Posted by Larry Doyle on February 22nd, 2012 6:28 AM |
This commentary provides a wealth of details and data along with some fabulous links. I firmly believe it covers the most important issues which will determine the future health and prosperity of our nation. It is a little lengthy, and for some perhaps overly sensitive—dare I say politically incorrect—but I hope you will take the time to read, review, and comment upon it. Thanks. LD
While there are plenty of pols in Washington and elsewhere who would like to paint a picture of a land divided along class lines, let’s not get distracted by those merely making noise to score political points.
Let’s dig a little deeper and determine who is not keeping up along our economic landscape . . . and why? (more…)
Posted by Larry Doyle on June 8th, 2010 12:15 PM |
Is Barack Obama listening to the political winds blowing across Europe? With European central bankers turning away from ongoing fiscal stimulus in an attempt to avert a sovereign currency crisis, political leaders in Europe are singing from the same sheet of music. If you don’t think so, let’s listen to the recently elected British Prime Minister David Cameron. What does Cameron have to say? The Financial Times sheds real insights into the future for the UK in writing, Cameron Warns on Impact of Cuts:
David Cameron, Britain’s prime minister, yesterday put the country on notice that his plan to cut the £156bn deficit would have “enormous implications”, warning that public sector pay, pensions and state benefits would all face cuts.
Mr Cameron’s new coalition government has prioritised deficit reduction and is preparing Britain for what is expected to be a bruising “emergency Budget” on June 22. The prime minister said the cuts would hit “every single person in our country”.
What does Barack think about that? (more…)
Posted by Larry Doyle on May 4th, 2010 12:45 PM |
Not that you would find it in any media outlets (believe me, I’ve looked for the last hour), but earlier today President Obama publicly acknowledged that American companies will be forced to take immediate charges to income from the recently enacted healthcare reform.
Recall that members of Congress railed on a number of corporate executives for highlighting these charges shortly after the legislation was passed. Rep. Henry Waxman initially called a special meeting to castigate the corporate executives, but then tucked his tail between his legs and cancelled that meeting when it became apparent that he did not truly understand the basic accounting principles necessitating these charges. (more…)
Posted by Larry Doyle on March 16th, 2010 3:32 PM |
Is the White House now in charge of both fiscal and monetary policy?
The Federal Reserve just released its March statement confirming no change in its monetary policy and little change in economic outlook. A brief overview of the Fed’s statement includes the following:
>> Maintains the Fed Funds range at 0-.25% for an extended period.
>> The quantitative easing program used to purchase $1.25 trillion in mortgage-backed securities and $125 billion in federal agency debt is nearing completion at the end of this month. The Fed will monitor economic conditions and employ policy tools as necessary to promote economic recovery and price stability.
>> Economic activity is generally improving. The overall pace of economic recovery is moderate. (more…)
Posted by Larry Doyle on January 21st, 2010 3:59 PM |
Earthquakes always lead to after-shocks.
With all due respect and sensitivity to the residents of Haiti, the earthquake felt in the Massachusetts Senate election on Tuesday has led to the after-shock dropped on Wall Street today by President Obama. Obama’s call to limit the size and risk-taking of Wall Street banks is meant to address the rage and anxiety of the American public. Any vision, however, will only be as effective as those commanders charged with its execution.
Who on Obama’s team will ultimately be in the position to execute this vision to reconstruct Wall Street? Tim Geithner, Ben Bernanke, Larry Summers, and Mary Schapiro. Each of these individuals is badly scarred as a result of the crisis that started on Wall Street and, in turn, crushed Main Street. (more…)
Posted by Larry Doyle on July 7th, 2009 1:50 PM |
Does the United States economy need a second Stimulus Package? Can we afford to do it? Can we afford not to do it? What happened to the first one? Why hasn’t that package seemed to have a greater impact?
So many questions and seemingly so few concrete answers. The White House itself is sending out mixed messages on this topic. Add it all up and there is little doubt the U.S. economy is “between Barack and a hard place,” and neither looks all that appealing.
From my standpoint, the reason why we are at this juncture is ultimately due to the fact that the government, media, and financial industry have not fully explained the basic structural changes at work in our economy currently. That structural change centers on the fact that our economy is adjusting from running on excessive debt to operating on real savings and cash flow generated by real earnings. That adjustment takes time.
Obama has largely painted himself into a corner in regard to the economy and another stimulus package. What is surrounding Barack and team?
> The Wall Street Journal reports House Majority Leader Hoyer Signals More Stimulus May Be Needed. Steny is not exactly going out on a limb here, while clearly trying to curry favor with his constituents back home.
> Bloomberg highlights that Obama Adviser Says U.S. Should Mull Second Stimulus:
The U.S. should consider drafting a second stimulus package focusing on infrastructure projects because the $787 billion approved in February was “a bit too small,” said Laura Tyson, an outside adviser to President Barack Obama.
The current plan “will have a positive effect, but the real economy is a sicker patient,” Tyson said in a speech in Singapore today.
> The other side of the stimulus coin has real White House representation in the persons of Austan Goolsbee and Joe Biden, as Bloomberg reports:
Tyson’s comments contrast with remarks made two days ago by Vice President Joe Biden and fellow Obama adviser Austan Goolsbee, who said it was premature to discuss crafting another stimulus because the current measures have yet to fully take effect.
While Barack is catching it from all sides within his own party, the talk of green shoots has significantly subsided. From my standpoint, it seems rather obvious that the following are true: (more…)
Posted by Larry Doyle on June 22nd, 2009 2:31 PM |
When a homeowner goes out without locking his doors and leaving some lights on, he is inviting trouble.
In a similar fashion, the American public should prepare itself for a continued plundering of the portfolios and balance sheets of Freddie Mac and Fannie Mae by our leading housing finance gurus, Barack Obama and Barney Frank.
The scene is already set for our dynamic duo to pile an ever increasing amount of risk onto these “wards of the state.” How so?
1. While Freddie and Fannie are very much the responsibility of Uncle Sam, their balance sheets are not technically on Uncle Sam’s roll. That ‘cover’ provides a convenient disguise, but the fact is these ‘foster children’ are now nothing more than receptacles for more of Uncle Sam’s risky undertakings.
2. Neither the media nor the political opposition truly call them on these financial charades.
We learn today that both Barack and Barney have grand visions to add more high risk loans at mispriced rates onto Freddie and Fannie’s books. The Wall Street Journal offers, Changes Urged to Rules on Condo Loans:
Two Democratic lawmakers are calling on Fannie Mae and Freddie Mac to relax recently tightened standards for mortgages on new condominiums, saying they could threaten the viability of some developments and slow the housing-market recovery.
In March, Fannie Mae said it would no longer guarantee mortgages on condos in buildings where fewer than 70% of the units have been sold, up from 51%. Fannie Mae also won’t purchase mortgages in buildings where 15% of owners are delinquent on condo association dues or where one owner has more than 10% of units, which the firm sees as signals that a building could run into financial trouble. Freddie Mac will implement similar policies next month.
In a letter to the chief executives of Fannie and Freddie, Reps. Barney Frank, the Massachusetts Democrat who is chairman of the House Financial Services Committee, and Anthony Weiner (D., N.Y.) warned that the 70% sales threshold “may be too onerous” and could lead condo buyers to shun new developments. The legislators asked the companies to “make appropriate adjustments” to their underwriting standards for condos.
What does Barney Frank truly know about housing finance? This assessment is an elongated statement similar in style to Frank’s now famous approach to sub-prime lending back in September, 2003. Barney proposed, “I want to roll the dice.” America crapped out on that roll. Now in the height of hypocrisy, Barney is still providing insights and recommendations on mortgage topics. What’s wrong with this picture? (more…)