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HomeJP Morgan’s Irv Goldman Thrown “Under the Bus”
Posted by Larry Doyle on May 21st, 2012 7:42 AM |
I first heard the phrase “he got thrown under the bus” when working at Union Bank of Switzerland in 1997.
Perhaps I was not listening carefully enough earlier in my career to detect just how management on Wall Street conveniently finds scapegoats during challenging times. I hated that phrase then and throughout my time on Wall Street. Why? (more…)
Student Loan Crisis: Why So Many Colleges May Fail?
Posted by Larry Doyle on May 19th, 2012 7:21 AM |
“We know the model is not sustainable,” said Lawrence T. Lesick, vice president for enrollment management at Ohio Northern University. “Schools are going to have to show the value proposition. Those that don’t aren’t going to be around.”
(The New York Times; May 14, 2012)
Very few topics have received as much attention here at Sense on Cents as the student loan crisis.
In my opinion, the size, scope, and impact of this problem is an enormous anchor weighing down our next generation and our nation’s economy.
Make no mistake, this anchor is not only impacting thousands of students and families but is also having an equally burdensome impact on colleges and universities nationwide.
I choose my words carefully here. The other day I entitled my commentary, Student Debt Bubble: Impending Doom for Colleges.
Doom is a strong word. Why did I choose it? Let’s navigate. (more…)
JP Morgan and Jamie Dimon: A Question of Trust
Posted by Larry Doyle on May 18th, 2012 7:33 AM |
Do you engage in business with people you don’t trust?
Sometimes you may have no choice, but in doing so you likely keep your guard up or exact a higher risk premium.
For those with a choice, keeping one’s distance from those you do not fully trust is typically the preferred path. For those without a choice, a lack of trust is often offset with a lot of hope and prayers. Hope always remains a lousy hedge against a lack of trust. We see this at play currently on both sides of the pond. (more…)
FPA’s Bob Rodriguez Has a Message for Washington
Posted by Larry Doyle on May 17th, 2012 8:05 AM |
First Pacific Advisor’s Bob Rodriguez is a renowned money manager. I hold him in the highest regard.
The only issue I have in regard to Mr. Rodriguez is that he is not in Washington managing our nation’s fiscal policy.
The simple fact is Rodriguez knows of what he talks and relates it in language that is foreign to most politicians, that is, plain English.
With the ongoing budget fiasco, debt ceiling, and accompanying fiscal cliff on our horizon at year end, recent comments by Rodriguez should ring long, loud, and clear throughout Washington. (more…)
‘Sponsored Video: The Global Economy’
Posted by Larry Doyle on May 16th, 2012 11:46 AM |
I receive an endless number of overtures from outlets looking to have me promote their products. I have always declined. . . until now. Why? I use and live by the product in this commentary. As such, I welcome endorsing it!! LD
I start every day of the week in the same manner. How is that?
I go out my front door, pick up the newspaper and settle down to what I believe is the best periodical in the market today. Which is that?
The Financial Times, or as I and many people like to call it, the FT. (more…)
UPDATE: Naked Short Selling, “Wall St. Conspiracy?”
Posted by Larry Doyle on May 16th, 2012 4:34 AM |
How many people in America today are questioning the very integrity of our markets?
More than we can measure.
Regrettably, there has been strong evidence of practices in selected corners of Wall Street which have violated the trust of investors, betrayed any semblance of fair dealing, and destroyed the development of otherwise viable businesses and companies.
Specifically a month ago, I introduced readers to the artifice of naked short selling in promoting a documentary, “The Wall Street Conspiracy.”
Yesterday, Bloomberg dropped a bombshell on this practice in reporting . . . . . (more…)
JP Morgan’s Concentration Risk and Outsized Egos
Posted by Larry Doyle on May 15th, 2012 8:38 AM |
How does one firm “lose” $2 billion…and likely more….in the course of less than two months?
Well, it is doable if there is a massive market move. In the case of JP Morgan and the loss it announced last week, though, the markets broadly speaking had not moved that significantly. Certainly nothing like we experienced during the middle of 2011, let alone 2008. So the question begs, how does a firm lose that amount of money?
Concentration risk combined with another factor. What might that be? Let’s navigate. (more…)
Student Debt Bubble: Impending Doom for Colleges
Posted by Larry Doyle on May 14th, 2012 11:27 AM |
“We know the model is not sustainable,” said Lawrence T. Lesick, vice president for enrollment management at Ohio Northern University. “Schools are going to have to show the value proposition. Those that don’t aren’t going to be around.”
(The New York Times; May 14, 2012)
The student loan debt bubble is beginning to get a LOT of attention. As well it should.
That attention is deserved when a level of debt surpasses $1 TRILLION. The New York Times drew further attention to this situation this weekend in an extensive and very personal commentary, A Generation Hobbled by the Soaring Cost of College.
I have tried to draw focus to the MASSIVE size of this problem and its accompanying implications over the course of the last year in writing the following: (more…)
Bloomberg Bombshells re: JP Morgan $2B Loss
Posted by Larry Doyle on May 14th, 2012 7:54 AM |
Bloomberg just reported a couple of bombshells which, when digested, strike right at the integrity and veracity of JP Morgan CEO Jamie Dimon’s comments a month ago.
What did Bloomberg report?
The JPM traders managing the risk within this portfolio were known to execute trades over the course of the last few days of the month. Why is that so interesting and important?
If the firm had such large and unwieldy positions, this end of month trading activity would likely be seen as an indication that JP Morgan was trying to influence the month end pricing valuations of the indices in question. Those pricing valuations would obviously directly correlate with reported profits and losses. (more…)
Happy Mother’s Day 2012
Posted by Larry Doyle on May 13th, 2012 6:27 AM |
There is no more important job in the world than that of being a mother.
I maintained that before I married my beloved and I know that now more than ever. Having been blessed with a great Mom, a beautiful mother-in-law, and my beloved, I extend my love to these three special ladies. I extend my admiration to mothers everywhere.
Work? Nothing comes close to the work a mother puts in to raising her family. Let us stop and give thanks to the special people we call. . . Mom!!
On that note, I send this special 4-minute clip out to my special girl and hope Moms everywhere can enjoy the following:
Rest assured, we will get back to pursuing the truth along our economic landscape tomorrow but today is a day for Mom. I hope everybody who comes here is able to do just that. On that note. . .
Navigate accordingly.
LD
