Sense on Cents

No Quarter Radio’s Sense on Cents with Larry Doyle Hall of Fame and Shame Induction

Posted by Larry Doyle on January 2nd, 2010 5:08 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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2009 was a year unlike any other in our recent history.

The developments in Washington, on Wall Street, and around the world were enormous in scope, dynamic in development, but yet unresolved in outcome. Who stood out? Which individuals deserve real praise? Who deserves real scorn? Who talked the talk? Who walked the walk? Who are our real statesmen? Who are phonies and fakers?

This Sunday evening, No Quarter Radio’s Sense on Cents with Larry Doyle looks forward to reviewing 2009 and inducting those people, policies, and programs rightfully deserving of entrance into the Sense on Cents Hall of Fame and Hall of Shame. For our newer readers and listeners, the show runs from 8-9pm ET and can be listened to LIVE via the BlogTalkRadio website.

I would never pretend to think that I can properly cover all of the prospective nominees, so please do not hesitate to submit thoughts and ideas for this show. While we will assuredly have a few laughs, the main point of the show tomorrow evening will be to give a voice and send a message that America is both listening more intently and acting more aggressively in forming our future.

I look forward to your participation in the show. Listen in, join the chat room, or call in at (347) 677-0792 with your questions and thoughts. Thanks in advance.

Comments (7)

2009 Market Review

Posted by Larry Doyle on January 2nd, 2010 11:34 AM |

Time.

More than any period of the last thirty years, I think it is imperative to view the global economy and market prospects with a longer time horizon. Those in Washington and on Wall Street have never displayed the discipline nor the inclination to truly take this approach. I strongly encourage those reading Sense on Cents to view your personal situation and that of our global economy and market with a longer time horizon. Why?

I personally believe our global economy remains in the relatively early stages of a significant fundamental shift. Recall that the shadow banking system provided 40-45% of the credit to our domestic economy. That shadow banking system remains a mere shadow of itself. Pardon the pun.

Try as he might, Uncle Sam can not fill that credit void forever. Credit demand and credit supply remain overwhelmed by the mountain of debts at the federal, municipal, and personal levels. The bad debt embedded in toxic assets on Wall Street also remains. While selected segments of our private market can and will grow, the economy as a whole remains constrained by the aforementioned debts. The price to service these debts (that is, the prevailing level of interest rates) will likely move higher.

Can we experience a confluence of higher interest rates along with a general decline in wages and prices, that is the core of deflation? That double whammy scares the hell out of Fed Chair Ben Bernanke. These questions and prospects will not be answered anytime real soon. They will take time.

What is an individual to do? Continue to pay down debt and be disciplined in maintaining a diversified investment portfolio. On that note, let’s look back at 2009 so we can most effectively look forward to 2010 and navigate the economic landscape.

The figures I provide are year-end 2009 relative to year-end 2008, and the returns for the year. Read the rest »

Comments (1)

January 1st Means College Football so “Let’s Go Bowling”

Posted by Larry Doyle on January 1st, 2010 11:12 AM |

January 1, 2010 . . .

New Year’s Day 2010 brings us hope and blessings for a healthy, happy, prosperous year. Before we get to that, though, New Year’s Day brings us college football so “let’s go bowling” and get our predictions out there for the major college bowl games today and over the next week. I do not study these games that closely, so I’ll merely try to pick the outright winner and disregard the point spread. I hope you will jump in and “go bowling” as well.

Outback Bowl, Northwestern vs Auburn: LD picks Auburn

Capital One Bowl, Penn State vs LSU: LD picks LSU

Gator Bowl, West Virginia vs Florida State: LD picks West Virginia

Rose Bowl, Ohio State vs Oregon: LD picks Oregon
(why is Citigroup still sponsoring this game??)

Sugar Bowl, Florida vs Cincinnati: LD picks Florida

Fiesta Bowl, Texas Christian vs Boise State: LD picks TCU

Orange Bowl, Georgia Tech vs Iowa: LD picks Iowa

National Championship, Texas vs Alabama: LD picks the Alabama Crimson Tide . . . Roll Tide!!

One other sporting event of note is the NHL’s Winter Classic played outdoors today at America’s most beloved ballpark, Fenway Park, between the Big, Bad Boston Bruins and the Broad St. Bullies, otherwise known as the Philadelphia Flyers. The puck is dropped at 1pm, the gloves will likely be dropped shortly thereafter.

LD picks his hometown favorite Bruins in a donnybrook, 6-4!!

Enjoy the games.

Comments (6)

Thank You and Happy New Year!!!

Posted by Larry Doyle on December 31st, 2009 4:31 PM |

To all those who have supported my efforts here at Sense on Cents, I thank you and wish you all the best for a healthy, happy, prosperous 2010.

I will be posting a monthly and year end review of the markets and economy over the next few days, so please check in tomorrow and over the weekend.

Additionally, I will be back on the air this Sunday evening January 3rd, 2010 with No Quarter Radio’s Sense on Cents with Larry Doyle. The show this weekend will be an induction ceremony. I will assign those I believe deserving into the Sense on Cents Hall of Fame and the Sense on Cents Hall of Shame. I remain open to ideas and nominations on both ends of the spectrum. I guarantee the review and ceremony will be informative and fun-filled. We can’t lose our sense of humor while we seriously navigate the economic landscape.

In conclusion, I take real pride in Sense on Cents and am humbled to share with you that this commentary is my 1,000th post since initially writing at No Quarter in October 2008.

I look forward to navigating the economic landscape with all of you in 2010.

Thanks again for all your support.

Comments (5)

Trust Tim Geithner, Larry Summers, Barney Frank?

Posted by Larry Doyle on December 31st, 2009 11:34 AM |

Blank checks are the antithesis of good public policy.

America can not allow the passage of time to lessen the outrage over the Obama administration’s Christmas Eve bonus to the financial sinkholes known as Freddie Mac and Fannie Mae. Platitudes and posturing aside, the American taxpayer is being set up as never before.

A blank check may serve to cover a host of past financial and legislative failures promoted by the likes of Barney Frank, Chris Dodd, John Kerry et al, but who is monitoring and verifying the legitimate and proper use of these funds? Are we to blindly trust Treasury Secretary Geithner, White House economic adviser Larry Summers, and their respective staffs in this process? Are you kidding me? America needs to voice its outrage long and hard. In that spirit, I called yesterday to Audit Freddie and Fannie.

In the same vein, I am heartened by initiatives launched yesterday by Rep. Dennis Kucinich (D-OH), and Reps. Scott Garrett (R-NJ) and Spencer Bachus (R-AL) to pursue an investigation of this blank check.

The Wall Street Journal reports, Lawmakers Want Probe Into Treasury Aid for Fannie, Freddie: >>> Read the rest »

Comments (9)

Making Sense on Cents in 2010

Posted by Larry Doyle on December 31st, 2009 9:58 AM |

What can Americans do to make more “sense on cents” in 2010?

With the divide between Wall Street and Main Street never wider and only widening further, how can Americans collectively make their voices heard?

I will provide a few simple pieces of advice:

1. Send a message to both Wall Street and Washington supporting the lawsuits currently outstanding against Wall Street’s self-regulator FINRA. These lawsuits would go a long way in exposing the incestuous relationship between the Wall Street banks and the Washington establishment.

To facilitate this undertaking, I recommend readers forward “Mary Schapiro Owes America Some Answers” to their elected representatives, friends, family, and colleagues.

2. Hat tip to a Sense on Cents reader for providing a link to a great idea promoted by Arianna Huffington called Move Your Money. The website provides guidance as to the strongest community banks by zip code. Very simply, this idea encourages people to move their money from the large Wall Street banks, which are wedded to Washington, into small community banks. I put this idea in the camp of “money talks, bull%$#@ walks.”

I encourage readers to make sure they stay within the FDIC-insured limits when making deposits in any bank. In the spirit of the season, the following video provides an inspiring look at the idea to “Move Your Money.”

Together we can make a difference.

Comments (0)

Audit Freddie and Fannie

Posted by Larry Doyle on December 30th, 2009 12:16 PM |

Who will reveal the truth and consequences embedded in the operations of Washington’s newly designed slush funds housed within Freddie Mac and Fannie Mae? The Washington Way all too often pays off those who promote the administration’s interests (both Republican and Democrat alike) while sticking future generations with an ever larger bill.

Is slush fund too harsh a characterization for a Washington-issued blank check? In my opinion, a blank check in Washington has never been anything other than that.

Ron Paul (R-TX) has created quite a stir in 2009 given his continual calls to audit the Fed. Who in Congress will call for the same treatment for Freddie and Fannie?

Let the record show that on December 30th, Sense on Cents is issuing what will be the first of many calls to audit Freddie Mac and Fannie Mae. Why am I calling for an audit of these entities? Read the rest »

Comments (13)

Why Deflation?

Posted by Larry Doyle on December 30th, 2009 10:03 AM |

My better half asked me today why I thought deflation was likely to be a major problem for us over the next decade. I shared my views on excessive debt, challenging job prospects, excess capacity, and the like. All that said, I’m a former Wall Street trader and not a Secretary of Labor. What does somebody who filled that slot think? Let’s listen to Robert Reich, who headed the Department of Labor during the Clinton administration.

Reich provides a substantive review on the vastly diverging developments on Wall Street and Main Street in a recent commentary posted at Wall Street Pit. While asset valuations have rebounded across a wide segment of the markets, the fact is the fundamentals within our economy are clearly deflationary. Reich highlights as much in writing: Read the rest »

Comments (0)

The Freddie Mac Pigsty

Posted by Larry Doyle on December 30th, 2009 7:56 AM |

Freddie Mac and Fannie Mae have served as Washington’s piggy bank for far too long. The issuance of a blank check by Uncle Sam on Christmas Eve to cover losses at Freddie and Fannie through 2012 only cements the legacy of the pigs who have fed at the Freddie and Fannie trough.

While the sty is mighty big, don’t think for a second that the pillaging and plundering of these organizations is restricted to the high and mighty politicos who pretend to know how to develop housing policy and programs. What do I mean?

Tucked away in one corner of the sty is this little gem posted by The Wall Street Journal, Freddie HR Chief’s Big Payday: Read the rest »

Comments (0)

What’s Up with Keith Fitz-Gerald’s Geiger Index?

Posted by Larry Doyle on December 29th, 2009 2:54 PM |

Is there a story brewing about the Geiger Index managed by Keith Fitz-Gerald?

I interviewed Keith Fitz-Gerald in November on No Quarter Radio’s Sense on Cents with Larry Doyle. As with all my guests, I make a point of trying to stay on top of stories and developments with all of them. Having spoken with attorneys, former regulators, money managers, and others on and off Wall Street, 2009 has presented no shortage of material.

I have been looking for stories and developments specifically in regard to Keith Fitz-Gerald and the Geiger Index for one very simple reason: a disproportionate number of people coming to Sense on Cents over the last week to ten days have been utilizing search words that do not reflect positively on the Geiger Index.

I am not now nor would I ever pass judgment on any individual or any fund without an honest and transparent review. That said, my antenna goes up when more than a small number of people are searching for information in an admittedly concerned fashion.

Information is everything.

Anybody with pertinent information on this topic one way or the other and willing to share the same, please don’t be bashful.

Thanks.

Comments (39)

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