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Marc Faber’s ‘Sense on Cents’

Posted by Larry Doyle on April 4th, 2012 5:53 AM |

Marc Faber is commonly referred to as Dr. Doom for his fatalistic outlooks on the economy and markets. I personally would not call him that. I would designate him as Dr. Truth.

In a recent Bloomberg interview, he offered a wealth of fabulous insights including:
1. the market is overbought and market technicals are deteriorating.
2. earnings will disappoint as profit margins are  being squeezed.
3. cost pressures within raw materials and especially energy will continue to remain elevated.
4. for asset prices to maintain these levels, QE3 would have to be “gigantic’… that is much larger than QE1 and QE2.
5. real cost of living is running much higher than mere increase reflected in official statistics reported by CPI.
6. gold is in a correction phase.
7. MY FAVORITE…he does not trust the government, the Federal Reserve, and the European Central Bank.

This video clip runs for 8 minutes but it is worth a lot more than that token time commitment.

The Marc Faber Blog is well worth a regular read. I will add Faber to the Sense on Cents Blogroll today.

Larry Doyle

Isn’t it time to subscribe to all my work via e-mail, RSS feed, on Twitter or Facebook?

Do your friends, family, and colleagues a favor and get them to do the same. Thanks!!

I have no affiliation or business interest with any entity referenced in this commentary. The opinions expressed are my own. I am a proponent of real transparency within our markets, our economy, and our political realm so that meaningful investor confidence and investor protection can be achieved.

 


Those Uncle Sam Failed, Violated, and Left Behind

Posted by Larry Doyle on April 3rd, 2012 8:31 AM |

They are going to forget about me.

I have heard that line and iterations thereof from too many of our fellow citizens. Uncle Sam in the personage of Ben Bernanke, Tim Geithner, Henry Paulson, Mary Schapiro, John Boehner, Nancy Pelosi, Barack Obama and many others can talk about the actions they have taken and will take to save our economy and our nation; however, in the midst of their supposed efforts they have failed, violated, and left behind tens of thousands of our fellow citizens in their wake.

Of whom and to what do I refer?  Read the rest »


Land of the Free’dom’of Information?

Posted by Larry Doyle on April 2nd, 2012 5:53 AM |

Freedom makes all things possible, right? No question.

Information is everything, correct? Also true.

As we pursue the American dream, our ability to access information in order to assess risks and opportunities is paramount to our ultimate success. I personally find this truth to be self-evident. Melding these two basic principles, at this point in our nation’s history, how free is information? Obviously, not all information is free and accessible. In matters of national security, our interests are served by protecting plenty of information.

However, what about other basic information in regard to Uncle Sam’s interactions and exchanges on Wall Street?  Read the rest »


Open Letter to NY Times’ Joe Nocera re: Madoff

Posted by Larry Doyle on March 30th, 2012 8:01 AM |

Dear Joe,

As a longtime subscriber to The New York Times, could you enlighten me as to when the media in our nation diverted its mission of pursuing the truth to one of actively advancing agendas? Actually, Joe, hold that thought and perhaps we could have that lengthy discussion another time.

I write to you today specifically in regard to your interest in the ongoing legal battles in the recovery and restitution of funds in the Madoff scandal. In your recent commentaries (The Mets Switch Teams; March 19, 2012, and Helen Chaitman Doesn’t Know When to Quit; March 29, 2012), one does not have to read all that hard to gather you are a strong mouthpiece for SIPC trustee Irving Picard. In the process, you make what amount to ad hominem attacks on Ms. Chaitman who represents hundreds of Madoff investors.

Rather than debating the merits or lack thereof in the recent settlement crafted between the owners of the New York Mets and the SIPC trustee Irving Picard, perhaps we could dig a little deeper and address questions which remain unanswered yet central to what was really going on inside the Madoff operation. Given your position and accompanying power of the public pen, I would ask you to address the following: Read the rest »


Who’s Managing Your Mutual Fund?

Posted by Larry Doyle on March 29th, 2012 7:26 AM |

Can you imagine the Indianapolis Colts hyping season tickets for the upcoming season based upon the success of the team over the last decade with ‘you know who’ under center? Could you picture the Chicago Bulls doing the same after the departure of MJ? How about the Lakers after Magic, the Celtics after Bird, or the Edmonton Oilers after ‘The Great One’ Wayne Gretzky left town?

Sports fans are not stupid—or at least when it comes to this topic. They know that the leader and the team on the field are the keys to future success and that past performance, especially after the departure of the star, is certainly not indicative of future results.

Those investing in mutual funds should make sure they employ the same principle prior to buying tickets—that is, investing—in a fund that may have had significant past success. Why do I raise this topic? Let’s navigate. Read the rest »


How Many Jobs Will the JOBS Act Produce?

Posted by Larry Doyle on March 28th, 2012 4:13 AM |

Smile for the camera.

If it smells like a job, sounds like a job, and feels like a job, you can rest assured that in this day and age most politicians will jump all over it and look for a photo op in the process. In so many words, that is exactly what has transpired with the passage of the JOBS Act. This newly launched government initiative is intended to Jumpstart Our Business Startups.

How might this program work? How many jobs might it generate? Are there any risks involved in the process? Do we dare ask these questions, or should we just accept the fact that it says “jobs” and it is an election year so it must be a good program. Is this the best we get out of Washington these days?  Read the rest »


Selling Inside Information in Washington Continues

Posted by Larry Doyle on March 27th, 2012 8:07 AM |

Has trading on inside information now come to an end in Washington?

Congress will pat itself on the back and trumpet the passage of the STOCK Act as an indication that Washington has heard the hue and cry of the people to stop insider trading by the sycophants—that is, our elected representatives and their staffs— in and around Capitol Hill. The vote of 96-3 in the Senate was a strong indication as to how important it was to pass this legislation.

Now that the legislation has passed, should we assume that Congress is no longer in the business of personally profiting from trading on inside information? Not so fast.  Read the rest »


“The People v Jon Corzine et al”

Posted by Larry Doyle on March 26th, 2012 8:40 AM |

If you were away over the weekend, as I was, or somehow missed the news late Friday afternoon, you may awake this morning unaware that the smoking gun in the fiasco known as MF Global may have been unearthed and now points directly back at one Mr. Jon Corzine.

How is it that neither The Wall Street Journal nor the Financial Times are prominently highlighting ongoing developments in this story in their morning newspapers? You don’t think our news flow is ‘managed’? What a joke, but that is another story for another time. Thank you to Bloomberg for keeping us current in what I believe should be the the eventual case of “The People v Jon Corzine et al.” Read the rest »


The Integrity of the Game

Posted by Larry Doyle on March 22nd, 2012 5:31 AM |

The penalties handed out by NFL Commissioner Roger Goodell to the coaches and executives of the New Orleans Saints organization for the bounty program practiced down on the bayou were perhaps the stiffest in the history of the game.

Goodell has shown himself to be a no-nonsense individual cut from the mold of Kenesaw Mountain Landis. Goodell is clearly focused on protecting the sport, and knows that any program which promotes an intent to injure renders modern day football to little more than barbarism. Read the rest »


Financial Repression Kicks the Can and Our Butt

Posted by Larry Doyle on March 21st, 2012 8:36 AM |

More and more we see central bankers around the world — but especially here at home and within the EU — engaged in financial repression as THE means to solve our economic woes.

What is financial repression?

A term that describes measures by which governments channel funds to themselves as a form of debt reduction. This concept was introduced in 1973 by Stanford economists Edward S. Shaw and Ronald I. McKinnon. Financial repression can include such measures as directed lending to the government, caps on interest rates, regulation of capital movement between countries and a tighter association between government and banks.

What are the challenges faced by investors in an era of financial repression? 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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