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HomeWhat’s ‘UP’ with the Euro?
Posted by Larry Doyle on July 20th, 2010 9:41 AM |
The Euro has had a significant bounce over the last 6 weeks. After bottoming out slightly below 1.20/U.S. dollar in early June, the Euro has bounced back close to 1.30 versus the greenback. Let’s navigate the circuitous path of this most important currency and assess where it may be headed from here. I am most pleased to highlight commentary on this critically sensitive topic, written specifically for Sense on Cents by Forextraders.com:
The Current State of the Euro: Can It Head Higher Versus The Dollar?
The months of June and July have seen a rapid and extreme appreciation of the Euro against the U.S. Dollar. In order to understand our current state of the Euro and where we may be headed, it is imperative that one have a basic understanding of the Sovereign Debt Crisis in Europe. (more…)
How Long Will ‘Walking Pneumonia’ Economy Last?
Posted by Larry Doyle on July 20th, 2010 6:28 AM |
I have told many people that I equate our current economic situation to a serious case of ‘walking pneumonia.’ If you have suffered from that dreadful malady, as I have, you can appreciate my sentiments. While we are going to live, and will move on from our current condition, the question everybody wants to know is how long will this sluggish, sickening episode last?
I wish I was so prescient as to be able to pinpoint the month and year when our economy may return to real vitality. I am neither that smart nor that egotistical. I do strongly believe, though, that we are looking at a number of years of continued underperformance. (more…)
FINRA Transparent? Why Would They Want To Do That?
Posted by Larry Doyle on July 19th, 2010 4:36 PM |
A month ago I highlighted a list of proposals presented to FINRA which would generate a significant level of transparency into Wall Street’s self-regulator. Given everything we have gone through over the last few years, who in America would not now want greater transparency from Wall Street’s self-regulator? I wrote FINRA Owes America Answers on These Proposals:
FINRA can talk about transparency and integrity all it wants. We all know talk is cheap. FINRA’s board and executives need to show America how they truly define and embrace transparency and integrity. How so? (more…)
Jamie Dimon: “Too Early to Say…”
Posted by Larry Doyle on July 19th, 2010 10:08 AM |
Bank CEOs tend to choose their words very carefully. On one hand, these senior executives do not want to appear overly optimistic and send a message to the marketplace that may be viewed as overly pumping their business and, in turn, their stock valuation. Similarly, the leaders of our financial institutions are never inclined to be excessively pessimistic thereby scaring clients, investors, and consumers. What is the result? Typically, we hear bank executives try a slightly upbeat but evasive enough script in which we truly need to look through the message to get the real meaning.
How often did we hear from bank executives throughout 2008 and 2009 that our economy had seen the worst and was turning the corner? I referenced this style and these comments from Wall Street titans in my commentary from November 12, 2008, The Wall Street Model Is Broken…and Won’t Soon be Fixed! I wrote: (more…)
Madoff Investors Deserve Better from Julie Jason
Posted by Larry Doyle on July 18th, 2010 7:55 AM |
America is full of financial writers who have 20-20 hindsight. While I am fully respectful of writers everywhere who legitimately try to help investors, I have limited regard for those writers who are less than thorough in their pursuit of truth and transparency in the process. I witness just such a syndicated writer, Julie Jason, this morning. I welcome sharing a letter I just wrote to her in response to her weekly commentary:
Julie,
I truly appreciate your desire to help people but I also believe you provide a false impression as to the integrity and effectiveness of the financial regulator FINRA. (more…)
Sense on Cents Endorses Elizabeth Warren for Consumer Financial Protection Agency
Posted by Larry Doyle on July 17th, 2010 11:20 AM |
Elizabeth Warren
Truth, transparency, and integrity!
If our nation is to have any chance to recover from the throes of the worst economic crisis since the 1930s, it had better start elevating and embracing these aforementioned virtues. Time and time again, when we review business practices and political decisions at the center of our crisis, we have seen a glaring lack of these prized virtues. Why and how were these principles compromised? The pursuit of short term profit. Regrettably, this pursuit came at the expense — if not total violation — of these principles. The ultimate long term costs are now being borne by the nation as a whole.
Sense on Cents abhors those who would compromise these core values. Similarly, Sense on Cents embraces those who cherish these values. To that end, I strongly endorse Elizabeth Warren to head the Consumer Financial Protection Agency. (more…)
E*Trade: “E”xemplary or “E”gregious??
Posted by Larry Doyle on July 16th, 2010 8:42 PM |
QUESTION: What does the “E” in E*Trade Securities LLC really stand for?
ANSWER: Choice 1 or 2
1: Exemplary…….. If they announce how they will redeem their client’s funds still frozen after 30 months in Auction Rate Securities.
2: Egregious……… if they fail to rescind or redeem all of the Auction Rate Security purchases that some of their brokers fraudulently solicited in 2007, by failing to disclose the risks and potential lack of liquidity, and marketing them to be as safe as cash equivalents or money market funds.
As of now, E*Trade is in a race to the bottom amongst all of its peers in failing to even address the problem or work towards a solution. Does E*Trade have no integrity whatsoever? Come on E*Trade, do the right thing!!
MAKE YOUR ARS CUSTOMERS WHOLE!!!
*********************************************************
On behalf of auction-rate securities investors everywhere, I am happy to run this ad here at Sense on Cents. This specific ad was submitted by a group of E*Trade clients. – LD
Insiders’ Views on Financial Regulatory Reform
Posted by Larry Doyle on July 16th, 2010 1:02 PM |
What do industry insiders think of the Financial Regulatory Reform package coming out of Washington? The Wall Street Journal provides a fascinating review in Fed Gets More Power, Responsibility. Let’s navigate.
1. Henry Paulson
Former Treasury secretary
Grade: Incomplete
The systemic-risk council, tougher Fed regulation over top financial institutions and new authority to wind down failing institutions are essential steps forward. Improving derivatives rules is a real positive. But the bill doesn’t tackle Fannie and Freddie, and there are too many unknowns as to how the regulations will be applied.
Will it help prevent another crisis? (more…)
The Only Real Question Regarding Goldman’s Settlement with the SEC
Posted by Larry Doyle on July 16th, 2010 7:34 AM |
Who’s next?
We can debate all day long whether the settlement of SEC charges against Goldman Sachs for $550 million is fair or not. While that debate will occur all over Wall Street and throughout the world of global finance today, the question regarding the size of this settlement is not important in and of itself. I am not saying that $550 million is not a lot of money. Nor am I saying that Goldman may be getting off easy. The only question I have is, “Who’s next? ”
Are we to think that the Goldman Abacus-CDO transaction is the only ABS-backed CDO that employed improper marketing? Do not be so naive. In fact, if Goldman employed improper marketing in one deal, are we to believe they did not do the same in many others? Do you ever find just one mouse? (more…)
If My Aunt Had Balls, She’d Be Mary Schapiro
Posted by Larry Doyle on July 20th, 2010 7:04 PM |
“If my aunt had balls, she’d be my uncle!!”
I love that line. I first heard it on the trading desk at Bear Stearns in the early ’90s. For the last twenty years, I have used the line often to counter those who would bemoan an outcome with the standard, “If only . . .” My response typically generates a healthy chuckle and we then move on.
At this point, I feel comfortable amending the line from above to “If my aunt had balls, she’d be Mary Schapiro.” Too harsh, you say? I think not. How so? (more…)
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Posted in Bernie Madoff, General, Mary Schapiro | 5 Comments »