Confidence-and Leadership that Lies

How do you invest in a market when you don’t have confidence? Answer, you don’t. That in itself is one reason the market is having trouble sustaining a rally. We are also in summer trading. However, this release today by …

Santelli on Meet the Press

Amidst all the liberal drivel on Meet the Press, Rick Santelli is on. Interestingly, in Chicago, precisely when Santelli began to speak-The National Weather Service issued a bulletin. It wasn’t on any other main news channel. You couldn’t hear what …

The Big Short

Just finished reading The Big Short by Michael Lewis. It’s a good book. Worth a read. It explains some of the people that made money on the subprime crisis. Not just a little money. Big massive sums of money. This …

The Revolution 2010 style

What part of the Revolution that began in 1774 was racist?  It can be argued that the framers were racist since they put in the 3/5ths rule and avoided the issue of slavery, which we settled in the Civil War. …

Economic Stimulus, Spend or Less Tax?

The great debate since Obama took office was not if the economy was in bad shape or not, but how to use effective policy to revive it. Greg Mankiw, a Harvard economics professor, has an excellent discussion of economic stimulus …

Dividends Versus Share Buybacks

This is a controversial topic these days in corporate finance. Corporations are accumulating cash on their balance sheets. Why would a company deliberately accumulate cash? Carrying excess cash can put a target on a company’s back. They become a target …

Are You Ready For Some Football?

Already, we are seeing ads for football season.  Pro training camp opens soon, and the college season is just around the corner.  Being a born and bred midwesterner, I have followed Big 10 Football for years.  Of course, it meant …

GM

Yesterday’s big business news was that GM bought a subprime lender.  Very interesting the timing of all of this. Obama signs a financial regulation bill that effectively kills the securitized loan market, and the next day Government Motors uses taxpayer …

Chicago=China, almost

I don’t know if you have been following this story, but it is one woman’s quest to get on the ballot. Cedra Crenshaw happens to be a Republican, and black. Here is her story in her words. In Chicago, the …

Deputy Bernanke

Yesterday, Fed Chair Ben Bernanke finished his first leg of Humphrey-Hawkins testimony. Sometimes, you actually learn market moving news at these things. Most of the time, you don’t. What struck me yesterday about the testimony was that Bernanke was the …

Feelin the Heat

Ben Nelson might be more unpopular in Nebraska than Barry Switzer. Anecdotal evidence infers that it’s tough for him to even go out to a restaurant in his home state. If he ran today, he surely would lose his election. …

Ms Sherrod and the NAACP

Ms. Sherrod was fired, then offered her job back by the Obama administration.  Interesting. Her record is very far left.  She is not a centrist.  That doesn’t make her a racist though. First off, Obama is a coward for firing …

National Security

Yesterday, the Navy said they shot a drone down with a laser. Cool.  Star Wars as envisioned by Ronald Reagan is really happening.  This defense stuff is really nice, but what is the threat to America? Here is one thought. …

Financial Regulation

Lots of smack being bandied about on Fin Reg today. All over CNBC, Fox Business, Bloomberg. I am on Fox Business at noon to talk about it today. What will Fin Reg do? Increase costs, decrease competition, but it will …

Sportland Cafe Nisswa, MN

Had breakfast at the Sportland Cafe. Spoke to two WW2 vets and encouraged them to go to the National WW2 Museum in New Orleans. Overheard a lot of the chatter and if it can be extrapolated to small towns all …

YOY

Reporters and analysts always seem to quote year over year(YOY) numbers.   Sometimes numbers make sense, and sometimes they don’t.  For example, if I am a brand new company in Year 1, and then in Year 2 report sales increases …

Unemployment

Sitting up here in Grand Marais, MN at the Java Moose, I read David Altig’s excellent blog.  David works for the Federal Reserve in Atlanta, and is also a Professor of Macroeconomics at the University of Chicago. Recently, Macroblog contemplated …

Fin Reg Passes

Richard Shelby from Alabama said that if the Republican get control, they will repeal it. Smart. Between that and Obamacare, they have two solid campaign issues. The stimulus is the third. However, a recent poll shows Harry Reid up 7 …