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Taibbi: Wall Street Bribes, Bid-Rigging & Collusion

Posted by Larry Doyle on June 22nd, 2012 2:07 PM |

There are many markets on Wall Street with very serious ethical issues. From my perspective, no market over the last number of decades has been more ethically challenged than the world of municipal finance.

In the spirit of fairness, I would maintain once again that the overwhelming percentage of people on Wall Street in general and municipal finance specifically are very good, decent people. Regrettably, though, the premise of fair and ethical dealings within many markets and certainly municipal finance has gotten so blurred as to be unidentifiable.

In a MUST READ commentary that pulls back the cloak on the bribes, bid-rigging and collusion within the municipal finance markets, Rolling Stone’s Matt Taibbi provides a chilling look into this corner of Wall Street. Read the rest »


Fed’s Bullard: Enlightening on Housing and Economy

Posted by Larry Doyle on June 22nd, 2012 9:52 AM |

James Bullard I love people who speak the truth.

Regrettably, speaking the truth today is an increasingly rare commodity in our nation and on the global economic landscape. Given that reality, unbiased and bold truth telling hits me like a rush of adrenaline on a cool, crisp morning.

I got just such a rush listening to Bloomberg today as Tom Keene interviewed St. Louis Fed President Jim Bullard.

For those who care to learn and understand what is going on in our global economy, this interview was truly enlightening. Read the rest »


California Pension Payouts Increase 73% in 2 Years

Posted by Larry Doyle on June 21st, 2012 8:54 AM |

How does one define a “racket?”

Well, in a takeoff of a similar question regarding pornography, I am not sure exactly how I might define a “racket” but I believe I would know one when I see it.

So, where should we look to see a racket at work? California and specifically the public pension system in the Golden State. A few weeks back I highlighted what I believe will be “civil wars” over public pension reforms in our country.

A primary battleground on this front will be the hard left-leaning people’s republic on our left coast. Is there any real surprise that California finds itself in such a fiscal mess? Not really.

How bad is the situation in California? Read the rest »


The 4 Reasons Wall Street Cannot Be Trusted

Posted by Larry Doyle on June 20th, 2012 6:47 AM |

What are some of the great failures and subsequent lessons America has learned about Wall Street since the outset of our economic crisis 5 years ago?

Well, we have witnessed more failures and learned more lessons than I have space here to highlight. The failures and lessons actually go back a lot further than this crisis.

Regrettably, the industry titans running Wall Street and their crony capitalist partners lining their pockets in Washington have shown little to no inclination to address what Sense on Cents believes are the greatest failures and lessons.

Dodd-Frank? Nope, that doesn’t do it. Consumer Financial Protection Bureau, perhaps? Nope, not there either. See, the fix is still in on Wall Street and far too many in America are not aware of the regulatory sting being perpetrated on investors each and every day.  Read the rest »


Social Media: You Know You’re In a Bubble When…

Posted by Larry Doyle on June 19th, 2012 7:17 AM |

Social media is all the rage and is changing the world. Correct? But, of course.

Any marketing initiative by self-respecting entities incorporates a significant social media component. Also true. How should investors play this hot new trend?

VERY CAREFULLY.

How interesting that the Wall Street Journal’s front page story this morning addresses issues in this space by writing, Investors Miss Web IPO Payoff. Perhaps the WSJ was prompted to address this “deflating” story by a harder hitting commentary posted a few days ago by The Economic Warrior, Barry J. Dyke.  Read the rest »


Larry Kudlow: Looming Global Economic Recession

Posted by Larry Doyle on June 18th, 2012 9:54 AM |

Do you get the sense that despite any and all efforts of central bankers and government officials on the surface, there is an ongoing, powerful, and deflationary force at work gaining momentum along our global economic landscape? Regrettably, I think there is no doubt of this simple reality.

Regardless of the political outcomes yesterday in Greece, the EU faces daunting prospects. Growth is slowing in the Asian markets and our own economy is staring at an enormous fiscal cliff. Who understands the challenges we face? My former Bear Stearns colleague, highly regarded economist Larry Kudlow who wrote the other day, A Global Recession: The Warning Signs Are Everywhere: Read the rest »


Start Your Weekend Reading WSJ’s Jason Zweig

Posted by Larry Doyle on June 16th, 2012 6:27 AM |

It is not quite 6am on Saturday morning.

How did I start my day? The same way I start every Saturday morning. I just read my favorite columnist, The Wall Street Journal’s Jason Zweig.

Long ago I inducted Zweig into the Sense on Cents Hall of Fame. He earns that honorable distinction regularly. How so? Zweig takes his readers into corners of Wall Street not often traveled. After reading his work, I always come away impressed and more informed.

For example, over the last few weeks, Zweig wrote of a portfolio manager at Blackrock who perhaps had “too much skin in the game”. That is, “investors’ skin” in “his game”. Conflict of interest, perhaps? If there is any doubt that Zweig is an impact player, do you think it is pure coincidence that after Jason Zweig broke this story two weeks ago, the PM just stepped down from his responsibility managing the fund.  Read the rest »


How Long Will ‘Walking Pneumonia’ Economy Linger? Rogoff’s Sobering Reality . . . . Recommended

Posted by Larry Doyle on June 15th, 2012 8:15 AM |

I have long compared our economic malaise to a severe case of ‘walking pneumonia.’

Is there any doubt that our economic pleurisy persists? America knows it does because collectively we feel the daily pain and anguish of this condition. Our President and his policy mavens seem to have just now learned they cannot fool the American public into thinking our economy is improving while the public experiences a very different dynamic.

Given the reality of our ‘walking pneumonia’ economy here at home and an equally serious case of this malady in Europe, two questions are screaming to be answered:

1. How long will this situation persist?

2. What can we do about it?  Read the rest »


Barofsky Slams Dimon/Washington: “Still a Cover Up”

Posted by Larry Doyle on June 14th, 2012 9:30 AM |

Not that there was ever any real doubt as to the cozy relationship between OUR elected officials in Washington and THEIR partners on Wall Street, but yesterday’s Senate testimony and questioning of JP Morgan CEO Jamie Dimon added another nail in the coffin of those in America who care for real truth and total transparency.

As CEO of JP Morgan Chase, Dimon’s job is to protect the interests of his shareholders. He was successful on that front yesterday.

As United States Senators, our elected representatives’ job is to protect the interests of American citizens. They failed miserably yesterday. Read the rest »


High, Hard Heat for JP Morgan’s Jamie Dimon

Posted by Larry Doyle on June 13th, 2012 9:25 AM |

Most eyes on Wall Street will be fixated this morning on JP Morgan CEO Jamie Dimon as he provides Congressional testimony and faces questioning atop Capitol Hill.

Wall Street banks may be too big to fail, too big to manage properly, and too big to understand for most financial executives.

Jamie Dimon is unlike most financial executives.

Having worked at JP Morgan Chase for six years early last decade, I personally witnessed Dimon’s amazing level of detailed insight and analysis on more than one occasion. Do not think for a second that he was not fully aware of each and every exposure within JPM’s chief investment office. Impossible you think?  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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