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The Real Cost of Quantitative Easing

Posted by Larry Doyle on November 5th, 2010 9:49 AM |

Life is ultimately a matter of perspective.

Two people can look at a situation and see decidedly different things. Having been traveling for the better part of this week, I got home late last night to check on how markets closed yesterday. When I saw that equity markets rallied 2 per cent, commodities rose a like amount, and bonds also increased in value, I was not surprised but I was not thinking that I had reason to be cheerful either. I merely raised my eyebrows and went to bed knowing full well that to many people in our nation, these market movements would have little to no impact on their daily lives and immediate futures.

Am I being excessively pessimistic in my assessment? Read the rest »


Now What?

Posted by Larry Doyle on November 3rd, 2010 8:18 AM |

With the 2010 election results now in the books, what is next for the ‘wizards in Washington?’

Gearing Up For 2012

The country has spoken. Did those on Capitol Hill and at 1600 Pennsylvania Avenue listen?

The pursuit of truth, transparency, and integrity NEVER ends.

Larry Doyle

Please subscribe to all my work via e-mail, an RSS feed, on Twitter or Facebook.

I have no affiliation or business interest with any entity referenced in this commentary. As President of Greenwich Investment Management, an SEC regulated privately held registered investment adviser, I am merely a proponent of real transparency within our markets so that investor confidence and investor protection can be achieved.


What’s Driving Today’s Vote?

Posted by Larry Doyle on November 2nd, 2010 9:08 AM |

Will there soon be a run on U-Hauls in Washington DC?

Later this evening we will learn just how many incumbents in Washington are sent packing. In the process, we will assuredly hear from political pundits on both sides of the aisle as to what Americans are saying with their vote. In my opinion, we can dismiss the pundits and the politicians alike. While we are at it, we can throw a heap of cold water over the media as well. How so? Why’s this?

The simple fact is the rage coiling within the American populace has been developing for well over a year and today that rage will be released. The force multiplier of that rage will send a message to Washington and every corner of our great nation that Americans are beyond fed up with politics as usual and the crony capitalism that has flourished within that system. This rage is far different than anything I have ever witnessed in my lifetime. I highlighted it a year ago. While the reality of the rage was clearly evident in late 2009, our political representatives from both sides of the aisle did little to nothing to address it. Today they will pay the price for their lack of attention to the American public.

Let’s take a quick look back to the pulse of our nation in November 2009. Has that pulse remained the same? Read the rest »


“Retire Barney”; Sense on Cents Endorses Sean Bielat

Posted by Larry Doyle on October 30th, 2010 9:56 AM |

The Wall Street-Washington incest MUST end.

This coming Tuesday, America has a chance to ring that bell, expose that incest, cleanse the system, and deliver the message loud and clear. The peal of that bell must emanate from the 4th District in the state of Massachusetts.

You do not need to read Sense on Cents to appreciate that many politicians from both sides of the aisle have badly forsaken our nation’s future with misguided and ill-advised policies over the last few decades. Many of these politicians now look to save their skins– if not their souls– by professing a newly found religion with an anti-Wall Street mantel. America, and the residents of the 4th District in Massachusetts, should not be so easily hoodwinked. These politicians, especially Barney Frank, must be held accountable and sent home.

I implore the voters of the 4th District to think long and hard and appreciate that their longstanding elected representative Barney Frank embraced the people and the policies which continue to crush our nation. Which people? What policies? Those which were centered in America’s great financial sinkhole known as Fannie Mae then led by its former CEO Franklin Raines. During my own career on Wall Street, I witnessed Barney’s bear hug of Fannie and Franklin from up close. Do not forget Barney’s desire to ‘roll the dice’ with sub-prime mortgage financing.

Many media outlets will look the other way in holding Barney accountable; I have no interest in that. Read the rest »


What Will the Fed Do When QE2 Fails to Stimulate Economy?

Posted by Larry Doyle on October 29th, 2010 5:56 AM |

Here we are a full three years into our economic malaise, Uncle Sam has thrown everything and the kitchen sink at the economy yet we have little to no traction in terms of growth and momentum. Will another trillion dollars of liquidity do the trick? Well, while the Fed’s liquidity may move markets, will it move the economy? Don’t bet on it. The Fed and its brethren on Wall Street and in Washington are reluctant to truly level with the American people. How so?

Our nation is experiencing a serious structural change in our economy — not a mere ‘enormous downturn’ in the midst of the business cycle. If our central bankers and government officials were to emphasize this point, it may cause a sharper retrenchment in our current growth but it would likely lead to a quicker rebound. Before we get into why our bankers and their political cronies are reluctant to make this acknowledgement, let’s take the pulse of an array of venture capitalists, money managers, and others who provide the capital to a wide array of companies. What do these individuals think the economic impact of another round of quantitative easing might be? Read the rest »


Wally Cato Recommends Sense on Cents

Posted by Larry Doyle on October 28th, 2010 5:42 AM |

“Larry is our greatest writer on the economy.”

The Register, the official publication of the International Association of Registered Financial Consultants recently interviewed Forrest Wallace Cato. Who is ‘Wally’ Cato? Well, read on, as Wally is easily the most interesting individual with whom I have ever crossed paths. In fact, I would rate Wally Cato as perhaps one of the single most worldly, well versed, and well connected individuals of the modern era.

You don’t believe me? Read on.

I challenge you to match Wally’s life with that of almost anybody in the world today. Wally is conversant on an exceptionally wide array of topics. I am highlighting an interview with him in the most recent edition of The Register because he speaks at length on the state of financial planning in our nation today and he graciously has some nice things to say about yours truly and Sense on Cents.

What nice things? When Wally Cato was asked,

Who are some of your favorite famous friends? Read the rest »


The Height of Hypocrisy or Why America Should Be So Outraged

Posted by Larry Doyle on October 27th, 2010 8:26 AM |

Not that we needed any more reason to castigate those who have driven our economy and our nation into a ditch but the story I bring you this morning provides us just that.

I am well past the point of surprise in finding shock value in stories exposing financial charades. That said, I hope I never lose the feeling of complete and total indignation in shedding light on those involved in the charades and others who would provide cover for it. To wit, count me as extremely pissed off this Wednesday morning. CFO Magazine highlights the hypocrisy embedded in our political and financial system with its report, West Wing Accounting:

On Monday, conference attendees in New York were spectators to a simulated White House war room exercise. The object of the exercise wasn’t Iraq or Afghanistan, however, but the economy: specifically, a scenario in which presidential advisers had to consider the bailout of a U.S. state that was just two days away from defaulting on a $1.5 billion bond. Read the rest »


Is The Clock Getting ‘Close to Midnight’ for FHLB-Seattle?

Posted by Larry Doyle on October 26th, 2010 5:46 AM |

All financial accounting charades to the contrary, the reality of a decaying asset quality and insufficient capital position will cause any institution to quiver. With more banking institutions declaring bankruptcy each and every week, the clock has yet to strike twelve on any of our larger banking institutions. That said, the pressure is certainly mounting on a large west coast institution, that being the Federal Home Loan Bank of Seattle.

I first addressed issues within this specific institution 18 months ago when writing, Putting Perfume on a Pig. I highlighted at that time:

Who gets this? Charles Bowsher, who resigned just last week as chairman of the Federal Home Loan Banks Office of Finance. Bloomberg’s Jonathan Weil does yeoman work in profiling Mr. Bowsher and the joke that is FHLB accounting: Read the rest »


Ben Davies: Ex Scientia Pecuniae Libertas/Out of Knowledge of Money Comes Freedom

Posted by Larry Doyle on October 25th, 2010 8:47 AM |

I thoroughly appreciate those involved in the markets who also have an equal appreciation for history, languages, literature, and the arts and sciences. Rare is the individual who is able to intertwine their passions and fluent enough to share them with others.

I thank a loyal reader of Sense on Cents who brings us just such an individual, that being Ben Davies, CEO of London-based Hinde Capital. Davies spoke the other day to the Committee for Monetary Research and Education in New York. Although his remarks are extensive, I found them to be quite compelling and truly insightful. I commend Ben for his passion and well rounded perspectives. If you consider yourself a student of the markets, interested in our global economy, or merely a lover of topics well written, you will want to read and savor Ben’s thoughts. I am happy to share them here today.

Remarks by Ben Davies,
CEO, Hinde Capital, London
Fall Dinner Meeting
Committee for Monetary Research and Education
Union League Club, New York
Thursday, October 21, 2010 Read the rest »


A Good Man

Posted by Larry Doyle on October 23rd, 2010 8:34 AM |

Morning in America and life is truly good.

Despite the ongoing challenges facing our nation and our world, hope does spring eternal. Why do I touch upon this often overused yet underappreciated sense of being and way of life?

Since launching my blog in January 2009, I have received innumerable comments and personal e-mails from readers. I thank each and every person who takes the time to write and share sentiments on the wide array of topics I address. I write today of “A Good Man” because I wake up this morning having received a message overnight from a reader which truly touches me. I am compelled to share it with you. I would hope those who read it will in turn share it with others. Read the rest »


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Larry Doyle

Larry Doyle A Wall Street veteran's views and instincts on the markets, economy, and all things financial.







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