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HomeKeating Undresses Geithner
Posted by Larry Doyle on March 9th, 2009 12:37 PM |
One of the few countries in the world to escape the worst of this economic tsunami is Australia. I introduced you to former Australian Prime Minister and Treasurer Paul Keating on February 18th in my piece entitled A Fresh and Honest Perspective. Keating was brutally honest in the video clip (thank you SR for providing it!!) included in that article .
I love an honest man!!
Former Australian Prime Minister and Treasurer Paul Keating
Well, Mr. Keating has spoken again and I am listening to him very closely as I strongly believe I am more educated and informed as a result. Our domestic officials and media outlets should take heed.
In an article published in this past Saturday’s Sydney Morning Herald, Obama’s Economic Saviour Savaged as Keating Let’s Rip. Keating offers a piercing review of then Treasury Officer Geithner’s structuring of an IMF led rescue plan of the Southeast Asian crisis in 1997-98. For those unaware, many countries in SE Asia had massive infusions of foreign capital in the form of debt to facilitate infrastructure development. Geithner and then IMF Chief Michael Camdessus structured a plan that injected $200 billion dollars in the form of IMF loans to refloat the economy. Keating maintains that Geithner and Camdessus totally misdiagnosed the problem and in turn the solution. (more…)
No Justice!! No Confidence!!
Posted by Larry Doyle on March 9th, 2009 10:38 AM |
All indications point to a plea deal this week with Bernie Madoff. In my opinion, Bernie Madoff seems to have been treated with kid gloves to this point. House arrest for a purported crime of this magnitude defies logic. One can only assume the government
Bernie Madoff
utilized this approach, even after Bernie shipped jewels and assets overseas, as they were trying to extract as much information as possible. This week’s news will give the public the first hint as to what kind of information the government has extracted.
My father was an assistant district attorney in Suffolk County, MA and has often made the point that white collar crime never received the degree of justice it deserved. The crime that Bernie and team propagated not only directly impacted his investors but also massively impacted the public at large. How is that? Bernie’s Ponzi scheme, perpetrated over such an extended period of time, has caused a crisis of confidence in our markets, our regulatory system, and ultimately our country.
It defies logic that this Ponzi scheme was not executed without enormous cooperation and involvement by a number of individuals both inside and outside the Madoff organization. There is no doubt in my mind that many of those individuals have information, that if revealed, can and will be extremely embarrassing for some high profile people within our regulatory bodies and our government. (more…)
Tonight’s No Quarter Radio Show Postponed to Next Week
Posted by Larry Doyle on March 8th, 2009 3:46 PM |
LD is unfortunately under the weather and will not be able to broadcast his regularly scheduled Sunday night show on No Quarter Radio.
Join us next week for the debut of No Quarter Radio’s Sense on Cents with Larry Doyle. Same great show, brand new name!
Czech This Out
Posted by Larry Doyle on March 8th, 2009 12:54 PM |
I find the comments by President of the Czech Republic Vaclav Klaus to be particularly insightful. For someone who spent close to the first 50 years of his life in a government-controlled state, he strongly embraces and promotes free market principles. In these challenging times, his perspective provides a degree of balance, and I, for one, find it refreshing.
It’s All About Relationships
Posted by Larry Doyle on March 8th, 2009 7:22 AM |
I had a conversation last week with a recent college graduate working in the finance industry. He was recently laid off. Understandably, he was somewhat miffed and unsettled. I was happy to talk to him. My first statement to him was that he has approximately another 40 work years in front of him. Given the length of time and the dramatic changes ongoing in our economic landscape, I offered that this was actually an interesting time to be in the job market because change creates opportunity. His initial deadpan response was not unexpected and actually hoped for. I did not want to be merely a shoulder for him to lean on and commiserate. I advised him that his next job would not necessarily find him, he must find it. In that spirit, I enthusiastically apprised him to actively engage people in dialogue and conversations.
I told him to not even look for interviews but first and foremost to gather information. Utilizing a variety of networks (friends, family, college alums, neighbors, cold calls), I strongly impressed upon him that he needed to remain engaged. (more…)
Entrepreneurial Spirit
Posted by Larry Doyle on March 7th, 2009 7:30 PM |
There is no substitute for an indomitable entrepreneurial spirit. We all know these are challenging times, but the American spirit will carry the day. I found this video clip to be particularly inspiring. I hope you do, too:
Spring Ahead!
Posted by Larry Doyle on March 7th, 2009 1:30 PM |
Don’t forget that Daylight Savings Time begins at 2 a.m. Remember to move your clocks one hour forward!
Cartoon by Dave Granlund, Chicago Tribune
So Many Questions
Posted by Larry Doyle on March 7th, 2009 10:52 AM |
In the midst of any storm, one wonders what the landscape may look like when the dust settles. Well, our current economic tsunami is no mere rainy day at the beach. What will the landscape look like on the other side? Let’s ponder some of the questions we need to ask as we navigate forward:
1. Which companies will no longer exist as currently formulated?
2. Will companies become smaller, more simplified, with less financial engineering?
3. How will regulation of the financial industry look? Could it have a global basis? Will national interests prevail over global demands?
4. Where will the DJIA be on March 7, 2010? March 7, 2014?
5. What will the unemployment rate be on those dates?
6. What will Obama’s approval ratings look like on that first date? Which Obama program will be deemed successful? (more…)
Fed Releases Names of AIG’s Creditors
Posted by Larry Doyle on March 6th, 2009 9:03 PM |
Under pressure from Congress this week to release the names of AIG’s creditors, the Federal Reserve’s Vice Chairman Donald Kohn clearly got the message. The Fed has acquiesced in releasing that Top U.S., European Banks Got $50 Billion in AIG AID.
My immediate reaction to this news is how interesting that the bulk of these institutions are European. What does that tell me? These European banks were getting plowed by Wall Street with a lot of sub-prime backed CDOs and when the dam was breaking they wanted to hedge their position. Market speculation is that European institutions own twice the amount of toxic assets as U.S. based institutions. That exposure on top of their delinquent loans in eastern Europe is crushing a number of western European banks. Who are they? Start by looking at the list, included in the above-referenced article, of AIG creditors.
In providing the hedge – which is the insurance – AIG received a fat premium but has been paying for it ever since. Actually, AIG only truly paid for it up until last September . . . the American taxpayer has been and will continue to be paying for it for a long time. Where were the regulators when we really needed them?
LD
