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?
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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.
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…)
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…)
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…)
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.
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…)
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…)
Posted by Larry Doyle on January 18th, 2013 7:12 PM |
If anybody thinks that the governors of the Federal Reserve have any degree of foresight on the economy, the following transcripts from 2007 are a MUST read. One governor, (yes one and it was not Ben Bernanke), displayed real foresight and expressed real concern on what likely lay ahead on our economic landscape. Who was it? The one I recently highlighted as calling for the breakup of our TBTF megabanks. That would be Dallas Fed governor Richard Fisher.
After reading this release provided by the WSJ, you may doubt the Fed’s collective capability in managing the economy.
Posted by Larry Doyle on September 17th, 2012 7:33 AM |
I guess I could write this morning about the NYSE being fined by the SEC for facilitating front running. I could also offer more commentary on global banking institutions that now seem to realize a little thing called “reputation” actually matters. Perhaps I could offer insight on how the Fed’s recently announced “QE-infinity” is directed as a further bailout of the banks and the red-headed stepchildren commonly called Fannie and Freddie.
But let’s put those topics off for another time. Today, let’s address why your wallet is significantly lighter every time you go fill your vehicle’s tank. (more…)