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HomeWall Street’s Kangaroo Court Receiving Increased Focus
Posted by Larry Doyle on July 12th, 2013 7:29 AM |
When disputes on Wall Street are adjudicated through a system of arbitration, the stacked deck against which investors — and Wall Street employees as well — are forced to contest can only be properly compared to a kangaroo court.
I am very pleased to see that the kangaroos are receiving a lot more attention lately. Recall that the SEC’s own commissioner Luis Aguilar recently called for an end to mandatory arbitration. In the following 8 minute clip presented by Investment News, we witness a few industry lap dogs repeating the party line as to why arbitration should be maintained. Heath Abshure, the Arkansas securities commissioner and current President of the North American Securities Administrators Association, presents a strong counter argument. (more…)
Newedge Market Manipulation: Joe Saluzzi Exposed This Years Ago
Posted by Larry Doyle on July 11th, 2013 7:51 AM |
I awake this morning and see a headline of a lead story on The Wall Street Journal jump out at me.
Brokerage Faces Record Fine
My interest is piqued. What might it be? I quickly peruse the commentary and see words and phrases used that should concern any investor and/or trader including: manipulate U.S. markets . . . risks to the financial system . . . damage investor confidence . . . considerable systemic risk to the marketplace.
I then read of a new word for front-running, that is, “spoofing” and how traders utilized wash trades,”in which a firm acts as buyer and seller in the same trade to distort market activity. The practice can create the illusion of heavy trading volume that lures firms that are tracking for such activity.” (more…)
GS, JPM, MS et al: No Longer Just Banks
Posted by Larry Doyle on July 10th, 2013 7:49 AM |
But how have the banks gotten bigger? It is not merely via the issuance of home mortgages, credit cards, corporate loans, and some derivatives transactions.
The new rent-seeking, market manipulating economy that is coming to define the American landscape is reflected in a host of other ways. Should we even call these institutions banks anymore? (more…)
Governments Lose Trust as Corruption Soars
Posted by Larry Doyle on July 9th, 2013 9:59 AM |
There is not much that shocks me these days. There is even less that causes me to raise my eyebrows.
Well, this morning I raised my eyebrows in reading a commentary that hits directly upon a theme known all too well by readers of my blog: a lack of transparency in government generating a whole lot of corruption and subsequently a pervasive lack of trust. Let’s navigate as CNNMoney provides “eyebrow rising” info.
Have you recently paid a bribe to a local politician, judge or police officer?
If so, you’re not alone. More than one in four people around the world have paid a bribe in the past year, according to a global survey conducted by Transparency International. (more…)
Sense on Cents Has Gone Fishin’
Posted by Larry Doyle on July 1st, 2013 6:48 AM |
I will return to navigating the economic landscape around these parts in a week or so.
I hope everybody who visits here will have the opportunity to take a bit of a break this week and enjoy the company of family and friends as our nation celebrates its 237th birthday.
As those now solidly in middle age have come to learn, age is just a number. On that note, while we celebrate this week what makes our young nation great, let us also thank those who fought for our nation’s liberty and freedom. In doing so, let us celebrate but let also resolve to continue the fight for true freedom and real liberty — in all its forms — so that we can pass these virtues and a great nation on to our children.
God Bless America.
LD
Pope Francis: No Patience for Corruption
Posted by Larry Doyle on June 28th, 2013 8:13 AM |
What defines a real leader?
In my opinion, a real leader is one who can inspire while uninhibitedly doing the right things. In other words, “talk the talk” and “walk the walk.”
Who might we put in the category of real leaders in our nation today? Regrettably, I think the list is very, very short. In fact, I am hard pressed to think of those individuals who would rise to the level of what I would deem real leadership. Maybe my bar is too high . . . or maybe not. (more…)
John Bogle’s Sense on Cents
Posted by Larry Doyle on June 27th, 2013 5:50 AM |
When it comes to investing, how does one get ahead?
Do not start from behind, that is, do not invest in funds or investments that come with a variety of fees, charges, loads, and assorted other excessive expenses. Think of it as the equivalent of not having to run extra laps in a race of any distance.
Who espouses this same basic principle of keeping costs down and other great investment practices? One of Wall Street’s legendary investors, John Bogle, who recently provided words of wisdom for both investors and advisors alike in a brief 90 second clip.
Thanks to Investment News for bringing us Bogles’s sense on cents. (more…)
Boston Fed Research Paper: The Key Variable for Monetary Policy Is . . .
Posted by Larry Doyle on June 26th, 2013 7:47 AM |
Are we supposed to really think that Ben Bernanke believes our economy — and especially our employment situation — is markedly improving?
If we were to gather our news from USA Today or similar outlets, I guess we could just think just that.
Let’s dig a little deeper.
What are many in and around the Federal Reserve likely reviewing in an attempt to gauge the real health of our employment situation? (more…)
Parking in Chicago: Two Minutes for Two Bits
Posted by Larry Doyle on June 25th, 2013 8:35 AM |
Do you ever get to the point when you think your life is one large windshield and every bird in the world has taken a liking to you?
Let’s take a break from trying to decipher the nuances and obfuscations in all too many statements emanating from the Federal Reserve system and focus on simple matters of everyday life.
To do just that, let’s navigate to the Windy City and the state of Illinois and revisit a chilling comment left here the other day by a regular reader: (more…)
What Market Forces Are Driving Long Rates Higher?
Posted by Larry Doyle on June 24th, 2013 8:05 AM |
With global markets currently palpitating in a fashion all too similar to those living on the Bowery and beginning a withdrawal program, I think it is overly simplistic to say that Bernanke’s remarks alone are forcing ‘everybody out of the pool.’
What are the underlying forces at work in causing such a sharp move higher in long term rates the last 7 weeks?
While the rate on the 2 yr Treasury has moved higher by a not insignificant .2% during this time frame, the 10 year rate has moved higher by close to a full percentage point. Let’s navigate . . . but before addressing the forces at work, how about a cautionary comment as a preface. (more…)
