Wealthy Americans react harshly to critics, such as the Wall Street protesters, because they "realize, deep down, how morally indefensible their position is," Paul Krugman writes. They "got rich by peddling complex financial schemes that... helped push us into a crisis whose aftereffects continue to blight the lives of tens of millions of their fellow citizens." [View news story]
I had no idea wealthy people only work on Wall Street. Thanks for the heads up Paul. So, then the universal call for socialism from the clowns protesting at Wall Street is the right thing to do?
It's not just a Depression-era joke any more: More than one-quarter of Americans polled in a new survey said the best place to stash their limited savings is underneath their mattresses. Three in 10 people have either reduced their contributions or stopped making them altogether, and one in four have reduced or stopped contributing to college savings. [View news story]
Underneath their mattresses? Those fools! What if there's a fire? I have mine buried in a coffee can out back. Makes as much interest as money market.
Wall Street Breakfast: Must-Know News [View article]
Jerry thought he had a full house when playing Microsoft only to find out later it was nothing but a broken straight. He's been banned from playing cards at the grown-up table so is now hoping to entice others into a game of old maid.
Wall Street Breakfast: Must-Know News [View article]
Nationalizing banks in Europe is no panacea. It only makes it easier to cover up their problems. The problems still exist and sometimes get worse. Moving problems onto any one country's balance sheet only guarantees the problems will continue forevermore. If only these same countries fostered a better banking environment that might entice other capital-laden institutions to open other small banks, TBTF wouldn't exist and banks would be allowed to fail.
Wall Street Breakfast: Must-Know News [View article]
Its pretty clear what Slovakia's aim might be. They're in a pivotal position and aren't about to give up their vote without reparations. I'm typically against freeloading, but being the redistribution of wealth didn't involve them, and they are the poorest in the EU, why not? If the votes don't come through it'll because Western Europe didn't pony up and buy the Slovakian vote.
At&T (T) sold over 200,000 iPhone 4S (AAPL) devices within 12 hours of the handset becoming available for pre-order on Friday. This was despite the product receiving a lukewarm reacton from analysts, although sales might have been boosted by the effect of Steve Jobs' death on comsumers' emotions. [View news story]
Stop thinking rationally. Emotion isn't about rational thinking. Of course, Apple had a few things working for them regardless of Jobs' death---quality products, rarely buggy, sleek models, good features, and the cool factor. But the product isn't the trail-blazer product like so many prior products turned out to be. Its not unreasonable to assume a little emotion didn't push fence-sitters over the top and buy.
Greece needs to implement "much stricter structural reforms" than seen so far, Poul Thomsen, the head of the IMF mission to the country, was yesterday reported as saying. Thomsen also said he had never seen riots against austerity as intense as in Greece. A red flag perhaps? [View news story]
The beauty of dealing with Greece is you really don't need to do anything with Greece. The people want the country to default and then go back to their previous everyday programming. Fine, go at it. The focus is on what to do about large Euro banks steeped in Greek debt.
The Greek government OKs its "austerity budget" with a deficit at 8.5% of 2011 GDP - short of EU/IMF targets of 7.6% of GDP. Next year's budget should get closer to the mark: 6.8% of GDP, vs. a targeted 6.5%. The Greek Finance Ministry considered laying off 30K government workers. [View news story]
The problem is moral hazard. If they let Greece slide this time, there isn't any doubt Greece will be much further off the mark next time. Of course, then the EU and the IMF will have even more at risk. This is the problem with missing the mark.
Wall Street Breakfast: Must-Know News [View article]
Bank of America's new debit fee is another result in a long line of unintended consequences. Banks were charging retail and not the consumer. Some might argue we pay for it with higher prices to which I would ask, 'are we seeing anything passed on from retailers to consumers in lower prices?' No, I think not. Much like the credit card bill of 2009 it will affect the poor more than anyone else. The credit card bill saw average interest rates rise for everyone but the poor saw their credit disappear altogether. That might be good but pawn shops and cash checking outlets are seeing a boom in their business. Cash checking outlets offer short-term payroll advances with fees commensurate with 500% interest. Maybe congress will now legislate a fix for that. Then we'll see more burglaries and street hookers.
Wall Street Breakfast: Must-Know News [View article]
I don't know I'd characterize appraisals as 'conservative' rather leaning more to being realistic. The free-wheeling approach to appraisals we experienced up to 2006 was borne of appraisers spending their careers in the back pocket of realtors and loan agents. Even banks would turn a blind eye because they could always have their loans repackaged and sold off as AAA rated securities to Fannie, Freddie and foreign institutions unwilling to do their homework. Reality is a bitch.
It's Time To Mine Newmont And Silver Wheaton [View article]
Gold will remain incredibly volatile. It will rebuild and go higher but it will trade even lower as well. The volatility only breeds confidence among short-sellers who will keep the volatility in play. Eventually, smaller investors will exit gold and larger institutions will reduce positions leading to short sellers getting the upper hand. This is how climactic bubbles often end.
General Motors (GM) and the UAW said late Friday they came to terms on a new contract - the first labor deal for any of Detroit's big automakers since the 2009 government bailouts for GM and Chrysler (FIATY.PK). The pact reportedly covers four years with improved profit-sharing and healthcare benefits. (earlier) [View news story]
Signing bonuses? Oh, come on! UAW workers have been watching too many hours of professional sports. The problem with unionized autoworkers is they always have the industry over a barrel. Automobile manufacturers can't afford to have their employees sitting on the sidelines when automobiles can be sold. They have huge fixed costs that don't go away just because the company isn't producing product and training all new employees could set a company back years. At the same time the union can't ignore their need to appear like they're worth having around. The end result will always be a failed business model.
Former TARP chief Neel Kashkari thinks Greece and perhaps a few other EU states will eventually leave the eurozone, since it would be more painful for Greek citizens to bear the costs of staying. He recommends Europe provide more capital to its banks, facilitate lending for Spain and Italy, and make tough decisions on which states will be leaving. [View news story]
The EU is just biding its time, getting its ducks in a row before the last day to announce no more bail out for Greece. They will then default on their obligations and will find it impossible to stay in the EU. Any Greeks with cash in the bank would be wise to transfer it to a European bank now preferably Swiss, before there is any run on Greek banks. No one will be happy to have their money y converted into drachma or some other new currency.
Donald Trump's publicity stunt of accepting a security deposit in gold bullion for one of his properties may end serving as a contrary indicator if his track record of bad deals is analyzed, says MarketWatch's Brett Arends. He writes that even after taking The Donald out of the equation, the case for gold gets shakier by the day with prices looking bubbly. Gold +1.7%. [View news story]
A lot of others have proven to be good indicators for a reversal. I remember when top model, Gisele Bundchen marked the top in the Euro market when started asking to be paid in Euros instead of dollars. If we're lucky she'll copy Trump and turn gold on its head.
Olive Garden (DRI +0.7%), home of the "Never Ending Pasta Bowl," and Red Lobster agree - with a push from Michelle Obama - to serve healthier food to children. Parent company Darden Restaurants says it will cut the calorie and sodium content on its menus by 10% in five years and 20% in a decade. [View news story]
If playing government big brother is her thing and wants to make a real difference, she'll push to limit food stamp money to real food like fruit, vegetables, meat, chicken, and whole grain products and cut out the packaged and processed food which is loaded with sodium, fat and corn syrup. As for me I'd rather people make their own choices.
Wealthy Americans react harshly to critics, such as the Wall Street protesters, because they "realize, deep down, how morally indefensible their position is," Paul Krugman writes. They "got rich by peddling complex financial schemes that... helped push us into a crisis whose aftereffects continue to blight the lives of tens of millions of their fellow citizens." [View news story]
So, then the universal call for socialism from the clowns protesting at Wall Street is the right thing to do?
It's not just a Depression-era joke any more: More than one-quarter of Americans polled in a new survey said the best place to stash their limited savings is underneath their mattresses. Three in 10 people have either reduced their contributions or stopped making them altogether, and one in four have reduced or stopped contributing to college savings. [View news story]
Wall Street Breakfast: Must-Know News [View article]
Wall Street Breakfast: Must-Know News [View article]
Wall Street Breakfast: Must-Know News [View article]
At&T (T) sold over 200,000 iPhone 4S (AAPL) devices within 12 hours of the handset becoming available for pre-order on Friday. This was despite the product receiving a lukewarm reacton from analysts, although sales might have been boosted by the effect of Steve Jobs' death on comsumers' emotions. [View news story]
Greece needs to implement "much stricter structural reforms" than seen so far, Poul Thomsen, the head of the IMF mission to the country, was yesterday reported as saying. Thomsen also said he had never seen riots against austerity as intense as in Greece. A red flag perhaps? [View news story]
The Greek government OKs its "austerity budget" with a deficit at 8.5% of 2011 GDP - short of EU/IMF targets of 7.6% of GDP. Next year's budget should get closer to the mark: 6.8% of GDP, vs. a targeted 6.5%. The Greek Finance Ministry considered laying off 30K government workers. [View news story]
Wall Street Breakfast: Must-Know News [View article]
Wall Street Breakfast: Must-Know News [View article]
It's Time To Mine Newmont And Silver Wheaton [View article]
General Motors (GM) and the UAW said late Friday they came to terms on a new contract - the first labor deal for any of Detroit's big automakers since the 2009 government bailouts for GM and Chrysler (FIATY.PK). The pact reportedly covers four years with improved profit-sharing and healthcare benefits. (earlier) [View news story]
Former TARP chief Neel Kashkari thinks Greece and perhaps a few other EU states will eventually leave the eurozone, since it would be more painful for Greek citizens to bear the costs of staying. He recommends Europe provide more capital to its banks, facilitate lending for Spain and Italy, and make tough decisions on which states will be leaving. [View news story]
Donald Trump's publicity stunt of accepting a security deposit in gold bullion for one of his properties may end serving as a contrary indicator if his track record of bad deals is analyzed, says MarketWatch's Brett Arends. He writes that even after taking The Donald out of the equation, the case for gold gets shakier by the day with prices looking bubbly. Gold +1.7%. [View news story]
Olive Garden (DRI +0.7%), home of the "Never Ending Pasta Bowl," and Red Lobster agree - with a push from Michelle Obama - to serve healthier food to children. Parent company Darden Restaurants says it will cut the calorie and sodium content on its menus by 10% in five years and 20% in a decade. [View news story]