Paul Volcker is set to fire back at critics of his proposed ban on prop trading by banks, arguing in a comment letter that the rule would make the U.S. financial system safer. Many big financial firms are submitting their own comment letters countering Volcker's view that too much liquidity in the market can cause investors to bid up asset prices with the expectation that there will always be a buyer. [View news story]
In reality even the Volker rule is still too lenient, try Glass-Stegal. The banks should just stop begging and try to do their core business properly without going bankrupt and crashing the entire economy.
Rupert Murdoch is to fly to London for crisis talks following the arrest yesterday of five senior journalists who work for News Corp.'s (NWSA) best-selling Sun daily tabloid. The arrests are part of a probe into the corruption of public officials and follow the detention of four executives two weeks ago for allegedly bribing police. [View news story]
They should try to get Murdock's son to find out what really happened. Illegal wiretaps are a criminal offense. They have a right to know who if any condoned it and approved it. I am of the mind that companies engaged in crime should be shut down and sold off and then responsible people should be prosecuted. That goes for BP, AIG, Goldman Sacs, etc. No sweet settlements.
Banks, mutual funds, hedge funds, insurance, governments, and HFT are buying. The days it relied on real investors is long gone which is one of the main reasons why its going to hell in a hand basket. There is little to no skin in the game for those investing your money save the threat they will mess up and can't skim money off you if they perform too badly. I am a big believer in self investing and knowing your bets and risks. When will people learn these monkeys interest is not aligned with you and that they are in it for the paycheck and bonus which comes out of you. They like risk because they like reward and couldn't give a crap about you losing your shirt.
Top 5 Silver And Gold Miners In 2012 [View article]
It's generally better to buy silver directly than the big silver miners. Smaller miners like EXK or GPL can outperform but I think they are closely balanced with the added risk. I see little reason to buy a richly valued large silver miner.
The fear trade now off and disgruntled government workers protest is on. Greece has ruined their finances 2 other times in the last 100 years, so you would think they would have gotten used to it. And you would think they would have reformed government and stopped the massive budgetary overruns. But then again, you'd think no one would lend to them given their obviously terrible fiscal management.
Protect Against The Currency System's Final Catastrophe [View article]
There is no way Greece doesn't know what they are doing. They collapsed/defaulted to creditors 2 other times in the last 100 years. It is clear this is a very bad ingrained habit. It's silly that people would think that this is any different than before. They won't stop until they have to.
Former top Shell Oil exec John Hoffmeister warns that the price of gas could hit $5 a gallon in the U.S. due to factors that include heavy demand from emerging markets, geopolitical uncertainty in the Middle East, and delays for permits for drilling in the Gulf of Mexico. (video) [View news story]
I agree, but wait until after the election year. Then whatever party in power will sacrifice us at the alter for big oil donations and hope the disenfranchised people will remain docile as sheep.
Making some yearn for the days when the Fed was completely secretive and stuck to managing the cost of money, Ben Bernanke ruminates on solutions to the housing "issue." Now experts on the ins and outs of being a landlord, the Fed staff believes REO property holders would be better served renting units instead of trying to sell them. [View news story]
Yay crash the rental market to help housing. Bernanke, get your paws out of the private sector. Every reaction has consequences. Sadly he seems not to be able to see even the most basic cause and effect.
Nike is so big its generic and their percentage cost for advertising vs. revenue continues to shrink. I look forward to stiffer and better competition be it Adidas, etc. The shoe business is one of the most grossly overpriced clothing sectors around, especially for the generic stuff you get these days. They are priced like custom made yet they are far from it.
Banks cater to the Federal Reserve more than their customers these days. Citibank is profitable because of all their government accounts which were given on a no bid contest to them so we continue to provide hidden government subsidies to them. In reality banks are becoming more and more disassociated with fundamental reality and the economy will suffer. The best banking is business banking yet TBTF banks are loathe to lend and don''t care much about deposits since they have the Fed to help them.
Sure small banks are less profitable, but at least they aren't getting profit from the taxpayer and are providing loans to the private sector. Please support a break up of all TBTF banks.
Yes, however the money supply seldom shrinks although the value sure does, especially with Keysian mechanisms. The dollar will collapse long before gold does from money supply contraction from the Federal Reserve shrinking money supply to reign in runaway inflation.
I beg to disagree. Zipcar will head into even worse financial problems as competition heats up and they lose their city advantages which got them sweet parking spots to start. Their real best hope is to be bought out.
Using DuPont Analysis: Is Amazon Really That Great? [View article]
Amazon is really a well run company, but I agree it is extremely richly valued and has been for a long time. They do still have room to grow, so there is some justification for the valuation if they keep hitting on all cylinders.
Europe needs to be somewhat understanding considering that most of them are also heavily socialized and their debt and budgets are out of line and unsustainable. They should beware of what they impose because it may be their turn next.
The dollar will probably fall from here on out after the Greek issue is settled leaving the rally somewhat in tact. I would not bet against the market right now even though things aren't as rosy as one may think.
Paul Volcker is set to fire back at critics of his proposed ban on prop trading by banks, arguing in a comment letter that the rule would make the U.S. financial system safer. Many big financial firms are submitting their own comment letters countering Volcker's view that too much liquidity in the market can cause investors to bid up asset prices with the expectation that there will always be a buyer. [View news story]
Rupert Murdoch is to fly to London for crisis talks following the arrest yesterday of five senior journalists who work for News Corp.'s (NWSA) best-selling Sun daily tabloid. The arrests are part of a probe into the corruption of public officials and follow the detention of four executives two weeks ago for allegedly bribing police. [View news story]
Who Is Buying This Market? [View article]
Top 5 Silver And Gold Miners In 2012 [View article]
Stocks Tumble On Greek Debt Fears [View article]
Protect Against The Currency System's Final Catastrophe [View article]
Former top Shell Oil exec John Hoffmeister warns that the price of gas could hit $5 a gallon in the U.S. due to factors that include heavy demand from emerging markets, geopolitical uncertainty in the Middle East, and delays for permits for drilling in the Gulf of Mexico. (video) [View news story]
Making some yearn for the days when the Fed was completely secretive and stuck to managing the cost of money, Ben Bernanke ruminates on solutions to the housing "issue." Now experts on the ins and outs of being a landlord, the Fed staff believes REO property holders would be better served renting units instead of trying to sell them. [View news story]
Nike: Just Do It - Sell [View article]
Big Banks' Branch Profits Waning [View article]
Sure small banks are less profitable, but at least they aren't getting profit from the taxpayer and are providing loans to the private sector. Please support a break up of all TBTF banks.
Buffett Disses Gold [View article]
Zipcar's Future - Part 3 [View article]
Using DuPont Analysis: Is Amazon Really That Great? [View article]
Stocks Tumble On Greek Debt Fears [View article]
2008 All Over Again? [View article]