Cash For Clunkers Extended
Cash For Clunkers is back. After burning through its initial $1 billion in a week, the Car Allowance Rebate System (CARS) aka ‘Cash For Clunkers,’ received another round of funding from Washington. Last Thursday, the Senate voted to extend the popular car buying program before their Summer break....
The Recession Has Been Extended?
With weeks of positive vibes behind us and a climbing market to boot, the unwelcome cry from Friday was: ‘Hold the celebration – the recession has been extended.’ The 2nd quarter gross domestic product (GDP) numbers were released on Friday. Here’s what Bloomberg reported: “The first 12 months...
A Very Short History of the Bear Market
In retrospect we’re all geniuses. Anyone can look back on a chart and see when a market turned. But not everyone can call a bottom in the middle of the event – and no one can do it consistently. Those who claim such knowledge usually have names that rhyme with “Made-off”, as in...
Bernie Madoff Summarized
Fortune has an extensive piece on Bernard Madoff’s well-publicized $65 billion fraud. Entitled How Bernie Did It, they uncover various aspects of the plot to bilk investors out of billions. It’s worth the read, but I understand the time commitment of scanning an 11,000 word essay. I’m summarizing...
Is The White House Telegraphing A Decline?
Economic politics is a reality. But it wasn’t always so. Back before the Great Depression, some might say there was a ‘let them eat cake’ mentality in Washington. Politicians had their sphere and bankers had theirs. That distinction is gone. In recent years, the Executive branch has seized...
Bear Market Earnings
“Historically, losing money is a bad thing. But now, if you’re losing less money, it’s a good thing.” Kris Niswander, Associate Director of Financial Institutions at SNL Financial The market delivered a helpful reprieve before the Good Friday holiday. Climbing on Wednesday and...
Crime Increases in Declining Jobs Market
One of the more psychologically significant government reports is the jobs report. On Friday, the Labor Department released the dreaded report. The US economy lost another 663,000 jobs in March. This number was not completely surprising, but neither did it encourage many buyers in the market. Investors...
Auto Industry Partially Socialized
Pretend for a moment we’re back in the early-1980s. Unemployment is high, the economy is suffering, and the auto industry needs help. Now, let’s transport the new Obama administration back in time to deal with the issue. Instead of cutting taxes like Reagan did in 1981, Obama decides to raise...
Electoral Impatience or Cracking Confidence in Obama?
Cable news and the internet have transformed politics in America. Once upon a time, one person (Walter Cronkite) informed a nation about the goings-on in Washington via television, and that was 30 minutes a day, five times a week. In 2009, it’s a thousand voices, incessantly droning on about political...
Too Late for AIG Bonus Torches
The angry mobs now forming against the idea of AIG employee retention bonuses are, sad to say, running several months too late. The opportunity to stop this sort of outrage was lost last year. Yes, of course the bonuses are an outrage and should not be paid. I say this with all due respect to the AIG...
