar.

      Those holding the bonds are creditors and will have to see how the bankruptcy plays out. I do not think it is likely that investors will receive their full principal back.

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