Current Article

No Quarter’s Dollars and Sense with LD & Open Thread

By SusanUnPC on January 25, 2009 at 6:55 AM in American Consumers, Banking Institutions, Economic Stimulus, Economy, FINRA, No Quarter Blog, NoQuarter Radio, Obama Administration, SEC, Tim Geithner

(bumped down because program has been aired. Click on the links to listen to the program via BTR, or use our easy directions in the right column to subscribe to NoQuarter Radio via iTunes)

Please join us Sunday evening from 8:00 to 9:00 p.m. ET as we discuss a wide array of financial and economic issues from Wall Street and around the world. Call in at (347) 677-0792 to ask questions and offer your commentaries.

Our “very special guest” for our “LD’s Dollars and Sense” is an individual who, in my estimation, has more professional Wall Street relationships than any other individual. Allow me to share the background of the legend that is … Michael Maloney.

Michael started working on Wall Street in the mid-1960s at the tender age of 16 for a specialist firm on the floor of the NYSE. In 1970, Mr. Maloney was an equity block trader for the venerable Stone and Webster. In the late ’70s, Michael moved into the world of financial recruitment and career consulting. He is known as “the man to see” for those looking to move onto or within the world of Wall Street. He has longstanding relationships that would fill the Manhattan directory and has lived to tell about them. From placing chief investment officers to back office assistants, from working with the major investment houses to startups, Michael truly epitomizes the phrase, “it’s not merely what you know but who you know.”

Please join us for a fascinating look back and, simultaneously, a piercing view forward with “the man to see,” Michael Maloney!!

Larry Doyle has continued to track his original investigative report on the nomination of prospective SEC chairwoman Mary Schapiro, “Let’s Really Question Ms. Schapiro.” Larry scoured news and investment sites for any background information on Ms. Schapiro, and also read the 68-page 2008 annual report of FINRA, the Financial Industry Regulatory Authority, which raised a large number of questions about Ms. Schapiro’s abilities as a “watchdog,” as a “cop on the beat.”

We are living through a truly historic and challenging economic period. We want to help you make sense of it all.

Two weeks ago, for example, we were joined by insurance expert Sean D’Arcy of Northwestern Mutual (this show is a must for everyone who has an insurance policy and, since we all do, make sure you catch this important program). LD also wrote up the discussion in this story, “Got Insurance? 529 Plans? Financial Aid?…Read On….”

The week before, Kevin Doyle, founder of 12th Street Capital and former senior executive at Countrywide, joined us from 8:15-8:45pm. We discussed the dynamics and development of the sub-prime mortgage business, the outlook for regulations and the rating agencies, and much more. Fascinating discussion. For those who care the shows are archived.

Larry Johnson’s business partner, John Moynihan, joined us on December 21st. John is an expert in forensic accounting and money laundering. We discussed the Bernie Madoff situation and fraudulent activities in general. Also fascinating.

Get the real “behind the scenes” look from financial experts only here at “No Quarter’s Dollars and Sense with LD.”

::::::::::::::::::::::::

Afterwards, the archived show will be up at BlogTalkRadio or via iTunes/iPod (see our instructions in the right column under No Quarter Radio).)

ALSO: Check out Larry’s series of “Central Station” posts in which he takes questions from you, and answers them. The latest “Central Station” was yesterday morning, January 24th, from 9 a.m. to noon.

Katmoon

How can anyone, is this economy, justify spending this obscene amount of money for the inauguration? A person of real change would perhaps have considered the “historical” value of not being vulgar in trying to purchase history, on the backs of the citizens of this country. A real person of change may have chosen a route in history that proved their care for their fellow citizen by being different in leaving the pomp and circumstance to others, instead going for a more humble and respectful lead up and ceremony. That would be a cause for history to stop and take notice.

This is probably a low estimate for the cost of the inauguration : ~45 Million + 11.9 Grants for Security= 56 Million
Which could have been spent for the following:
Average cost of Health care: 7900 per person= Coverage for 7088 uninsured Americans
Average salary of a teacher 35,000 = Paid 1600 Salaries
Average salary of a soldier 20,750 = Paid 2698 salaries
Average tuition for public college 6500 = Paid tuition for 8615 Public college students.

Below are the National Poverty Guidelines

HHS Poverty Guidelines[17] which are illustrated in the table below.
Persons in Family Unit 48 Contiguous States and D.C. Alaska Hawaii
1 $10,400 $13,000 $11,960
2 $14,000 $17,500 $16,100
3 $17,600 $22,000 $20,240
4 $21,200 $26,500 $24,380
5 $24,800 $31,000 $28,520
6 $28,400 $35,500 $32,660
7 $32,000 $40,000 $36,800
8 $35,600 $44,500 $40,940
For each additional person, add $3,600 $4,500 $4,140
Tricia Spiegel

This woman is not the right person to be in charge.

Contact Dodd here http://dodd.senate.gov/index.php?q=node/3128

OR

U.S. Senator Chris Dodd 448 Russell Building | Washington D.C., 20510. Tel: (202) 224-2823 | Fax: (202) 224-1083
CG

here is an article from today’s Seattle Times http://seattletimes.nwsource.com/html/businesstechnology/2008641550_schapiro18.html
lark

A person of real change would perhaps have considered the “historical” value of not being vulgar

But instead he considered honoring vulgarity and received the approval of the majority of voters. So, vulgarity it is and vulgar he is.
Sammie

Speaking of financial and economic issues, so far I haven’t been able to come across a good synopsis or analysis of the stimulus plan that spells out exactly how it will help the economy. From what I’ve read so far, it seems to include tax cuts or rebates, including rebates to those who don’t pay federal income taxes, additional funding for no child left behind and money for contraceptives and infrastructure (which is obviously a more long term investment). Considering the present environment of tight credit, business failures and layoffs, I’m just not sure how the plan is going to stimulate the economy.

Are any economists saying this plan will help? Has anyone come across any good articles on it?
mountainaires

The British Pound: Not So Sterling

In November, Willem Buiter warned that the UK could follow Iceland into default:

With the pound sterling dropping like a stone against most other currencies and credit default swap rates on long-term UK sovereign debt beginning to edge up, this is a good time to revisit a suggestion I made earlier on a number of occasions (e.g. here, here and here), that there is a non-trivial risk of the UK becoming the next Iceland.

The risk of a triple crisis – a banking crisis, a currency crisis and a sovereign debt default crisis – is always there for countries that are afflicted with the inconsistent quartet identified by Anne Sibert and myself in our work on Iceland: (1) a small country with (2) a large internationally exposed banking sector, (3) a currency that is not a global reserve currency and (4) limited fiscal capacity.

All of this seems to be coming true.

UK banks are technically insolvent.

The risk of a sovereign debt default is real. As John Higgins, of Capital Economics, points out:

“The 5-year credit default swap for the UK government has widened by 25bp since early January.”

And the Sterling is tanking. Indeed, Jim Rogers is saying:

“Sell any sterling you might have. It’s finished”

For further analysis on the sterling, see this roundup from Nouriel Roubini, and this one from Mish.

http://www.rgemonitor.com/10000?cluster_id=4757

http://globaleconomicanalysis.blogspot.com/2009/01/pound-sinks-as-britain-teeters-on-edge.html

Source for blockquote [links active]:
http://georgewashington2.blogspot.com/2009/01/uk-economy-is-not-so-sterling.html

Euro: Once a Boon, Now a Burden

http://www.nytimes.com/2009/01/24/business/worldbusiness/24euro.html

Iceland Senior Minister Resigns; Gordon Brown Next?

http://www.dailymail.co.uk/news/worldnews/article-1126682/Icelands-senior-minister-resigns-government-global-political-casualty-credit-crunch.html
Sammie

I still haven’t been able to find a really informative article explaining how the stimulus package will solve our credit flow problem, however, I did find an interesting interview with the shadow financial regulatory committee:

Economists to Obama: Get the Government out of the Banking Business

http://knowledge.wharton.upenn.edu/article.cfm?articleid=2146
LD

Thanks for sharing that link. Lots of very valid points.
Sammie

Due to timing constraints (and other issues), I’m sure we’ll pretty much end up with the stimulus package that’s already been proposed, but it is interesting to read alternate viewpoints. Considering the economic concerns relating to credit flow, lay offs and the potential for a large number bankruptcies, I can’t help but wonder if the plan for reducing the employment tax discussed in this Barron’s article would be more beneficial.

http://online.barrons.com/article/SB123215031962092011.html?mod=b_hpp_9_0002_b_this_weeks_magazine_home_top&page=1
justsomeone

Looking for insight into Obama’s economic plans? Check out this article: “Yes, we Keynes: Will Obama be the first President to implement the ideas of 20th century’s greatest economist?” by John B. Judis. I don’t often read the New Republic but this article was recommended to me & is really insightful. It’s dated until Feb 9th, 2009 so you should be able to just pick it up by going to the New Republic’s web site. This lays out a real tricky way to “reward work not wealth”.If John Judis has this right interest rates are going to remain low for the next 4 years. Check this out.
LD

thanks for that link….will check it out…
justsomeone

LD, I can’t wait to hear what you think. Today CNBC was just running over with stories about nationalizing the banks & at Bloomberg Roubini was saying Citi & BofA are bankrupt: “Roubini Sees ‘Nowhere to Hide’ from Global Slowdown (Update 2) by Betty Lui & Eric Martin. Is it my imagination or are the stories getting worse every day?