With all eyes on Haiti after an earthquake of unbelievable magnitude, the world has learned so much about such a small country. After hearing day in and day out about the disaster that has taken such a toll, I thought it would be interesting to look at the Haitian economy, a country I had never before investigated. Read more…
Sony, the company that pioneered the VCR and later propelled DVD into the forefront of home entertainment, has seen lackluster results for its BluRay high definition discs and players. Though Sony hit everything out of the ballpark with its newest disc format, timing proved to be poor. Read more…
A poll completed online by Monster.com has found that 50% of Americans have less than one month of savings. This scary statistic further induces the unemployment problem as thousands of Americans no longer qualify for unemployment, and have just a few weeks of savings before they’re tapped dry. Read more…
Every financial catastrophe is practically defined by executive suicide. The corporate elite either dump Wall Street’s finest jobs attached to a golden parachute or find themselves in a situation where death is the only escape from a life behind bars. In this suicidal economic climate, both fiscally and in practice, suicide is too easy of a guilty plea. Read more…
The FDICs call for a bad bank to wipe away all bad assets from bank balance sheets may sound great at first but creating a bad bank doesn’t end the problem. Instead it transfers the loss from private companies to the balance sheet of the government. Read more…
When recession hits people start saving and now we’re starting to see some good in an improving trade deficit.
The trade imbalance worked out to just $40.4 Billion in November led by lower oil costs and also lessened spending by US consumers. The good news is that though we’re running a $40 Billion a month deficit, exports aren’t shrinking nearly as fast as imports which for the long term is very positive news. Read more…
The BLS.gov website is an excellent resource for finding all the government data you’ll never find on the mainstream media. While their latest release of information regarding part time employment was posted on the homepage, there has yet to be any mention of it across the board in any media outlet. After deciphering the data I’ve discovered that part time work is growing but for all the wrong reasons. Read more…
It seems to be a common theme in this fiscal year that the regulations set in place to stop fraud, bad lending practices and stomp out the fires below the cooked books have entirely failed. This past year has been one of excess for Wall Street, the Politicians and the CEOs and hierarchy of the many now taxpayer owned businesses.
Investors should demand more from their investment managers. Case in point was Madoff who seemingly made off with likely billions of dollars while destroying investments by paying off earlier investors with money that came from later investments. The classic ponzi scheme was ran perfectly for years, but it could not prevail through a number of withdrawal requests stemming from people needing cold hard cash in a less than booming business cycle. Read more…
It isn’t very often that we get to look into the FEDs numbers. A recent report by the St Louis Federal Reserve shows us the adjusted monetary base, or M1 statistics. M1 statistics include all physical forms of cash (cold hard cash like you’d have in your wallet) plus the amount of money in bank reserves at the FED.
This report shows us the huge amount of inflation that has been created by the FEDs recent entry into the market to stabilize the economy, and the costs of half the $700 Billion bailout which were added to the reserves at the FED. In just the past three months the adjusted monetary base has skyrocketed from around $850 Billion to $1.5 Trillion. Read more…
Black Friday the day after Thanksgiving and the largest retailing days of the year saw a 3% improvement in the amount of money that was spent this year compared to last. This would ordinarily be seen as a positive but 3% is the slowest growth recorded on Black Friday since 2005.
All things considered a 3% decline is virtually nothing for a one day statistic. This could have been made up by the fact that prices were lower, consumers bought more items with a smaller price tag, or that the total number of stores as a whole has dropped since 2005. Colder or warmer weather could also affect the number of people that went out on Black Friday to chase the deep discounts. Read more…
Wall Street was happy that the Federal Government hopped on board to help out Citigroup. The Dow was pushed upward a few hundred points but the end result for taxpayers is far less outstanding.
The deal was struck so that the US Government through the TARP program, the Treasury and eventually the Federal Reserve would back up the $306 Billion worth of mortgages and other assets that Citi holds. The TARP program gave Citigroup $20 Billion in exchange for $20 Billion in preferred stock, good deal there. Read more…
The news was clear that the Japanese economy would soon face recession. It has been made evident that this was true after reports surfaced that Japan had suffered a negative growth in GDP of .4% in the July-September quarter and a 3.7% loss in the previous quarter. Two consecutive quarters of negative GDP growth is the standard for a defined recession. Read more…
After Henry Paulson outlined the new goal of the TARP program to buy shares of stock in banking corporations rather than purchase bank debt, investors went into panic mode. There are many reasons as to why investors should be unhappy with the new plan but the main reason is a complete theft of shareholder equity. Read more…
Investment money typically pours into defensive names at the first sign of an economic slowdown. Much of the larger returns from defensive names is from a change in investor sentiment, where investors pump up the valuations of defensive names to level that are above normal. We are finally getting some kind of proof that a shrinking economy really does help the discounters, and its coming from a fast food chain. Read more…
Stimulus packages around the world are slowly appearing. Just yesterday China announced that it would create its own $586 Billion economic stimulus package to make up for the zero export growth it expects in the upcoming year. The Chinese economy is centered around the growth of exports to developed nations. Read more…
Another poor jobs report came out today that put the number of jobless Americans at the highest in 14 years at the current rate of 6.5%. This is bad news all around and will inevitably affect consumer confidence, total spending, and the housing and finance market that is dealing with large amounts of people who are already in a position that they can’t make payments. Read more…
Failing banks have all used the same system of dumping debt. Form a substitute bank simply planned to fail to dump the bad debt it holds. Simply, Lehman hopes to transfer its billions of bad loans to a company that it hopes will do well, but is miserably doomed from the start. The new company will likely fail in its first few months as writeoffs will be larger than what the company will make. Read more…
Surely we can all remember the Reagan bailout of Chrysler in the 1980s and the talk is that the democratic presidency might feel some pressure to start working with US Automakers. Democratic challengers are a favorite with unions, especially with industries that are considered “American.” There is no business out there in a need of some financial help than the US automakers, while it would probably not be a sound financial decision for a country so heavily in debt there is going to be some pressure from politicians and union directors alike. Read more…
The credit crunch climate has cooled off as commodities are bringing up consumer confidence as they fall. This drop in prices is favorable to the average joe who is feeling a bit of a slowing economy. Luckily a drop in commodities across the board should free up some discretionary spending money and boost numbers this quarter. Looking out, the R word (recession) is nearing yet again. Read more…
Trading the markets is mentally demanding, especially when working with the intraday trading ranges that bounce often though irregularly. Traders who focus on short time frames often become exposed to the effects of tunnel vision, looking at a chart and a position in only one way. Tunnel vision can lead to large losses, especially when long term trends and chart patterns make their mark on short chart frames. Read more…
The SEC is finally giving some input on the practice of naked short selling but only in the realm of some desperate financial companies. The rest of the market is still available to short to the death as often happens with small cap stocks.
Naked shorting is selling shares before it is known that any shares can be bought back. Often this is done well past the companies float and to such an extent that share prices simple have to drop. The downward pressure that billion dollar firms can put on shares with naked shorts is tremendous, the SEC should jump in and stop this practice now. Read more…
The talk of inflation has never been this high. Bernanke and company are trying very hard to keep the markets up while keeping inflation lower than the key 3%, doing so is problematic. Trying to infuse billions of dollars without making prices rise universally is against the laws of economics. So far, that extra cash has only been seen in products high in demand: sugar, corn, oil, gold, silver. Read more…
It was interesting to look over the newswire today and see that Barack Obama is speaking out against oil speculation and threatening to tighten “loopholes” in the oil trading industry that keep the government from investigating the effects of speculation. The market to Senator Obama: speculation is just a natural part of the business cycle. Read more…
America as a whole has had a long disagreement with CEO pay, amongst a wide array of other high paid members of society. The baseball player, the entertainer, and the corporate executive, the million dollar a year salaries are abound and even higher in 2007. With the economy lagging, businesses failing, and severance pay higher than ever for failed CEOs, is America justified with its hatred for the corporate elite? Read more…
January to March quarter posted a 0.9% gain in GDP, giving investors the fundamental understanding that textbook recession is out of the picture. It was certain that investors would respond favorably, and they did. The dow was up 52 points to 12,646. This kind of optimism is great for a market that’s been beaten down by high commodity prices and a slowing economy.
Read more…
|
|
Or subscribe via email: |
| Why should you subscribe? |
| Investing Blog on iPhone |
