Do We Really Need More Bad Banks?
The Obama administration is reportedly considering the establishment of a so-called “Bad Bank” under the management of the FDIC. Other plans are also on the table, and it appears no final decisions have been made. If it happens, the Bad Bank (more polite commentators are calling it the...
Banks: The Final Countdown
Something strange is happening – or about to happen. Bank of America (BAC), Citigroup (C), and JPMorgan Chase (JPM) all moved up their quarterly reports to this week. None have offered any coherent explanation for doing so. What are they trying to get ahead of? Meanwhile, today BAC received...
Washington’s Fiscal Profligates
Sometimes I wonder if I’m stuck in a bad dream. As I contemplated Patrick’s comments on the government’s latest contribution to the national debt, I wondered about our nation. What have we become? We seem to have exalted our government to savior of the world’s economy. We’ve...
Re-Booting America: Part II and a Merry Christmas
Even more shocking events have transpired since I first suggested re-booting our country. As the Federal Reserve, Treasury, and White House race to “save” America, corporations of all shapes and sizes have been brought to their knees. So have many families. People around the globe are being...
A Different Bonus Season
When Little Billy goes to Wall Street, he knows he’s not working for a charity. No, Billy carries his big name B-school sheepskin for special perks. His first month on the job, Billy buys a Mercedes so he can look cool when he’s out on the town. Not content with a roomy flat in Brooklyn, Billy picks...
Bernard Madoff: Small Time Fraud
By now you have probably heard about the arrest of Wall Street titan Bernard Madoff. The firm that bears his name is a top market-maker in Nasdaq stocks. Madoff himself has been a prominent leader in all kinds of industry groups for decades. Now he is a free man only because his wife posted a $10...
Sorry Johnny
I am confused. Let’s say I can’t pay my bills next month. Could I hit up friends and family for a loan? Could I borrow elsewhere, at reasonable terms? What would the lenders say? For example: “Hey Dad, I know times are tough and your net worth just took a 25% hit this past...
Treasury Borrows At Zero
Today the Treasury Department sold $30 billion of four-week T-bills at an interest rate of zero percent. Yes, zero. Investors are now loaning money to government and receiving no interest at all. Experts suggest that this is just a year-end phenomenon and will not be repeated. Maybe so. Here’s...
Deflation in Action
Because it is a long commute from my home to InvestWithAnEdge.com Global HQ, I am particularly sensitive to gasoline prices. I look for the stations where I can get the best price without going too far out of my way. Earlier this year, when prices were approaching $4 a gallon, I found myself topping...
A Wall Street Fairy Tale
Once upon a time there were some banks in New York City. They were big banks with billion dollar buildings and multi-million dollar traders. These banks had some really smart bankers. These guys could rattle off PE ratios in their sleep. Coming from the highest-tier MBA programs in the country, these...
