Sense on Cents

Without Freedom of Information, Who Will Keep the Regulators Honest?

Posted by Larry Doyle on September 16th, 2010 7:36 AM |

Information is everything.

Without access to information, how can we ever learn the full and true stories currently buried beneath our financial and economic landscape? Unearthing information through every means possible is a tedious — but necessary — pursuit if we are ever to learn our mistakes and failings of the past so that we can improve our economic standing in the future.

While those in Washington would maintain that they are charged with unearthing this information, there is little doubt that the American populace at large has little confidence in the rigor of that pursuit. The greatest of Jesuit principles instilled in me from my days at Holy Cross is the ‘never ending pursuit of the truth.’ That pursuit brings us today to a story which has received significant coverage here at Sense on Cents, but not nearly enough coverage elsewhere. Let’s navigate as The Wall Street Journal writes, SEC Looks to Allay Fears on FOIA Limits: Read the rest »

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Skin in the Game

Posted by Larry Doyle on September 15th, 2010 2:16 PM |

I will never forget the mental and emotional sensation of purchasing my first real asset. That holding, a co-operative apartment in Brooklyn, New York was where I began my married life and started my family. I am not writing this to reminisce about life back in the mid-’80s, but rather because those memories came back to me as I read an article in this morning’s Wall Street Journal entitled, Obstacle to Deficit Cutting: A Nation on Entitlements:

Efforts to tame America’s ballooning budget deficit could soon confront a daunting reality: Nearly half of all Americans live in a household in which someone receives government benefits, more than at any time in history.

I have zero problem with people receiving benefits. To the extent that people have earned the benefits, let’s make sure that we take care of our elderly and ill. I am happy to be the first in line to make these payments.

At the same time, the fraction of American households not paying federal income taxes has also grown—to an estimated 45% in 2010, from 39% five years ago, according to the Tax Policy Center, a nonpartisan research organization.

This factoid, though, leaves me with an entirely different feeling. Read the rest »

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America Wants to Throw The Bums Out

Posted by Larry Doyle on September 15th, 2010 7:00 AM |

With the most important elections in our lifetime — since the last election at least — less than 8 weeks away, the pulse of the country is clearly beating and sending a strong message. What is the tone of that message? Americans are increasingly sickened by the standard ‘business as usual’ politics and are getting ready to ‘throw the bums out.’

In light of the disasters that have played out on our political and economic landscapes, can you blame America at this juncture for harboring these feelings? If you have any appreciation for ‘sense on cents,’ America’s voice is resonating with a message that newcomers certainly can not be any worse than the stale crowd and establishment politics promoted by party machines. Read the rest »

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Lots of Laughs and ‘Sense on Cents’ With New York’s Bravest

Posted by Larry Doyle on September 14th, 2010 7:25 AM |

How often do we not remember what we did last week, while never forgetting the jokes told and the 3-putt greens in the midst of friends at a charitable golf outing? I was fortunate yesterday to play in a local charity golf outing with some of New York’s Bravest. While the funds raised were not for the benefit of the NYFD itself, the fact that I was able to spend time in their company was awesome. Reminiscing about past golf outings while simultaneously making new memories which we can share in the coming years was spectacular.

As has happened in the past, and given that this outing occurs shortly after 9-11, our conversation included recollections of that fateful day. The depth of their feelings and memories of so many lost friends and fallen comrades are truly palpable. May we never forget. I am not writing today to rekindle those memories, but I do feel compelled to pay respect to all those members of the NYFD and NYPD who made the ultimate sacrifice that day.

While the best memories from a day like yesterday are from the interaction with The Bravest, other members of our respective groups are also top shelf and actively involved in the markets. While there is plenty that occurs on a golf course that is best left on the golf course, in the midst of lost balls and missed putts, there were plenty of comments and opinions on our markets and economy. While I lost my share of golf balls, I picked up plenty of insights including: Read the rest »

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SEC Probe of Money Managers Should Also Include FINRA

Posted by Larry Doyle on September 13th, 2010 10:11 AM |

In reading a Bloomberg commentary this morning, I could not help but think that policy implementations the SEC would like to impose upon money managers also need to be imposed in retrospect upon its regulatory kin at the Financial Industry Regulatory Authority (FINRA). Let’s navigate. Bloomberg writes, SEC Probes Money Managers for Conflicts in Choosing Hedge Funds:

The U.S. Securities and Exchange Commission, stepping up its oversight of investment advisers, is examining whether asset managers that channel money to hedge funds are acting in investors’ best interest.

The agency asked money managers for information about their “due diligence” in selecting alternative investments such as hedge funds, private equity and venture-capital funds, according to a letter from the SEC’s Office of Compliance Inspections and Examinations obtained by Bloomberg News.

Longtime readers of Sense on Cents are well aware that in my reading and review of FINRA’s 2007 Annual Report (embedded in this link), I asked for information and disclosures regarding FINRA’s own internal investment portfolio. Read the rest »

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Book Review: Ruthless by Phil Trupp Is Informative, Inspirational and a MUST READ

Posted by Larry Doyle on September 12th, 2010 11:24 AM |

From despair may come opportunity but, as Phil Trupp’s Ruthless so cogently details, from despair can also come real inspiration.

The trying times that have resulted from our economic crisis have generated the opportunity for many analysts, bloggers, authors, and publishers to produce works which would help people truly understand the fundamentals of our economic crisis and how they developed. All too often, I have seen these works try to go inside Wall Street and disect the inner workings of our financial architecture. Regrettably, all too often, these works merely look to expose or excoriate those within our financial industry while they do not truly educate investors and American citizens at large. While some of the works are somewhat enlightening, I had yet to read or witness a body of work that connects the massive failings on Wall Street to the personal lives of those on Main Street. Until now. Read the rest »

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Will Chris Christie Be a Future President?

Posted by Larry Doyle on September 11th, 2010 6:17 AM |

Say what you want about New Jersey Governor Chris Christie’s politics, but how can you not like this guy’s style? Juxtapose Christie’s blunt, direct, no nonsense style with the standard political backstroke provided by an overwhelming number of our pols from both sides of the aisle. I find Christie very refreshing. I also believe he provides a wealth of ‘sense on cents’ during a period when our nation is screaming for exactly that. This 9-minute video clip of an engagement Christie had on September 8th should be required viewing for everybody in our nation. Are we looking at a future President?

Thoughts, comments, constructive criticisms always encouraged and appreciated.

Larry Doyle

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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.

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Is Barack Becoming a Lameduck?

Posted by Larry Doyle on September 10th, 2010 8:40 AM |

To know my Dad is to love him.

He wears his heart on his sleeve and is not hesitant to let you know exactly where he stands on the issues of the day. That said, what are his passions? His family above all else. His faith. He has no problem critiquing our Roman Catholic hierarchy while practicing his faith and allegiance to the principles of Christ. Irish history. To hear him talk about the brutal treatment of the Irish at the hands of the English is a lesson worth learning. Red Sox baseball. I will admit my Dad is a fatalist when it comes to our Olde Towne Team but I got my wish that the Sox win a World Series before my Dad passed. The fact that they won twice, 2004 and 2007, is pure gravy. His golf game. Listening to him critique his short game is priceless. Another great passion is politics.

My Dad and his family grew up out of the Depression and political power was everything to the Boston Irish. Gaining control of City Hall provided access to jobs and a path to a better life. While I have my own passions, I do not share my Dad’s passion for politics. Why? As with almost everything in life, politics is about the people. While clearly our political process and political systems are critically important to our current and future well-being, I have little regard for the political crowds in general. Why do I raise this topic? We need look no farther than the state of our nation as we enter the fall 2010 election cycle. Are our national interests truly being served? Let’s navigate further. Read the rest »

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Raymond James Auction-Rate Losing Streak Continues

Posted by Larry Doyle on September 9th, 2010 6:20 AM |

Oh, to be a fly on the wall at Raymond James.

I can only imagine the wailing and gnashing of teeth by Raymond James managers as the firm loses another auction-rate securities ruling. Do you think Ray Jay’s managers are privately cursing out their own legal teams and the judges handing down some recent rulings against the firm? Major developments are breaking in the world of auction-rate securities, and the actions center on Raymond James. Let’s revisit a story I highlighted in late August. Read the rest »

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Have Americans Moved From Outrage to Resignation?

Posted by Larry Doyle on September 8th, 2010 6:09 AM |

The human spirit is not physically or emotionally able to maintain a heightened sense of acuity for an extended stretch. Although periods of stress or pain will cause sharp responses, eventually the human body is forced to accept the pain and learns to mask it. In the midst of our current economic crisis, I believe this distinct reality is setting in across our land. Let’s rewind the tape and review the developments which emanated on Wall Street and then plundered Main Street.

Fall 2008 brought us absolute shock, awe, and disbelief as the markets careened lower and the economy suffered a ‘heart attack.’

Throughout 2009, the shock wears off and America’s rage burns as people become fully aware that the banks, our regulators, and ultimately our government all failed us. While there are those on both sides of the aisle who would malign the opposition, the fact is both Democrats and Republicans are guilty of not properly defending the American citizenry against the plundering of our financial system. I captured this sense of rage in two specific commentaries: Read the rest »

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