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Rick Davis Goes Inside the GDP Report »

The equity markets are flat so the 2nd quarter GDP report must have been properly priced into current valuations. Perhaps, but I would neither go that far nor would I be so brazen as to say that the markets are wrong in how they trade. Markets are never wrong. The market is the market. All this said, let’s [...]

If My Aunt Had Balls, She’d Be Mary Schapiro »

“If my aunt had balls, she’d be my uncle!!” I love that line. I first heard it on the trading desk at Bear Stearns in the early ’90s. For the last twenty years, I have used the line often to counter those who would bemoan an outcome with the standard, “If only . . .” [...]

Review of Unemployment Report July 2, 2010 »

The release of the Unemployment Report on Friday is very much consistent with an economy that is undergoing real structural changes and adjusting to the realities of lessened credit and limited growth. As much as some may like to spin it one way or another, those realities are the simple and straightforward ‘sense on cents’ [...]

Snow White and the Evil Queen (and happy 4th of July) »

First, let me wish NQ readers a happy Fourth of July, or whatever it is you wish Americans at this time. Personally, I think Americans may have missed out on a lot of things by breaking away from British rule (like being able to sing “Rule Britannia” at the Last Night of The Proms, but [...]

Rick Davis Nailed 1st Qtr 2010 GDP Report on November 30, 2009 »

How would you like to have the answers to a quarterly report before other participants have even thought that the activity is occurring, data is being compiled, analysis is being rendered, and the results are released? That would truly be awesome, wouldn’t it? Can you imagine college students knowing the answers to their final exam [...]

SEC Settles with Great American Gary Aguirre, or Wall Street-Washington Incest Personified »

Thanks very much to a regular reader of Sense on Cents for sharing a fascinating story. The Government Accountability Project just released the following story regarding a significant settlement paid by the SEC to a former SEC attorney Gary Aguirre. This story highlights the Wall Street-Washington incest to the ‘nth’ degree. Will the media pick [...]

Steady Decline Through 2060? »

What type of legacy are we leaving our kids? Will we leave them so burdened with overwhelming debts and deficits so as to strangle and choke off real opportunities? While Uncle Sam is able to play charades in an ever increasing and dramatic fashion, Sam’s smaller brethren at the state and local levels do not [...]

At the Corner of Wall Street and the Gulf of Mexico »

The distance from the canyons of lower Manhattan to the now soiled beaches of the Gulf Coast runs about 1300 miles. A long way and decidedly different lifestyles, you may think? I do not think so. In very real terms, the economic disasters centered in each of these locales are virtually contiguous. As I watched [...]

SEC’s Senior Staff/Inmates Are Running the Asylum »

Any employee in any organization knows that an internal disciplinary double standard is the quickest way to kill morale. Happens all the time, right? Likely even worse in organizations with lots of bureaucracy? Uncle Sam would not know how to operate otherwise, you say? The answers to all those questions may be the affirmative, but [...]

Fannie and Freddie: The Legacy of Washington’s Financial Illiterates »

When the day of reckoning comes, the record will show that those misguided, incompetent and reckless legislators who supported and were supported by the house of cards known as Fannie Mae and Freddie Mac will have cost our nation untold hundreds of billions of dollars. In fact, the losses attributed to these organizations may ultimately [...]

Coast Guard Logs Indicate White House Knew Early on that Gulf Disaster Might be Bigger Than Exxon Valdez »

Any investigation ultimately comes back to two questions: 1. What did they know? 2. When did they know it? In order to determine the answers to these critical questions, investigators need to have real transparency and integrity in their pursuit of information. To this end, I welcome adding a link to my Watchdog category (right [...]

Consumer Metrics Institute Projects 3rd Quarter GDP of -2%!! That’s Right -2%!! »

Do you hear a grinding sound? Listen a little harder. That sound is the brakes being applied to the U.S. economy. The current price action in commodities markets (as highlighted in my commentary yesterday, “Commodities Growling Like a Bear”) is very much reflective of this braking process. How do we measure the slowing? Where can [...]

Pitting Citizen Against Citizen »

That would be President Obama in his recent press conference. Now I understand why this “eloquent” “brilliant” “orator” does not do more of these things. Wow. We thought Bush was bad. But eve Bush never pitted one American citizen against another like this: Watch the latest news video at video.foxnews.com Obama said claimed that the [...]

Oil Regulation or ‘Sex, Drugs, and Football’ »

The disaster unfolding in the Gulf of Mexico is enormous and will have an untold impact on our economy and environment. This tragedy could have been avoided. What a shame. There should be hell to pay by those charged with overseeing the oil industry. Where were the regulators? A statement released just yesterday by the [...]

Is the Federal Reserve Behind the European Bailout? Audit the Fed!! »

Is the American taxpayer ultimately bailing out the European Union? Far fetched? Don’t be so sure. While the focus of the European bailout has been on the European Central Bank, the European Union, and the IMF, little attention is being given to swap lines which were reopened between the Federal Reserve and the European Central [...]