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Have You Checked Your New Health Insurance Rates?

Posted by Larry Doyle on September 23rd, 2010 7:25 AM |

Our economy is experiencing disinflation and trending towards deflation, right? Well, it looks like the health insurance industry did not get that memo. If rates do go up, they can’t be more than a few percent, right? Wrong!!

Although this issue is not getting the attention it deserves, once again those footing the bills in our nation are getting bent over. In my home state, a recent story highlighted Health Insurers Seeking Rate Hikes of More Than 20 Per Cent in Connecticut:

Health insurers are asking for immediate rate hikes of more than 20 percent in Connecticut for some plans, citing rising medical costs and federal health reform laws as reasons.

Both issues — the new federal health care reform and rising medical costs — are significant drivers of the increases, according to filings by insurers with state regulators that were reviewed by The Courant. Read the rest »


Does Larry Summers Need a Break?

Posted by Larry Doyle on September 22nd, 2010 2:07 PM |

In light of the recently released news that Larry Summers will be leaving the White House National Economic Council later this year, I am compelled to ask whether Larry needs a break. What’s that you say? Break? What type of experience does Larry have with breaks? Great question. Glad you asked. Can we ever forget Larry’s performance in early 2009? Let’s rewind the tape as I highlighted, Not Again, Larry!!,

I wish I were joking, but Larry Summers, Director of the National Economic Council, has been caught yet again sleeping on the job. Today Summers was caught on camera taking 40 winks during a meeting with President Obama and credit card officials:

If you remember, Summers was caught nodding off during a fiscal sustainability summit held back in February at the White House. Read the rest »


What Is a ‘Walking Pneumonia’ Economy?

Posted by Larry Doyle on September 22nd, 2010 5:12 AM |

Almost three full years from the official start of The Great Recession and fifteen months from its end, and our economy continues to limp along and languish amidst the weight of ongoing — even unrecognized — debts. Can we take a double dose of Nyquil, chase it with some Irish Mist, and hope we wake up feeling better in the morning? If it were only that easy.

The simple fact is our economy is battling a serious bout of seemingly terminal ‘walking pneumonia.’ How might we diagnose that malady? All we need to do is read yesterday’s Release from the Federal Reserve:

Information received since the Federal Open Market Committee met in August indicates that the pace of recovery in output and employment has slowed in recent months. Read the rest »


“The Giant Elephant in The Room”

Posted by Larry Doyle on September 21st, 2010 12:02 PM |

What is holding back our economy? Why isn’t there more credit available in our banking system?

I have answered these questions numerous times over the last two years BUT many in Washington pretend not to know the answer and pander to their constituencies in the process. Regular readers of Sense on Cents are well aware that the books of our banks–especially our largest money center banks–remain chock-filled with loans that are being valued far in excess of what they are truly worth. Let’s navigate.   

I first addressed issues within the second mortgage and HELOC (home equity line of credit) space in Fall of 2008 (Sense on Cents/Second Mortgages). Here we are a full two years later and America still has not received a straight answer and a full accounting by the banks or their regulators as to this “sinkhole” on their books and in our economy. 

Let’s dive into this hole, get a little dirty, and again expose the issues within this sector. Read the rest »


“Beware of Pied Pipers Touting Quick Fixes”

Posted by Larry Doyle on September 21st, 2010 5:51 AM |

Although our elected officials in Washington and around our country typically have foresight that lasts no longer than 24 months (every other November that is), the simple fact is our economy runs in much longer cycles and has a much deeper foundation than that.

To that end, how does America reconcile an economy which is fundamentally broken while simultaneously electing officials who will not make promises that can’t be kept but promise sacrifices which must be borne? If these officials can get elected at all (a big “IF,” mind you!!), perhaps they can get America to read and appreciate the sharp mind of an economist such as the Sense on Cents All Star Kenneth Rogoff. Read the rest »


Jonathan Weil Reviews “The Truman Economy”

Posted by Larry Doyle on September 20th, 2010 7:13 AM |

What can we believe? Can we believe the economic reports put forth by our government? Can we believe the quarterly reports put forth by our financial institutions? Can we believe the price action in our markets? While “the market is the market,” has our country ever experienced a period in which there is such a massive disconnect between the real economy and what Uncle Sam has generated?

I am often reminded of the fabulous hit movie, The Truman Show, when thinking of our current economy and markets. How much of our economy is based on reality and what is merely staged? Bloomberg’s Jonathan Weil once again distinguishes himself in providing an “economic and market reality check” of our ‘Uncle Sam’ economy circa 2010. Weil writes, Zombie Banks Have Us Right Where They Want Us:

Two years after the collapse of Lehman Brothers and what rightfully should have been the death of American International Group, U.S. capital markets face a crucial question.

How long will it take before we see some semblance of robust free-market capitalism return, where the value of an asset is based on what bona fide market participants will pay for it, the cost to borrow money is based on a company’s fundamental financial strength rather than its ability to access a government safety net, and corporations are free to fail no matter what their size? Read the rest »


“Is There Anybody In There or Out There?”

Posted by Larry Doyle on September 19th, 2010 7:08 AM |

In light of the ongoing decline in equity volumes, I found a short piece in this weekend’s Wall Street Journal to be of special interest. Jonathan Cheng writes, Hello, Is There Anybody In There?

Are trading volumes ever coming back? With options expirations and index rebalancing on the agenda, today could be a decent one for trading volumes, which Peter Boockvar of Miller Tabak notes haven’t hit the 5 billion shares mark in  NYSE Composite volume since July 16. Mr. Boockvar cites “confusion” as the culprit, given all the economic uncertainties facing investors.

Rick Bensignor, chief market strategist at Execution Noble, however, chalks it up to something perhaps more fundamental: there aren’t many investors out there to begin with, which he says are likely to keep volumes anemic for the foreseeable future. Here’s his tally: Read the rest »


Darrel Issa Introduces Legislation to Restore FOIA at the SEC

Posted by Larry Doyle on September 18th, 2010 12:14 PM |

LD’s edit: Thank you to a Sense on Cents reader, Transparency, for informing us that Senate Judiciary Committee Approves Bill To Repeal SEC FOIA Exemptions.

Thanks to a loyal reader of Sense on Cents for sharing this press release put forth earlier this week. Not that the Republican Party does not have a LOT to answer for in terms of the final Financial Regulatory Reform, but at least on this front, I commend Darrell Issa (R-CA) for introducing this legislation.

Issa Introduces the SEC Freedom of Information Restoration Act

President Obama at Signing of Financial Reform Bill:  “It demands accountability and responsibility from everyone…It demands accountability and responsibility from everyone…And we all win when folks are rewarded based on how well they perform, not how well they evade accountability.” Read the rest »


POGO’s Angela Canterbury “Cross Examines” in re: SEC’s FOIA Exemptions

Posted by Larry Doyle on September 18th, 2010 11:33 AM |

Saturday morning in America and life is good.

Yesterday, I gave major props to our great American Gary Aguirre for addressing critically important issues embedded in the recently enacted Financial Regulatory Reform package which allows further FOIA (Freedom of Information Act) exemptions by the SEC. (Aguirre wrote a fabulous dissertation in the September Wall Street Lawyer, which I embedded in my commentary.) I qualified yesterday’s commentary, Great American Gary Aguirre “Cross Examines” in re: SEC’s FOIA Exemptions, as perhaps the most important and enlightening ever put forth at Sense on Cents. I truly believe that. Gary Aguirre is a great American.

He has company. Read the rest »


Great American Gary Aguirre “Cross Examines” in re: SEC’s FOIA Exemption

Posted by Larry Doyle on September 17th, 2010 8:03 AM |

I truly believe this could be the single most important and enlightening commentary ever put forth at Sense on Cents. Although it is a little lengthy and has some legalese, if you care about truth, transparency, and integrity in our nation, take the time to read and review. You will be better for it. I encourage you to share it with friends and colleagues.

Washington still does not get it.

I strongly believe the deeply embedded Wall Street-Washington incestuous relationship was central to the erosion of our economic foundation. While that incest must be extirpated if we are to regain our economic standing, we continue to suffer through “show trials” dealing with the critically important topic of pursuing transparency across our political and financial landscape. Regrettably, the media in general provides limited coverage to this ongoing pursuit. To that end, I welcome banging this drum and engaging those in our nation who will ask the hard questions and put forth aggressive propositions so real transparency can be achieved. Even if the pursuit comes up short, the effort and goals are beyond worthy. Let’s navigate.

Yesterday, the House Financial Services Committee chaired by Barney Frank held a hearing to address the SEC’s exemptions from Freedom of Information requests embedded in the Financial Regulatory Reform legislation. Congressman Frank rolled out the red carpet to SEC Chair Mary Schapiro. From the testimony, Frank offers: 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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