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“The SEC: Designed for Failure”

Posted by Larry Doyle on May 20th, 2010 4:08 PM |

Thank you to a loyal Sense on Cents reader for providing a recently released report by the U. S. House of Representatives Committee on Oversight and Government Reform entitled The SEC: Designed for Failure.

Much of what the American public has been fed about the SEC has been produced by the SEC itself. With all due respect to SEC Office of Inspector General David Kotz, who is widely respected, the other internal reports produced by the SEC have the stamp of career regulator Mary Schapiro. Regular readers of Sense on Cents know I have little regard for Mary.

This Congressional committee is led by Darrell Issa (R-CA). The report highlights that amongst the SEC’s issues, a lack of funding was not one of them. What else did the report find? What does it recommend?

Executive Summary Read the rest »


Charting the Dow

Posted by Larry Doyle on May 20th, 2010 2:44 PM |

While financial media and the financial industry tend to focus on the day to day, I believe we are far better served to look at the big picture and chart the major market averages over a longer time frame. To that end, what does a 3 year chart of the Dow tell us? Let’s navigate.

The Dow topped out at slightly over the 14000 level in the 4th quarter of 2007. We bottomed at approximately 6600 in March 2009. The Dow moved to a recent high of approximately 11,300 and is now trading at 10,200.

What do these numbers represent? Read the rest »


Coe Provides Sense on Cents

Posted by Larry Doyle on May 20th, 2010 10:32 AM |

In light of my initial commentary this morning, “Obama Political Pandering on AZ Immigration Law Represents Real Risk to U.S. Dollar,” I am compelled to further highlight this issue by drawing attention to a comment left by Coe, a loyal Sense on Cents reader. Coe writes:

The lines, LD, between politics and economics are now and forever blurred…I listened to some commentary from the AZ Governor, speaking directly to the “costs” associated with our politically/economically misguided immigration sensibilities and lack of border controls – simply staggering – community services, education, law & disorder, incarceration, health care, housing…and then factor in the hidden but very real costs of violence, drugs, prostitution, kidnapping..and all the rest of the story…I’m no expert on this topic, and believe in the intrinsic dignity of man, but when the President and his henchman pursue this path from the bully pulpit, it’s bad enough as political pandering, but it’s even worse in that they believe their own words…somebody always must be demonized on the home team in Obama’s version of leadership of “We the People” – if it’s not the bankers in financial matters, it’s the insurers in health care, it’s the Republicans on virtually everything, and it’s certainly this poor woman, Jan Brewer, the Governor of Arizona, who is only trying to do exactly what she was elected to do – represent the interests of the citizens of her state – all the legal citizens of her state that is…take a lesson, Mr. President!!!!

I commend Coe for further elevating this topic while embracing a wide array of the underlying issues. Our President and his administration would be wise to do the same. Coe has done all of us a real service and provided a wealth of sense on cents.

LD


Obama Political Pandering on AZ Immigration Law Represents Real Risk to U.S. Dollar

Posted by Larry Doyle on May 20th, 2010 6:41 AM |

Somebody in Washington might want to pull President Obama aside and inform him that he is the President of the “United States,” not the President of North America or the President of a future Mexican-American Federation. Putting pure party politics aside, when a leader of a nation openly and brazenly turns his back on that nation’s laws and its citizens, sovereign risk increases.

Sense on Cents is not a political site, but developments over the last few days warrant my remarks on how the Obama administration and Obama himself represent increased risk to the value of our dollar and our sovereign integrity. To what do I refer?   Read the rest »


Sense on Cents Repeats, ‘The Most Critical Economic Statistic’

Posted by Larry Doyle on May 19th, 2010 2:49 PM |

Economic progress? Green shoots (remember those)? Improving fundamentals? Stop it.

I remain an eternal and enthusiastic optimist, but I hold particular contempt for those in our media and our markets who will neither look for nor embrace the truth.

In my opinion, America has allowed itself to be numbed by those in Washington who put forth snapshots of economic data with little regard for the big picture. The financial media enables the Washington ‘facade’ under the guise ‘if we don’t highlight the truth, perhaps we can avoid it.’

Life does not work that way. Read the rest »


Volcker: American ‘Lack of Urgency’ Will Cripple Us

Posted by Larry Doyle on May 19th, 2010 11:30 AM |

Paul Volcker

We’re different, right? The economic problems in Greece and other nations within the EU are their problems and not ours. Really? In my opinion, Americans are far too complacent regarding our economic problems. We shouldn’t be.

Will the economic, political, and civil waves of unrest rolling across Europe come ashore here in America? It is only a matter of time unless those in Washington charged with addressing the underlying issues take swift action. I have seen zero inclination and political will to do just that. Our Washington elite are so used to feeding at the trough that they would not know how to pull themselves away. How is America responding to these fat pigs?

Read the rest »


Rogoff: EU Bailout Will Not Stop Defaults

Posted by Larry Doyle on May 19th, 2010 8:57 AM |

Kenneth Rogoff

Shock and awe? The trillion dollar bailout of the debt-ridden nations within the EU was supposed to backstop the Euro and put investors at ease. As of this juncture, the politicians and central bankers are likely the only individuals left shocked and awed.

Rather than writing checks and overpaying for debt, perhaps these politicos and their central banker friends should call on those who have studied global economic and financial crises. Like who? Harvard’s Kenneth Rogoff, who pointedly details that the very structure of the EU-bailout will be insufficient in forestalling defaults within the EU. Read the rest »


FINRA Investigates Thomas Weisel for ‘Stuffing’ ARS; Will SEC Investigate FINRA for Same?

Posted by Larry Doyle on May 18th, 2010 3:21 PM |

More evidence of the fraud surrounding auction-rate securities is exposed this morning in a story highlighting how Thomas Weisel Partners ‘stuffed’ $15.7 million of auction-rate securities into client accounts in order to raise cash to pay bonuses. The Wall Street Journal reports, Weisel Accused of ‘Stuffing’ Auction-Rate Securities:

Finance industry regulators have charged Thomas Weisel Partners and one of its former executives with improperly “stuffing” $15.7 million of auction-rate securities into client accounts in order to raise cash to pay bonuses. Read the rest »


Karen Fischer Petitions for FINRA Board Seat

Posted by Larry Doyle on May 18th, 2010 5:45 AM |

A democratic process requires fair, open, and robust interaction between and among elected individuals. That interaction will only occur if the individuals themselves are representative of a wide constituency. To that end, I am happy to post the following petition from Karen Z. Fischer, who is running for a seat on the FINRA Board of Governors. I am not endorsing Karen’s candidacy per se, but I am very much endorsing a process which will promote real transparency and integrity. To that end, I welcome sharing Ms. Fischer’s letter: Read the rest »


Michel Barnier and Michel Petite, Read Sense on Cents

Posted by Larry Doyle on May 17th, 2010 3:39 PM |

Does Michael Barnier, the European Union’s financial services commissioner, read Sense on Cents? If he doesn’t, he should. Why?

Today he touched upon an approach to dealing with credit derivatives which Sense on Cents made months ago. Bloomberg highlights, CDS Traders Face Disclosure Requirements in Europe,

Sovereign credit-default swap transactions face mandatory disclosure rules in the wake of the Greek debt crisis, the European Union’s financial services commissioner said today. 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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