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Greece Facing “Titanic” Problem

Posted by Larry Doyle on February 16th, 2010 10:38 AM |

April 15, 1912. Early in the morning of this fateful day, the unsinkable Titanic went below the waters of the icy Atlantic and sank to its eventual berth on the ocean floor.

In the process of hitting the iceberg that dealt the Titanic its fateful blow, the air of invincibility surrounding this greatest of ships became an air of inevitability.

With all due respect to those who perished that cold night in those icy waters, are we witnessing a similar dynamic playing out on our global economic landscape for the once proud nation of Greece?

Were derivative transactions executed on behalf of Greece by Goldman Sachs mere band-aids covering massive holes in the hull of this once proud nation? No doubt. Read the rest »


Why Housing Will Remain Under Pressure

Posted by Larry Doyle on February 16th, 2010 6:56 AM |

I have maintained and continue to maintain that unless and until we see a measurable decline in mortgage delinquencies, we will not truly experience a measurable turn in the tide for housing overall.

In this same vein, new studies project that measures taken to aid delinquent borrowers and to stem the tide of foreclosures are nothing more than fingers in the dike. These measures are merely temporarily holding back a new and eventual wave of foreclosures.

The Wall Street Journal highlights these new studies this morning in writing, Foreclosures Seen Still Hitting Prices:

[HOUSING]

More waves of foreclosures will keep downward pressure on home prices in parts of the U.S. over the next several years, two new studies project.

The studies—by John Burns Real Estate Consulting Inc. and Standard & Poor’s Financial Services LLC—both conclude that most efforts to modify loans with easier terms will delay, not prevent, the loss of homes to foreclosure.

The Treasury Department is expected to give its latest update this week on government efforts to avert foreclosures. Read the rest »


Debt/GDP: Ring of Fire

Posted by Larry Doyle on February 15th, 2010 11:45 AM |

All eyes within the markets and on the global financial landscape are currently fixated on Greece. Will it default? Will the EU bail out this island nation? If so, at what cost and on what terms? What is at the core of Greece’s fiscal nightmare? Excessive debt. So, what else is new?

Do not think that the excessive debt within Greece is the only nation on our global financial landscape facing this problem. What other nations do we need to keep on our radar? Bloomberg addresses this question in writing, Carney Says Investors Signal Stimulus ‘Limits’ as Deficits Grow:

Alongside Greece, Pacific Investment Management Co. identifies the U.S., Italy, France, Japan and the U.K. as economies sitting in a “ring of fire.” Each has debt above 90 percent of gross domestic product or the potential for it to rise there soon, slowing economic growth, Pimco said.

Deutsche Bank AG this month warned that the increased cost of insuring against debt defaults by peripheral European nations may be a “dress rehearsal” for the U.S. and U.K. Credit- default swaps on Greece’s debt rose to a record this month.

Living beyond one’s means is no recipe for future economic prosperity. While politicians may talk about the need for fiscal discipline, talk is cheap. Pork piled upon pork wrapped in more pork has stolen our children’s future. Washington may not appreciate the ring of fire, but Main Street is engulfed in it.

As we navigate our global economic landscape, we now need to make sure we pack fire retardant clothing in addition to other protective materials.

What a world.

LD


Disenchanted FINRA Member Speaks Out

Posted by Larry Doyle on February 15th, 2010 7:53 AM |

In an attempt to draw further attention to the questions of serious ethical issues in and around Wall Street’s self-regulatory organization FINRA, I am highlighting a comment left at Sense on Cents the other day. While protecting the identity of this individual for obvious reasons, I can vouch for the fact that this person works for a FINRA member firm and was present during the road shows promoting the merger of the NASD and NYSE Regulation to form FINRA.

I commend this individual for speaking out. I second the call to fully investigate the FINRA executives involved in the very formation of this organization and then the manner in which it was run.

FINRA and its board need to be compelled to fully open the books and records of this organization and its predecessors. Only then might America learn the answers to the following questions:  Read the rest »


NQR’s Sense on Cents with Larry Doyle Welcomes POGO’s Michael Smallberg

Posted by Larry Doyle on February 14th, 2010 6:07 PM |

UPDATE: This episode of NQR’s Sense on Cents with Larry Doyle has concluded. You can listen to a recording of the episode in its entirety by clicking the play button on the audio player provided below. Once the audio begins, you can advance or rewind to any portion of the episode by clicking at any point along the play bar.

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Where can we find people who will pursue the truth, transparency and integrity our country so badly needs and for which our citizens are screaming? All too often our political leaders in Washington charged with pursuing these goals and protecting our interests are uninformed, misinformed, or a combination of the two.

The dollars paid by lobbyists serve to stifle these pursuits. The media is often beholden to industry more than to the American public.

Where can one go to find a determined pursuit of these aformentioned virtues? You have come to the right place as tonight at 8pm NQR’s Sense on Cents with Larry Doyle Welcomes Michael Smallberg from the Project on Government Oversight. What do we know about POGO? Read the rest »


FINRA Board to Form Committee to Review Claims of Schapiro Misconduct

Posted by Larry Doyle on February 14th, 2010 7:54 AM |

Sense on Cents is bumping this story back up from its original posting for a number of reasons, including:
1. the recent comment left by Disenchanted;
2. the fact that this evening NQR’s Sense on Cents with Larry Doyle Welcomes Michael Smallberg will address this topic; and
3. most importantly, this topic deserves as much attention as possible!!

Thanks. LD

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When in doubt, form a committee and have more meetings. This rope-a-dope style of leadership is all too prevalent in our nation. Why is it that the Wall Street-Washington incest can not be exposed for what it really is? When will somebody in our country display integrity and leadership while acknowledging the existence and stench of this incest? Read the rest »


Paul Volcker Talks ‘Sense on Cents’

Posted by Larry Doyle on February 13th, 2010 2:52 PM |

Paul Volcker

What will the future of Wall Street hold? No man is attracting more attention regarding that very question than former Fed Chair Paul Volcker. What might the Volcker Rule mean for Wall Street? For those with an interest in the global economy and markets, Volcker provided an extensive interview recently to the Financial Times.

In this interview, the former Fed chair talks more ‘sense on cents’ than anybody I have come across since launching this blog a year ago. I STRONGLY recommend reading it and saving it. Volcker’s interview will serve as a fabulous reference map as we collectively navigate our economic landscape.

Paul Volcker is seen as one of the wise men of American public life. As chairman of the Federal Reserve under Presidents Jimmy Carter and Ronald Reagan he subdued inflation, for which he is lauded today, although it was controversial at the time. After President Obama’s election, Mr Volcker was made chairman of the President’s Economic Recovery Advisory Board, a position which initially seemed largely ceremonial. But Mr Volcker returned to the centre of financial and economic debate last month when Mr Obama endorsed his proposed separation of commercial banking and proprietary trading, a plan dubbed the “Volcker Rule”. Read the rest »


Will Dimitrios Biller Spell Doomsday for Toyota?

Posted by Larry Doyle on February 13th, 2010 11:01 AM |

Toyota is currently fighting for its brand. Will it soon be fighting for its very life?

Who may hold the key to Toyota’s future? Let’s meet Dimitrios Biller.

Corporate Counsel’s Law.com reports, Sorry, They’re Staying in the Boxes: Ex-Toyota Lawyer Can’t Release Docs:

Woof! 2010 has been a real stinker of a year for Toyota Motor Sales USA Inc. Read the rest »


February 13, 2010: Market Week in Review

Posted by Larry Doyle on February 13th, 2010 8:12 AM |

Markets remain volatile and skittish. Why? Our global economy along with our domestic economy remain under the pressure of massive debts and deficits across the sovereign, corporate, and consumer spectrum.

Global governments can not prop economies and markets forever, try as they might. Can 2010 successfully transition from these total government supported and propped markets to a hoped for return to private enterprise with private capital? This week brought us more ups and downs in the markets as the economy overall searches for its footing. We remain a long way from being out of the woods. Pack lightly and lets navigate.

Welcome to our Sense on Cents Week in Review where I provide a streamlined recap of the major economic news and month-to-date market returns.   Read the rest »


FINRA Board to Form Committee to Review Claims of Schapiro Misconduct

Posted by Larry Doyle on February 12th, 2010 4:53 PM |

When in doubt, form a committee and have more meetings. This rope-a-dope style of leadership is all too prevalent in our nation. Why is it that the Wall Street-Washington incest can not be exposed for what it really is? When will somebody in our country display integrity and leadership while acknowledging the existence and stench of this incest?

Recall that the board of FINRA was meeting this past Wednesday to address allegations of misconduct by Mary Schapiro and other FINRA execs. Although the media has presented this meeting as merely addressing questions of excessive compensation for Ms. Schapiro and others, the allegations of misconduct made by attorneys for Amerivet Securities run far deeper than that.

These allegations address the following: 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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