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Home5 Years Later, ‘TBTF’ Elephant In America Remains
Posted by Larry Doyle on February 21st, 2014 12:13 PM |
A slew of minutes and commentary related to Federal Reserve meetings held during the crisis of 2008 are just now being released.
While many of the minutes provide a riveting look at the topics on the table at that point in time, I found the following highlighted in a synopsis at The Street.com to be particularly meaningful. (more…)
The Real Employment Situation in America
Posted by Larry Doyle on February 10th, 2014 6:39 AM |
The most recent employment report released this past Friday showed an increase in non-farm payrolls of only 113k jobs but a continued decline in the overall rate of unemployed to 6.6%.
While the growth in jobs is not what we would like, the overall rate of unemployment is not bad by historical measures, right?
To steal a phrase from the inimitable radio host Paul Harvey, “And now, the rest of the story.” (more…)
Janet Yellen Reminds Me of Chauncey the Gardener
Posted by Larry Doyle on November 21st, 2013 10:44 AM |
I do not think there is any doubt that Janet Yellen will be fully confirmed as our next chair of the Federal Reserve.
I have read plenty of material about Ms. Yellen but will admit that I have never heard her speak. After listening to her platitudes this morning, I was struck by the likeness of her delivery, message, and physical appearance to another individual who was thought to have real wisdom on our economy and monetary policy.
Who is that? Chauncey the gardener. I am only half kidding.
Let’s take a few minutes to listen to Ms. Yellen.
And now a few minutes more to listen to Chauncey.
What can I say? Do you agree?
Navigate accordingly.
Larry Doyle
Please pre-order a copy of my book, In Bed with Wall Street: The Conspiracy Crippling Our Global Economy, that will be published by Palgrave Macmillan on January 7, 2014.
For those reading this via a syndicated outlet or receiving it via e-mail or another delivery, please visit the blog to view these clips and to comment on this piece of ‘sense on cents.’
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I have no 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 so that investor confidence and investor protection can be achieved.
Malpass: Bigger Battle Behind the Shutdown
Posted by Larry Doyle on October 17th, 2013 9:55 AM |
Recent polls regarding confidence in our public officials in Washington are at historic lows and with the can having been kicked down the road for only 3 to 4 months, I do not see those polling figures improving anytime soon.
If those in Washington on both sides of the aisle actually care about the public interest and the need for an adult dialogue, they may want to start by addressing the points raised by David Malpass. His recent commentary is overflowing with a host of basic principles of real sense on cents.
At its core, the shutdown is part of a much bigger battle to restrain the federal government. It is spending $3.6 trillion per year without a budget, and its expenditures are expected to increase rapidly in the years ahead.
Meanwhile, the government has piled up $17 trillion in debt and $60 trillion more in unfunded spending promises. The Federal Reserve will borrow $1.1 trillion in 2013 alone to buy bonds—and it reserves the right to borrow unlimited amounts for future bond purchases without congressional or presidential permission. (more…)
5 Years Later: Banks Still Too Leveraged
Posted by Larry Doyle on September 12th, 2013 9:09 AM |
Do you think there is a reason why bank balance sheets are so convoluted and opaque? Of course there is.
The lack of meaningful transparency allows the banks to continue to employ excessive degrees of leverage across a widely disparate array of businesses and with a paucity of competition all in the hope of generating outsized returns. But who do you think bears the ultimate risk?
They pursue these paths with the support of the Federal Reserve’s zero interest rate policy and a regulatory system that belies meaningful oversight despite those who might want us to believe that Dodd-Frank brought reform to the system.
Former FDIC chair Sheila Bair does not leave much to interpretation on these topics. (more…)
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. (more…)
GS, JPM, MS et al: No Longer Just Banks
Posted by Larry Doyle on July 10th, 2013 7:49 AM |
But how have the banks gotten bigger? It is not merely via the issuance of home mortgages, credit cards, corporate loans, and some derivatives transactions.
The new rent-seeking, market manipulating economy that is coming to define the American landscape is reflected in a host of other ways. Should we even call these institutions banks anymore? (more…)
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. (more…)
Fed-speak: Ease Air Out of Bonds – Support Equities
Posted by Larry Doyle on May 20th, 2013 9:38 AM |
“Don’t fight the Fed.”
While the fundamentals of our underlying economy bump along with continued structural headwinds and fiscal support from Uncle Sam remaining anemic, the Federal Reserve’s QE-infinity remains the underlying cornerstone supporting our markets.
With equities making new highs and high yield bonds trading at stratospheric levels, recent pronouncements from Fed officials strike me as looking to accomplish two goals: (more…)
Will Uncle Sam Expand “Too Big to Fail?”
Posted by Larry Doyle on February 20th, 2013 9:45 AM |
There is not even one credible individual in the world today who would believe that we do not still operate under a “too big to fail” model for our banking industry.
We now know that “too big to fail”also means “too big to regulate” and “too big to prosecute.” Free market capitalism is dying a slow and steady death in the process.
Might we ever get out from under the heavy burden of this model? We can only hope. Yet I awaken this morning and vomited my coffee as I read in the WSJ,
Should the government backstop even more of the financial system than it already does?
Sure, if you love a mix of crony capitalism and socialism, wave it in, right? (more…)
