A new IRS unit will target the ultra-wealthy by helping decode partnerships, offshore trusts and other complex techniques used to hide earnings. The new Global High Wealth Industry group will begin its first audits next month, honing in on individuals with assets or income in the tens of millions - for whom, IRS says, you cannot assess compliance "by looking only at their 1040s." [View news story]
I don't understand. Don't these people use TurboTax like our government officials do? How can they come up with the wrong tax:-). Maybe the I.R.S. should audit TurboTax so these poor billionaires with their tax shelters won't get in trouble. Seriously, when the I.R.S. can attract and keep people of the caliber that create the tax shelters, then they will be effective.
Jobless Recovery: Few Winners, Many Losers [View article]
What's sad is that our community based charities (Salvation Army, St. Vincent dePaul, etc) are overwhelmed with the unemployed and underemployed but the government subsidies go to agencies like ACORN which provide no real relief. And now to make matters worse, some fools in Washington want to limit charitable deductions so that the community based charities will be able to do even less. Obama may want others to share the wealth, but only someone else's wealth.
David Einhorn of Greenlight Capital has placed the firm's bets on a major currency collapse, with inexpensive options dated four to five years out on high rates in developed countries. The firm stands to make "multiples" if long-term rate stability in Japan gives way to hikes. [View news story]
"David Einhorn of Greenlight Capital has placed the firm's bets on a major currency collapse."
I guess that's why so many investors are moving to precious metals, commodities, and resource owning companies. With more and more investors losing faith in fiat currencies, we are moving into a death spiral of a major currency collapse. Meanwhile our leaders are interested only in feathering their own nests.
Projections of future revenues will be too high due to lack of taxes from the unemployed and loss carryovers by corporations. The cost of servicing the national debt will rise and the Federal Reserves loses control of the interest rates. The ten year forecasts I hear lack credibility as they project on past experience which, with all the Change that has taken place and is projected to take place, is irrelevant.
The Treasury took a fresh swipe at China's currency policy, saying in a semiannual report (.pdf) that, "Both the rigidity of the renminbi and the reacceleration of reserve accumulation are serious concerns which should be corrected." The Treasury, which stopped short of accusing China of manipulating its currency, continues to believe the renminbi is "undervalued." Economists say China could risk instability by letting the yuan appreciate excessively. [View news story]
China, like the U.S. and everybody else will act in their own best interests. If they coincide with ours, fine. If not, tough.
Jobless Claims:514K vs. 524K last week (revised) and 515K consensus, the lowest since early January. Continuing claims falls by 75K to 5.991M from 6.067M. [View news story]
Repeat after me. Less bad is not good. Less bad is not good. Less bad is not good. Et cetera
BlackRock (BLK) Chairman Laurence Fink says the Treasury's intervention in the mortgage markets is undermining the securitization market, and is "one of the biggest issues facing American capitalism." Saving banks from their own greed by trashing contracts has destroyed investor confidence, which must be repaired, he says. [View news story]
"A vibrant MBS market depends on the sanctity of U.S. contracts."
No sanctity of contracts in our post-capitalist economy, just empathy.
Rebranding, high interest on deposits and an ad campaign painting bankers as deceptive is adding up to billions in new deposits for Ally Bank - the former, twice-bailed-out GMAC - though not everyone is smiling on. "The government has created an artificial competitor," says Christopher Whalen. "Every bank in the U.S. is at a disadvantage because our government is picking losers as winners." [View news story]
Racist comment. Everyone knows that the government knows best!
Calpers launches an investigation of more than $50M in fees paid to an advisory firm run by a former board member over five years. Arvco Financial Ventures, run by former director Al Villalobos, recommended poorly performing investments to the nation's largest public pension fund, according to Calpers documents. [View news story]
This is surprising. CALPERS is an activist investor concerned with pushing for good corporate governance. And they failed to exercise it themselves. Isn't there an old saying about removing the beam from your own eye before you try to remove the sliver from another?
Meanwhile, it seems a kitchen assistant was one of hundreds of AIG (AIG) employees to receive a retention bonus. The news could undermine AIG's insistence that the bonuses were needed to persuade key employees to stay on board. [View news story]
Well, what's the problem? It's not their money they are giving away! That's one of the advantages of too big (or is it connected) to fail and having friends in high places.
Members of Tim Geithner's behind-the-scenes kitchen cabinet are earnings millions of dollars a year in payments from top Wall Street firms, on top of their $163K government salaries. As members of Geithner's advisory, aides like Gene Sperling and Lee Sachs wield significant influence within the Treasury, but aren't subject to public confirmation or congressional scrutiny. [View news story]
Well, what did you expect from a tax cheat appointed by a Chicago trained crook. But I'm sure Charlie Rangel will stand up for him.
Policymakers are happy the dollar is falling, Irwin Kellner says, though they won't admit it. But with the Fed already rumbling about sopping up some of those greenbacks swimming around in the global seas, it's not likely to stay down for long. [View news story]
Doesn't anybody believe that other countries might follow the same path with their fiat currencies so that we have a world-wide inflation? Rather than a trade war with tariffs and quotas, it will just be a war as to who can keep their fiat currency on a par with the dollar. Sound like the long term investment strategy should be to buy businesses with real assets that appreciate inversely to the declining currencies.
Top Obama advisor Larry Summers defends the government's stimulus efforts, saying we've walked "a substantial distance back from the economic abyss and are on the path toward economic recovery." Summers says the president will not be satisfied until the U.S. returns to "robust job growth," and called the significant reduction in the pace of job loss over the last six months "an essential first step in that direction." [View news story]
Nice theorizing Larry but the real world wants to know what the costs will be for cap and trade, medical insurance reform, and every other program in the works. Until then, hiring will be bare bones and as companies fold, there will be new unemployment. Talk is cheap but when your livelihood is tied to running a profitable company, you are extra cautious in this Changed environment.
A new IRS unit will target the ultra-wealthy by helping decode partnerships, offshore trusts and other complex techniques used to hide earnings. The new Global High Wealth Industry group will begin its first audits next month, honing in on individuals with assets or income in the tens of millions - for whom, IRS says, you cannot assess compliance "by looking only at their 1040s." [View news story]
At one TD Bank in downtown Manhattan, greeters are emptying the branch's coin-counting machines, known as Penny Arcades, 30 times a day as people break open their piggy banks to pay the rent. [View news story]
Jobless Recovery: Few Winners, Many Losers [View article]
David Einhorn of Greenlight Capital has placed the firm's bets on a major currency collapse, with inexpensive options dated four to five years out on high rates in developed countries. The firm stands to make "multiples" if long-term rate stability in Japan gives way to hikes. [View news story]
I guess that's why so many investors are moving to precious metals, commodities, and resource owning companies. With more and more investors losing faith in fiat currencies, we are moving into a death spiral of a major currency collapse. Meanwhile our leaders are interested only in feathering their own nests.
The Treasury revises its final fiscal 2009 deficit number lower by $162B, on lower than expected TARP spending, but it's still a record $1.417T. [View news story]
MGIC Investment (MTG): Q3 EPS of -$4.17 misses by $2.55. Revenue of $413M (-10.5%) vs. $437M. Shares -12.6% premarket. (PR) [View news story]
"Another quarter like this and these guys could be the next AIG"
No way, Jose! They don't have the right connections. All we'll hear from Washington is tsk, tsk, sorry Charlie.
The Treasury took a fresh swipe at China's currency policy, saying in a semiannual report (.pdf) that, "Both the rigidity of the renminbi and the reacceleration of reserve accumulation are serious concerns which should be corrected." The Treasury, which stopped short of accusing China of manipulating its currency, continues to believe the renminbi is "undervalued." Economists say China could risk instability by letting the yuan appreciate excessively. [View news story]
Jobless Claims: 514K vs. 524K last week (revised) and 515K consensus, the lowest since early January. Continuing claims falls by 75K to 5.991M from 6.067M. [View news story]
BlackRock (BLK) Chairman Laurence Fink says the Treasury's intervention in the mortgage markets is undermining the securitization market, and is "one of the biggest issues facing American capitalism." Saving banks from their own greed by trashing contracts has destroyed investor confidence, which must be repaired, he says. [View news story]
No sanctity of contracts in our post-capitalist economy, just empathy.
Rebranding, high interest on deposits and an ad campaign painting bankers as deceptive is adding up to billions in new deposits for Ally Bank - the former, twice-bailed-out GMAC - though not everyone is smiling on. "The government has created an artificial competitor," says Christopher Whalen. "Every bank in the U.S. is at a disadvantage because our government is picking losers as winners." [View news story]
Calpers launches an investigation of more than $50M in fees paid to an advisory firm run by a former board member over five years. Arvco Financial Ventures, run by former director Al Villalobos, recommended poorly performing investments to the nation's largest public pension fund, according to Calpers documents. [View news story]
Meanwhile, it seems a kitchen assistant was one of hundreds of AIG (AIG) employees to receive a retention bonus. The news could undermine AIG's insistence that the bonuses were needed to persuade key employees to stay on board. [View news story]
Members of Tim Geithner's behind-the-scenes kitchen cabinet are earnings millions of dollars a year in payments from top Wall Street firms, on top of their $163K government salaries. As members of Geithner's advisory, aides like Gene Sperling and Lee Sachs wield significant influence within the Treasury, but aren't subject to public confirmation or congressional scrutiny. [View news story]
Policymakers are happy the dollar is falling, Irwin Kellner says, though they won't admit it. But with the Fed already rumbling about sopping up some of those greenbacks swimming around in the global seas, it's not likely to stay down for long. [View news story]
Top Obama advisor Larry Summers defends the government's stimulus efforts, saying we've walked "a substantial distance back from the economic abyss and are on the path toward economic recovery." Summers says the president will not be satisfied until the U.S. returns to "robust job growth," and called the significant reduction in the pace of job loss over the last six months "an essential first step in that direction." [View news story]