Global Market Commentary, Analysis and Investments
First, let’s look at what Mr. Market is doing to see if he will give us a hint of what is going on. He’s supposed to know everything. And he’s supposed to look ahead and tell us what is coming.
So already, Mr. Smarty-Pants, what’s up? Alas, Mr. Market seems as confused as we are.
[Read more...]The SEC's budget, or appropriated funding as it is known, was $906 million for FY2008, having risen 11.5 percent annually since 2001. Investor complaints however, have barely increased. From 2001 to 2007 their annual growth was just 1.6 percent.
According to a Rand Corporation study of investment advisors and broker-dealers registered with the SEC, the combined total of these grew at an annualized rate of just 3.4 percent over the five years 2001 – 2006, but this growth rate was skewed by some 700 hedge funds that subsequently deregistered after the study's end point; excluding these the annualized growth would shrink to just 2.5 percent. All of the growth has come on the investment advisor side, and these are typically very small operations compared to broker-dealers.
[Read more...]What you already know about China-based Dagong Credit Rating is that it's caused quite the kerfuffle over sovereign debt ratings by ranking China higher than the US and other developed countries, like the UK and Japan, based on a formula assigning more weight to the fiscal health and GDP growth of countries.
[Read more...]Goldman Sachs not only has a unique knack for practically minting money, it’s also got a special way with words. Already well known for “doing God’s work,” is also professes somewhat of an expertise in a more carnal sort of profession.
[Read more...]I was as surprised, as many were, to see that the Consumer Price Index (CPI) actually declined in April, dropping to 2.2% inflation from March’s 2.3% inflation.
My family seemed to be endlessly delighted that inflation seems to be going is down, which is because I have been yammering about how inflation in prices going up will always be the result of a money supply that goes up, and I have been saying it for so long that they are sick, sick, sick of hearing that inflation is prices will follow inflation in the money supply, they are sick, sick, sick of hearing my voice telling them that ruinous inflation in prices will always follow ruinous inflations in the money supply, and they are happy, happy, happy that I am wrong!
[Read more...]The wide range of revenue generating activities at investment banks have all been perfectly legal for so long now -– despite the many potential conflicts of interest — that it’s difficult to appreciate the SEC finally getting around to calling a spade a spade.
[Read more...]In a recent Daily Beast article, Charlie Gasparino describes Goldman Sachs as “already the most hated investment bank among investment bankers.” Perhaps that’s so. Throughout its long and storied history Goldman has been the most elite and prestigious firm in a very competitive pool of investment banks. It’s not surprising that its success could have ruffled more than a few feathers.
[Read more...]The reason you might have heard about my Securities and Exchange Commission (SEC) lawsuit is because I didn’t settle the case.
When most people are sued by the SEC, they do their best to put the matter behind them – as quickly and quietly as possible.
This normally involves paying a large fine and essentially promising “not to do it again.” If you pay the fine, the chances are good most people will ignore the matter. You’re not required to admit any guilt. Thus, the damage to your reputation is largely mitigated and you can go on with your life. That’s why most people settle with the SEC when it comes to civil (noncriminal) lawsuits.
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Crony Capitalism at Work
High-speed trading is turning the stock market is turning into a farce, and in the process is turning off an entire generation of investors. It’s speeding up a process — P/E ratio compression — that normally takes a grinding bear market a couple of decades to accomplish. Even after the wake-up call of the May 2010 flash crash, the SEC has done little to foster a healthier market ecosystem.
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