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HomeCoe Provides Sense on Cents
Posted by Larry Doyle on May 20th, 2010 10:32 AM |
In light of my initial commentary this morning, “Obama Political Pandering on AZ Immigration Law Represents Real Risk to U.S. Dollar,” I am compelled to further highlight this issue by drawing attention to a comment left by Coe, a loyal Sense on Cents reader. Coe writes:
The lines, LD, between politics and economics are now and forever blurred…I listened to some commentary from the AZ Governor, speaking directly to the “costs” associated with our politically/economically misguided immigration sensibilities and lack of border controls – simply staggering – community services, education, law & disorder, incarceration, health care, housing…and then factor in the hidden but very real costs of violence, drugs, prostitution, kidnapping..and all the rest of the story…I’m no expert on this topic, and believe in the intrinsic dignity of man, but when the President and his henchman pursue this path from the bully pulpit, it’s bad enough as political pandering, but it’s even worse in that they believe their own words…somebody always must be demonized on the home team in Obama’s version of leadership of “We the People” – if it’s not the bankers in financial matters, it’s the insurers in health care, it’s the Republicans on virtually everything, and it’s certainly this poor woman, Jan Brewer, the Governor of Arizona, who is only trying to do exactly what she was elected to do – represent the interests of the citizens of her state – all the legal citizens of her state that is…take a lesson, Mr. President!!!!
I commend Coe for further elevating this topic while embracing a wide array of the underlying issues. Our President and his administration would be wise to do the same. Coe has done all of us a real service and provided a wealth of sense on cents.
LD
Sense on Cents Repeats, ‘The Most Critical Economic Statistic’
Posted by Larry Doyle on May 19th, 2010 2:49 PM |
Economic progress? Green shoots (remember those)? Improving fundamentals? Stop it.
I remain an eternal and enthusiastic optimist, but I hold particular contempt for those in our media and our markets who will neither look for nor embrace the truth.
In my opinion, America has allowed itself to be numbed by those in Washington who put forth snapshots of economic data with little regard for the big picture. The financial media enables the Washington ‘facade’ under the guise ‘if we don’t highlight the truth, perhaps we can avoid it.’
Life does not work that way. (more…)
Volcker: American ‘Lack of Urgency’ Will Cripple Us
Posted by Larry Doyle on May 19th, 2010 11:30 AM |
Paul Volcker
We’re different, right? The economic problems in Greece and other nations within the EU are their problems and not ours. Really? In my opinion, Americans are far too complacent regarding our economic problems. We shouldn’t be.
Will the economic, political, and civil waves of unrest rolling across Europe come ashore here in America? It is only a matter of time unless those in Washington charged with addressing the underlying issues take swift action. I have seen zero inclination and political will to do just that. Our Washington elite are so used to feeding at the trough that they would not know how to pull themselves away. How is America responding to these fat pigs?
Rogoff: EU Bailout Will Not Stop Defaults
Posted by Larry Doyle on May 19th, 2010 8:57 AM |
Kenneth Rogoff
Shock and awe? The trillion dollar bailout of the debt-ridden nations within the EU was supposed to backstop the Euro and put investors at ease. As of this juncture, the politicians and central bankers are likely the only individuals left shocked and awed.
Rather than writing checks and overpaying for debt, perhaps these politicos and their central banker friends should call on those who have studied global economic and financial crises. Like who? Harvard’s Kenneth Rogoff, who pointedly details that the very structure of the EU-bailout will be insufficient in forestalling defaults within the EU. (more…)
FINRA Investigates Thomas Weisel for ‘Stuffing’ ARS; Will SEC Investigate FINRA for Same?
Posted by Larry Doyle on May 18th, 2010 3:21 PM |
More evidence of the fraud surrounding auction-rate securities is exposed this morning in a story highlighting how Thomas Weisel Partners ‘stuffed’ $15.7 million of auction-rate securities into client accounts in order to raise cash to pay bonuses. The Wall Street Journal reports, Weisel Accused of ‘Stuffing’ Auction-Rate Securities:
Finance industry regulators have charged Thomas Weisel Partners and one of its former executives with improperly “stuffing” $15.7 million of auction-rate securities into client accounts in order to raise cash to pay bonuses. (more…)
Karen Fischer Petitions for FINRA Board Seat
Posted by Larry Doyle on May 18th, 2010 5:45 AM |
A democratic process requires fair, open, and robust interaction between and among elected individuals. That interaction will only occur if the individuals themselves are representative of a wide constituency. To that end, I am happy to post the following petition from Karen Z. Fischer, who is running for a seat on the FINRA Board of Governors. I am not endorsing Karen’s candidacy per se, but I am very much endorsing a process which will promote real transparency and integrity. To that end, I welcome sharing Ms. Fischer’s letter: (more…)
Why is Copper Melting Down?
Posted by Larry Doyle on May 17th, 2010 2:26 PM |
If manufacturing and industrial activity is supposedly picking up in the largest economy in the world, that being the United States, then why is the price of the base metal copper melting down?
Let’s look at a WSJ graph of copper for the last twelve months:
We can witness that copper rebounded strongly during 2009, given the global meltup in virtually every risk-based asset. Copper closed out 2009 at approximately $3.35/lb and then proceeded to melt down in January of this year when markets got hit. (more…)
Jeff Gundlach Provides Sense on Cents
Posted by Larry Doyle on May 17th, 2010 11:12 AM |
We have not heard much lately from the former high profile money maven, Jeff Gundlach. You may recall that Gundlach departed the LA-based Trust Company of the West late last year under very questionable circumstances, leading to an ugly lawsuit. I highlighted as much this past January in writing, “TCW vs Gundlach, et al: Getting Ugly Early.”
What has Gundlach been up to lately? The Wall Street Journal brings us up to date on the once high-flying, but currently humbled, money manager in writing, Gundlach Gets Back in the (Smaller) Game:
Jeffrey Gundlach, the bond-fund manager whose departure from TCW Group in December made headlines, still sees himself as a player in the industry. (more…)
