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HomeSteady Decline Through 2060?
Posted by Larry Doyle on June 28th, 2010 1:12 PM |
What type of legacy are we leaving our kids? Will we leave them so burdened with overwhelming debts and deficits so as to strangle and choke off real opportunities? While Uncle Sam is able to play charades in an ever increasing and dramatic fashion, Sam’s smaller brethren at the state and local levels do not have those capabilities.
On that note, let’s look westward. I wrote in May 2009, “As California’s Economy Goes, So Goes the Country.” Along the same line, today we read from Bloomberg, States of Crisis for 46 Governments Facing Greek-Style Deficits:
Californians don’t see much evidence that the worst economic contraction since the Great Depression is coming to an end. (more…)
Paul Krugman Earns Immediate Induction into Sense on Cents Hall of Shame
Posted by Larry Doyle on June 28th, 2010 9:48 AM |
Paul Krugman today sends a serious shot across the bow of those who believe in fiscal prudence and real sense on cents. Krugman, a widely read and highly respected Princeton economist writes in The New York Times, The Third Depression:
Recessions are common; depressions are rare. As far as I can tell, there were only two eras in economic history that were widely described as “depressions” at the time: the years of deflation and instability that followed the Panic of 1873 and the years of mass unemployment that followed the financial crisis of 1929-31.
Neither the Long Depression of the 19th century nor the Great Depression of the 20th was an era of nonstop decline — on the contrary, both included periods when the economy grew. But these episodes of improvement were never enough to undo the damage from the initial slump, and were followed by relapses. (more…)
No Quarter Radio’s Sense on Cents with Larry Doyle: Last Call
Posted by Larry Doyle on June 25th, 2010 1:20 PM |
UPDATE: This episode of NQR’s Sense on Cents with Larry Doyle has concluded. You can listen to a recording of the episode in its entirety by clicking the play button on the audio player provided below. Once the audio begins, you can advance or rewind to any portion of the episode by clicking at any point along the play bar.
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“Last call, boys and girls!!”
In late November 2008, I proposed to Larry Johnson and friends at No Quarter the idea of my hosting an internet radio show. No Quarter Radio had a few shows running at that point, and I thought a show focused on the markets and economy might be well received. Larry was receptive and we booked a show for that Sunday evening.
Little did I know at the time, but the promo for that inaugural show indicated the show would run each and every Sunday evening. My jaw dropped and my heart raced. I wasn’t thinking about hosting a show each and every Sunday. I envisioned a “one and done” which may have led to a periodic show, but certainly not a weekly show.
Fast forward 19 months later and having had an extraordinary experience, the time has come for me to issue the “last call” and host my final Sunday evening show.
I have loved the show, and I hope listeners have enjoyed it as much as I. However, with some expected imminent changes in my professional life, time dictates that I give up the show for now. I am certainly not giving up my blog. I love Sense on Cents, as it has provided me a forum and mouthpiece I never could have imagined.
So, for one final time . . . please join me this Sunday evening from 8-9pm ET for No Quarter Radio’s Sense on Cents with Larry Doyle: Last Call, as I share the hour with my best guests, those being you the listeners and readers.
We will have fun. We will pull no punches. We can look back. We will look forward. Together, we will navigate the economic landscape.
Thanks again to Larry Johnson and No Quarter for providing the opportunity to host this show and all the shows over the last 19 months. Larry is the best. Feel free to join the conversation on Sunday by dialing 347-677-0792 or come into the always energized chatroom.
Thanks again for all the support!!
LD
Business Roundtable Takes Aim at White House and Congress
Posted by Larry Doyle on June 25th, 2010 6:50 AM |
If the business of America is supposed to be business, then the leading businessmen in America are increasingly concerned that Washington does not understand that concept. How so?
The Business Roundtable voiced these concerns loudly and clearly the other day. Barack and team, are you listening? In case you missed it, here you go:
BUSINESS ROUNDTABLE CHAIRMAN VOICES CONCERN ABOUT NEGATIVE EFFECTS OF CURRENT GOVERNMENT POLICIES, OUTLINES PLAN FOR GROWTH AND JOB CREATION
Concerned about the growing disconnect between Washington and business leaders, CEOs call for renewed partnership and commitment to fiscal discipline. (more…)
What Does George Soros Know About Glass Houses?
Posted by Larry Doyle on June 24th, 2010 11:07 AM |
“People in glass houses should not throw stones.”
On the outset of the G-20 to be held in Toronto, Tim Geithner and Larry Summers served up a pile of platitudes yesterday by writing in The Wall Street Journal, Our Agenda for the G-20. Meanwhile, they have their henchman George Soros pull out the bazooka and take direct aim at Germany today in writing in the Financial Times, Germany Must Reflect on the Unthinkable.
In reviewing Soros’ commentary, it is plainly evident that my Irish Catholic heritage does not hold the patent on laying the heavy guilt trip. Soros writes: (more…)
FDIC “Kicks the Can”
Posted by Larry Doyle on June 24th, 2010 9:31 AM |
How secure do you feel about your bank deposits? They are insured, right? Well, how secure would you feel about your health insurance if your provider was not collecting badly needed premiums?
I am not pulling any fire alarms, but a recent announcement from the FDIC in regard to its insurance premiums collected from depository institutions speaks volumes about the current state of our banking system and our overall economy.
Recall that the FDIC’s insurance fund was exhausted late last year (Sense on Cents commentary: FHA and FDIC Getting Ready to Ask Uncle Sam for a Bigger Allowance). To replenish its fund, the FDIC had banks prepay estimated assessments of $45 billion, and also imposed higher premiums to rebuild the fund.
While Wall Street banks were in a position to pay out approximately $140 billion in 2009 bonuses, we now learn that the banking system is not in a position to begin paying the higher premiums to the FDIC. (more…)
Housing Decline “Takes Your Breath Away”
Posted by Larry Doyle on June 23rd, 2010 2:03 PM |
I was initially reluctant to write about the decline in New Homes Sales reported this morning. Why? Despite all housing reports to the contrary, I have been consistent in remaining bearish on our housing market. I view this report as merely ‘old news’ here at Sense on Cents.
Oversupply, shadow inventories, and limited mortgage credit have merely been disguised by government props and interventions. Ultimately, those props and interventions wear out or expire and the days of cold, harsh reality set in.
Well, today got mighty cool and very real as New Homes Sales plunged by 33%. Am I surprised? No, I am not. Then why am I writing? (more…)
The Time Bomb of Global Government Debt and Deficits Is Ticking Louder
Posted by Larry Doyle on June 23rd, 2010 12:35 PM |
Living beyond one’s means is a path to long term pain. That path is not in front of us, but rather is upon our nation and many others around the world.
The cost of funding the global government debt and deficits will continue to serve as a drag on our economic future. While financial wizards may believe the debts can be postponed, the simple fact is in the midst of a sluggish economy, global governments will not generate sufficient tax revenues to fund spending programs and the deficits. What does this mean? Lessened spending, increased taxes, and assorted other measures of fiscal austerity.
The Financial Times provides a fabulous review on this topic today in writing, Public Finances: Daunted by Deficits: >>> (more…)
Jeff Gundlach Sees 10Yr Treasury Rallying to 2.5%
Posted by Larry Doyle on June 23rd, 2010 9:42 AM |
Jeff Gundlach
Jeff Gundlach, CEO and CIO of Doubleline Capital, is delivering the keynote speech today at the Morningstar Investment Conference in Chicago. For a sneak peek at some of the pearls of wisdom and sense on cents that Gundlach will likely deliver, let’s review a Morningstar commentary shared with us by a good friend, Gundlach: Debt is Still the Problem:
1. What does Gundlach think about the government stimulus and its immediate and long-term impact on our economy? (more…)
Joe Saluzzi: “The Man in the Arena”
Posted by Larry Doyle on June 24th, 2010 2:28 PM |
As a result of launching Sense on Cents, I have had the good fortune of developing quality relationships with a wide array of individuals across a wide swath of our economic landscape. One of those individuals I hold in especially high regard is Themis Trading’s Joe Saluzzi.
I have interviewed Joe twice on No Quarter Radio’s Sense on Cents with Larry Doyle (August 2, 2009 and then again on May 23, 2010). Joe is a breath of fresh air in that he ALWAYS tells it like it is. He provides total truth, transparency, and integrity at each and every turn. He has opened doors and shed sunlight on the destructive elements embedded in high frequency trading. He pulls no punches in offering an honest assessment of the markets and the economy. He is uniquely positioned to provide a wealth of sense on cents. Unlike many in the industry, Joe asks for no cover and provides none for those more inclined to operate in the dark corners and amidst the shadows on Wall Street. (more…)
Tags: Joe Saluzzi, Joe Saluzzi comments, Joe Saluzzi interview on Bloomberg June 24 2010, Joe Saluzzi outlook on markets and economy, No Quarter Radio, Sense on Cents with Larry Doyle, Teddy Roosevelt The Man in the Arena, the credit goes to the man actually in the arena, The Man in the Arena, Themis Trading
Posted in General, Joe Saluzzi | 2 Comments »