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HomeFinger Pointing and Payoffs
Posted by Larry Doyle on April 9th, 2010 9:12 AM |
Who in America is going to stand up and accept appropriate culpability for his/her contribution to our current economic crisis? Who in America is also willing to expose the incestuous nature of the Wall Street-Washington relationship which provided the cover for the activities which have debilitated our nation?
Let’s review what we have learned so far:
1. Blame has been directed at bank executives…but they got paid handsomely, and have not accepted full responsibility.
2. Blame has been directed at ratings agencies….but they also got paid handsomely to provide ratings, while not really knowing what they were doing. (more…)
Has Oppenheimer Already Violated Its Auction-Rate Settlement with NY AG Cuomo?
Posted by Larry Doyle on March 29th, 2010 1:08 PM |
Is the great lie and fraud encompassing the auction-rate securities fiasco continuing even into the settlement process? Information, or the lack thereof, indicates it is. In the process, the injustice served cold to the thousands of ARS investors, especially those who purchased these so-called ‘cash’ instruments from Oppenheimer Holdings, continues.
Wall Street, Washington, and the bulk of the financial media (exceptions being author Phil Trupp, Bloomberg’s Susan Antilla, and the Washington Examiner’s Marta Mossburg) would prefer to keep the ARS fraud and fiasco neatly under the rug. I have no interest in allowing the fraudulent ARS perpetrators and their financial regulators any degree of comfort in this mess. (more…)
Another Oppenheimer ARS Investor Unloads on New York AG Cuomo
Posted by Larry Doyle on March 8th, 2010 8:12 AM |
Investors defrauded in the distribution of auction-rate securities deserve a voice. Sense on Cents is happy to provide it. Aside from feeling screwed by Wall Street banks and money managers in the distribution of auction-rate securities as a cash surrogate, investors now feel increasingly incensed by the lack of support in the judicial system and in selected attorneys general offices in our country.
The latest AG to feel the wrath of ARS investors is New York AG Andrew Cuomo for his recent settlement with Oppenheimer Holdings. Rather than reading my opinion of Cuomo’s settlement, let’s listen to an investor (who remains nameless for obvious reasons). In my opinion, this individual’s letter speaks volumes and echoes the sentiments of thousands of investors who continue to hold the $150 BILLION in frozen ARS. (more…)
Madoff Ruling: More Reason Not to Trust Wall Street or Washington
Posted by Larry Doyle on March 1st, 2010 1:03 PM |
On the heels of my commentary this morning addressing why Harry Markopolos feels America’s citizens should not trust the government, we receive more fuel for the fire.
The timing of this release is truly uncanny:
MADOFF JUDGE’S RULING REDUCES PROTECTIONS AGAINST PONZI SCHEMES FOR ALL SECURITIES INVESTORS
Judge rules SIPC does not have to insure every account up to $500,000, shifts burden of Madoff losses to American taxpayer. (more…)
Madoff Investors Suing SIPC
Posted by Larry Doyle on February 24th, 2010 2:39 PM |
You can rest assured that the powers that be on Wall Street would just as soon have the Madoff saga over. The Madoff scam perpetrated on investors is an ugly reminder of the non-existent financial regulatory system during the better part of the last twenty years.
I also believe many in Washington also might like to see the Madoff saga quietly pass by. The failures of the SEC, FINRA, and SIPC in this greatest of scams are an ugly reminder of the Wall Street-Washington incest.
Well, while many of the incestuous partners would like to turn the page, there remains a lot of filth that still needs to be cleaned up and a lot of individuals and institutions that need to be held to account. (more…)
New York Times’ Thomas Friedman: “We Have to Demand the Truth”
Posted by Larry Doyle on February 22nd, 2010 6:05 AM |
Without the truth, we are mere slaves to a corrupt system and will never control or master our destiny.
I don’t write this premise whimsically nor do I accept it as a given. The fact is, our forefathers are rolling over in their graves right now given the fatuous culture our society has not only tolerated but promoted. I continually call for the pursuit of truth, transparency and integrity while navigating the economic landscape for the very reason that without these virtues we are doomed as a nation.
High five to AL for pointing out that none other than Thomas L. Friedman of The New York Times drills this very point in writing, The Fat Lady Has Sung. Whether you agree with Friedman’s politics is immaterial. (more…)
Paul Volcker Talks ‘Sense on Cents’
Posted by Larry Doyle on February 13th, 2010 2:52 PM |
Paul Volcker
What will the future of Wall Street hold? No man is attracting more attention regarding that very question than former Fed Chair Paul Volcker. What might the Volcker Rule mean for Wall Street? For those with an interest in the global economy and markets, Volcker provided an extensive interview recently to the Financial Times.
In this interview, the former Fed chair talks more ’sense on cents’ than anybody I have come across since launching this blog a year ago. I STRONGLY recommend reading it and saving it. Volcker’s interview will serve as a fabulous reference map as we collectively navigate our economic landscape.
Paul Volcker is seen as one of the wise men of American public life. As chairman of the Federal Reserve under Presidents Jimmy Carter and Ronald Reagan he subdued inflation, for which he is lauded today, although it was controversial at the time. After President Obama’s election, Mr Volcker was made chairman of the President’s Economic Recovery Advisory Board, a position which initially seemed largely ceremonial. But Mr Volcker returned to the centre of financial and economic debate last month when Mr Obama endorsed his proposed separation of commercial banking and proprietary trading, a plan dubbed the “Volcker Rule”. (more…)
Jobs is Job #1
Posted by Larry Doyle on November 30th, 2009 9:34 AM |
“Kiss me!!”
“What?”
That’s right, I said, “Kiss me!!”
Many a businessman is familiar with the basic principle of “kiss me,” that is “Keep It Simple, Stupid.”
Regrettably, Washington is not familiar with that simplest of business principles. Legislative bills that run into the thousands of pages and admittedly go unread by our lawmakers prior to vote are often an unmitigated disaster for American business. How so?
These bills create an environment of uncertainty. What do business leaders do when they’re unsure of what is coming out of Washington and how it might impact their business? “When in doubt, wait it out.”
I witness increasing evidence of this basic business dynamic and believe it will be on full display this coming Thursday. What will happen Thursday? President Obama is hosting a Jobs Summit in Washington. Sounds like a reasonable idea given the domestic employment situation is so bad and getting worse, despite assertions to the contrary by a number of public officials and economists.
How convenient that the summit is being held Thursday. Why? This summit will provide plenty of photo ops and media coverage highlighting that Washington is hard at work addressing the employment situation right before the monthly unemployment report is released on Friday morning. Do not think for a second that the timing of this summit was not strategically scheduled to negate the negative impact of another weak report. (more…)
It’s the Economy, Stupid!!
Posted by Larry Doyle on October 16th, 2009 9:05 AM |
The American public is becoming increasingly wise to the ways of Wall Street and Washington.
Many Americans were duped by financial practices and products emanating from Wall Street. Where was Washington? I would assess Washington’s involvement and responses in the following fashion:
1. At worst, Washington was complicit given a wide array of failed public policy programs, especially in housing. These public policies were largely ’greased’ by lobbying dollars and campaign contributions.
2. To a large extent, Washington was negligent in terms of oversight, especially on the financial regulatory front.
3. At best, Washington was naive given a general lack of understanding of markets and finance.
The American public is now responding in appropriate fashion. How so? In increasing numbers, they are choosing not to play the Wall Street game. What game is that? Active trading and investing. While the numbers of pure day traders may have increased, the American population at large is focused elsewhere. Where is that focus? On the economy at large and on their individual pocket books.
Washington’s focus on Wall Street and its selling of the market rebound as reflective of a return towards prosperity is a product that will not fly . . . try as they might. Why?
It’s the economy, stupid! Reports this morning indicate that wages will likely show the greatest decline since 1991. Even in the face of declining wages, consumers’ purchasing power is being further eroded by the continuing decline in the value of the dollar. That decline is inflationary which hurts consumers but it continues to present a very cheap funding vehicle for those who want to use the greenback to employ leverage in the markets. Who has the advantage in that process? The large banks. Do they spread that wealth in terms of increased credit and higher savings rates? Now why would they do that?
The American saver and consumer shouldered the cost of the bank bailouts in 2008. They are now shouldering the cost of the wealth transfer to the banks in 2009. While Washington would like to sell this dynamic differently, the American public gets it.
Washington will continue to sell this dynamic at its peril.
LD
