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HomeAuction Rate Securities Update: Raymond James Claims ‘Meritorious Defenses’
Posted by Larry Doyle on May 11th, 2011 9:14 AM |
Three plus years and counting and with little indication that a full blown settlement of the auction-rate securities nightmare is close to happening, the crowd at Raymond James asserts it has ‘meritorious defenses’ against making its clients whole.
Really? How interesting.
Does Raymond James hold a trump card that nobody else is even aware is in the deck? Why is it that Raymond James provides such bluster at this time? Is the heat rising in Ray Ja’s kitchen? Let’s navigate as Investment News yesterday highlighted, ARS Mess Could Cost Raymond James Up to $50 Million,
Raymond James Financial Inc. said today it could face a loss of $25 million to $50 million if it immediately has to buy back distressed auction-rate securities from clients. (more…)
When Will The European Union Collapse?
Posted by Larry Doyle on May 10th, 2011 8:36 AM |
2011? 2012? 2013? 2015? 2020?
Who is willing to make book that the European Union as we know it will no longer exist within any of the time frames highlighted above? You think I’m reaching? I don’t. Why? Let’s navigate.
The core principle of the Prisoner’s Dilemma promotes that individual economic entities will act in their own self interest at the expense of a collective interest. We witness this dilemma at work within many economic circles in the world today.
Why do individual economic units behave in such a fashion? Often a lack of trust and a true sense of partnership will compel one economic unit– be it a state, a nation, or a trade bloc– from fully cooperating and embracing its supposed partner. While this dilemma is causing real conflict and friction in many parts of the world today, I believe the dilemma is most troubling within the peripheral countries of EU. Why so? (more…)
“Fix Pensions and We Won’t Have to Fire Teachers”
Posted by Larry Doyle on May 9th, 2011 9:36 AM |
You do not need to read Sense on Cents to know that many of the states in our union are drowning amidst a sea of future pension obligations. While state treasurers and legislators are all too often inclined to play financial games and utilize smoke and mirrors to disguise the burden of these pension obligations, the absolute figures are so astronomical and will require a meaningful restructuring. Might that happen? Would public employees actually swallow a very real revaluation of their pension benefits?
Marcia Fritz, the head of the California Foundation for Fiscal Responsibility, is calling for her state to do just that. Ms. Fritz recently released a statement entitled, Fix Pensions and We Won’t Have to Fire Teachers,
California taxpayers would save billions of dollars that would flow to public schools, community colleges and universities if state and local public employees retired with benefits comparable to those provided to employees of Silicon Valley’s top companies. Teachers’ jobs would be saved and school programs spared. (more…)
Jammin’ with Recession Sessions
Posted by Larry Doyle on May 7th, 2011 9:06 AM |
For a little weekend Sense on Cents entertainment, I am happy to promote the youthful musical exuberance of Recession Sessions. This group of young artists utilizes their musical talents to comment on the issues which we address everyday while navigating the economic landscape.
Who are Recession Sessions?
Recession Sessions was born in 2008 out of the desire to capture the Great Recession in song. From early worries of stagflation, to the more recent implementation of a second round of quantitative easing, we tried to capture the major events of the crisis as they unfolded. Three years and several continents later, the album is finished, but is the crisis really over yet?
We believe that it takes an unusually creative and unique approach to make a difference. A portion of sales will be used to support the Somerville Homeless Coalition, which provides crucial services to individuals and families in Greater Boston.
Take a listen and enjoy the brief 2-minute trailer highlighting the story, work, and talent of Recession Sessions.
1….2…3…..hit it!
LD
May 6th Unemployment Report Review: Mixed Bag but Misses The Bigger Picture
Posted by Larry Doyle on May 6th, 2011 8:57 AM |
The highly anticipated May Unemployment Report was released this morning. How did it look and what does it mean for our ‘walking pneumonia’ economy?
We have some good news and we have some bad news; more importantly than the monthly snapshot, though, let’s step back and take a wide angle view of our overall employment situation. On that note, let’s navigate.
The Wall Street Journal highlights the following: (more…)
Consumers Shift to Online Shopping: What Does It Mean? How Do We Measure It?
Posted by Larry Doyle on May 5th, 2011 8:58 AM |
With gasoline prices running upwards of $4.00-4.50/gallon, we should not be surprised that consumers are changing behaviors. How so? Let’s go online. In fact that is exactly what more and more consumers are doing as the Financial Times highlights, High Petrol Prices Fuel Jump in Online Shopping,
Online shopping grew by its fastest rate in nearly four years in the US last month as rising fuel prices prompted Americans to cut trips to malls and buy on the internet instead, according to MasterCard Advisors.
US consumers spent $13.8bn online last month, a 19.2 per cent jump from April last year, according to the SpendingPulse survey, which is based on spending on MasterCard credit cards and estimates of other forms of payment.
The increase is likely to outpace sales growth at bricks-and-mortar stores, due to be released on Thursday. The consensus of economists’ forecasts is that sales at stores open a year or more rose 7.7 per cent in April.
While consumer behavior changes, are we supposed to blindly accept the traditional methods of capturing and measuring retail purchases? Why should we be so archaic in this day and age? Why should we be so trusting of entities which will “tell us what they think we need to hear” and sugarcoat it in the process. (more…)
UPDATE: Did Wall Street Violate the Racketeering Act?
Posted by Larry Doyle on May 4th, 2011 11:50 AM |
A month ago I questioned whether there was sufficient evidence of abusive and fraudulent practices in the mortgage business on Wall Street (underwriting, servicing, securitizations, etc) to make a case that the industry as a whole violated the Racketeering Act? I would not expect that our ‘leaders’ in Washington would ever think about making that case; that said, I think there is plenty of reason to believe that a very real case could be made.
What will we likely see? Perhaps a number of individual cases. We witness just such a situation today with news that the Department of Justice yesterday filed a lawsuit against Deutsche Bank for lying about the quality of loans made by a mortgage subsidiary of the German bank. (more…)
David Rosenberg’s Sense on Cents
Posted by Larry Doyle on May 4th, 2011 5:39 AM |
David Rosenberg is a Sense on Cents All-Star. While many do not agree with Rosenberg’s overall assessments of the economy and the markets, I have untold appreciation and respect for his thoughtful and astute analysis. He recently spoke at an investment conference. Robert Huebscher of Advisor Perspectives captured Rosenberg’s thoughts in his piece, My Breakfast with Dave.
For those with even a passing interest in the economy and markets, I strongly recommend even a cursory review of Rosenberg’s remarks as he offers keen insights on a variety of angles and impacts embedded in the ongoing inflation vs deflation debate. What does Dave see for commodities, housing, interest rates? Read on….a wealth of ‘sense on cents’ awaits you. (more…)
Brother, Can You Spare a Dime?
Posted by Larry Doyle on May 3rd, 2011 9:17 AM |
As we inch our way along the economic landscape we witness more comparisons to the economic malaise of The Great Depression. I take no pleasure in writing on these topics and of these comparisons but they are a simple and regrettably a largely unspoken reality.
You do not need to read Sense on Cents to be aware that our wages and incomes are not keeping pace with the cost of living. You do need to read economic blogs, though, because the reality of our income situation and the impact on real consumer spending habits is often left untouched by major media outlets.
Although Ben Bernanke would define the current inflationary and economic trends as transitory, perhaps he should try to explain that to the couple that is struggling to keep their head above water. Where do we see growing evidence of these struggles. Let’s dive inside The 9 Places Where Inflation Is Crushing Us to learn the following startling statistic…, (more…)
