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HomeLet’s Meet Mario Gabelli
Posted by Larry Doyle on April 8th, 2009 7:27 PM |
Mario Gabelli of GAMCO Investors is widely regarded as one of the top stock pickers in the business. His main fund was down only 1% over the last twelve months.
I have had the pleasure of meeting Mario a few times. Despite his enormous success, I definitely get the impression that Mario views himself as that young, aggressive guy fresh off the streets of the Bronx who still needs to earn his stripes everyday.
He shares some insights on a few specific companies in this video provided by WSJ’s MarketWatch.
For those interested in the markets, Mario is not one who takes kindly to “outperforming an index.” Mario hates to lose money under any circumstances.
LD
Bank Stress Tests: Major Sham??
Posted by Larry Doyle on April 8th, 2009 11:35 AM |
Why is it urban school dropout rates are 50%? Well, I am sure there would be as many reasons for that horrendous statistic as there are dropouts. The fact of the matter is, though, the state of urban education has promoted a phenomena known as “social promotion.” If students aren’t qualified to do the work, testing has been gamed, standards have been lowered, and corners have been cut. As a result, urban education at this stage is an unmitigated disaster. What does this have to do with the current state of our economy and the world of finance? I am glad you asked.
If banks, much like students, are not required to pass rigorous testing, then “social promotion” in finance will produce results not unlike those in education–underperformance and ultimately an inability to compete on the global stage.
Against that backdrop, I personally looked forward to the results of the Bank Stress Tests. Let’s finally get an honest assessment of the “students.” Let’s see how they have performed and let’s project to see how they will perform!!
As with any test, the results are only meaningful if the process and proctor have unquestioned integrity. The proctors for the Bank Stress Test are none other than Treasury Secretary Tim Geithner and Fed chair Ben Bernanke. Why is a testing authority of the magnitude of FDIC, led by Sheila Bair, not more involved in the process? Ms. Bair is the one individual in our country with the greatest level of interaction with and understanding of the student body, that being the banking industry as a whole and individual banks specifically. (more…)
IMF Issues Warning on Credit Losses
Posted by Larry Doyle on April 8th, 2009 7:11 AM |
Forecasted credit losses across the residential mortgage, commercial mortgage, consumer credit, and corporate credit markets have been widely estimated to triple – if not potentially quadruple – in certain sectors. What does that mean in terms of total dollars? The IMF sheds light on these losses in an article this morning in the Financial Times:
The International Monetary Fund is likely to raise its estimate of total credit losses on US assets from $2,200bn to about $2,800bn when it releases its Global Financial Stability report later this month
Those figures equate to an increase of 27% in losses and a total figure of $2.8 trillion, which equates to 20% of GDP!!! Is there any wonder why credit is so constrained in the face of these impending losses? The IMF also sheds further light on these projected losses here in the U.S., as well as in Europe, and globally:
The new estimate, while up significantly from January, will almost certainly be lower than a $3,100bn (€2,350bn, £2,111bn) figure circulating on Tuesday, which contributed to pressure on US bank stocks.
The IMF is also expected to release for the first time an estimate of total losses on European assets, which is likely to exceed $1,000bn. The fund is likely to put total losses globally at slightly above $4,000bn, including some additional losses on Asian assets. (more…)
In 30 Minutes, Join NoQuarter Radio’s “Sense on Cents with Larry Doyle”
Posted by Larry Doyle on April 5th, 2009 7:30 PM |
Join me from 8:00 to 9:00 p.m. ET on NoQuarter Radio for Sense on Cents with Larry Doyle. These are truly historic times in the global economy. Let’s “navigate the economic landscape” without the pandering or nonsense found elsewhere! With the stock market near 12 year lows, what is driving the flows? What is truly going on in the economy? Where are markets headed? What came out of the G-20? What is happening in Washington and how is that impacting Wall Street? So much to cover.
Tonight I will be speaking with Phil Trupp, a journalist/author with more than 30 years of professional experience writing for several prestigious newspapers and magazines in the world. Over the years, his investigative reporting and columns have led to congressional hearings on coal mine safety, corruption in the trucking industry, poverty in America, environmental hazards, and global warming, among other controversial issues. Trupp’s financial journalism background includes a seven-year stint as Washington correspondent and assistant bureau chief for Fairchild Publications, and as a reporter at the Washington Evening Star.
Phil Trupp is currently writing MONEY ON ICE: How Ordinary Investors Beat the Biggest Fraud in Wall Street History. It is an exposure of the Auction Rate Securities scandal in which 146,000 investors have been bilked out of $336 billion.
The developments in the markets, economy, global finance, Wall Street, and Washington are occurring at breakneck speed. I will try to slow things down a bit and provide a sense of perspective. What did we learn in the markets over the last week and month and what do they mean for the weeks and months ahead? What is happening overseas and how does that impact us here at home? What is happening in the municipal sector and how will that impact the markets and our personal finances?
(more…)
It’s a Mad, Mad, Mad, Mad World!!
Posted by Larry Doyle on April 5th, 2009 3:30 PM |
It’s a mad, mad, mad, mad world.
While Bloomberg offers, Obama Urges New Efforts to Cut World’s Nuclear Arms,
Kim Jong-Il responds: The leader of North Korea Launches Rocket, Prompting Condemnation.
Meanwhile the Financial Times reports, U.S. May Cede to Iran’s Nuclear Ambitions. Accessing the Financial Times online is a subscription service, so just in case you can’t get to it I have included the article here in its entirety:
US officials are considering whether to accept Iran’s pursuit of uranium enrichment, which has been outlawed by the United Nations and remains at the heart of fears that Iran is seeking nuclear weapons capability.
As part of a policy review commissioned by President Barack Obama, diplomats are discussing whether the US will eventually have to accept Iran’s insistence on carrying out the process, which can produce both nuclear fuel and weapons- grade material.
“There’s a fundamental impasse between the western demand for no enrichment and the Iranian dem and to continue enrichment,” says Mark Fitzpat rick, a former state depart – ment expert now at the International Institute for Strategic Studies. “There’s no obvious compromise between those two positions.” (more…)
Tune in Sunday Evening to NoQuarter Radio’s Sense on Cents with Larry Doyle
Posted by Larry Doyle on April 5th, 2009 7:10 AM |
Please join us Sunday evening (tonight!) from 8-9 p.m. ET for NoQuarter Radio’s Sense on Cents with Larry Doyle. With the stock market near 12 year lows, what is driving 
the flows? What is truly going on in the economy? Where are markets headed? What came out of the G-20 Summit? How about the FASB’s easing of mark-to-market? So much to cover.
These are truly historic times in the global economy. Let’s “navigate the economic landscape” without the pandering or nonsense found elsewhere! What is on your mind? What would you like to address? Please share your questions and thoughts by calling in to (347) 677-0792, and also join our live chat room, which I’ll start up about 10 minutes before the show begins.
Tonight I will be speaking with Phil Trupp, a journalist/author with more than 30 years of professional experience writing for several prestigious newspapers and magazines in the world. Over the years, his investigative reporting and columns have led to congressional hearings on coal mine safety, corruption in the trucking industry, poverty in America, environmental hazards, and global warming, among other controversial issues. Trupp’s financial journalism background includes a seven-year stint as Washington correspondent and assistant bureau chief for Fairchild Publications, and as a reporter at the Washington Evening Star.
Phil Trupp is currently writing MONEY ON ICE: How Ordinary Investors Beat the Biggest Fraud in Wall Street History. It is an exposure of the Auction Rate Securities scandal in which 146,000 investors have been bilked out of $336 billion.
As a reminder, all NoQuarter Radio programming is archived and can be played back at any time. Just go to the NoQuarter Radio site and look for previous episodes. In addition, each program is available as a podcast on iTunes.
Many thanks to Larry Johnson and the rest of the team at NoQuarterUSA blog for providing such a vibrant vehicle as NoQuarter Radio. I look forward to having you join me Sunday evening as we collectively navigate the economic landscape!!
Tea Is Served
Posted by Larry Doyle on April 4th, 2009 4:45 PM |
I strongly believe Congress and the Obama administration know that the American public has no appetite for further government bailouts. This public demeanor presents a challenge for a government that has gotten used to writing big checks for Wall Street, the Stimulus, and automotive companies.
What is the federal government to do for municipalities, insurance companies, commercial real estate companies, or others who may go bankrupt?
Secretary Geithner has laid the groundwork for government takeover of institutions deemed to present systemic risk. How that power is effected or implemented will be very interesting. (more…)
