Archive for January, 2010
Posted by Larry Doyle on January 25th, 2010 8:46 AM |
How are we to judge the Federal Reserve? The Fed by its very nature has been an opaque institution. What truly goes on behind the closed doors of the Fed? What are the relationships amongst the Fed Chair and Fed governors? How about the relationships between Fed representatives and political operatives?
While volumes have been written about the history of the Fed, to the American public the Federal Reserve remains a mystery. How can we lift the veil on this mysterious institution? Let’s “kiss” the Federal Reserve. What? Oh no, LD, where are you going with this? Let’s plant a big “kiss” on the Fed. That is, keep it simple stupid. (more…)
Tags: Congress should ask bernanke this, Congressional question for Ben Bernanke, Federal Reserve mandates, goals of Federal Reserve, has fed kept prices stable, how does the Fed operate, Inflation, keep it simple stupid, kiss the federal reserve, Michael panzner on inflation and the Federal Reserve, rate of inflation from 1913, stable prices, the fed has failed miserably, The Inflation Calculator, the mysterious Federal Reserve, the mystery behind the Federal Reserve, what do you think about the Fed, what is the Federal Reserve supposed to do, when waas the Federal Reserve founded, when was the Fed founded
Posted in Federal Reserve, General | 11 Comments »
Posted by Larry Doyle on January 23rd, 2010 3:27 PM |
UPDATE: This episode of NQR’s Sense on Cents with Larry Doyle has concluded. You can listen to a recording of the episode in its entirety by clicking the play button on the audio player provided below. Once the audio begins, you can advance or rewind to any portion of the episode by clicking at any point along the play bar.
If anybody thought the economic landscape was ready to level off for a smooth and easy stretch, think again. This past week we witnessed truly historic developments.
Massachusetts launched a missile on Washington with the election of Republican Scott Brown to fill ‘the people’s seat’ previously held by Ted Kennedy. President Obama tried to redirect that missile toward Wall Street by promoting the Volcker Plan to reconfigure the Wall street banking model. In the midst of this mayhem, the markets were rocked and declined 4-5%. OUCH!!
How does this all play out with an economy that is supposed to have been improving? Where can one go for help navigating the economic landscape? Where can one go to address these topics without the pandering or posturing found elsewhere? You have come to the right place as this Sunday evening at 8pm No Quarter Radio’s Sense on Cents with Larry Doyle Welcomes Back Michael Panzner.
I first spoke with Mr. Panzner last March. He is widely acclaimed as one of the real economic and market visionaries of our time. He shares his wisdom at Financial Armageddon and has penned the highly regarded When Giants Fall.
Join us at 8pm ET this Sunday for a riveting discussion with Michael Panzner. Share your thoughts or questions by calling 347-677-0792, or mix it up in the chat room with an always energized group.
LD
Tags: Michael Panzner interview on Sense on Cents, Michael panzner on housing and commercial real estate, Michael Panzner on inflation, Michael Panzner on labor and employment, Michael Panzner on the economy, Michael Panzner on the Federal Reserve, Michael panzner on the Obama plan for banks, Michael Panzner reviews the markets
Posted in General | 1 Comment »
Posted by Larry Doyle on January 23rd, 2010 7:15 AM |
From Massachusetts to Washington and from Wall Street to China, fireworks were flying this week across our global economic landscape. While the political focus in America is grabbing center stage, make no mistake, the issues driving the politics are largely economic.
Welcome to our Sense on Cents Week in Review where I provide a streamlined recap of the major economic news and the month-to-date market moves. Pack lightly as we have much ground to cover. That said, let’s enjoy the journey as the twists and turns along our landscape are truly fascinating and historic in nature. Let’s navigate.
ECONOMIC DATA:
1. Housing Starts: a disappointing report as starts fell 4% after an upward revision to a 10.7% increase in the prior month. I still take all the housing numbers with a pound of salt knowing that delinquencies and defaults continue to move higher. (more…)
Tags: economic and political factors driving market January 23 2010, January 23 bond market review, January 23 commodity market review, january 23 currency market review, January 23 equity market review, January market review, Obama weakness impact on markets, risks in market January 23 2010, what are the risks in market January 23 2010, what drove market lower this week January 23 2010 u, what is driving themarket lower january 23 2010, why did market sell off this week
Posted in bond market, commodities, currencies, Economy, Equity Markets, General, markets | 5 Comments »
Posted by Larry Doyle on January 22nd, 2010 12:42 PM |
America is pissed off. Tremendous grasp of the obvious, right? Well just how pissed off is America?
Thank you to a new friend of Sense on Cents for sharing a recent survey taken by the Opinion Research Corporation addressing America’s general lack of trust with Wall Street and corporate officers.
Pretty sorry state of affairs when a large percentage of America thinks our financial and corporate executives are a pack of liars. No surprise that America wants greater protection from this deception and deceit.
Keep coming to Sense on Cents to get armed and protected as we collectively navigate the economic landscape. On that note, let’s look deeper at what America is saying: (more…)
Tags: accuracy of financial statements, are corporate officers dishonest, are Wall street executives dishonest, Central Bank case in 1994, Dura case in 2005, financial fraud needs accountability, investors legal rights, Ira Schochet NASCAT President, lack of trust in America, lying on Wall Street, Opinion Research Corporation poll, ORC poll from December 2009, poll of America's view on Wall Street and corporate executives, Stoneridge case in 2008, Wall Street accountability, Wall Street deception and deceit, what is NASCAT, what rights do investors have
Posted in General, Wall Street | 5 Comments »
Posted by Larry Doyle on January 22nd, 2010 10:14 AM |
Add Peter Sivere to the list of people totally screwed by the Wall Street-Washington incest.
The incestuous nature of the Wall Street-Washington relationship runs across many segments of our financial landscape. That said, the corrosive nature of this incest is most egregious within those institutions charged with protecting investors, that is the SEC and FINRA.
The SEC and FINRA failed the Madoff investors, the Stanford investors, and ultimately the country as a whole. I firmly believe the financial regulatory system failed to perform because it was in bed with the industry and served at its behest. To what extent are the regulators still in bed with the industry? (more…)
Tags: did the SEC blow Peter Sivere's cover, Mary Schapiro career, Mary Schapiro career regulator, Peter Sivere of JP Morgan, SEC and FINRA failed investors, SEC and FINRA failed Madoff investors, SEC and FINRA with Madoff and Stanford investors, SEC protection, SEC whistleblower, SEC whistleblower policy, the SEC pimped Peter Sivere, Wall Street regulation, what happened to Peter Sivere, whistleblowers, who is Peter Sivere, why was Peter Sivere fired
Posted in General, SEC | 4 Comments »
Posted by Larry Doyle on January 22nd, 2010 8:09 AM |
Is President Obama’s proposal to rein in risk on Wall Street genuine or merely another Washington political ploy to curry favor with an enraged American electorate?
As with any proposal, the devil is always in the details. Initial pushback from Wall Street is strong but also informative. What is Wall Street highlighting? The large Wall Street banks are promoting the fact that proprietary trading operations do not encompass a large percentage of their overall business. In fact, JP Morgan already shut down an internal proprietary trading business in 2009.
I believe Wall Street will paint Obama’s proposal as an overreaching and aggressive intrusion into its business and free enterprise. What are we to make of all this? What exactly is Obama proposing? I’m not sure even he would know. The fact is, Obama’s proposal to curtail proprietary trading resides in defining exactly what proprietary trading encompasses. (more…)
Tags: 12th Street Capital review of FASB 166 and 167, are SIVs proprietary trading, customer trading vs prop trading, financial regulation on Wall Street, Goldman Sachs business model under attack, internal hedge funds on Wall Street, is Obama proposal to curtail risk genuine, off balance sheet vehicles on Wall Street, principal trading on Wall Street, private equity operations on Wall Street, risk on Wall Street, SIVs and FASB 166 and FASB 167, structured securitizations on Wall Street, Wall Street business model under attack, Wall Street capital needs, Wall Street lobby fighting Obama and Volcker Plan, Wall Street SIVs, what is in Volcker Plan, what is included in proprietary trading, what is proprietary trading
Posted in General, proprietary trading, SIVs | 6 Comments »
Posted by Larry Doyle on January 21st, 2010 3:59 PM |
Earthquakes always lead to after-shocks.
With all due respect and sensitivity to the residents of Haiti, the earthquake felt in the Massachusetts Senate election on Tuesday has led to the after-shock dropped on Wall Street today by President Obama. Obama’s call to limit the size and risk-taking of Wall Street banks is meant to address the rage and anxiety of the American public. Any vision, however, will only be as effective as those commanders charged with its execution.
Who on Obama’s team will ultimately be in the position to execute this vision to reconstruct Wall Street? Tim Geithner, Ben Bernanke, Larry Summers, and Mary Schapiro. Each of these individuals is badly scarred as a result of the crisis that started on Wall Street and, in turn, crushed Main Street. (more…)
Tags: fire geithner, fire schapiro, fire summers, if wall street wants a fight, k about a fight with wall street, obama plan to reduce risk on wall street, obama proposal for wall street, obama's financial generals, Obama's plans for Wall Street, replace geithner with volcker, replace schapiro with cuomo, replace summers with feldstein, tim ryan of sifma comments on obama plan, wall street prop trading, who will execute obama plans for wall street
Posted in Barack Obama, General, Obama Administration, Wall Street | 8 Comments »
Posted by Larry Doyle on January 21st, 2010 11:32 AM |
If I had a nickel for the number of people who have asked me how Goldman Sachs makes money, I would have a lot of nickels.
Goldman Sachs as a company is easily vilified. America always wants a villain when times are tough. Goldman makes the most money on Wall Street so they must be the ‘baddest’ guys. Well, generally speaking people are never as good nor as bad as they may seem. Look at Tiger Woods. He fooled America for a good long time. The fact is, Goldman Sachs mastered a business model which no other Wall Street enterprise fully embraced. I am certainly not a Goldman apologist and believe they very likely took advantage of situations that drove enormous profits. I highlighted the Goldman business model last July in writing, “How Does Goldman Sachs Operate?”: >> (more…)
Tags: an Sachs business model, breakdown of Goldman Sachs earnings, chs proprietary business, easy money on wall street, Goldman Sachs, Goldman Sachs earnings report 4th quarter 2009, Goldman Sachs operation, Goldman's FICC division, narrowing of bid-ask spread, obama attacking goldman business model, prop trading, proprieatary trading on wall street
Posted in General, Goldman Sachs | 2 Comments »
Posted by Larry Doyle on January 21st, 2010 8:54 AM |
One year into his presidency, Barack Obama is losing support from many corners. The American public is clearly sending Obama specifically and Washington at large a strong message of disapproval. Obama’s liberal base of support within the Democratic Party is growing increasingly disenchanted. Individual supporters such as The New York Times’ Paul Krugman are backing away from Obama.
Obama and team have nobody to blame but themselves. They were elected to bring real change to Washington. The American public defined that change as embracing real truth, transparency, and integrity. To this point, Obama has fallen woefully short on all these fronts and proven himself to be ‘just another politician.’
Obama has tried to scale Mt. Everest when in fact the American public and economy were merely and are still trying to get back to sea level. As Obama looks to regroup and reconnect with the American public, what will he do? (more…)
Tags: America wants transparency in washington, Barack Obama, did Tim geithner sell his house, fire the messenger Tim geithner, is Obama just another politician, Krugman writes he wasnt the one we've been waiting for, liberal base disenchanted with Obama, Obama Administration, Obama administration mistakes es, Obama cabinet, Obama embraces Volcker plan, Obama plan to curtail proprietary trading on Wall Street, obama Presidency, Obama promotes Paul Volcker, Obama prop trading plan, Obama's financial team Geithner Summers Bernanke Schapiro, Obama's plans for Wall Street, Paul krugman backs away from Obama, truth transparency and integrity in washington, tts message to Obama, what will Obama do?, will Obama can Geithner, will Obama fire Tim Geithner?, will Obama reinstitute Glass-Steagall, will Obama replace geithner with Paul Volcker
Posted in Barack Obama, General, Paul Volcker, Tim Geithner | 4 Comments »
Posted by Larry Doyle on January 20th, 2010 3:00 PM |
Where’s the money?
America still wants to know where is the money that has flushed the banking system, but not flowed through to the American economy. That question is the convenient excuse put forth by Martha Coakley, her supporters, the Democratic establishment, and large segments of the media for the Democratic embarrassment in Massachusetts yesterday.
“Where’s the money” is a very fair question. My answer today is the same I offered on December 29th, 2008 when I wrote, “Where’s the Money??…”: (more…)
Tags: bank credit problems, Bank of America home equity loans, banking credit problems, blame for Coakley loss in Massachusetts, credit issues in banking industry, credit problems in banking, delinquent loans in banking, helocs, hohow large are heloc losses, home equity loan problems on wall street s, how large are heloc losses, JP Morgan home equity loans, losses in home equity loans, populist message, reserves vs bonuses, Wall Street bonus paymetns vs Wall Street reserves, Wall Street bonuses, Wells Fargo home equity loans, what is a heloc, where is bank credit, where is the money on Wall Street, where's the money?, why did Coakley lose, why isn't credit flowing
Posted in Banking Institutions, General, Wall Street | 4 Comments »
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If Wall Street Wants a Fight, Obama Should…
Posted by Larry Doyle on January 21st, 2010 3:59 PM |
Earthquakes always lead to after-shocks.
With all due respect and sensitivity to the residents of Haiti, the earthquake felt in the Massachusetts Senate election on Tuesday has led to the after-shock dropped on Wall Street today by President Obama. Obama’s call to limit the size and risk-taking of Wall Street banks is meant to address the rage and anxiety of the American public. Any vision, however, will only be as effective as those commanders charged with its execution.
Who on Obama’s team will ultimately be in the position to execute this vision to reconstruct Wall Street? Tim Geithner, Ben Bernanke, Larry Summers, and Mary Schapiro. Each of these individuals is badly scarred as a result of the crisis that started on Wall Street and, in turn, crushed Main Street. (more…)
Tags: fire geithner, fire schapiro, fire summers, if wall street wants a fight, k about a fight with wall street, obama plan to reduce risk on wall street, obama proposal for wall street, obama's financial generals, Obama's plans for Wall Street, replace geithner with volcker, replace schapiro with cuomo, replace summers with feldstein, tim ryan of sifma comments on obama plan, wall street prop trading, who will execute obama plans for wall street
Posted in Barack Obama, General, Obama Administration, Wall Street | 8 Comments »