Archive for November, 2010
Posted by Larry Doyle on November 19th, 2010 6:57 AM |
Where are our statesmen?
Where are the individuals who would choose to sacrifice personal gain for our national welfare? I am not talking about mere public policy implementation. I am talking about those who would choose to pursue and embrace the truth while exposing the incestuous Wall Street-Washington relationship that has brought our nation to its knees.
Where is today’s Ferdinand Pecora when we need him? I shudder to think that the great Pecora, who led the investigation of Wall Street practices which brought on the Great Depression, might be rolling over in his grave right now. Why’s that? (more…)
Tags: America's statesmen, cause of The Great Recession, causes of economic crisis, causes of The Great Depression, Crisis panel Delays Report Amid Rancor, FCIC, FCIC Bill Thomas, FCIC Phil Angelides, Ferdinand Pecora, Financial crisis inquiry commission, financial policemen, growth of The Tea Party, Larry Doyle, members of the FCIC, members of the financial Crisis Inquiry Commission, Pecora Commission, preface to Wall Street Under Oath, Sarah Palin, Sense on Cents, The Street, The Tea Party movement, Wall Street, Wall Street regulatory reform, Wall Street Under Oath, Wall Street's money-changers, Wall Street-Washington incest, Washington, who is ferdinand pecora, why is America outraged, why is The Tea Party thriving
Posted in FCIC, General | 15 Comments »
Posted by Larry Doyle on November 18th, 2010 6:20 AM |
What is going on in Ireland? Those forty shades of green look so inviting. How could it be that the Emerald Isle is the center of the current financial turmoil? Well it is…and it isn’t.
How is it that a variety of Irish officials can claim that they neither need nor want a bailout from the EU but a bailout is assuredly on the way? Are we witnessing a sovereign nation losing the ability to control its own affairs? There is no doubt the Irish are a proud people but are they also being overly stubborn at this juncture (believe me, I know proud and stubborn…!!)? Are the Irish failing to accept the inevitable? Hadn’t the Irish attempted a Swedish style approach in terms of aggressively recognizing losses within their financial sector?
While the answer to all of these questions is a varying degree of the affirmative (especially the proud and stubborn..!!), to truly understand what is happening in Ireland, we actually need to shift our focus to the European mainland. Really? Why’s that? Let’s navigate the tangled web and interconnectedness of the global banking system circa 2010. (more…)
Tags: Alan Kelly, bailout in Ireland, bailout of Ireland, CEBS, Committee of European Banking System, ECB, EFSF, european bank stress tests, European banking bailout, European Central Bank, European Financial Stability Fund, exposure of French and german banks to Ireland, France/Europe Economy: Feeling Exposed?, interconnectedness, interconnectedness of European banking system, Ireland, Irish bailout, Irish economy, losses within European banks, MEP, PIIGS, Portugal Italy Ireland Greece Spain, rigor of European bank stress tests, The Economist, The Economist Intelligence Unit, the proud and stubborn Irish
Posted in General | 5 Comments »
Posted by Larry Doyle on November 17th, 2010 7:25 AM |
When I worked at JP Morgan, we had a year end review process that I believe was largely a joke. Why? It lacked integrity and honesty. How so? Individuals largely gamed the system by not being forthright with each other. As a result, the overall assessment of individuals, departments, divisions, and the firm itself were skewed. I recall looking at the composite and average scores and remarking to my boss, “Our people and our firm are NOT this good.”
Mind you, JP Morgan had and still has some real strengths — but it also had some real weaknesses. Excessively bureaucratic would be a good start on the ‘weakness’ list.
I did try to grade myself and others in an honest and constructively critical fashion. Some of my reports would come to me after the fact inquiring about my assessments of them. They would often be concerned. I would respond that I had little interest in ‘gaming the system’ but I had every interest in making them a stronger and more productive employee. My being forthright and honest was “the means,” their improving and becoming more productive was “the ends.”
I raise this topic today because every individual and every organization needs a very healthy dose of constructive criticism. (more…)
Tags: a stronger America, criticism of Finra, critiquing FINRA, Financial Industry Regulatory Authority, FINRA, incest, integrity and honesty, Investment News Daily, John Busacca, JP Morgan year end review, JPM, Larry Doyle, Mary Schapiro, public service, Sense on Cents, Wall Street, Wall Street relationship with Washington, Washington, year end reviews
Posted in FINRA, General | 12 Comments »
Posted by Larry Doyle on November 16th, 2010 7:12 AM |
The Federal Reserve is arguably the most powerful institution in the world. Additionally, it is one of the least understood.
In the midst of the ongoing financial experiment known as quantitative easing are we supposed to blindly trust the abilities of our central bankers within the Fed, especially Fed chair Ben Bernanke? I know of no institution, especially with the size and scope of the Fed, that has so much power in one man’s hands and simultaneously so little transparency and accountability.
Yet, despite that lack of transparency and accountability, at this very point in time our nation’s future largely rests in the hands of one Ben Bernanke and his control of the Federal Reserve. Should we have reason for concern? We should. (more…)
Tags: Ben Bernanke, Coleman and grayson video clip, Fed Inspector general Elizabeth Coleman, Fed Officials Defend $600 Billion Stimulus, Fed transparency and accountability, fed's qe2, federal reserve models, federal reserve risk management systems, federal reserve staff, Janet Yellen, Mike Pence on federal reserve mandates, new york fed president william dudley, new york federal reserve, quantitative easing program, republican economists, republicans against the fed, the credibility of the federal reserve, the Federal Reserve, the most powerful institution in the world, who is Elizabeth Coleman, william dudley
Posted in Federal Reserve, General | 8 Comments »
Posted by Larry Doyle on November 15th, 2010 7:15 AM |
Information is everything!!
A nation of laws will prosper if and only if the adjudication of disputes is handled in a truly robust fashion. This adjudication process should theoretically lead to the drafting and implementation of new legislation if and when necessary. While industry insiders will often lobby to influence this process both in the courts and in our legislative bodies, America needs real statesmen and true heroes who will champion worthy causes and pursue total truth, real transparency, and unbridled integrity.
The media can play a large role in highlighting and exposing injustices if it cares to perform its duties. Regrettably during our economic crisis of the last few years, the media has often largely shown itself to be as much part of the problem as part of the solution. Why do I write on this topic today? For the very simple reason that tens of thousands of our fellow Americans have largely been disowned and disenfranchised by our nation. Really? Unaccustomed hyperbole, LD? I think not. Let’s navigate further.
I have been an ardent supporter of all those in our nation today who continue to be stuck holding auction-rate securities. These people number in the many tens of thousands and their holdings run upwards of $140 BILLION. Ponder that for a second. How is it that with numbers of this magnitude, the hue and cry of the accompanying injustice is not ringing loudly across our nation. It should. (more…)
Tags: ARPS scandal, ARS holding s, ARS scandal, Auction Rate Securities, auction-rates securities scandal, Colorado complaint against E*trade, E*Trade, E*Trade ARS, E*trade auction rate securities, financial regulatory system, FINRA's ownership of Auction Rate Securities, Larry Doyle, Sense on Cents, State of Colorado vs E*Trade
Posted in ARPS, ARS, General | 34 Comments »
Posted by Larry Doyle on November 13th, 2010 7:01 AM |
Who would not admit that the ability to review plays in athletic contests has made for an overall better product? While continually questioning calls and plays would obviously detract from the pleasure of the game, I think most – if not all – fans truly appreciate the benefit of reviewing critically important plays so the outcome and integrity of the game are not compromised.
Can you imagine if we had the same ability to review the release of economic statistics?
Picture this. A key economic statistic is set to be released at 8:30am. Traders and investors the world over are hanging on the edge of their seats in anticipation. The number is released and commentators immediately hype the ‘headline’. But then, as those very commentators take their cameras to the floors of respective exchanges and trading floors, all of a sudden we witness a number of red flags thrown on the ‘field’ – that is, the trading floor – calling for a further review. In the hope of getting the call right, would our nation and our economy be better off if we allowed just such a process to occur? Why do I ask? (more…)
Tags: Barron's Alan Abelson, BLS, Bureau of Labor Statistics, cronies in washington, details of november 2010 employment report, Employment, fiddling with the figures, Is the Crowd Wrong on QE2, John Williams Shadow Economic Statistics, Larry Doyle, market regulators, nfp november 2010, non farm payroll for november 2010, november unemployment report, seasonal adjustments, seasonal adjustments to november 2010 employment report, Sense on Cents, Shadow Government Statistics, Stephanie Pomboy, Stephanie Pomboy of MacroMavens, Unemployment, upon further review, working in Peoria
Posted in General | 6 Comments »
Posted by Larry Doyle on November 12th, 2010 8:12 AM |
After three years of economic turmoil, why do I believe we are just now entering the second phase of a protracted economic drag here in the United States? While many economists and analysts would like to parse each and every bit of data that comes across the tape—that is what they do for a living—I believe we are better served to focus on the larger waves and currents at play across our global economic landscape. What do I see? A New World Order.
Do not think for a second that this reality does not have real long term implications for our economy and our people. I am not saying that there will not be enormous economic opportunities for individuals and businesses alike, but the skeletons in our American closet can only be hidden so long. Let’s navigate. (more…)
Tags: A New World Order, Americas economic skeletons, Angela Merkel, beggar-thy-neighbor, Ben Bernanke, Brazilian president Lula da Silva, Brazilian presidnet Lula, Canadian Prime Minister Stephen Harper, Chinese inflation, Chinese markets overnight, commodities inflation, crony capitalism, devaluation of dollar, emerging markets inflation, free trade agreement with South Korea, G-20 Summit in Seoul South Korea, global economy, Hu Jinatao and Barack Obama, inflation in China, inflation in emerging markets, Is the Fed independent, lack of credibility in United States, lack of trust between America and China, Larry Doyle, new world order, Obama rebuffed in Seoul, politicization of Ben Bernanke, politicization of Federal Reserve, quantitative easing impact, results of G-20 summit, skeletons in America's closet, sound external environment, the new world order, U. S. Wields Less Clout at Summit, U.S. economic house, value of Chinese renminbi, value of Chinese yuan, who is Lael Brainerd
Posted in General | 22 Comments »
Posted by Larry Doyle on November 11th, 2010 10:51 AM |
That haze hanging over Washington DC is not the residue of last week’s elections, it is the less than sanguine outlook of investors on the policies and programs being put forth by President Barack Obama and our lead central banker, Fed chair Ben Bernanke. How hazy? Well, close to two thirds of those polled recently by Bloomberg are pessimistic about Barack’s policies and how they affect the investment climate in the United States. More than three quarters of those polled believe the Fed’s newly launched round of quantitative easing will have little or no benefit on unemployment. Ouch!!
In regard to the greenback, almost seven in ten polled believe the U.S. is deliberately trying to weaken the value of our dollar relative to other currencies. Who else believes this? (more…)
Tags: Alan Greenspan on US dollar, Barack Obama, Ben Bernanke, bloomberg investor poll november 2010, Bloomberg poll november 11 2010, Greenspan Warns Over Weaker Dollar, QE2, quantitative easing impact on unemployment, strength of renminbi, value of dollar
Posted in General | No Comments »
Posted by Larry Doyle on November 10th, 2010 7:47 AM |
Economic data is typically released and then reviewed in aggregate fashion. As such, understanding the dynamics at work within our economy is often clouded by the inability to access and analyse ‘the trees’ as opposed to ‘the forest.’ What happens as a result of this reality? Economic programs to address issues are typically crafted while looking through the rear view mirror. Regrettably results generated are often sub-standard and fraught with unintended consequences.
How might we change our perspective? Let’s check in with Rick Davis of Consumer Metrics Institute who projects what will occur in our economy based on a forward looking process that captures real-time consumer activity. As a longstanding admirer of Rick and his work, I welcome sharing his recent fabulous piece, Revisiting The Character of “The Great Recession”
We have commented before about how the “Great Recession” has changed character over time, evolving from a relatively normal “garden variety” and V-shaped consumer confidence recession into something far more persistent — where a lack of jobs and negative home equity has transformed it into a “new frugality.” But we haven’t previously discussed how the “Great Recession” has been an uneven experience among even those living in “Main Street” America. A recent review of our data has convinced us that this has not been a recession of shared pain, but one that has cut much deeper in some demographics than in others. (more…)
Tags: a recession of shared pain, cash for clunkers, Consumer Confidence, Consumer Metrics Institute, defining the recession, downscaling consumer purchases, economic data, economic projections, Economy, factory data, federal housing tax credit, green shoots, internet shopping, lack of jobs, muddle through, National Bureau of Economic Research, NBER, negative home equity, new frugality, paradox of thrift, projecting the economy, real time consumer data, recession demographics, recession on Main Street, reviewiing economic data, Revisiting the Character of The Great Recession, Rick Davis, the great recession, typical US consumer, who is feeling the pain, who is hurting in this recession
Posted in General | No Comments »
Posted by Larry Doyle on November 9th, 2010 7:44 AM |
Who needs major print media which will not aggressively report on stories deserving real exposure when we have Sense on Cents to spread the faith while pursuing truth, transparency, and integrity? Regular readers hopefully appreciate that I do not easily engage in hyperbole but I am compelled to highlight the virtues of my blog this morning based on a comment left here last evening at 11:58pm.
A reader by the name of Nancy shed light on her less than satisfying Finra arbitration process. In the body of her comment, Nancy alludes to a retiring CFTC administrative Judge George Painter’s very serious allegations of misconduct by a fellow CFTC administrative Judge Bruce Levine. How serious is Painter’s allegation? As Nancy highlighted,
As George H. Painter was preparing to retire recently as one of two administrative law judges presiding over investor complaints at the Commodity Futures Trading Commission, he issued an extraordinary request: (more…)
Tags: CFTC, CFTC Judge Bruce levine, CFTC Judge George Painter's allegations, Commodity Futures Trading Commission, george painter, Larry Doyle, Monex international, Retiring CFTC Judge's Allegations Should Concern Small Investors, Sense on Cents, we're not prosecuting the bad guys
Posted in General | 25 Comments »
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