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Car Title Loans: “There to Rip You Off”

Posted by Larry Doyle on July 18th, 2011 9:10 AM |

What is your mental image of a business which earns a 300% annualized rate of interest?

Did somebody say, “shady characters hanging out on a street corner with a large wad of bills”?

Who said, “guys driving around in cars with dark tinted windows”?

How about, “typical loan sharks”? Perhaps all of the above?

Is there a legitimate business in our nation today which might be able to charge a 300% annualized rate of interest? Well, I guess that would depend on how one defines legitimate. I think it would be safe to say that if you are doing business with somebody who charges a 300% annualized rate of interest, you would want to be VERY CAREFUL. What type of business has got these kind of rates?  Read the rest »


Reinhart, Rogoff, and Bhide Warn America and World

Posted by Larry Doyle on July 15th, 2011 9:09 AM |

I love reading the work of intelligent economic ‘giants’ who both get it and eloquently share it.

On a daily basis we suffer from the charlatans roaming the halls of Capitol Hill to those occupying the offices of global media moguls.

Some of the individuals in Washington (hello Barack!!) may believe the public does not and can not understand the nuances of major economic issues. In the process, the clowns spew forth volumes of nonsense and bulls&*t which has suffocated the debate needed to restore some measure of integrity to our social fabric.

Let’s turn off  the volume on the nonsense and embrace, elevate, and spread some truth and real wisdom.  Read the rest »


Which Bank Is Leveraged 104:1?

Posted by Larry Doyle on July 14th, 2011 9:02 AM |

The road to hell is paved with positive carry.

Those in financial circles likely know that the above quote is a colloquialism used to highlight that excessive leverage can generate cash flow, that is the positive carry, but that ultimately unless properly and prudently unwound the leverage itself can lead to financial armageddon. We have witnessed this scenario time and again.

Wall Street specifically and our economy at large are continuing to lick their wounds and attempting to recapitalize from the “road to hell” we experienced beginning in 2008. While the financial system as a whole deleverages, Ben Bernanke and his minions within the Federal Reserve have leveraged up in an attempt to ‘ease the pain’. Just yesterday, Fed officials highlighted that they would continue to leverage up if need be.

In the process, I believe they will simply be moving further down that road to you know where.  Read the rest »


‘Murdoch’s Watergate?’: “The Most Important Story in the World in the Last 25 Years”

Posted by Larry Doyle on July 13th, 2011 8:54 AM |

Although I write primarily on issues directly relating to finance and the economy with a particular focus on investor education and investor protection, when “the most important story in the world in the last 25 years” comes along, as Carl Bernstein has asserted, I am compelled to address it.

I have been busy since January 2009 highlighting the endless assault on our prized virtues of truth, transparency, and integrity.

No corner of our global economic landscape has been protected from these assaults. That said, while the scandal centered on the News Corporation may not seem to be a financial or economic story, it is very clearly a story which takes the assault on our prized virtues to an entirely new level. Let’s navigate. Read the rest »


Q/A with House Leader Eric Cantor (R-VA)

Posted by Larry Doyle on July 11th, 2011 9:59 PM |

The deficit reduction talks ongoing in Washington have profound implications for our markets, our economy, and truly the global financial landscape.

While President Obama and House Speaker John Boehner garner the bulk of the media attention, do not discount that House Majority Leader Eric Cantor (R-VA) has a very big dog in this fight.

Regardless of your political persuasion or market instincts, those who embrace basic ‘sense on cents‘ always want to know what each and every person engaged in a debate is thinking.

In the process, we can formulate our own opinions as opposed to having the media form them for us. In this spirit, I hope you will take the time to review this statement and Q/A recently released by Representative Eric Cantor.

It is a little lengthy but it is “only” our country’s and our children’s future we are addressing. Please let us know what you think. Thank you to the friend who shared this with me.

Monday, July 11, 2011

Mr. Cantor: Good afternoon. Let me start by giving you my perspective of what happened last night at the White House.  Read the rest »


Tim Geithner: “It’s Going To Feel Very Hard…”

Posted by Larry Doyle on July 11th, 2011 9:48 AM |

For those who missed Meet the Press yesterday, please allow me to share a portion of the interview NBC’s David Gregory had with Treasury Secretary Tim Geithner. Please allow me to interject my ‘sense on cents’ analysis as well.

SEC’Y GEITHNER:  We still have millions and millions of Americans out of work, and the most important thing we can do is to make sure we’re taking steps to get people back to work as quickly as we can.

MR. GREGORY:  Well, let me ask you this.  The president was asked in his Twitter town hall about the economy and whether mistakes were made.  And I want to share a portion of what he said.

PRES. OBAMA:  So I think people may not have been prepared for how long this was going to take and why we were going to have to make some very difficult decisions and choices.  And, and I take responsibility for that because, you know, setting people’s expectations is part of how you end up being able to respond well.  Read the rest »


Sheila Bair: “They Should Have Let Bear Stearns Fail”

Posted by Larry Doyle on July 9th, 2011 9:34 AM |

How would the last three years have played out if Bear Stearns had been allowed to fail? While we can speculate at length about that topic, we will obviously never know.

Who believes the Bear was nothing more than a second tier investment bank and should have been allowed to fail? The recently departed head of the FDIC, Sheila Bair.

I just finished reading her exclusive exit interview with The New York Times’ Joe Nocera. This article is a MUST read.

Aside from her strong opinion about Bear Stearns, other highlights and “behind the scenes” bombshells include:  Read the rest »


Canada Generates Surprisingly Strong Job Growth

Posted by Larry Doyle on July 8th, 2011 11:54 AM |

On a day when the United States licks its economic wounds and the Obama administration struggles to spin the anemic jobs report, we do not need to look far for positive employment news.

Where should we look? Northward, as our friends in Canada are thriving compared to the struggles we are experiencing.

Let’s navigate and review the Financial Post’s report, Canadian Employment Grows More Than Expected in June,>>>>> Read the rest »


Unemployment Report July 8…U-G-L-Y!!!

Posted by Larry Doyle on July 8th, 2011 8:42 AM |

Our ‘walking pneumonia’ economy is not making any real progress in terms of an improving labor market in the United States.

Consensus estimates for the July employment report (measuring June economic activity) had an increase of 105k jobs with many economists recently revising their estimates higher to 125k.

Their ‘guesstimates’ were not close as the non-farm payroll report released at 8:30am reflected an increase of a mere 18k jobs with downward revisions to the prior two months of 44k jobs.

Were there any hidden gems in the report? Not a one. Read the rest »


Reason to Be Concerned About the Market

Posted by Larry Doyle on July 6th, 2011 8:12 AM |

It is a well known fact that an increasing percentage of daily trading volume in the equity markets is driven by high frequency traders. Whether you think that is a good or bad development is currently irrelevant. It is a reality.

That reality has clearly changed the nature of investing and assessing the markets.

How does one invest with a long term horizon when so much of the market is driven by short term traders? Very carefully.

Long term investing requires a solid understanding of fundamental analysis. In the midst of that endeavor, though, investors might want to have an appreciation for technical analysis, which can be utilized across an array of time segments but is very often applied for shorter time periods. 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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