Archive - Jan 2010 - Blog entry

The difference between the world when Volcker was Fed chairman and today is the end of Glass Steagall. Instead of bailing out simple lenders, the Fed now faces the task of managing and saving giant securities and securitization platforms that are too big to manage in a rational fashion. Don't fool yourself into thinking that JPM chief Jamie Dimon or any CEO of a TBTF bank has the slightest idea what is really happening within their enterprise.

The timing and haste of the newly proposed Volcker Rule by Obama has drawn criticism that this is simply a transparent attempt at populism in light of the Dems Massachusetts defeat. Moreover, it certainly does not address the more dire issue of the Middle America – jobs.

Bankers are destroying Capitalism. Unfortunately, most Westerners won’t realize this until five years from now, when the middle class has been forcibly relegated to the ranks of the poor. And this isn’t just a situation that will afflict America but it will likely afflict Japan and many countries in the EU such as the UK, Spain, and Greece just to name a few.

Whenever I read that pension fund consultants are "being inundated with requests," my antennas go up, as does the hair behind my neck!

Make no mistake about it, investors remain poorly positioned to weather a sell off.

A strong RMB will unleash a world of change, and much for the positive that many are underestimating.

Forgive me for a bit of a rant. I'm pissed. Any talk of addressing the problems at America's government mortgage lenders has been put on hold for another year. Why? Politics. The worst possible reason.

It's been about 6 months since we’ve had an extensive discussion of China’s solar market, so let's catch up on the major developments in the space. Before detailing 5 key points that will help crash the Crude Oil market in 2010 ~ let’s kick-off with an excellent video created by ClimateWorks ....

Forget TARP, the AIG bailout and FDIC debt guarantees. The real bank bailout lives on courtesy of Helicopter Ben’s zero interest rate policy. Why should you care? Because low rates punish savers in the name of nursing the banks back to health. After all the trouble the banks have caused over the last 2 years this just adds insult to injury.

Japan's $1.36 trillion public pension fund, the world's largest, is seeking higher returns...

Q: Is Avatar a metaphor for "capitalism?" A: Yes, in James Cameron's populist vision of "capitalism." Q: Is the rape of another planet capitalism? A: No. Q: Is the movie left wing Hollywood schlock propaganda? A:Yes. Q: Is the movie marvelous entertainment? A: Yes. Q: Is it also something else? A: Yes.

Well, it looks like Blankein, Dimon, et. al. really should have tried harder to make that meeting with the President a couple of weeks ago. It appeared as if he may have had something important to discuss. Here is a clear break down of the how much principal and prop trading adds to the top and implied bottom lines of Goldman, Morgan Stanley, JP Morgan and Bank of America.

With regulation rising, fees shrinking, and taxes about to take a quantum leap up, who needs it? The scapegoating and demonization of hedge fund managers. Why become a witch, just as the Salem witch trials are starting? Have they no shame? You might as well pour sugar in the fuel tank of my Gulfstream.

One of the largest state-operated workers comp fund had massively misrepresented its performance. And you thought only Bernie could pull off multi-billion dollar scams...

The SEC / DoJ rewrite witness immunity rules 'to protect investors and the integrity of markets' ... yet, just one week after unilaterally 'updating' said rules, Hank Greenberg, AIG, Warren Buffett, Berkshire and Gen Re are each given a cursory slap on the wrist after the SEC charges General Re for its role in AIG and PRU accounting frauds. Protecting the public from egregiously rampant, market manipulating fraud sounds great; essentially letting Hank Greenberg, AIG, Buffett, Berkshire and Gen Re off the hook for egregiously rampant fraud doesn't look so hot.