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  • The WSJ continues its focus on executive trading at Big Lots (BIG), finding that ten senior managers sold a total of over $23M in stock in March. The sales were made not long before the firm reported slowing Q1 revenues, which sent shares plunging 24% in one day. One of the execs, CEO Steven Fishman, is already the subject of FBI and SEC investigations for $10M of stock sales. [View news story]
    It is public information that they made the trades. They were filed with the SEC. I doubt that anything will come of this.
    Dec 12, 2012. 01:19 PM | Likes Like |Link to Comment
  • The first drop in comparable sales for McDonald's (MCD) since 2003 has traders buzzing, especially with Wendy's cruising along in positive territory with its own sales. Retail analyst Howard Penney thinks the company is a bit nonchalant about the global erosion of sales, while CNBC's Carl Quintanilla notes the report is like "watching a giant fall to one knee." Shares of McDonald's are only down 0.8% premarket with the sales slump well-telegraphed by the company. [View news story]
    Come on. Perpetual growth is impossible. Especially when MCD is everywhere already. Classic scare tactic by MSM.
    Nov 8, 2012. 09:22 AM | Likes Like |Link to Comment
  • Today's Read Of The Day: Richard Koo In The Financial Times [View article]
    Koo is right. The time for austerity is when the economy is growing 4-5% not 1-2%. However, it is impossible for humans (especially politicians) to think long-term. When things are good politicians will not cut government budget for fear of not getting re-elected, and when things are bad they will continue to spend since the economy "needs stimulus" and they want to get re-elected. It is a vicious cycle that was briefly broken by Clinton, but reignited by Bush's intense desire to stay in office another four years.

    Government spending shouldn't be used in GDP calculation anyway. It skews the numbers, and makes it almost impossible to reduce government spending for fear of a recession.
    Nov 5, 2012. 07:46 PM | 3 Likes Like |Link to Comment
  • Getting Back To Even: Job Creation Under President Obama [View article]
    Wrong, look at the unemployment numbers. Professional salaried jobs usually require college degrees. Workers with college degrees have an unemployment rate of approximately 4%. The vast majority of jobs lost were in construction and the overall housing industry. People need to stop living in the past; housing will take decades to get back to where it was. Workers need to evolve, if they want to work.
    Oct 5, 2012. 02:29 PM | 1 Like Like |Link to Comment
  • The Fourth Scenario For When Should I Transition From Capital Gain Investing To Dividend Growth Investing? [View article]

    Your articles are always an informative and exciting read. Not only because of the great writing and excellent points, but because of the genuine helpfulness and respect inherent in your comments to readers. Keep it up!
    Sep 30, 2012. 06:27 PM | 3 Likes Like |Link to Comment
  • The Fall Catalyst Of 2012, Or The Great Cognitive Dissonance [View article]
    Good piece Michael, Thanks.
    Sep 27, 2012. 12:27 PM | Likes Like |Link to Comment
  • The S&P probably deserves a multiple of 20 given the Fed is going to be holding short rates at 0% and the 10-year around 2% for many more years, writes David Kotok. Given this and a conservative earnings guess of $90, fair value for the S&P 500 would be 1800 today. As for the end of the decade? If the Fed's going to keep with this, his previous guess of 2K is far too conservative. [View news story]
    All things being equal he is right, but equity prices are determined by more than just one factor.
    Sep 24, 2012. 11:49 AM | 2 Likes Like |Link to Comment
  • Genworth Recommits To Shareholders By Destroying Their Long Term Care Product [View article]

    Mackaroo has the right idea. Get her doctor to sign off that she cannot perform these functions and they have to start paying. Get your hands on the contract and read it through, all the requirements will be there. If your mom was sold the policy 20 years ago, these changes will not affect her current policy. Read her policy and consult her doctor.
    Sep 24, 2012. 11:29 AM | Likes Like |Link to Comment
  • Volatility Players: The Hangover 3, Starring Ben Bernanke [View article]
    Half joking.
    Sep 21, 2012. 02:07 PM | Likes Like |Link to Comment
  • Volatility Players: The Hangover 3, Starring Ben Bernanke [View article]
    Trade of the Year: Going all in on TVIX
    Sep 19, 2012. 10:29 AM | Likes Like |Link to Comment
  • The BOJ joins the Fed, ECB and other central banks in announcing further easing, unexpectedly saying it will increase its asset-purchase program to ¥80T ($1.01T) from ¥70T, and lengthen the program by six months to the end of 2013. The BOJ also keeps its key interest rate unchanged at 0.0%-0.1%, and downgrades its economic assessment, saying "the pick-up in economic activity has come to a pause." (PR[View news story]
    Who can devalue their currency more in the shortest amount of time?
    Sep 19, 2012. 10:24 AM | Likes Like |Link to Comment
  • Money transfers from the eurozone periphery to the core are exacerbating the the divide in the bloc and hurting prospects for growth. Bloomberg calculates that €326B was withdrawn from Spain, Portugal, Ireland and Greece in the year through July and €300B was deposited in seven core countries, including German and France. The capital flight is worse when ECB LTRO financing is excluded. [View news story]
    The core countries need to leave the Euro, or go all in on the idea
    Sep 19, 2012. 10:22 AM | Likes Like |Link to Comment
  • The Fed Putting America In A Hole [View article]

    I would think M3 could predict inflation better than M2 and M1. If M3 is growing at a rapid pace, that means more people are buying and selling goods, depositing the proceeds into their bank, and the bank is lending the proceeds out and the cycle continues. It could help support velocity of money in predicting inflation. How's my logic?

    Also, with the velocity of money so low, if M2 continues to grow, couldn't that indicate deflation since more people are holding money? I think that the money supply given too much importance when predicting inflation/deflation.
    Sep 19, 2012. 10:05 AM | Likes Like |Link to Comment
  • The House has passed the No More Solyndras Act, which would curtail a DOE loan guarantee program that ignited a firestorm of controversy after a certain solar manufacturer went belly-up. The bill, passed mostly on party lines, has little chance of clearing the Democrat-controlled Senate, but it highlights the tense political climate the DOE program, which U.S. solar vendors such as First Solar (FSLR) and SunPower (SPWR) depend heavily on, operates under. [View news story]
    Great job Congress! Now pass a No More Congressional Stupidity/Laziness Act, which would force members of congress to work more than 6 months a year (how often do they actually work?), have their pay and benefits based off the median U.S. salary, and limit terms for senators and representatives. That would save the American taxpayers $1 billion a year instantly, untold billions more in increased government efficiency, and reduce headaches for all, due to more commonsense and productive legislation.
    Sep 14, 2012. 04:17 PM | 6 Likes Like |Link to Comment
  • Complying with tighter fracking regulations on federal lands will cost $253,839 per well, says EOG Resources (EOG), Wyoming and Utah, citing a study from John Dunham & Associates. That's well above the $11,833 that the Bureau of Land Management estimates, and would cost natural gas producers a total of $1.5B-$1.62B a year. [View news story]
    Requiring companies to conduct business in a way that is safe for all involved is not a government mandated allocation of resources, but a protection of citizens. And my support of these regulations does not in anyway mean that I am a socialist, or that I am advocating government control of the economy. There is a place for government in certain aspects of business, namely to protect the consumer and workforce. The "market is god" ideology that you are in support of, is inherently flawed.

    Can you elaborate on your comment "as evidenced by the astounding prosperity and vibrant middle class this country created when it was free"? The vibrant middle class that you reference was created during periods of historically high income tax rates and government regulation.
    Sep 12, 2012. 01:25 PM | 1 Like Like |Link to Comment