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HomeMF Global Update: The Black Hole in a Dark Cave
Posted by Larry Doyle on April 11th, 2012 7:56 AM |
In a day and age when money transfers on Wall Street are processed and tracked with tremendous precision, the MF Global back office operations might only be compared to a caveman enterprise during the Dark Ages.
How might a firm such as MF Global, taking risks that literally brought the house down, have such inadequate back office capabilities? Great question, but for further ‘enlightenment’ on this dark and murky topic, let’s review a recently released CFO report, Lax Treasury Practices Aided MF Global Fall, Experts Say:
Poor accounting of the movement of funds between bank accounts and outdated treasury systems contributed to the chaos of the final days of securities dealer MF Global — and ultimately to the loss of $1.6 billion in customer funds. (more…)
The Prohibitive Cost of Higher Education: A Racket?
Posted by Larry Doyle on April 10th, 2012 7:04 AM |
I have often thought, “If education is expensive, try ignorance.”
I strongly believe that the key to future prosperity is a quality education. That said, there is increasing evidence that the costs connected to higher education have ratcheted higher at an unsustainable pace. I initially addressed this critically important topic a year ago in a commentary entitled, Are Student Loans an Impending Bubble? Is Higher Education a Scam?. I wrote then:
I am a huge proponent of the need for quality education in our nation. That said, as this expose reveals there are MANY serious problems, conflicts of interest, and assorted other issues in higher education today. A racket, you might ask? Yes, in a manner of speaking, there are certainly elements of a racket within higher education today.
I welcome readdressing this topic today. (more…)
Voter Fraud: The Case for Voter ID
Posted by Larry Doyle on April 9th, 2012 10:12 AM |
True democracy requires an emphasis both on the ‘truth’ and the ‘democracy’.
How can America have a true democracy when, at the very core of our system, we allow — if not promote — the possibility of very real voter fraud? The power of the vote is the cornerstone of our democracy. That power should be protected and practiced with every effort possible.
How and why do we not have a voter ID requirement in our nation? (more…)
$4.35/gallon
Posted by Larry Doyle on April 9th, 2012 6:53 AM |
“Do you feel it?”
“Feel what, LD?”
The hand inside your wallet cleaning you out as you go to fill your tank. I felt it yesterday afternoon when I filled the tank and saw the price for regular gas at $4.35/gallon.
Pissed off? You bet I am. I personally think it is likely to get worse as we approach the summer months. What is driving the price of fuel? (more…)
An Irish Easter Blessing 2012
Posted by Larry Doyle on April 7th, 2012 4:44 AM |
There will be time to continue navigating the economic landscape but this weekend is a time for family, friends, and faith. In fact, wouldn’t it be great if we could always keep our proper focus and perspective when it comes to our family, our friends, and our faith? The world would be a better place if we could.
I hope for today and this weekend you have the opportunity to be with loved ones. In doing so, for those who share my faith let us reconfirm the greatest of all our beliefs,
For our sake he was crucified under Pontius Pilate;
he suffered died and was buried.
On the third day he rose again, in fulfillment of the Scriptures;
He ascended into heaven and is seated at the right hand of the Father.
He will come again to judge the living and the dead.
For those celebrating Passover this weekend, and for those of other faiths, I wish for you real peace today and everyday.
For those who cannot be with family, please let me share this beautiful Irish blessing with a melodious accompaniment so God will watch over you and all of us.
After visiting with my fabulous Uncle Charles a few years back and prior to his passing in early 2010, I encouraged him to “keep the faith.” He responded, “No, Larry, no, do not merely keep the faith, spread the faith.”
Here’s to you, Charlie, and all the Doyles and other family and friends whom we remember today, tomorrow and throughout the year.
As I asked a year ago and will repeat again today, Charlie and my dear, departed loved ones, if you get a chance please put in the good word for us. A couple of the Doyle boys might need a little extra help getting through purgatory!!
On that note, for all those who visit and frequent Sense on Cents, I thank you for your interest and support of my work. However and wherever you may worship, may God hold you in the palm of his hand.
Can anybody in the crowd tell us the name of this beautiful and blessed spot in Ireland? For those who would like to know more, I am happy to provide this link.
Larry Doyle
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I have no affiliation or business interest with any entity referenced in this commentary. The opinions expressed are my own. I am a proponent of real transparency within our markets so that investor confidence and investor protection can be achieved.
Solyndra Loan Review: Garbage In…Garbage Out
Posted by Larry Doyle on April 6th, 2012 6:49 AM |
Why is Uncle Sam broke?
As with any spendthrift, the old man has continually displayed a total grasp of basic financial principles.
One would hope that those involved in managing the finances of American citizens would embrace and practice robust principles or otherwise be held to account for their failure to do so.
Was the failure of the solar energy company Solyndra simply a function of unknown and immeasurable market risks, as some in the Obama administration would have us believe? Could American taxpayer interests have been better protected? (more…)
Stock Act: Penalty Does NOT Fit the Crime
Posted by Larry Doyle on April 5th, 2012 7:53 AM |
America only had to wait for a 60 Minutes expose and more than half a decade to witness our elected representatives pass a meaningful piece of legislation addressing insider trading on Capitol Hill. If those two basic facts do not speak volumes as to the quality of character of those governing our nation, then let’s navigate further.
President Obama’s signing of the STOCK Act outlawing insider trading in Washington is heralded as a major achievement. If that is the case, then we are holding the bar exceptionally low.
I will grant that our nation is better off having the STOCK Act than not, but let’s hold the applause. As a further reminder that there are two sets of standards in our nation, let’s review how ‘justice’ is defined within the realm of insider trading. (more…)
MF Global: The Accounting Error That Wasn’t
Posted by Larry Doyle on April 4th, 2012 12:24 PM |
What really transpired in the offices of MF Global over that last fateful week?
On October 24th, the firm was downgraded by Moody’s. A week later, the once venerable house known as MF Global declared bankruptcy. Who knew what, and when did they know it? How did hundreds of millions of dollars of customer funds go missing? The best accounting and “follow the money” reporting I have seen to date is provided by a Sense on Cents favorite, CFO, which writes:
While securities dealer MF Global was melting down financially, the company’s finance and treasury departments — in conjunction with futures-market regulators — were on the hunt for the accounting error that wasn’t. (more…)
Marc Faber’s ‘Sense on Cents’
Posted by Larry Doyle on April 4th, 2012 5:53 AM |
Marc Faber is commonly referred to as Dr. Doom for his fatalistic outlooks on the economy and markets. I personally would not call him that. I would designate him as Dr. Truth.
In a recent Bloomberg interview, he offered a wealth of fabulous insights including:
1. the market is overbought and market technicals are deteriorating.
2. earnings will disappoint as profit margins are being squeezed.
3. cost pressures within raw materials and especially energy will continue to remain elevated.
4. for asset prices to maintain these levels, QE3 would have to be “gigantic’… that is much larger than QE1 and QE2.
5. real cost of living is running much higher than mere increase reflected in official statistics reported by CPI.
6. gold is in a correction phase.
7. MY FAVORITE…he does not trust the government, the Federal Reserve, and the European Central Bank.
This video clip runs for 8 minutes but it is worth a lot more than that token time commitment.
The Marc Faber Blog is well worth a regular read. I will add Faber to the Sense on Cents Blogroll today.
Larry Doyle
Isn’t it time to subscribe to all my work via e-mail, RSS feed, on Twitter or Facebook?
Do your friends, family, and colleagues a favor and get them to do the same. Thanks!!
I have no affiliation or business interest with any entity referenced in this commentary. The opinions expressed are my own. I am a proponent of real transparency within our markets, our economy, and our political realm so that meaningful investor confidence and investor protection can be achieved.
Those Uncle Sam Failed, Violated, and Left Behind
Posted by Larry Doyle on April 3rd, 2012 8:31 AM |
They are going to forget about me.
I have heard that line and iterations thereof from too many of our fellow citizens. Uncle Sam in the personage of Ben Bernanke, Tim Geithner, Henry Paulson, Mary Schapiro, John Boehner, Nancy Pelosi, Barack Obama and many others can talk about the actions they have taken and will take to save our economy and our nation; however, in the midst of their supposed efforts they have failed, violated, and left behind tens of thousands of our fellow citizens in their wake.
Of whom and to what do I refer? (more…)
