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Posts Tagged ‘free market capitalism’

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…)

Uncle Sam Charges S&P with FRAUD!!!

Posted by Larry Doyle on February 6th, 2013 9:28 AM |

“Fraud,” cried the maddened thousands, and the echo answered “Fraud.”

Fans of our national pastime are likely well acquainted with the classic poem, Casey At The Bat. In that well worn tale, the patrons of the game go home with heads bowed as their power hitter, that being the mighty Casey, fails to drive home the winning runs in the bottom of the ninth.

In similar fashion but in real life, the fans of the red, white, and blue team with USA adorned across their breast are also disappointed to date as justice officials have yet to swing at pitches seemingly thrown right over the plate. To what do I refer? Financial frauds emanating on Wall Street. Although our very real game is seemingly in the late innings, mighty Sam is in the process of swinging his bat as he charges the rating agency Standard & Poors with fraud.  About time right?  (more…)

Jonathan Weil Reviews “The Truman Economy”

Posted by Larry Doyle on September 20th, 2010 7:13 AM |

What can we believe? Can we believe the economic reports put forth by our government? Can we believe the quarterly reports put forth by our financial institutions? Can we believe the price action in our markets? While “the market is the market,” has our country ever experienced a period in which there is such a massive disconnect between the real economy and what Uncle Sam has generated?

I am often reminded of the fabulous hit movie, The Truman Show, when thinking of our current economy and markets. How much of our economy is based on reality and what is merely staged? Bloomberg’s Jonathan Weil once again distinguishes himself in providing an “economic and market reality check” of our ‘Uncle Sam’ economy circa 2010. Weil writes, Zombie Banks Have Us Right Where They Want Us:

Two years after the collapse of Lehman Brothers and what rightfully should have been the death of American International Group, U.S. capital markets face a crucial question.

How long will it take before we see some semblance of robust free-market capitalism return, where the value of an asset is based on what bona fide market participants will pay for it, the cost to borrow money is based on a company’s fundamental financial strength rather than its ability to access a government safety net, and corporations are free to fail no matter what their size? (more…)

More Insider Trading on Wall Street?

Posted by Larry Doyle on February 1st, 2010 1:56 PM |

Profit over principle. Where does one draw the line?

I worked with some incredibly sharp individuals on Wall Street. In fact, two individuals with whom I worked were banned from casinos in Vegas because of their ability to count cards. While casinos do not appreciate card counters, I would not include that skill as a negative in my thoughts about their personal character. To be perfectly frank, both of these individuals were gracious, charitable, and professional. The overwhelming majority of those with whom I worked were also true professionals.  That said, the very nature of the Wall Street enterprise attracts an element that prioritizes profit over principle. I am reminded of that fact again today. How so?

(more…)

IMG’s Ted Forstmann: “Wall Street Never Had Principles”

Posted by Larry Doyle on January 5th, 2010 2:36 PM |

Forstmann

Theodore J. Forstmann, IMG Chairman and CEO

Ted Forstmann is a Wall Street legend.

Those on Wall Street know Ted for his dealmaking prowess. His deal to purchase IMG (International Management Group) in 2004 positioned him atop this sports, entertainment, and media enterprise. Forstmann is a world renowned philanthropist. What more can we learn about this entrepreneur? From the IMG website:

Ted Forstmann is Chairman and CEO of IMG and the senior founding partner of the pre-eminent leveraged buyout firm, Forstmann Little & Co.

Since acquiring IMG in 2004, Mr. Forstmann has established a world-class management team at IMG and leads the company’s growth by expanding its global footprint, acquiring new businesses and talent that complement its breadth of services, creating and owning content, and streamlining the organization and its cost structure. He has transitioned IMG from a company known primarily for its sports businesses to one that is now taking advantage of the strong synergies between sports, entertainment and media. (more…)






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