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What Market Forces Are Driving Long Rates Higher?

Posted by Larry Doyle on June 24th, 2013 8:05 AM |

With global markets currently palpitating in a fashion all too similar to those living on the Bowery and beginning a withdrawal program, I think it is overly simplistic to say that Bernanke’s remarks alone are forcing ‘everybody out of the pool.’

What are the underlying forces at work in causing such a sharp move higher in long term rates the last 7 weeks?

While the rate on the 2 yr Treasury has moved higher by a not insignificant .2% during this time frame,  the 10 year rate has moved higher by close to a full percentage point. Let’s navigate .  .  . but before addressing the forces at work, how about a cautionary comment as a preface.  Read the rest »


Weekend Serving of Sense on Cents

Posted by Larry Doyle on June 22nd, 2013 8:24 AM |

For those who care to dig a little deeper in order to gain a greater degree of ‘sense on cents’, I welcome sharing a few commentaries and reports that I found to be of very real interest.

Interested in getting a decidedly wider-eyed and detailed view of the world than what might commonly be delivered elsewhere? Grab a second cup of coffee and span the globe as these noted economists discuss an array of critically important international issues:

1. Ian Bremmer and Nouriel Roubini Unveil the New Abnormal; Institutional Investor

What was really going on within the credit agencies? Talk about aiding and abetting . . . Read the rest »


What Did Bernanke Really Accomplish?

Posted by Larry Doyle on June 21st, 2013 8:23 AM |

How will the history books treat Ben Bernanke? Well, only time will tell.

Supporters will tout his integral role in saving the system.

Those who look less kindly on the Fed chair will denigrate him for: 1) his participatory role in allowing Wall Street to bring our economy to its knees, and 2) providing excess liquidity for the well positioned to take advantage of a newly defined rent-seeking economy while the rank and file American public struggle to keep their head above water.

Perhaps he is deserving of both a measure of praise and derision, but let’s take a harder look at what he really accomplished — or not — depending on how you might view things. Read the rest »


Spitzer: Lanny Breuer at DOJ Was a Disaster

Posted by Larry Doyle on June 20th, 2013 8:26 AM |

Hat tip to Barry Ritholtz at The Big Picture and our friends at eWallStreeter. 

Say what you want about Eliot Spitzer’s personal shortcomings but when it comes to many of the regulatory capture issues addressed regularly at this blog, he is not evasive or deferential as so many former pols and regulators are wont to be.

True to form, Spitzer pulls no punches in a recent Bloomberg Law interview. What does he think of the former Assistant AG for the Criminal Division of the US Department of Justice Lanny Breuer’s tenure? Simply a “disaster.”

What does he think of the revolving door, current SEC chair Mary Jo White, and the practice of “neither admit nor deny”?  Read the rest »


Ben Bernanke: My Work is Done Here

Posted by Larry Doyle on June 19th, 2013 4:29 PM |

I just listened to the release of the FOMC’s statement and juxtaposed that with the Q/A with Big Ben.

I detected some not so subtle differences in these deliveries, and clearly the market did as well.

The markets were remarkably stable after the initial release as the Fed stated that its policy remains unchanged and there was no hint of tapering asset purchases as has been the concern since that term was used by the Fed a month ago.

The statement had a mildly positive spin on the economy but nothing overly exuberant as to serve as a warning sign that the Fed might begin to pull in on the reins so to speak. In fact, the rate of inflation remains well below the long term target of 2% so that should actually allow greater leeway for the Fed to stay the course with its current policy.

Then the afternoon took a decidedly different turn of events. Read the rest »


UK Leads, USA Follows: Changing Banking for Good

Posted by Larry Doyle on June 19th, 2013 8:10 AM |

At one point in time, the USA may have been viewed as the preeminent world leader on major financial issues.

While many arrogant bankers, regulators, and political leaders here in the USA might care to continue to believe they hold that leadership position, I think most who might read this blog know that those days have passed.

Dodd-Frank reformed our financial system? Really? Then why is it that bankers from Citigroup are virtually writing entire new legislation under the heretofore now designated Fraud-Dank umbrella?

If we care for a more honest assessment of the comparably incestuous, crony, corruptible dynamic at play within these parts, let’s redirect our focus across the pond. Read the rest »


Detroit: D is for DISASTER

Posted by Larry Doyle on June 18th, 2013 10:29 AM |

Those in Washington and elsewhere have little interest in drawing attention to the municipal disaster that is the City of Detroit, Michigan.

While nobody likes dealing with disasters, there is no other single appropriate word to describe this once proud burgeoning metropolis. As recently reported by The Wall Street Journal,

The city of Detroit’s manifold problems are coming to a head. Emergency manager Kevyn Orr warned the city’s 150 or so creditors and unions on Friday that Chapter 9 bankruptcy is in the offing if they don’t accept the steep cuts he’s presented. Read the rest »


Readers Reflect on BofA Mortgage Racket/Lying

Posted by Larry Doyle on June 17th, 2013 8:45 AM |

Would you ever want to do business with an individual or an entity that lied to you? Probably not, right?

Should we add Bank of America to the list of those entities (financial institutions, regulators, our government) that have been less than forthright in engaging those with whom it was saying one thing but doing something entirely different?

A cursory review of the testimony I highlighted this past Friday, Bank America Mortgage Racket: We Were Told to Lie, might give many who read that commentary considerable reason to pause before engaging BofA. Read the rest »


Bank America Mortgage Racket: We Were Told To Lie

Posted by Larry Doyle on June 14th, 2013 9:02 AM |

Not that we needed any further evidence of the racketeering enterprises run within the mortgage operations on Wall Street, but with the recently delivered testimony of Simone Gordon, a senior collection officer within Bank of America’s mortgage ‘racket’ . . . we got it.

I first questioned whether the activities within the mortgage servicing enterprises on Wall Street rose to the level of racketeering in early 2011 after having becoming aware of Wall Street’s practice of robo-signing mortgage documents in order to engage in the fraudulent conveyance of countless mortgages. Read the rest »


Wealth Creation: The Key Principles

Posted by Larry Doyle on June 13th, 2013 9:44 AM |

It’s not how much you make, it’s how much you save.

————————

Many people in different businesses and within government across America do not like discussing or promoting personal savings rates but the simple fact is the path to financial security and wealth creation is navigated most effectively by embracing that key principle and a few basic tools.

These tools are not often discussed by those who would much prefer you spend, spend, spend so our economy can grow but that all too American style of living has simply led us down the ‘nonsense on cents‘ path of increased debt and often running in place if not worse than that in terms of building wealth. What are the keys for generating real wealth creation?

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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