Bad Bank | Sense on Cents - Part 2 Sense on Cents

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Tune In to Larry Doyle’s “Dollars and Sense” on No Quarter Radio

Posted by Larry Doyle on February 22nd, 2009 5:22 PM |

Please join us this evening from 8:00 to 9:00 p.m. ET on No Quarter Radio for LD’s Dollars and Sense. These are truly historic times in the global economy. Let’s “navigate the economic landscape” without the pandering or nonsense found elsewhere!

We have two very interesting guests joining us. Lynn Marshall has one of the most unique backgrounds in the world of finance today. How does one develop a background that includes senior level experience in investment banking, agriculture, and community banking? Think Lynn has some amazing perspectives on the economy and markets? Don’t miss him.

Additionally, in light of the developments at Stanford Financial, we are very happy to have John Moynihan return to our show to discuss the dynamics in the world of offshore banking. Find out more than you could ever imagine by talking to these enlightened experts on LD’s Dollars and Sense, starting at 8 p.m. ET.

What are your questions and comments for me? Please share your questions and thoughts by calling in to (347) 677-0792, and also join our live chat room, which I’ll start up about 10 minutes before the show begins!
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Tags: Agriculture, Economy, Stanford Capital
Posted in American Consumers, Auto Industry, Bad Bank, Bailout, Bank Nationalization, Banking Institutions, Barack Obama, Commerce, Congress, Economic Stimulus, Economy, Employment, General, Global Finance, Unemployment, Wall Street | No Comments »

Things You May Have Missed

Posted by Larry Doyle on February 20th, 2009 5:20 PM |

While there is tremendous volatility in the markets and commensurate anxiety as a result, there were some major stories and developments that got less play but deserved more.

Allow me to expound. Robert Shiller, a highly distinguished Economics Professor at Yale Univeristy and co-designer of the Case-Shiller Home Price Index spoke this morning on Bloomberg News. Shiller is the preeminent expert on trends and developments in housing. He made the following assessments:

1. Glad to see that Obama is making an effort to support housing but has serious concerns about the effort.

2. $75 billion allocated for loan modification is not nearly enough to make a truly meaningful impact. (remember there is another $200 billion allocated for Freddie and Fannie to refinance mortgages).

3. No plan or proposal for those holding Jumbo mortgages leaves a large part of the market without benefits. Those homes will likely hang over the market.
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Tags: Bloomberg News, Case-Shiller Index, Robert Shiller
Posted in American Consumers, Australia, Bad Bank, Bank Nationalization, Bank of America, Banking Institutions, Barack Obama, Christopher Dodd, Citigroup, Economic Stimulus, Fannie Mae, Freddie Mac, General, Housing Crisis, Mortgage Crisis, Mortgages, Nouril Roubini, Stimulus Plan, Tim Geithner | No Comments »

If You Can Keep Your Head

Posted by Larry Doyle on February 20th, 2009 6:00 AM |

These are clearly the times that try our souls. In an attempt to bring a measure of perspective to the markets and economy, let me review some month-to-date stats for February and add economic commentary:

DJIA	-9%
S&P 500	-5.7%
Nasdaq	-2.3%
Bonds	Flat to -10%, depending on sector
$/Yen	94.14 vs.89.81
$/Euro	1.262 vs. 1.280
Oil	38.78 vs. 41.60
Gold	975 vs. 929

There really has been no place to hide. Why? Very simply because in a “massive margin call” (selling assets purchased with borrowed money) when debt cannot be refinanced, all assets are “on sale” in order to pay down debts!!

We have achieved the objective we were looking for in the DJIA and are about 5% away from the objective on the S&P. If there are people who were outright short the market “nobody ever went broke taking a profit.” The question is where do we go from here? In order to address that question, we need to break it down into its component parts. (more…)

Posted in American Consumers, Bad Bank, Bank Nationalization, Banking Institutions, Barack Obama, China, Current Affairs, Economic Stimulus, Economy, General, Global Finance, Hedge Funds, Obama Administration, Sheila Bair, Tim Geithner | 1 Comment »

A Fresh and Honest Perspective

Posted by Larry Doyle on February 18th, 2009 11:07 AM |

It is often difficult, if not near impossible, for an individual, company, institution, or even a government to provide a measured, honest, and unbiased perspective of a difficult situation. Given one’s proximity and emotional attachment to the situation, human nature clouds one’s viewpoint and, in turn, one’s reactions and responses.

How great it is when we can receive the sage wisdom of a neighbor, a retired executive, a former coach, or on the international level a true statesman. While we may find it difficult to hear and deal with a tough message, ultimately the greatest form of “tough love” is simple truth and honesty.

A good friend of mine was gracious enough to share some video clips of a recent interview with Paul Keating, former Prime Minister and Treasurer of Australia. Mr. Keating speaks from experience and does not sugar coat the current economic turmoil. While the three video clips (listed below) run approximately 20 minutes in total length, please allow me to provide a bullet point overview of some of the highlights. When you do have some spare time, I strongly encourage you to view these clips and gain the benefits of his wisdom. I do not think you will be disappointed, although you may be a bit dismayed as to his blunt honesty. In the meantime, here’s a brief overview: (more…)

Posted in American Consumers, Australia, Bad Bank, Banking Institutions, Barack Obama, China, Current Affairs, Democratic Party, Economy, Foreign Affairs, Foreign Policy, General, Global Finance | 3 Comments »