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Posts Tagged ‘Wall Street vs Main Street’

Jeremy Grantham Equity Call: Negative Real Returns Over Next Seven Years

Posted by Larry Doyle on November 20th, 2013 9:20 AM |

A week ago noted investor Ray Dalio projected annual equity returns of a less than robust 4% over the next decade.

Now we hear from another one of my favorite investment gurus, this being Jeremy Grantham. While Grantham believes the current equity ‘party’ has one more leg up over the next year or maybe two, we will then experience the third serious market correction since 1999.

When Grantham talks, I listen. He had plenty to say in his recent quarterly letter.

My personal view is that the Greenspan-Bernanke regime of excessive stimulus, now administered by Yellen, will proceed as usual, and that the path of least resistance, for the market will be up. (more…)

“Greatest Wall Street Backdoor Bailout of All Time”: Sense on Cents Instant Classic

Posted by Larry Doyle on November 12th, 2013 10:01 AM |

It is not often that, in the midst of my daily morning reads, my jaw drops and I am left aghast by a writer’s hard hitting delivery. While many an editorial and commentary dive into topics that I appreciate and find riveting, I do not often find a writer from inside the arena who freely and openly speaks his/her mind.

This morning I had just such a pleasure.

While America and the world have been force-fed the notion that the Federal Reserve’s quantitative easing programs have been the magic elixir nursing our economy back to health, Andrew Huszar has a decidedly different take.

Who is Huszar? Only a former Fed official responsible for executing a large part of the Fed’s bond buying. Currently a senior fellow at Rutgers Business School, Huszar gains immediate induction into the Sense on Cents Hall of Fame as he pulls no punches in delivering a knockout in this morning’s WSJ. He begins with an apology. It only gets better from there.

I can only say: I’m sorry, America.  (more…)

David vs Goliath: The Case for Community Banks

Posted by Larry Doyle on January 29th, 2013 9:19 AM |

While the mega-banks on Wall Street flex their oligopolistic muscles (price controls, imperfect information, not sharing data), I want to take this opportunity to throw some support to the Davids of the banking world.

Who are these Davids? The community banks. Do you feel like you get a lot of personal touch and proper attention from Goliath? Really? How about from David?

Let’s navigate and review a compellingly detailed analysis recently released by the Dallas Fed.  (more…)

Banking: Wall Street vs Main Street by R. Wilmers

Posted by Larry Doyle on April 18th, 2012 6:50 AM |

This commentary is a little lengthy, but for those with even a passing interest in banking, our markets, our economy, and ultimately our nation it is a MUST READ. Think those in Washington really know what they are doing? Think all regulation is good regulation and that one size can truly fit all? The divide from Wall Street to Main Street is widening. To get a perspective on both sides of the street, read this fabulous review by M&T Bank’s Robert Wilmers. I recommend you save this, as we will refer back to it while we continue to navigate our economic landscape. LD

Reflections on the State of Banking and the Leadership Crisis
As relatively good a year 2011 was for M&T itself, it was far from an easy one. Indeed, it is difficult, for one who has spent more than a generation in the field, to recall a time when banking as a profession has been publicly held in such persistently low esteem. A 2011 Gallup survey found that only a quarter of the American public expressed confidence in the integrity of bankers.  (more…)

Have Americans Moved From Outrage to Resignation?

Posted by Larry Doyle on September 8th, 2010 6:09 AM |

The human spirit is not physically or emotionally able to maintain a heightened sense of acuity for an extended stretch. Although periods of stress or pain will cause sharp responses, eventually the human body is forced to accept the pain and learns to mask it. In the midst of our current economic crisis, I believe this distinct reality is setting in across our land. Let’s rewind the tape and review the developments which emanated on Wall Street and then plundered Main Street.

Fall 2008 brought us absolute shock, awe, and disbelief as the markets careened lower and the economy suffered a ‘heart attack.’

Throughout 2009, the shock wears off and America’s rage burns as people become fully aware that the banks, our regulators, and ultimately our government all failed us. While there are those on both sides of the aisle who would malign the opposition, the fact is both Democrats and Republicans are guilty of not properly defending the American citizenry against the plundering of our financial system. I captured this sense of rage in two specific commentaries: (more…)

Ambulance Chasing on Wall Street

Posted by Larry Doyle on April 12th, 2010 10:58 AM |

What is driving our markets higher? A rebound in earnings along with a rebound in the economy, correct? Well, let’s take a quick look at corporate earnings.

Thanks to our Sense on Cents Hall of Famer and resident Economic All-Star David Rosenberg, we learn this morning that:

Financial sector profits have accounted for 85% of the overall increase in corporate earnings.

When I read this, I immediately think of the market akin to that gutless driver who jumps behind an ambulance as it screams down the street. Who is in that ambulance? Main Street. Who is in that car getting the ‘free ride’? Wall Street. (more…)

The Great Divide: Wall Street versus Main Street

Posted by Larry Doyle on October 18th, 2009 3:30 PM |

Cartoon by Mike Luckovich
The Atlanta Journal-Constitution

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