Archive for October, 2010
Posted by Larry Doyle on October 30th, 2010 9:56 AM |

The Wall Street-Washington incest MUST end.
This coming Tuesday, America has a chance to ring that bell, expose that incest, cleanse the system, and deliver the message loud and clear. The peal of that bell must emanate from the 4th District in the state of Massachusetts.
You do not need to read Sense on Cents to appreciate that many politicians from both sides of the aisle have badly forsaken our nation’s future with misguided and ill-advised policies over the last few decades. Many of these politicians now look to save their skins– if not their souls– by professing a newly found religion with an anti-Wall Street mantel. America, and the residents of the 4th District in Massachusetts, should not be so easily hoodwinked. These politicians, especially Barney Frank, must be held accountable and sent home.
I implore the voters of the 4th District to think long and hard and appreciate that their longstanding elected representative Barney Frank embraced the people and the policies which continue to crush our nation. Which people? What policies? Those which were centered in America’s great financial sinkhole known as Fannie Mae then led by its former CEO Franklin Raines. During my own career on Wall Street, I witnessed Barney’s bear hug of Fannie and Franklin from up close. Do not forget Barney’s desire to ‘roll the dice’ with sub-prime mortgage financing.
Many media outlets will look the other way in holding Barney accountable; I have no interest in that. (more…)
Tags: 4th District in Massachusetts, Barney Frank campaign, Barney Frank election, barney Frank reelection bid, Barney frank relationship with Fannie Mae, barney frank roll the dice, Barney frank Sean Bielat race, Barney Frank vs Sean Bielat, can Sean Bielat beat Barney Frank, Chris Dodd, Dodd-Frank, Dodd-Frank Financial reform Act, enron on steroids, fannie mae franklin raines barney frank relationship, FINRA POGO, holding Barney frank accountable, House Financial Services Committee, I want to roll the dice Barney Frank, POGO letter on FINRA, political and financial reform, private profit social loss, Retire Barney, roll the dice, Sean Bielat campaign, will barney Frank win reelection n
Posted in General | 13 Comments »
Posted by Larry Doyle on October 29th, 2010 5:56 AM |
Here we are a full three years into our economic malaise, Uncle Sam has thrown everything and the kitchen sink at the economy yet we have little to no traction in terms of growth and momentum. Will another trillion dollars of liquidity do the trick? Well, while the Fed’s liquidity may move markets, will it move the economy? Don’t bet on it. The Fed and its brethren on Wall Street and in Washington are reluctant to truly level with the American people. How so?
Our nation is experiencing a serious structural change in our economy — not a mere ‘enormous downturn’ in the midst of the business cycle. If our central bankers and government officials were to emphasize this point, it may cause a sharper retrenchment in our current growth but it would likely lead to a quicker rebound. Before we get into why our bankers and their political cronies are reluctant to make this acknowledgement, let’s take the pulse of an array of venture capitalists, money managers, and others who provide the capital to a wide array of companies. What do these individuals think the economic impact of another round of quantitative easing might be? (more…)
Tags: Blackstone Group, Buttonwood Gathering, central bankers, Cliff Asness, Cliff Asness of AQR CApital MAnagement, Colm O' Shea, Comac Capital LLP, Economic Stimulus, Fed liquidity, Fed policy of QE2, Fed's credibility, Federal Reserve policy, how to stimulate the economy, Pimco Bill Gross, Pimco Likens US to Ponzi Scheme, QE2, quantitative easing, quantitative easing 2, quantitative easing policy, redistribution, Schwarzman Says Fed Easing Wont Make Much Difference, stimulating the economy, structural change vs business cycle, The Economist, Tony James, UK based The Telegraph, Wall Street Washington relationship, Wall Street-Washington incest
Posted in General | 7 Comments »
Posted by Larry Doyle on October 28th, 2010 5:42 AM |
“Larry is our greatest writer on the economy.”
The Register, the official publication of the International Association of Registered Financial Consultants recently interviewed Forrest Wallace Cato. Who is ‘Wally’ Cato? Well, read on, as Wally is easily the most interesting individual with whom I have ever crossed paths. In fact, I would rate Wally Cato as perhaps one of the single most worldly, well versed, and well connected individuals of the modern era.
You don’t believe me? Read on.
I challenge you to match Wally’s life with that of almost anybody in the world today. Wally is conversant on an exceptionally wide array of topics. I am highlighting an interview with him in the most recent edition of The Register because he speaks at length on the state of financial planning in our nation today and he graciously has some nice things to say about yours truly and Sense on Cents.
What nice things? When Wally Cato was asked,
Who are some of your favorite famous friends? (more…)
Tags: advice for registered financial consultants, Alan Won of Hong Kong, Albert Speer, Charlie Tremendous Jones, Colonel Tom Parker, Dr. Geoffrey A. VanderPal, Dr. Jeffrey Chiew of Malaysia, Dr. Martin Luther King, Ed Morrow, Elvis Presley, financial planning exposure, financial planning industry, Forrest Cato, Forrest Wallace cato interview in The Register, Gene Autry, George Flack of Australia, Hal Chorney, honesty and integrity, Howard Jarvis, Image Branding Workshop, International Association of Registered Financial Consultants, Irving Paul Swifty Lazar, Jack Gargan founder of the IARFC, James Brown, Jerry Royer, Jerry Weintraub, Larry Doyle, Larry King, Lew Nason, Loren Dunton, Maxwell Sackheim, Mehdi Fakharzadeh, never give up, Norman G. Levine, Norman Vincent Peale, Peter O'Toole, Preecha Swasdpeera of Bangkok, R. Arliss Francis of Bermuda, Rod Steiger, Ross Perot and Jesse Ventura, Roy Acuff, Roy Rogers, state of financial planning, Steve Allen, Stuart Henderson Britt, The Cato Award, the greatest risk, the greatest risk in life is in never taking one, The Money Making Insider's Marketing Sales and Tips, The Register IARFC, Wall Street big shots, Wally Cato, Wally Cato's bio, what is the greatest risk, what is the greatest risk in life, who is Wally Cato, You can cut a greater figure
Posted in General | 4 Comments »
Posted by Larry Doyle on October 27th, 2010 8:26 AM |
Not that we needed any more reason to castigate those who have driven our economy and our nation into a ditch but the story I bring you this morning provides us just that.
I am well past the point of surprise in finding shock value in stories exposing financial charades. That said, I hope I never lose the feeling of complete and total indignation in shedding light on those involved in the charades and others who would provide cover for it. To wit, count me as extremely pissed off this Wednesday morning. CFO Magazine highlights the hypocrisy embedded in our political and financial system with its report, West Wing Accounting:
On Monday, conference attendees in New York were spectators to a simulated White House war room exercise. The object of the exercise wasn’t Iraq or Afghanistan, however, but the economy: specifically, a scenario in which presidential advisers had to consider the bailout of a U.S. state that was just two days away from defaulting on a $1.5 billion bond. (more…)
Tags: accounting tricks, Anthony Williams, Buttonwood Gathering, CFO Magazine, Freedom Works, GAAP, general accepted accounting principles, Glenn Hubbard, Laura Tyson, Laurence Meyer, New Jefferson, simulated White House war room exercise, The Economist, the height of hypocrisy, The Tea Party movement, Treasury Secretary Robert Rubin, West Wing Accounting, why america should be so outraged
Posted in General | 6 Comments »
Posted by Larry Doyle on October 26th, 2010 5:46 AM |
All financial accounting charades to the contrary, the reality of a decaying asset quality and insufficient capital position will cause any institution to quiver. With more banking institutions declaring bankruptcy each and every week, the clock has yet to strike twelve on any of our larger banking institutions. That said, the pressure is certainly mounting on a large west coast institution, that being the Federal Home Loan Bank of Seattle.
I first addressed issues within this specific institution 18 months ago when writing, Putting Perfume on a Pig. I highlighted at that time:
Who gets this? Charles Bowsher, who resigned just last week as chairman of the Federal Home Loan Banks Office of Finance. Bloomberg’s Jonathan Weil does yeoman work in profiling Mr. Bowsher and the joke that is FHLB accounting: (more…)
Tags: accounting fraud, American Banker, banking losses, Charles Bowsher, federal home loan bank seattle, Federal Home Loan Bank system, Federal Housing Finance Agency, FHFA, FHLB, FHLB Seattle, Jonathan Weil of Bloomberg, office of finance, riccobono, Richard M. Riccobono, Seattle FHLB Enters Into Consent Agreement with FHFA CEO Riccobono Resigns, Steven R. Horton, William V. Humphreys
Posted in Federal Home Loan Banks, General | 1 Comment »
Posted by Larry Doyle on October 25th, 2010 8:47 AM |
I thoroughly appreciate those involved in the markets who also have an equal appreciation for history, languages, literature, and the arts and sciences. Rare is the individual who is able to intertwine their passions and fluent enough to share them with others.
I thank a loyal reader of Sense on Cents who brings us just such an individual, that being Ben Davies, CEO of London-based Hinde Capital. Davies spoke the other day to the Committee for Monetary Research and Education in New York. Although his remarks are extensive, I found them to be quite compelling and truly insightful. I commend Ben for his passion and well rounded perspectives. If you consider yourself a student of the markets, interested in our global economy, or merely a lover of topics well written, you will want to read and savor Ben’s thoughts. I am happy to share them here today.
Remarks by Ben Davies,
CEO, Hinde Capital, London
Fall Dinner Meeting
Committee for Monetary Research and Education
Union League Club, New York
Thursday, October 21, 2010 (more…)
Tags: Arnold Schwarzenegger, Ben Davies of Hinde Capital, cause and effect, CMRE, Committee for Monetary Research and Education, Donald Rumsfeld, economic predictions, Ed Seykota, ex scientia pecuniae libertas, Federal Reserve, fiat currencies, George Soros or Louis Bacon, gold, Gustav Le Bon, Heisenberg Uncertainty Principle s, Hinde Capital, inflation vs deflation, intervention in the marketplace, investing in gold, known unknowns, Larry Doyle, Law of Mass Action, losing faith in government, mark mahaffey, market distortions, Market Wizards, Michael Steinhardt, Niall Ferguson, Out of Knowledge of Money Comes Freedom, philosopher Karl Popper, reflexivity, self-fulfilling prophecy, Sense on Cents, the outlook remains unusually uncertain, Travie McCoy, union league club in new york, unknown unknowns, variant perception, what makes a great trader, who is Ben Davies
Posted in General | 4 Comments »
Posted by Larry Doyle on October 23rd, 2010 8:34 AM |
Morning in America and life is truly good.
Despite the ongoing challenges facing our nation and our world, hope does spring eternal. Why do I touch upon this often overused yet underappreciated sense of being and way of life?
Since launching my blog in January 2009, I have received innumerable comments and personal e-mails from readers. I thank each and every person who takes the time to write and share sentiments on the wide array of topics I address. I write today of “A Good Man” because I wake up this morning having received a message overnight from a reader which truly touches me. I am compelled to share it with you. I would hope those who read it will in turn share it with others. (more…)
Tags: A Good Man, are there any good men, Bridgewater Associates, hyper-realism, is life good, Larry Doyle, life is good, morning in america, pursuit of integrity, pursuit of transparency, pursuit of truth, Ray Dalio, Sense on Cents, what defines a good man, where are the good men, who is a good man
Posted in General | 2 Comments »
Posted by Larry Doyle on October 22nd, 2010 11:23 AM |
What the hell is truly going on within the entire mortgage foreclosure fiasco? There are seemingly more angles to this mess than there ever were choices of mortgage products themselves. Where can we turn to make some ‘sense’ of this madness? Let’s check in with the crowd on the cutting edge of this sinkhole, that is our friends at 12th Street Capital. Today they write,
Not surprisingly the ones that look to be best positioned during this mortgage foreclosure/put back fiasco are the lawyers. As reported by HousingWire.com late yesterday, “A spokesperson for the New York law firm Quinn, Emanuel Urquhart & Sullivan confirmed to HousingWire it has been hired by the Federal Housing Finance Agency, a move some say means the government-sponsored enterprises are going after bad mortgages it bought from originators.” Guess what, the GSEs have ALWAYS pursued repurchases. (more…)
Tags: 12th Street Capital, 12th Street Capital subsidiary of GFI, Federal Housing Finance Agency, FHFA, foreclosures, HAMP, Housingwire.com, Larry Doyle, Mortgage Crisis, mortgage foreclosure fiasco, mortgage mess, mortgage servicers, mortgage trustees, Mortgages, Obama, Pimco and Blackrock, Quinn Emanuel Urquhart and Sullivan, repurchase of mortgages, securitization process, Sense on Cents, Uniform Commercial Code, what is a REMIC
Posted in 12th Street Capital, General | 7 Comments »
Posted by Larry Doyle on October 22nd, 2010 9:12 AM |
In a world awash with lies, obfuscation, backstabbing, conflicts of interest, and those who prosper via these machinations, are there individuals and companies whose very core is defined by a perpetual pursuit of truth, transparency, and integrity? Of course there are many people who cherish these virtues and try to live and work by them. That said, within even the most well-intended organizational structure these principles will seemingly often be compromised for a variety of reasons. Is there an organization that not only promotes the pursuit of these virtues but has actually made them the foundation on which it operates and invests?
In fact there is. Let’s take a hard look at perhaps the single most successful fund in the markets today with a track record of success that would be the envy of all. I am talking of Bridgewater Associates based in Westport, CT.
Bridgewater is run by Ray Dalio. What does Ray have to say about his corporate philosophy? Let’s navigate as Ray writes, (more…)
Tags: Big Win for a Big Bear, Bridgewater Associates of Westport CT, career of Ray Dalio, commitment to excellence, culture of excellence, does money bring happiness, hyper-realism, Ken Miranda of IMF, Larry Doyle, macro investing, money does not bring happiness, Principles by Ray Dalio, pursuit of excellence, Ray Dalio, ray Dalio's corporate philosophy, Sense on Cents, understanding reality, what is hyper-realism, who is ray dalio
Posted in General | 4 Comments »
Posted by Larry Doyle on October 21st, 2010 6:47 AM |

All hail the mighty and powerful Federal Reserve!!
Is that right?
Are we all supposed to bow down and prostrate ourselves at the throne of Ben Bernanke and assume he is ‘all knowing’? The fact is the Federal Reserve has assumed a mantle of being ‘all powerful’ but who in our country is willing to challenge the Federal Reserve? Are we supposed to merely turn over the economic fortunes of our nation and our children’s future to one individual and one institution without aggressively calling them on the carpet? What happened to the calls for increased Fed transparency? What happened to the pressure on the Fed to justify their actions? The silence is deafening.
Those with a degree of sense on cents understand and appreciate the following: (more…)
Tags: Ben Bernanke, crony capitalism, Fed's Summary of Economic Projections, federal open market committee, Federal Reserve, FOMC, Larry Doyle, QE2, quantitative easing by Federal reserve, Sense on Cents
Posted in General | 5 Comments »