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HomeKeine Transparenz Mit Diesen Untersuchungen
Posted by Larry Doyle on July 26th, 2010 3:19 PM |
“Was ist das, LD?” What is this, you ask?
Did you inadvertently hit your keyboard and Sense on Cents is now being delivered in German? No, don’t worry about that. Although I have always had a strong interest in the German language and history, my language skills have faded over the years. That said, I think readers should be able to figure out the key German word in my title. (I hope my grammar is correct!!)
In light of the European Bank Stress Tests released on Friday, I am compelled to highlight the fact that for a number of German banks there was “No Transparency with These Tests.” How so? (more…)
Has the Recession Really Ended?
Posted by Larry Doyle on July 26th, 2010 11:25 AM |
In the course of a discussion this past week, I made the point that I do not believe our economy has ever truly come out of the recession which officially began in December 2007. The National Bureau of Economic Research (NBER) is responsible for measuring the start and end dates for economic contractions and expansions. Why is it that the NBER has never officially declared an end to the recession? Interesting, very interesting.
On this topic, a good friend shared with me a fabulous piece which addresses our current economic health and the major hurdles for our future economic growth and prosperity. This piece, Quarterly Review and Outlook by Hoisington Investment Management in Austin, TX, addresses these hurdles in forthright, layman’s fashion. (more…)
Persistence Pays Off in Colorado Complaint Against E*Trade
Posted by Larry Doyle on July 24th, 2010 3:50 PM |
“The only thing necessary for the triumph of evil is for good men to do nothing.”
This quote is commonly attributed to Edmund Burke, an Irish statesman, author, orator, and political philosopher who lived in the 1700s. The depth of Burke’s words continue to resonate today. In fact, I thought of his words of wisdom when reflecting on the latest episode in the ongoing saga surrounding the auction-rate securities travesty.
No doubt there remain many miles to go and mountains to climb before real justice and full compensation are afforded all those who were defrauded in the distribution of auction-rate securities. That said, this week brought a small victory for all ARS holders — and one individual specifically — as word broke that the state of Colorado has filed a complaint against E*Trade for improperly distributing auction-rate securities. (more…)
Bruce Malkenhorst Should Thank Robert Rizzo
Posted by Larry Doyle on July 24th, 2010 10:15 AM |
Bruce Malkenhorst must be a very happy man today and for that he should thank Robert Rizzo.
Who is Malkenhorst? Who is Rizzo? What is the story here?
Readers may recall that 14 months ago, Malkenhorst, a former municipal employee in Vernon, CA was exposed as the recipient of a sweet little ‘half million dollar pension’ connected to his duties in the bustling metropolis of Vernon, CA. How bustling? Vernon, a community in southern California, has a total population of approximately 100 citizens.
Malkenhorst and his cronies in Vernon singlehandedly redefined the concept of municipal fiscal abuse. I highlighted this story and accompanying unbelievable details a year ago in writing a story which an inordinate number of readers have reviewed entitled California’s $100, 000 Club.
This week, Malkenhorst and his pals in Vernon must have partied real hard and toasted Robert Rizzo all week long. Why is that? (more…)
Mortgage Servicers Are Hugely Conflicted
Posted by Larry Doyle on July 23rd, 2010 12:57 PM |
Information is everything. Those who control the information have immense power. The allegiances of those in control of the info obviously have an enormous impact on how the information is processed and dispensed. The potential for conflicts of interest are significant. Standard business fare, correct? Have these conflicts played out on Wall Street? All too often. How so?
I have repeatedly highlighted the conflicts within our financial regulatory structure. We also know that the credit rating agencies have been enormously conflicted. Anywhere else? Let’s enter the world of mortgage servicing, ….. (more…)
After Goldman, Who’s Next in the SEC’s Scope?
Posted by Larry Doyle on July 22nd, 2010 1:15 PM |
One would think the SEC’s settlement with Goldman Sachs was just the break we needed in the logjam to finally get some real truth and transparency into Wall Street business practices. Recall that the Goldman CDO Abacus represented a mere .2 of the total CDO market from 2006-2008.
There must be many more fish in that tank just waiting to get caught by the SEC. American taxpayers deserve nothing less than a full and total accounting and adjudication of the travesty and transgressions embedded in a number of structured transactions on Wall Street. Will we receive that accounting? Is the SEC sending a strong message to those on Wall Street that ‘there’s a new sheriff in town?’ Or is the SEC placating the American public, applying a sizable slap on the wrist to Goldman, and giving Wall Street a wink and a nod indicating that it is ‘business as usual?’ Let’s navigate. (more…)
“You’re Playing with Sharks”
Posted by Larry Doyle on July 22nd, 2010 6:20 AM |
Is it safe to go in the water? In other words, is it safe to play in the markets under the current construct? Do small retail investors truly stand a chance against the ‘big boys’ on Wall Street running high powered algorithmic trading programs and assorted other high frequency trading mechanisms? Are fundamental traders being thrown around amidst the ‘high waves’ and ‘strong surf’ pounding the shore?
No doubt, the scene on Wall Street has changed dramatically over the years. The onslaught of high frequency trading complete with a wide array of ‘bait and tackle’ such as flash orders, dark pools, naked access, co-location, and much more make it extremely challenging — if not downright daunting — for those who believe they can navigate these waters with simple ‘rod and reel.’ (more…)
Mary Schapiro Owes America Answers
Posted by Larry Doyle on July 21st, 2010 1:00 PM |
Pursuing the truth does not come from asking softball questions and allowing those being questioned to duck and weave. Regrettably, America has received far too little of the truth throughout our economic crisis. Why? Very simply, the overwhelming stench emanating from the Wall Street-Washington incestuous relationship very frequently suffocates any chance of the truth seeping out. Where can we turn?
Let’s visit our friends at POGO, that is the Project on Government Oversight. This not-for-profit government watchdog has no problems asking the hard questions. In light of my commentary last evening on Mary Schapiro, I was pleased that a friend of Sense on Cents brought to my attention a series of questions directed at SEC Chair Mary Schapiro.
Thank you, POGO! America deserves answers to the following Questions for SEC Chair Mary Schapiro as She Testifies Before the House:
SEC Chair Mary Schapiro is currently testifying before the House Financial Services Committee. We applaud the Committee for providing some much-needed oversight of the “present reforms and future challenges” facing the SEC.
Here are just a few questions we’d like to see the Committee ask Chairman Schapiro: (more…)
