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Home“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…)
Oppenheimer: Do the Right Thing, Redeem Your Auction-Rate Securities
Posted by Larry Doyle on June 30th, 2010 5:14 PM |
Q: Which full-service brokerage firm has NOT redeemed their clients stuck in auction-rate securities for the past 28 months?
Goldman Sachs, Morgan Stanley, Citigroup, Wachovia, Bank of America, Oppenheimer, TD Ameritrade, Fidelity, Merrill Lynch, UBS?
A: Oppenheimer & Company is the only one of these institutions that has not redeemed their private clients’ Auction-Rate Securities that were fraudulently marketed as “just like cash.”
OPPENHEIMER: DO THE RIGHT THING!!!
Q: Which full-service brokerage firm has NOT redeemed their clients stuck in auction-rate securities for the past 28 months?
Goldman Sachs, Morgan Stanley, Citigroup, Wachovia, Bank of America, Oppenheimer, TD Ameritrade, Fidelity, Merrill Lynch, UBS?
A: Oppenheimer & Company is the only one of these institutions that has not redeemed their private clients’ Auction-Rate Securities that were fraudulently marketed as “just like cash.”
OPPENHEIMER: DO THE RIGHT THING!!!
On behalf of auction-rate securities investors everywhere, I am happy to run this ad here at Sense on Cents!! This specific ad was submitted by a group of Oppenheimer clients.
LD
Is Washington Looking Out for Small Investors?
Posted by Larry Doyle on June 30th, 2010 2:09 PM |
How often have we heard that the proposed Dodd-Frank financial regulatory reform package is supposed to look out for ordinary, everyday, small American investors. Well does it? Let’s check in with Sense on Cents Hall of Famer, Bloomberg’s Susan Antilla who highlights some glaring holes in the proposed reform package. Susan writes, Lobbyists’ Smell Clings to Bank Bill,
At 2,315 pages, the Dodd-Frank Conference Report of proposals to fix U.S. financial regulations isn’t the stuff of summer beach reading.
It is, though, a starting point to understanding just how messed up financial regulations had become by the time the economy all but collapsed in 2008. And it gives great hints as to how serious lawmakers are about helping everyday, mere mortal investors who don’t worry about life-and-death issues like whether they will pocket a gazillion dollars in bonuses. (more…)
Rick Davis Nailed 1st Qtr 2010 GDP Report on November 30, 2009
Posted by Larry Doyle on June 30th, 2010 9:41 AM |
How would you like to have the answers to a quarterly report before other participants have even thought that the activity is occurring, data is being compiled, analysis is being rendered, and the results are released? That would truly be awesome, wouldn’t it?
Can you imagine college students knowing the answers to their final exam before other students have even registered for the class? A doctor successfully making the diagnosis, while other doctors are waiting for the patient to arrive at the hospital? How about a weatherman pinpointing forecasts literally months in advance? Well, in my opinion, the work produced by Rick Davis of Consumer Metrics Institute is the economic equivalent of these seemingly miraculous calls. (more…)
SEC Settles with Great American Gary Aguirre, or Wall Street-Washington Incest Personified RECOMMENDED
Posted by Larry Doyle on June 29th, 2010 1:15 PM |
Thanks very much to a regular reader of Sense on Cents for sharing a fascinating story. The Government Accountability Project just released the following story regarding a significant settlement paid by the SEC to a former SEC attorney Gary Aguirre. This story highlights the Wall Street-Washington incest to the ‘nth’ degree. Will the media pick this story up and highlight it? They should.
With the details provided in this story, Gary Aguirre clearly shows himself to be a great American and as such earns immediate induction into the Sense on Cents Hall of Fame. The General Accountability Project reports SEC Settles with Aguirre:
In what may be the largest settlement of its kind, the Securities and Exchange Commission (SEC) has agreed to pay $755,000 to settle the wrongful termination claim of Gary J. Aguirre, the attorney who headed the SEC’s insider trading investigation of Pequot Capital Management until his firing in September 2005. (more…)
Asian Insights and Developments
Posted by Larry Doyle on June 29th, 2010 10:47 AM |
As markets are breaking down in America this morning, the waves of selling actually emanated in Asia. To that end, how do we get an unfiltered and unbiased perspective on economic and market related developments from that part of the world? Welcome to Sense on Cents.
A close personal relationship of mine works for Credit Suisse in China and provides the following commentary: (more…)
Senator Russ Feingold (D-WI) Rejects Financial Regulatory Reform
Posted by Larry Doyle on June 29th, 2010 8:28 AM |
America was assured by Washington’s political establishment that the financial regulatory reform package would prevent the need for another bailout of ‘too big to fail’ banks as occurred in 2008.
You didn’t believe them, did you?
Who stands up and has the courage to call out the Washington establishment on this charade? Senator Russ Feingold, Democrat of Wisconsin. Feingold writes:
“As I have indicated for some time now, my test for the financial regulatory reform bill is whether it will prevent another crisis. The conference committee’s proposal fails that test and for that reason I will not vote to advance it. (more…)
Another Canary in the Coal Mine
Posted by Larry Doyle on June 28th, 2010 3:30 PM |
Where do you see the economic crisis playing out in your daily lives?
A week ago, I referenced my surprise at the ability to buy outstanding seats at face value via an online broker to a weekend Boston Red Sox game vs. the Los Angeles Dodgers.
That commentary prompted an interesting message from a regular Sense on Cents reader with another interesting eyewitness ‘canary in the coal mine’ observation. This reader was returning home from a business trip to Brazil. He shared the following:
Coming home from the airport, driver points out that the cash toll lanes have become disproportionately jammed relative to EZ Pass. (more…)
