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  • 8 Reasons Why A New Global Financial Crisis Could Be On The Way  [View article]
    Elizabeth Warren is a demagogue. People who think like her are the cause of income inequality. As a this article from Bloomberg News explains, Democrats aren’t benefiting from hammering on inequality because almost all the areas with the worst inequality are already controlled by Democrats:


    Income inequality is a symptom. The it is a product of Democrat policies that suffocate investment and free market transactions with regulations, confiscate income and property with taxes, and first and foremost, force union quality education on people trapped in their cycle of dependency.

    The worst areas for rape, property crimes, and murder are also already controlled by Democrats. I live in New Haven Connecticut. A city decimated by Elizabeth Warren's "thinking". No thanks.
    Aug 24, 2014. 09:19 AM | 15 Likes Like |Link to Comment
  • 5 Moves To Make Before 2014  [View article]
    Medicare - 88.2 Trillion in unfunded liabilities. Liability is the perfect word when you make promises you can't keep. The more accurate spelling is lie-ability as in "If you like your health plan you can keep it. Period".

    Dec 25, 2013. 12:08 PM | 6 Likes Like |Link to Comment
  • Future Difficulties In Ultra-Deepwater Market Likely To Be Focused On Lower End  [View article]
    Exactly. PACD would make an excellent acquisition target.
    Dec 18, 2013. 02:37 PM | Likes Like |Link to Comment
  • Playing Against Keynesian Catastrophe  [View article]
    Jul 23, 2013. 04:21 PM | Likes Like |Link to Comment
  • Understanding Hyperinflation, Money And Credit, The U.S. Dollar And The Term 'Printing Money' ...  [View article]
    "Money is more valuable than credit because in the event of default, the physical dollar holders are king. Yes, the U.S. Treasury could default on its obligations. Holders of Treasury Bonds would get a big, fat zero, while holders of physical currency would still have a claim. In effect, they act similar to a preferred share as opposed to common stock. They are a step above in terms of priority."

    "Money", i.e. Federal Reserve Notes are simply very short term Treasury Bonds with a zero coupon rate. Both are issued by the same creditor. If it defaults, neither will have value. I submit there is no difference between "money" and US. Treasury obligations.
    Jul 7, 2013. 10:45 AM | 3 Likes Like |Link to Comment
  • "Here's a novel way to drive up a company’s share price," writes the NYT's Jeff Sommer. "Pay billions of dollars in additional taxes." Forensic accountant Robert Olstein reckons that companies such as Apple (AAPL), Microsoft (MSFT) and Cisco (CSCO) should repatriate the tens of billions dollars they hold abroad, pay tax on it, and then use the rest of the cash to repurchase stock. That would boost their share prices by at least 20%.  [View news story]
    The NYT is already a cabinet position - The Ministry of Information.
    Mar 24, 2013. 10:03 AM | 8 Likes Like |Link to Comment
  • A Portfolio For The Next Market Crash  [View article]
    In their book "Reckless Endangerment" Morgenson and Rozner chronicle exactly how the subprime scheme was set in motion. It identifies the individuals responsible and their actions.

    Link to book: http://tinyurl.com/b5n...
    Feb 17, 2013. 03:11 PM | 1 Like Like |Link to Comment
  • Suppressing Economic Growth By Taxation  [View article]
    You fail to recognize that dividends have already been taxed at the corporate rate. More importantly, why do you believe you are entitled to someone else's income?
    Feb 17, 2013. 02:25 PM | 1 Like Like |Link to Comment
  • Does Anyone Really Understand What Is Going On With Employment?  [View article]
    For accurate GDP, EMP and CPI statistics I recommend John Williams Shadow Government Statistics. He provides complete transparency on his method and data sources. http://bit.ly/nyzRiF
    Jan 12, 2013. 12:44 PM | 1 Like Like |Link to Comment
  • Tax the rich, Obama says; class warfare, says GOP 
    This asshole has to go
    Sep 20, 2011. 12:37 AM | Likes Like
  • The Balance Sheet Recession Continues  [View article]
    Mr. Roche,

    In my view there are multiple fatal flaws and unanswered questions regarding your classic Keynesian avocation for increased government spending. I'd greatly appreciate your thoughts.

    1. All spending is not created equal. There is a substantial difference between spending and investment. A set of transfer payments to states as opposed to investment in desperately needed infrastructure improvements has resulted in virtually no increase in economic activity. The essential issue here is what types of spending will return the greatest increase in GDP and within what duration? Further, how do you translate your pure economic theory into a pragmatic implementation when you have political interests that result in corruption?

    2. Since the government does not have the cash on hand to fund this spending it must further compromise its balance sheet by increasing debt. The immediate increase in GDP must be discounted by a compounding of the lending rate. This raises multiple concerns:

    a. At what, if at any, level of spending do the effects of increased debt (future interest rate payments, future tax increases which reduce the productivity and profit incentive, crowding out of private consumers, affect on the governments bond rating and future interest rate) over come the increase in GDP?
    b. Since the central bank has increased the currency supply to fund this spending (annualized at 1 trillion per year), how do you suggest we factor in the cost of currency devaluation - i.e. reduction in purchasing power and the substantial disincentive impact on capital formation?

    2. If the true aim is stabilization, this implies the government must accumulate a compensating surplus during periods of economic expansion. How large of a surplus is needed and how do you propose such a fund be establish, maintained and managed?
    Jun 11, 2011. 12:55 PM | Likes Like |Link to Comment
  • Poor Recovery: The Problem Is Institutional  [View article]
    Thank you for another in a series of thought provoking well research articles.

    The major flaw in Meyerson's argument is premise that foreign investment by corporate America is the root cause of an ever widening income gap. What really unsettling is the proposed remedy – more laws and government regulations. The core issues of America's economic decline is a lack of character and fortitude in its people.

    Capital, and talent flow to where they can be most productive. As a former owner of a Connecticut business I can attest to the unsustainable cost of doing business in the state - crushing corporate taxes (federal and state), property taxes – including taxes on machinery (the actual means of production!), government fees, higher costs for energy and utilities (the highest in the nation), workers compensation and insurance costs, labor laws (such as the The Family Leave Act) and countless others.

    What created America was opportunity. The notion that government does good things is the big fraud. Government is run for the people in government, not the every day worker. Education was mentioned as a possible core issue. Who benefits from the current system? The Teacher's Union or the children?

    As the article touches on, the culture of instant gratification is more directly the cause. We have a culture of victimization and entitlement. The ethos of the country has changed from one where you are entitled to what you earn to your entitled – because the system is unfair and your the victim.

    My second challenge is the notion of scarcity introduced in the article – the pie is only so big. America has always had an abundance mentality where we bake more pies. Taking the rise in real GDP from the inception of the country to this year as evidence. Opportunity creates wealth. Government crushes it.
    Jan 16, 2011. 11:15 AM | 8 Likes Like |Link to Comment
  • The Keynesian Solvency Standoff and the Case for Shorting Treasuries  [View article]
    While I agree with your macro view you have not translated this to an effective trading strategy. As others have pointed out, the Fed has a lot of fire power. What key indicators, correlations or ratios will signal the turn?
    Sep 27, 2010. 08:48 PM | 4 Likes Like |Link to Comment
  • The New Normal in Oil and Natural Gas Prices  [View article]
    It'd guess there are macro forces in play a as well. The NG market can be thought of as regional as transportation and storage capabilities are not global as with oil. Another factor is the currency aspect where oil either acts as a backing for the dollar or directly as a store of wealth. Both most likely contribute to the deviation as they reflect the rise of emerging markets
    Sep 8, 2010. 07:47 AM | 1 Like Like |Link to Comment
  • Lehman Crash: Where Were the Cops?  [View article]
    Looking forward, distributed evaluation by the market is the only real protection. In the final analysis it was the short sellers who brought the charade to an end. I believe in the sanitizing effect of sunlight. The best regulations we can pass are those that enable complete and and detailed disclosure.

    Proposals now being put forward by Dodd - more agencies, complex regulation or even worse, consolidation under an uber auditor are simply anti-antediluvian. I truly fear this "regulation straight jacket" as it will not reduce systematic risk but instead, project the illusion of security, stifle innovation and increase the frictional cost for all.
    Mar 13, 2010. 08:59 PM | 1 Like Like |Link to Comment