Archive for the ‘investors’ Category

For Obama and Geithner: Action Would Speak Louder Than What We Have Now

March 27, 2009

“People have confidence in Obama and generally want him to succeed,” says Frank Luntz, an experienced pollster. “But they don’t necessarily translate that confidence into his policies or the government.”

Bingo.

Treasury is a confidence black hole.  Why?  Because despite many efforts to point the blame at Wall Street and greedy executives, nobody has said, “The regulaters screwed up.”  Instead we have been told “we inherited this Bush mess and Bush decreased regulations so we need more regulations — we need more government.”

We don’t need more government.  We need better government and more accountability: from the President through Barney Frank and the rest in congress and to Geither and all the other bureaucrats.

Who among us thinks Barney Frank and Christopher Dodd screwed up?  Who has trust and confidence that Barney and Chris and Tiny Tim Turbo Tax and even Obama can get us out of this?

Yesterday it looks like Mr. Geithner actually fired — or at least sent into the penalty box — one of his top deputies.  Now we are getting to the issue.

Scott Polakoff at Treasury’s  Office of Thrift Supervision  is on ice: and Treasury needs to explain why and take responsibility for him and his actions and fast.

Maybe we don’t need to make more rules: maybe we need to enforce the ones we have and enforce accountability.

Recovery will be about trust and confidence.  Without that, investors hold back, businesses don’t hire and workers don’t spend.

A government mea culpa would be a good first step: and continuing this line of “we inherited” is now more than paper thin it is a sign of impotence.

“What we need today is more optimism and more confidence,” Larry Summers said.

“Consumer confidence is slightly up. The market is slightly up,” Biden said.

“We need confidence to make this recovery work,” President Obama said.

Confidence can’t be produced with fairy dust or a magic wand.  We get it the old fashioned way: we earn it.

President Obama has to take dramatic action: not giggle through an appearance on Leno and “60 Minutes” or jabber on an Internet town hall.  That may work with tweens but it is not so good with real adults with real money.

Campaigning is for wannabees.  Those with real responsibility and accountability have to act to be credible and earn trust and confidence.

Now’s the time.

Related:
http://michellemalkin.com/2009/03/27/
the-strange-sacking-of-a-top-treasury-official/

Stumulus: Obama and Congress Sold Us A Lot Of Useless Swampland; Ready To Buy More?

Obama Buys Into Anger, Fear as Political Tool
Obama, Geithner, Summers Plan for “Toxic Assets” May be Toxic Itself

Obama’s public overexposure

Obama Still Thinks After Economy Recovers; Bank, Finance Good Times Can Return?

 Obama’s Economic “Rescue;” “The plan is very, very clever. Maybe too clever.”

 Stimulus: Way Fewer Jobs Than You Thought

 The Great Give Away of Taxpayer Money By Bigger and Bigger Government

 President Tries To Harness Public Anger To Move His Budget

Obama Dead Wrong On Stimulus, Caterpillar Company Jobs, Recovery

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Warren Buffett says economy fell off a cliff

March 9, 2009

Billionaire Warren Buffett said the economy has “fallen off a cliff” over the past six months and consumers have changed their habits in remarkable ways.

Buffett said Monday during a live appearance on CNBC that current economic turmoil has basically followed the worst-case scenario he envisioned.

By JOSH FUNK, AP Business Writer

In this May 21, 2008 file photo, U.S. billionaire investor Warren ...
In this May 21, 2008 file photo, U.S. billionaire investor Warren Buffett speaks during a news conference in Madrid. Buffett says the economic turmoil that contributed to a 62 percent profit drop last year at the holding company he controls is certain to continue in 2009, but the revered investor remains optimistic.(AP Photo/Paul White, File)

“It’s fallen off a cliff,” Buffett said. “Not only has the economy slowed down a lot, but people have really changed their habits like I haven’t seen.”

Buffett said the changes are reflected in the results of Berkshire Hathaway Inc.’s subsidiaries. He said Berkshire’s jewelry companies have suffered, but more people have been willing to switch to Geico to save money on car insurance.

He predicted that unemployment will likely climb a lot higher before the recession is done, but he also reiterated his optimistic long-term view: “Everything will be all right. We do have the greatest economic machine that’s ever been created.”

Fear and confusion have been driving consumer and investor behavior in recent months, Buffett said.

The nation’s leaders need to clear up the confusion before anyone will become more confident, and he said all 535 members of Congress should stop the partisan bickering about solutions.

Read the rest:
http://news.yahoo.com/s/ap/2009
0309/ap_on_bi_ge/buffett_economy

Office of Management and Budget Director Peter Orszag arrives ...
“Beware of geeks bearing models,” said Warren Buffett; which could be worrisome to people.  Office of Management and Budget Director Peter Orszag arrives to deliver testimony before the House Ways and Means Committee on Capitol Hill in Washington, March 4, 2009.REUTERS/Jonathan Ernst (UNITED STATES)

Dow’s Decline Is Fastest for a New President in Nearly a Century

March 6, 2009

The Dow Jones Industrial Average has fallen faster under President Obama than under any new president in at least 90 years, according to a review conducted by Bloomberg. 

Bloomberg reports that since Inauguration Day, the Dow has fallen 20 percent, leading at least one investor to dub this the “Obama bear market.” The Dow has also dropped 31 percent since Election Day. 

Despite a string of government bailout offers and Obama’s advice earlier this week that Americans should be buying stock while shares are low, the Dow has continued to freefall. 

Bloomberg reported that Obama is at risk of breaking a historical trend — in which the Dow soars an average of close to 10 percent in the first year after a Democrat wins the presidency. 

–Fox News

******

By Eric Martin

March 6 (Bloomberg) — President Barack Obama now has the distinction of presiding over his own bear market.

The Dow Jones Industrial Average has fallen 20 percent since Inauguration Day, the fastest drop under a newly elected president in at least 90 years, according to data compiled by Bloomberg. The gauge has lost 53 percent from its October 2007 record of 14,164.53, slipping 4.1 percent to 6,594.44 yesterday.

Read the rest:
http://www.bloomberg.com/apps/news?pid=206
01087&sid=a5o50mgg9hWA

Related:
NYT: After March 6 Economic News, “2009 is Probably a Lost Cause”

Obama’s Brazen Deception: Why The Stock Market Won’t Recover Soon

March 6, 2009

Forget the pork. Forget the waste. Forget the 8,570 earmarks in a bill supported by a president who poses as the scourge of earmarks. Forget the “2 trillion dollars in savings” that “we have already identified,” $1.6 trillion of which President Obama’s budget director later admits is the “savings” of not continuing the surge in Iraq until 2019 — 11 years after George Bush ended it, and eight years after even Bush would have had us out of Iraq completely.

By Charles Krauthanmmer
The Washington Post
.
Forget all of this. This is run-of-the-mill budget trickery. True, Obama’s tricks come festooned with strings of zeros tacked onto the end. But that’s a matter of scale, not principle.

All presidents do that. But few undertake the kind of brazen deception at the heart of Obama’s radically transformative economic plan, a rhetorical sleight of hand so smoothly offered that few noticed.

The logic of Obama’s address to Congress went like this:

“Our economy did not fall into decline overnight,” he averred. Indeed, it all began before the housing crisis. What did we do wrong? We are paying for past sins in three principal areas: energy, health care and education — importing too much oil and not finding new sources of energy (as in the Arctic National Wildlife Refuge and the Outer Continental Shelf?), not reforming health care, and tolerating too many bad schools.

Read the rest:
http://www.washingtonpost.com/wp-dyn/co
ntent/article/2009/03/05/AR200903050
2951.html?hpid=opinionsbox1

Realted:
Stock Markets: When Will the Bull Return?

 Households, Businesses Have Stopped Spending; Now It’s Congressional Responsibility Time

Malkin: “People that create American wealth are going on strike”

March 5, 2009

“People that create American wealth are going on strike,” conservative columnist Michelle Malkin told Neil Cavuto on the Fox News Channel on Thursday (4 PM Eastern hour).

Malkin says the “creators of American wealth” are hiring fewer people, planning only very limited future spending and drastically cutting investments.

She said that the “creators of wealth” now have a fear of those that are the middle-men like Congress.  The middle men are taxing the creators of wealth too much and spending tax dollars with little concern for future wealth, investment and debt.

The stock market was down again Thursday indicating that Ms. Malkin may be on to something….even as the White House gears up to spend even more on health care, the bank bailout and a foreclosure rescue plan…..

Related:
Obama Urged Investors to “Buy,” But Stocks Dive Again Thursday

NYT Urges Obama To “Bail Out” Third World Too

 Most Americans Now Say America Could Go Bankrupt

 Obama Can’t Revive Economy With Socialism

American Workers, Businesses Cut Back; Obama Launches Spending Spree

Presidency of Fear

Obama’s Brazen Deception: Why The Stock Market Won’t Recover Soon

 Senate Halts Obama Spending; At Least For The Week End

 Obama plan to prevent foreclosures won’t help many California homeowners

Michelle:
http://michellemalkin.com/2009/03/05/finall
y-a-show-of-cojones-senate-gop-forces-delay-o
n-omni-pork-bill/

Obama Urged Investors to “Buy,” But Stocks Dive Again Thursday

March 5, 2009

Trying to pump up the nation’s confidence, President Barack Obama said Tuesday that Wall Street has been hammered so hard that “buying stocks is a potentially good deal,” and he dispatched top aides to Capitol Hill to defend his plans for pulling the economy out of its deep recession. But the stock market slipped ever lower, as investors exhibited a total lack of confidence….

*****

NEW YORK (AP) — March 5: Investors fled Wall Street as fear grew about the stability of the nation’s largest banks and worries mounted about General Motors Corp. The major market indicators resumed their slide Thursday after a one-day rally, falling to levels not seen in more than a decade as investors contended with more disheartening economic data, new concerns about the stability of GM and ongoing uncertainty about the financial system.

Read the rest:
http://finance.yahoo.com/news/S
tocks-tumble-as-investors-apf-145
57845.html

Stimulus Fails To Thrill

February 12, 2009

The stock market fell 20 points in its first half-hour on Thursday, an apparently negative reaction to the Obama stimulus bill and Tim Geithner’s bank bailout plan.

The Dow Jones Industrial Average fell in early trading, reflecting overnight internatioanl investor gloom.

Led by banks, the Dow was down across the board as investors worried the stimulus plan wouldn’t be enough to help the economy.

The first rise in retail sales in seven months had buoyed futures but traders shrugged it off as regular trading got underway.

The stimulus bill looks like a little bit of a wet blanket,” said Randy Frederick, director of trading and derivatives at Charles Schwab. “There is some concern that maybe this thing won’t work as well as expected.”

At the same time, Barack Obama, with the assistance of the liberal media, likened himself to Abraham Lincoln.

There was general disappointment in the stimulus and not joy across America.

Many of the stimulus provisions will take years to kick in and the economy, in the meantime, looks like it will continue to be flat or on a downward slope.

The public has low expectations for the package, with a large number of people feeling the package won’t have much effect on them.

After the troubles of the last few weeks it is not at all certain that the Obama hope remains alive — maybe it is on life support.

Pan Pylas of the Associate Press wrote today: “The raft of grim corporate news in Europe comes as the markets have largely given the thumbs-down to the passing of a $789 billion stimulus bill in Congress and U.S. Treasury Secretary Tim Geithner’s bank rescue plan, which could cost up to $2 trillion. On the Geithner plan, investors worried about the lack of detail, specifically the absence of any indications about how the banks’ toxic assets would be bought.”

Sudeep Reddy wrote in today’s Wall Street Journal, “The latest version of the economic-stimulus package is expected to provide less near-term support for the economy and make it less likely that the economy will pull itself out of recession before late this year.”

Andrew Taylor of the Associated Press wrote: “The $500-per-worker credit for lower- and middle-income taxpayers that Obama outlined during his presidential campaign was scaled back to $400 during bargaining by the Democratic-controlled Congress and White House. Couples would receive $800 instead of $1,000. Over two years, that move would pump about $25 billion less into the economy than had been previously planned.”

“Officials estimated it would mean about $13 a week more in people’s paychecks when withholding tables are adjusted in late spring. Critics say that’s unlikely to do much to boost consumption.”

Expect a full blown media swoon to tell us how great the stimulus really is — even if we don’t feel that way…

Related:
http://www.cnbc.com/id/29158596

Will the stimulus bill boost public confidence?

 Obama: No Vision as Foundation to Spending; Except Maybe Socialism

Obama’s “My way or the highway” vs “better ideas”

World stocks sag on concerns about Obama plans

Dow Falls 400; Geithner Recovery Plan Worries Investors

http://bonniekaryn.wordpress.com/2009/02/12/fe
bruary-11-2009-the-senate-and-congress-agree-o
n-a-stimulus-bill/

http://michellemalkin.com/2009/02/12/here-it
-is-all-1434-pages-of-the-porkulus-conference-report/

Sudeep Reddy in today’s Wall Street Journal:

http://online.wsj.com/article/SB1234398173
72075155.html?mod=article-outset-box

Andrew Taylor, AP:
http://apnews.myway.com/article/
20090212/D96A0AGO0.html

Related:
http://conservativemeanderings.wor
dpress.com/2009/02/12/a-trillion-
dollar-failure/

A bank employee counts US dollar bank notes. The euro fell sharply ...

World stocks sag on concerns about Obama plans

February 12, 2009

Thongs of happy Americans turned out on the Mall in Washington on January 20 to cheer Barack Obama’s inauguration.

And Europeans and much of the rest of the world also embraced the “hope” of Obama — as exemplified by a gathering in Berlin last July 24 before some 200,000 people.

After the troubles of the last few weeks it is not at all certain that the Obama hope remains alive — maybe it is on life support.

Pan Pylas of the Associate Press wrote today: “The raft of grim corporate news in Europe comes as the markets have largely given the thumbs-down to the passing of a $789 billion stimulus bill in Congress and U.S. Treasury Secretary Tim Geithner’s bank rescue plan, which could cost up to $2 trillion. On the Geithner plan, investors worried about the lack of detail, specifically the absence of any indications about how the banks’ toxic assets would be bought.”

“Policymakers will argue these details will be hammered out over time, but in the meantime the economic and financial black hole will potentially deepen, and for markets this means risk aversion will likely remain elevated,” said Daragh Maher, an analyst at Calyon Credit Agricole.

Read the entire story:
http://news.yahoo.com/s/ap/2009021
2/ap_on_bi_ge/world_markets

obama_span_blog.jpg
Above: Obama in Berlin.

Related:
http://raymondpronk.wordpress.com/2008/0
7/25/obamas-berlin-speech-the-first-new-wor
ld-order-citizen-fellow-traveller-world-citizen/

Dow Drops 200 in 30 Minutes As Stimulus Rejected

Geithner Announces Bank Moves; Wall Street Sells Off

February 10, 2009

Wall Street considers this a sell out.  So they are selling off.

Treasury Secretary Timothy Geithner says the new administration will wage an aggressive two-front battle against the worst financial crisis in seven decades, while the Federal Reserve expands a key lending program to up to $1 trillion.

“Instead of catalyzing recovery, the financial system is working against recovery, and that’s the dangerous dynamic we need to change,” The Treasury Secretary said today.

The TARP will be renamed but all the details are sketchy.

But sketchy is good enough for a very wary Wall Street…..

Stocks are down as we approach 1 PM.

“Our challenge is much greater today because the American people have lost faith in the leaders of our financial institutions, and are skeptical that their government has — to this point — used taxpayers’ money in ways that will benefit them,” Geithner said.

From CNBC:

US stocks fell sharply Tuesday in a broad-based decline as the government announced details of its latest bailout plan.

The Dow Jones Industrial Average was down about 70 points, then lost another 100 in a matter of minutes — before even any official government announcement.

Stocks continued to slide as Treasury Secretary Tim Geither revealed details of the bank-bailout plan, after a one-day delay. CNBC will interview Geithner after his speech, at noon. Then he’s on to Capitol Hill, where he will testify before a House panel.

The “Financial Stability Plan,” as it’s now called, consists of four main components:

1) It will set up a public-private fund to mop up $500 billion of spoiled bank assets.

2) It will set up a consumer-lending facility that will “leverage up to $1 trillion.”

3) It will devote $50 billion to stem home foreclosures.

4) It will provide new funding to banks after a stress test to determine if the bank is healthy.

Some market watchers remain skeptical over the benefits of the plan and legendary investor Jim Rogers told CNBC it could even make things worse. The bailout will plunge the US further into debt and it is designed by the same people who failed to forecast the crisis in the first place, Rogers said.

CNBC:
http://www.cnbc.com/id/29119665

********************************

Geithnner Speech Highlights

WASHINGTON (Reuters) – The following are excerpts from a speech U.S. Treasury Secretary Timothy Geithner will deliver on financial stability at 11 a.m. EST.

“As President Obama said in his inaugural address, our economic strength is derived from ‘the doers, the makers of things.’

“The innovators who create and expand enterprises.

“The workers who provide life to companies and, with their earnings, support families and invest in their future… This is what drives economic growth.

“The financial system is central to this process, transforming the earnings and savings of American workers into the loans that finance a first home, a new car or a college education, the credit necessary to build a company around a new idea.

“Without credit, economies cannot grow, and right now, critical parts of our financial system are damaged.

…..

“Instead of catalyzing recovery, the financial system is working against recovery, and that’s the dangerous dynamic we need to change.

“It is essential for every American to understand that the battle for economic recovery must be fought on two fronts. We have to both jump-start job creation and private investment, and we must get credit flowing again to businesses and families.

Raed the rest:
http://www.reuters.com/article/ou
siv/idUSTRE5194C920090210?sp=true

Related:

Federal Government Takes Over American Life

http://michellemalkin.com/2009/02/10/b
ohica-here-comes-2-trillion-tarp-ii/

Timothy Geithner
Photo: AP

U.S. In For More Global Anger Over $50 Billion Fraud

December 15, 2008

Big and small, he “took” them all. Bernard Madoff’s Ponzi scheme is another blow to America’s reputation, integrity….

*******************

The list of investors who say they were duped in one of Wall Street‘s biggest Ponzi schemes is growing, snaring some of the world’s biggest banking institutions and hedge funds, the super rich and the famous, pensioners and charities.

The alleged victims who sunk cash into veteran Wall Street money manager Bernard Madoff’s investment pool include real estate magnate Mortimer Zuckerman, the foundation of Nobel laureate Elie Wiesel, and a charity of movie director Steven Spielberg, according to the Wall Street Journal.


Above: Steven Spielberg

By JOE BEL BRUNO and JANE WARDELL, AP Business Writers

Among the world’s biggest banking institutions, Britain’s HSBC Holdings PLC, Royal Bank of Scotland Group PLC and Man Group PLC, Spain’s Grupo Santander SA, France‘s BNP Paribas and Japan’s Nomura Holdings all reported that they had fallen victim to Madoff’s alleged $50 billion Ponzi scheme.

The 70-year-old Madoff (MAY-doff), well respected in the investment community after serving as chairman of the Nasdaq Stock Market, was arrested Thursday in what prosecutors say was a $50 billion scheme to defraud investors. Some investors claim they’ve been wiped out, while others are still likely to come forward.

“There were a lot of very sophisticated people who were duped, and that happens a great deal when you’ve had somebody decide to be unscrupulous,” said Harvey Pitt, a former chairman of the Securities and Exchange Commission, a regulator in charge of monitoring investment funds like the one Madoff operated.

Read the rest:
http://news.yahoo.com/s/ap/20081215/
ap_on_bi_ge/wall_street_arrest

**********************

Some of the world’s biggest banks have revealed that they are victims of a fraud which has lost $50bn (£33bn).

Bernard Madoff has been charged with fraud in what is being described as one of the biggest-ever such cases.

Bernard Madoff in 1999 - AP Photo/The New York Times, Ruby Washington
Above: Mr Madoff is the former chairman of the Nasdaq stock exchange

Among the banks which have been affected are Britain’s RBS, Spain’s Santander and France’s BNP Paribas.

One of the City’s best-known fund managers has criticised US financial regulators for failing to detect the alleged fraud.
Nicola Horlick, boss of Bramdean investments, said US regulators had “fallen down on the job”.

Mrs Horlick told the BBC: “I think now it is very difficult for people to invest in things that are meant to be regulated in America, because they haven fallen down in the job.”

FROM THE TODAY PROGRAMME

“This is the biggest financial scandal, probably in the history of the markets – $50bn is a huge amount of money,” she said.

Banks and financial institutions across the world had investments with Bernard Madoff:

Read the rest from the BBC:
http://news.bbc.co.uk/2/hi/business/7783236.stm

Wall Street sign