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HomeToday’s Market Meltdown Is Due to Europe’s House of Cards
Posted by Larry Doyle on May 4th, 2010 10:33 AM |
Thanks to 12th Street Capital for bringing my attention to Europe’s Web of Debt highlighted the other day in The New York Times. The tangled web of interconnected liabilities is only exacerbated by exposures in the credit derivatives market. This situation is very similar to the interconnected Wall Street meltdown in 2008. Think of Greece as Bear Stearns and Spain as Lehman for example. (The image below is too large to fit in the allotted space on this site, so click on the image to view its entirety.)
Banks and governments in these five shaky economies owe each other many billions of euros — converted here to dollars — and have even larger debts to Britain, France and Germany. Arrow widths are proportional to debt amounts.
Today’s market meltdown is directly related to this tangled web.
LD
America’s Future Is Dark Unless…
Posted by Larry Doyle on May 4th, 2010 9:28 AM |
Land of the free, home of the brave.
No doubt, the United States of America is the greatest nation on the face of the earth. I love my country. I love hearing the stories of immigrants from all parts of the world who have come here to make a better life. Even though there is current concern around our immigration policy (or lack thereof), there exist endless numbers of stories of people making real sacrifice and, in turn, real progress for their families. I am inspired by these stories.
Despite all our greatness, I am extremely concerned that our nation will erode from within unless there is serious change in one very large corner of our political and economic landscape. What is it? (more…)
New Standards at Goldman Sachs Have Me ROFLMAO
Posted by Larry Doyle on May 3rd, 2010 3:09 PM |
Is Goldman Sachs finding religion? Is the highest profile firm on Wall Street about to publicly pronounce a measure of self-imposed penance given the recent civil charges and criminal investigation brought against it by the SEC and DOJ respectively?
A report in today’s Financial Times indicates that Goldman has entered the confessional and is ready to let the public know just how meaningful its recompense will be. (more…)
Auction-Rate Securities: The Fraud Continues
Posted by Larry Doyle on May 3rd, 2010 10:57 AM |
To: Wall Street, Washington, and State Capitols
From: Sense on Cents
Re: Auction-Rate Securities Fraud and Financial Regulatory Reform
To all those enmeshed on both sides of the political-financial incest and currently debating and lobbying on the merits of proposed financial regulatory reform, you are proving yourselves to be nothing more than massive frauds yourselves by not fully addressing and exposing the single greatest financial fraud perpetrated on American investors, that is the world of auction-rate securities.
To President Obama, members of Congress, financial regulators, and Wall Street executives, your unwillingness and inability to openly and honestly address the perpetuation of the fraud surrounding ARS ($150 billion ARS remain outstanding) paints you as nothing more than aiding and abetting the fraud itself. Who amongst you is even willing to fully address this topic? (more…)
Warren Buffett: Financial Statesman or Just Another Hack?
Posted by Larry Doyle on May 3rd, 2010 8:54 AM |
Warren Buffett
The Oracle of Omaha Warren Buffett is widely regarded as a true financial statesman. From his understated lifestyle to his self-deprecating manner to his simple wisdom in his books, Buffett has always appeared to be a world apart from most, if not all, other financial titans. While Buffett deserves plenty of the respect accorded him, let’s not totally sanctify him just yet. Why?
Buffett’s widely publicized opinions on the regulations of financial derivatives and the treatment of Goldman Sachs also show him to be just another financial hack (albeit it a VERY BIG one) “talking his positions.” Let’s navigate.
In regard to derivatives, let’s not forget that none other than Buffett defined these financial instruments as ‘weapons of mass destruction.’ (more…)
No Quarter Radio’s Sense on Cents with Larry Doyle Welcomes Back Rick Davis of Consumer Metrics Institute
Posted by Larry Doyle on May 1st, 2010 9:53 AM |
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.
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Tomorrow evening, Sunday May 2nd from 8-9pm ET, No Quarter Radio’s Sense on Cents with Larry Doyle Welcomes Back Rick Davis of Consumer Metrics Institute. If you have even a passing interest in the economy and the markets, take the hour and listen to this show. You will not be disappointed.
I first introduced Rick Davis of the Consumer Metrics Institute to the Sense on Cents audience on March 27th. The positive response to my interview with Rick was overwhelming. At that point in time, I realized Rick’s amazingly thoughtful and insightful analysis of the economy was not only way ahead of the curve but was truly focused on providing real truth, transparency and integrity across our economic landscape. (more…)
April 2010 Market Review
Posted by Larry Doyle on May 1st, 2010 9:30 AM |
Did spring, in the form of April’s market returns, just come in like a lamb? Will spring, in the form of 2nd quarter GDP, go out like a lion? Will that lion be robust and energized, or an angry beast?
April’s returns are now in the books. Many of the themes remain the same. Those include:
1. A trend toward disinflation helping the bond market primarily.
2. Easy money from the Fed supporting all markets.
3. Improved corporate earnings (be aware that earnings comparisons are year over year, and April 2009 was the economic abyss). (more…)
