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HomeA Chance to Expose the Wall Street-Washington Incest
Posted by Larry Doyle on June 7th, 2011 6:55 AM |
Truth, transparency, and integrity.
The compromising of these virtues may be the cost of doing business in our nation but make no mistake the price we collectively pay is enormous. Whether in Washington or on Wall Street, the ability to compromise our prized virtues has truly been raised to an art form.
From derivative transactions which disguise unprecedented levels of risk to bond indentures which require advanced legal degrees to interpret, our ‘friends’ on Wall Street with assistance from ‘their’ friends in Washington have displayed little regard for the aforementioned virtues which are the foundation for real ‘sense on cents’.
More often than not,though,the violation of our virtues is viewed in an impersonal light. Wall Street and Washington are behemoths. The American public and investors at large are faceless. In my opinion, our financial services industry and government would just as soon keep it this way.
Let’s challenge them. (more…)
The Unknown Costs of Saving the Auto Industry
Posted by Larry Doyle on June 6th, 2011 7:41 AM |
This past Friday’s unemployment report was beyond disappointing. With non-farm payrolls increasing by a token 54,000 and the prior month’s report indicating a downward revision of 12,000 our ‘walking pneumonia’ economy continues to languish under the weight of excessive debts and grave uncertainties. What is an administration to do when faced with such a challenge? Spin, baby, spin.
Where do I witness this spin cycle working in overdrive? The Obama administration’s touting of success in saving our automotive industry. There is little doubt that the Obama team will be ‘driving’ this ‘saving’ of the automotive industry hard as part of his 2012 reelection platform. (more…)
California’s $100,000 Club’s Explosive Growth
Posted by Larry Doyle on June 2nd, 2011 8:15 AM |
While many clubs in our nation continue to suffer from declining membership rolls, there is one “club” experiencing explosive growth. What makes the entrance into this club so special is the ability of the members to curry favor with those controlling the purse strings. Smell a little funny? Just a little? See the real entrance into this club is effectively a circuitous system of ‘payoffs’ and ‘kickbacks’ with the ultimate costs borne by average American citizens.
What club is this? (more…)
Housing Double Dip Represents ‘Patient’ Opportunity
Posted by Larry Doyle on June 1st, 2011 9:30 AM |
While various and sundry soothsayers have been touting the relative merits of our housing market for the last few years, I did not have a constructive comment about housing until just six weeks ago when I wrote, Is It Getting Time To Buy a House?. Housing price data released yesterday confirmed that our nations’ housing market has, in fact, suffered a double dip.
Is my positive commentary on housing premature and akin to ‘catching a falling knife’? Why was I negative for so long? Why do I think the bottoming process will be prolonged? What do I see as a compelling reason why homeownership is becoming increasingly attractive? Let’s navigate.
1. Why was I negative for so long? (more…)
Larry Fink Calls for ‘Bailing Out’ European Banks
Posted by Larry Doyle on May 31st, 2011 7:43 AM |
Here we go again.
Who is going to pay for the massive embedded losses in the European sovereign credits of Greece, Portugal, and elsewhere? Will it be the bondholders, primarily the European banks, or will it be the European citizens and taxpayers?
While this European “can was kicked down the road” over the last few years, the market pressure is increasing on Greece primarily but other European sovereigns as well. What might happen in this ultimate game of “financial chicken”? Who and what will break first?
Well the “king of Wall Street”, Larry Fink, just stated on a Bloomberg interview that prior to any restructuring of sovereign credits occurring, the European banking system as a whole needs to be recapitalized and restructured. Fink actually stated that the European banks need what we here in America know as TARP (Troubled Asset Recovery Program). The TARP was in actuality nothing more than a massive bailout of the banks by the government. (more…)
I Will Be Reading ‘Reckless Endangerment’
Posted by Larry Doyle on May 26th, 2011 5:49 AM |
There are only a few books written on our financial crisis that I have felt compelled to read. I thoroughly enjoyed The Big Short by Michael Lewis. I strongly recommend 13 Bankers by Simon Johnson and James Kwak. Ruthless by Phil Trupp explores and exposes the largest scam on Wall Street, that is the auction-rate securities travesty, without parallel.
What is the next book I will be reading? After having listened to a Bloomberg Radio interview yesterday with The New York Times’ Gretchen Morgenson and Graham Fisher’s Josh Rosner, I will next be reading Reckless Endangerment.
I did not want the Bloomberg interview to end yesterday as Morgenson and Rosner were pulling no punches in naming names and exposing the stench of what I have defined as the Wall Street-Washington incest.
I have no doubt that America continues to suffer at the hands of so many intimately engaged in this incestuous activity. Will anything be done to expose and eradicate the incest? (more…)
President Obama, “Are You In?”
Posted by Larry Doyle on May 25th, 2011 7:57 AM |
Information is everything.
Regular readers of Sense on Cents are well aware of my having written that statement on many an occasion. Those on Wall Street who gain early access to critical information have a decided advantage. Those in Washington who gain the upper hand in controlling the flow of information are also at a decided advantage.
As these realities become ever more prevalent, Americans and people worldwide are working harder and digging deeper to attain unbridled access to information in order to determine the truth and promote transparency. With major media outlets often failing us in these pursuits, where do we turn for this information? The internet.
Against this backdrop, I am not surprised to see political powers in Washington accept and embrace the reality of the power of the information superhighway and put an ‘eye in the sky’ in order to monitor the traffic. To what do I allude? (more…)
Rep. Michael Grimm (R-NY) Inducted Into Sense on Cents Hall of Shame
Posted by Larry Doyle on May 24th, 2011 7:17 AM |
Do you ever wonder how certain individuals in Washington might be so tone deaf as to miss the din and the roar of the American public screaming for increased transparency in our financial markets? Might these individuals be doing the bidding of the financial industry in return for the payoff of political campaign contributions?
How else could we explain why any individual in our nation today would promote a policy which would stifle the pursuit of badly needed transparency and real integrity in our financial markets? (more…)
Increasing Pressure on DSK and the Euro-Zone
Posted by Larry Doyle on May 23rd, 2011 8:58 AM |
Despite areas of concern both here at home and around the world, most eyes remain fixated on developments within the Euro-zone at large and specifically on the case of former IMF head Dominique Strauss-Kahn.
The temperatures are rising on both the dethroned former international banker extraordinaire and the peripheral countries of the EU. Our market is opening sharply lower this morning on the heels of weakness in the EU. Let’s navigate.
People the world over want to know what really happened a week ago this past Saturday in the suite occupied by DSK at the Sofitel Hotel in New York City. (more…)
Real Evidence That ‘Hope Springs Eternal’
Posted by Larry Doyle on May 21st, 2011 6:23 AM |
The world did not end today. In fact, America begins today anew as a land steeped in greatness. What makes America great?
Plenty of things but wouldn’t you agree that at our core, the true greatness of America is founded upon our competitive spirit and sense of optimism? I strongly believe that.
That said, I fully acknowledge that our national spirit and optimistic outlook have taken real hits and have been undermined over the recent past. However, I wake this morning to a glorious sunshine here in Connecticut and real evidence that for our nation ‘hope springs eternal’.
Are you wondering where I see this evidence? Is it deeply embedded in a forward looking research piece on our economy? No, not there. How about indications of an economic rebound projected by the best analytical models? Nope, I do not see the evidence there either.
Then where you may ask do I see a fabulous example and real evidence that all of America can and should embrace that the indomitable American spirit lives and better days are ahead? Let’s look no further than what transpired just last evening. As reported by every credible media outlet this morning,
 |
 Chi. Cubs |
5 | Final |
 |
 Boston |
15 | |
|
 N.Y. Mets |
2 | Final |
|
 N.Y. Yankees |
1 | |
| EAST | W | L | PCT | GB | HOME | ROAD | RS | RA | DIFF | STRK | L10 |
| Tampa Bay | 25 | 20 | .556 | – | 11-13 | 14-7 | 191 | 168 | +23 | Lost 2 | 5-5 |
| Boston | 24 | 20 | .545 | .5 | 15-9 | 9-11 | 201 | 194 | +7 | Won 7 | 8-2 |
| NY Yankees | 23 | 20 | .535 | 1 | 13-12 | 10-8 | 219 | 179 | +40 | Lost 1 | 3-7 |
| Toronto | 22 | 22 | .500 | 2.5 | 10-10 | 12-12 | 199 | 189 | +10 | Lost 1 | 7-3 |
| Baltimore | 19 | 24 | .442 | 5 | 10-14 | 9-10 | 171 | 218 | -47 | Lost 4 | 5-5 |
With these developments just last evening, the Boston Red Sox, which had started the season with a 2-10 record, have now overtaken the Evil Empire, aka The New York Yankees, in the American League East standings. Yes, boys and girls, the world did not end today as many had projected and ‘hope springs eternal’.
Life is good and at least for today, all is well.
Enjoy the weekend and …GO SOX…or dare I say, GO SAWX!!
To add a nice twist on the legend that makes baseball a great part of our national spirit, check out the love along with the mutual disdain for the Yankees captured in this short clip:
Larry Doyle
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I have no affiliation or business interest with any entity referenced in this commentary. The opinions expressed are my own. I am a proponent of real transparency within our markets so that investor confidence and investor protection can be achieved.
