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The Bloomberg Manifesto

Posted by Larry Doyle on August 7th, 2013 9:10 AM |

Love him or hate him, New York City Mayor Michael Bloomberg may be a lot of things but one thing he is not is a dope.

With his final days in office as the mayor of our largest city a mere few months away, he issued a statement yesterday that put the voters of NYC and the media on guard as to the most critical issue facing NYC and, for that fact, many other cities as well. What issue is this? Pension costs and the impact of those upon future generations in light of corruption, mismanagement, and special interests occupying far too much space in our political process.

The Bloomberg Manifesto — my description — provides compelling advice not only for the voters of New York City but to residents of most cities, states, and towns across our nation. Over and above that, his message can be adapted to our personal situations, as well, in terms of properly preparing for our own future needs.

His statement is a little lengthy but provides a healthy serving of sense on cents. I strongly recommend.  Read the rest »


Uncle Sam’s Protecting Economic Data: A Fallacy

Posted by Larry Doyle on August 6th, 2013 9:34 AM |

Hardly a day goes by without another piece of mind numbing news regarding the assault on the integrity of our markets.

With the folks in Washington and their friends in the media having jumped in bed with those who truly run our financial markets, news that may have shocked the public prior to our economic crisis now comes and goes with barely a ripple.

Make no mistake, though, the corrosive waves of corruption that emanate from the incestuous relationship between the financial industry and those charged with protecting the public interest comes with a very heavy cost.  Read the rest »


More Market Manipulation: Wall Street Out of Control

Posted by Larry Doyle on August 2nd, 2013 5:17 AM |

First it was Libor, then currencies, then commodities. Now the market manipulation game extends to a vehicle known as ISDA fix that is used as a benchmark for pricing only trillions of dollars of worth of transactions.

Dodd-Frank reformed Wall Street, right?

Bloomberg reports, Swaps Probe Finds Banks Manipulated Rate at Expense of Retirees,

U.S. investigators have uncovered evidence that banks reaped millions of dollars in trading profits at the expense of companies and pension funds by manipulating a benchmark for interest-rate derivatives.

Recorded telephone calls and e-mails reviewed by the Commodity Futures Trading Commission show that traders at Wall Street banks instructed ICAP Plc brokers in Jersey City, New Jersey, to buy or sell as many interest-rate swaps as necessary to move the benchmark rate, known as ISDAfix, to a predetermined level, according to a person with knowledge of the matter. Read the rest »


Citizens United: Corruption Disguised as Capitalism

Posted by Larry Doyle on August 1st, 2013 10:04 AM |

Follow the money.

The Citizens United decision allowing for corporate and union funding for the public support or denouncement of political candidates evokes strong reaction from those on both sides of the debate like few other topics.

Are we to believe, though, that the right of corporations and/or unions to speak out does not also come with a payoff tied along with it? Come on, really?

Is this what our founding fathers intended in promoting freedom of speech? I think not. Why is it that some individual entities’ freedom of speech carries more weight and substance than others? Simply because they can provide payoffs to our pols and demand the same in return?

No doubt. Money talks…
Read the rest »


Sense on Cents Quiz: Average GDP from ’02-’12 Is . . ?

Posted by Larry Doyle on July 31st, 2013 10:53 AM |

The Bureau of Economic Analysis this morning released the 2nd quarter GDP report and it registered a surprisingly robust reading of 1.7%.

Not that a growth rate of 1.7% is anything to write home about but it was better than the forecasted growth rate of 1% or thereabouts.

The cynic in me tells me that I guess we are supposed to disregard the downward revision to the prior quarter’s growth from a reading of 1.8% to 1.1%. That fact only further confirms that our economy continues to largely walk in place with what I have long defined to be a case of “walking pneumonia.’ Read the rest »


How Do China’s Seven ‘Speak-Nots’ Play in America?

Posted by Larry Doyle on July 30th, 2013 8:08 AM |

People of faith are likely very familiar with the seven deadly sins: pride, envy, gluttony, lust, anger, greed, and sloth.

I think it goes without saying that our nation would be a better place if we had less of these vices on display. That said, our greatest virtues emanate from the very freedom that allows the aforementioned vices to gain a foothold. What if we did not have our freedom, though? Then what?

To explore this question, let’s navigate to The People’s Republic of China and review a recent report from Global Post that highlights:

In a directive reportedly distributed last month to local party committees, China’s top propaganda officials issued new

restrictions banning discussion of seven topics deemed to be “dangerous Western influences.”   Read the rest »


Why Larry Summers Will Be Next Fed Chair

Posted by Larry Doyle on July 29th, 2013 8:36 AM |

The race to occupy the most influential position in the nation — that is, the chairman of the Federal Reserve — is now widely acknowledged to be a two horse sprint between Janet Yellen and Larry Summers.

Those supporting the appointment of Ms. Yellen, including Nancy Pelosi, Christina Romer and others, are actively and publicly voicing their endorsement of the current Vice-Chairman of the Federal Reserve.

Meanwhile we hear little from those most closely aligned with the oft-described arrogant — and sleep-deprived? — Mr. Summers. I gather that Robert Rubin and others supporting Summers are more comfortable operating under the blanket that has come to define Washington as being in bed with Wall Street.

So who will President Obama appoint?
Read the rest »


Weekend Reading: WSJ’s Saving Detroit from Itself

Posted by Larry Doyle on July 27th, 2013 5:58 AM |

The Wall Street Journal writes today that there should be no federal bailout of Detroit.

The AFL-CIO and its friends are mourning Detroit as a victim of capitalism, claiming the government has a moral obligation to rescue the bankrupt city. This is a nice political fable, but the hard truth is that Motown is a victim of its own political vices and a bailout would merely forestall the necessary rehab.

For lots of informative details adding up to a whole lot of sense on cents:

Saving Detroit from Itself

LD


SAC Capital: Most Likely Done

Posted by Larry Doyle on July 26th, 2013 8:03 AM |

This past March two affiliated entities of Wall Street’s largest hedge fund whale, Steven A. Cohen, forked over a cool $616 million in fines to the SEC to settle insider trading allegations.

At the time, the firm tried to put the typical spin on this situation and offered that it was continuing to assist with the ongoing investigation. My gut instincts tell me that both Cohen and the firm believed that the $600+ million was the “stay out of jail” card for Cohen himself and the green light for the firm to continue business. Two months later, the “can’t we all be friends” approach took a dramatic change as SAC said that it would no longer cooperate.

Fast forward another two months and this week we witness an indictment of the firm, although not of Cohen himself. (Come on, paying $600 million has to get you something, right?) Read the rest »


Wall Street’s Top Strategy: Besiege The Regulators

Posted by Larry Doyle on July 25th, 2013 8:27 AM |

Everyday we hear of a new recommended strategy put forth by analysts on Wall Street.

Some of the supposed smartest people in the business recommend sector rotation strategies, others a new found pro-growth approach, still more prefer a style that accentuates value, and others investments that generate income.

There are seemingly as many strategies on Wall Street as there are strategists.

Of all the strategies put forth by Wall Street, though, what do you think is the top Wall Street strategy — not for you, the investor — but for the industry itself? I have no doubt as to the answer to this question. 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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