BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2009 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Low liquidity, low return, high security: Fixed annuities thrive in recession]]>http://www.bloggingstocks.com/2009/07/20/low-liquidity-low-return-high-security-fixed-annuities-thrive/http://www.bloggingstocks.com/2009/07/20/low-liquidity-low-return-high-security-fixed-annuities-thrive/http://www.bloggingstocks.com/2009/07/20/low-liquidity-low-return-high-security-fixed-annuities-thrive/#commentsAnyone looking to document the effect of investor fear in the age of the "Great Recession" need look no further than the recent explosion in fixed annuities. Reflecting growth in other fear-based investments like gold and treasury bonds, sales of the secure, conservative annuities jumped by 74% in the first three months of 2009.

Fixed annuities are a contract with an insurance company, wherein a customer gives the company a lump sum and receives a set interest rate for a period of time. Generally, participants have to keep their money in the annuity for seven to ten years, or have to pay a surrender fee when they withdraw it. Some annuities allow users to withdraw a certain amount for free each year.

Continue reading Low liquidity, low return, high security: Fixed annuities thrive in recession

Low liquidity, low return, high security: Fixed annuities thrive in recession originally appeared on BloggingStocks on Mon, 20 Jul 2009 13:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>annuitiesfixed annuityFixedAnnuityMon, 20 Jul 2009 13:00:00 EST<![CDATA[General Mills churns out a great year]]>http://www.bloggingstocks.com/2009/07/01/general-mills-churns-out-a-great-year/http://www.bloggingstocks.com/2009/07/01/general-mills-churns-out-a-great-year/http://www.bloggingstocks.com/2009/07/01/general-mills-churns-out-a-great-year/#commentsFiled under:

Food manufacturer General Mills, Inc. (NYSE: GIS) recently reported a 5% jump in fourth-quarter net sales. This resulted in a net income jump of almost 10%, from $185.2 million to $358.8 million. This translated into a leap from 53 cents to $1.07 per share, or an adjusted earnings increase from 73 cents to 86 cents per share. In the same period, sales increased from $3.47 billion to $3.65 billion.

Although most famous for its breakfast cereals, General Mills actually provides a wide array of home cooking products, ranging from the old-fashioned to the organic and from raw ingredients to fully-prepared meals. As such, it is positioned to experience massive growth as recession-plagued former restaurant customers start cooking at home and economizing home chefs move away from pricey prepared dishes.

The company is predicting that its 2010 adjusted net will increase by as much as 7%, a move that will yield a jump of up to 27 cents per share, from $3.98 to $4.25. For General Mills, at least, the recession looks like a fantastic growth opportunity.

General Mills churns out a great year originally appeared on BloggingStocks on Wed, 01 Jul 2009 16:35:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>General MillsGeneralMillsWed, 01 Jul 2009 16:35:00 EST<![CDATA[Delicious irony: AIG has to sell its home]]>http://www.bloggingstocks.com/2009/06/05/delicious-irony-aig-has-to-sell-its-home/http://www.bloggingstocks.com/2009/06/05/delicious-irony-aig-has-to-sell-its-home/http://www.bloggingstocks.com/2009/06/05/delicious-irony-aig-has-to-sell-its-home/#commentsFiled under: ,

In a story that is sure to fill many American's with a warm sense of satisfaction, American International Group (AIG) has agreed to sell two of its buildings in lower Manhattan. Although the deal hasn't been made public yet, an agreement has, apparently, been reached between buyer and seller.

The irony continues, as it appears that AIG's headquarters at 70 Pine Street may soon be the site of condominiums (presumably, they will not be purchased with subprime mortages). According to reports, the space was sold for approximately $100 million to an overseas company that plans to transform it into a mixed-use development including both retail and residential spaces.

Continue reading Delicious irony: AIG has to sell its home

Delicious irony: AIG has to sell its home originally appeared on BloggingStocks on Fri, 05 Jun 2009 15:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>70 Pine StreetaiginthenewsFri, 05 Jun 2009 15:30:00 EST<![CDATA[Nintendo DSi: Revolutionary or evolutionary?]]>http://www.bloggingstocks.com/2009/04/06/nintendo-dsi-revolutionary-or-evolutionary/http://www.bloggingstocks.com/2009/04/06/nintendo-dsi-revolutionary-or-evolutionary/http://www.bloggingstocks.com/2009/04/06/nintendo-dsi-revolutionary-or-evolutionary/#commentsFiled under: , ,

On Sunday, the latest edition of Nintendo's (OTC: NTDOY) DS portable gaming system hit stores. In the aftermath of the release, questions are emerging about where the company is heading and what its platform will ultimately become.

There is little question that the DSi will be a big hit. One of the harsher reviewers, The LA Times' Pete Metzger, criticized the matte finish and stated that the machine's advances were "evolutionary," but not a must-have. Even so, he gave it a strong A-.

This attitude was echoed by another tough reviewer, The Globe and Mail's Chad Sapieha, who questioned whether the DSi was really worth the extra money, but seemed confident that the gaming system would be a resounding success.

Continue reading Nintendo DSi: Revolutionary or evolutionary?

Nintendo DSi: Revolutionary or evolutionary? originally appeared on BloggingStocks on Mon, 06 Apr 2009 13:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>DSiNintendoNTDOYportable gamingPortableGamingWiiMon, 06 Apr 2009 13:30:00 EST<![CDATA[Long term investments: The (bright) future of publishing]]>http://www.bloggingstocks.com/2009/02/19/long-term-investments-the-bright-future-of-publishing/http://www.bloggingstocks.com/2009/02/19/long-term-investments-the-bright-future-of-publishing/http://www.bloggingstocks.com/2009/02/19/long-term-investments-the-bright-future-of-publishing/#commentsFiled under:

It can be hard to tell the difference between a revolution and a fad, or a game-changing innovation and the latest toy. With that in mind, it isn't surprising that so many people have failed to recognize Amazon's (NASDAQ: AMZN) Kindle for what it truly is: the first bold step in what will likely become the salvation of publishing.

Frankly, it's easy to overlook the Kindle. At more than $300, it is prohibitively expensive for many consumers in today's market; further, as Bloggingstocks columnist Joseph Lazzaro notes, there is nothing quite like curling up with a nice book, and the current Kindle doesn't quite make the grade. The little reader suffers from a too-small screen, a too-high price tag, and is an insufficient translator of the holistic "reading experience" that true bibliophiles adore.

Continue reading Long term investments: The (bright) future of publishing

Long term investments: The (bright) future of publishing originally appeared on BloggingStocks on Thu, 19 Feb 2009 16:35:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>amazonbookskindlepublishingThu, 19 Feb 2009 16:35:00 EST<![CDATA[Turning a plane ticket into a contract: The government means business]]>http://www.bloggingstocks.com/2009/02/19/turning-a-plane-ticket-into-a-contract-the-government-means-bus/http://www.bloggingstocks.com/2009/02/19/turning-a-plane-ticket-into-a-contract-the-government-means-bus/http://www.bloggingstocks.com/2009/02/19/turning-a-plane-ticket-into-a-contract-the-government-means-bus/#commentsFiled under: , , , ,

A few weeks ago, the Wall Street Journal reported that the US Department of Transportation has proposed new rules that would lay a groundwork for remedying America's airline delay disasters. The most important change is that passengers would be able to sue carriers for breach of contract. Additionally, the proposed guidelines would force airlines to develop contingency plans for lengthy delays, set time limits for delays, and publish delay information on their websites. Perhaps most importantly, they would make carriers liable for civil penalties on flights that are chronically delayed.

Continue reading Turning a plane ticket into a contract: The government means business

Turning a plane ticket into a contract: The government means business originally appeared on BloggingStocks on Thu, 19 Feb 2009 15:21:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>inthenewsKate hanniKateHanniPassenger bill of rightsPassengerBillOfRightspassengers bill of rightsPassengersBillOfRightsTarmac task forceTarmacTaskForceThu, 19 Feb 2009 15:21:00 EST<![CDATA[Wall Street, 2009: Deaf, blind, and just plain dumb]]>http://www.bloggingstocks.com/2009/01/30/wall-street-2009-deaf-blind-and-just-plain-dumb/http://www.bloggingstocks.com/2009/01/30/wall-street-2009-deaf-blind-and-just-plain-dumb/http://www.bloggingstocks.com/2009/01/30/wall-street-2009-deaf-blind-and-just-plain-dumb/#commentsFiled under: ,

In Gone with the Wind, Rhett Butler wryly notes that there is "just as much money to be made out of the wreckage of a civilization as from the upbuilding of one." Having observed the near-Roman excesses of New York's money men over the past couple of years, I might go even further and argue that the end of a civilization tends to be even more outrageously profligate than its beginning. After all, it's hard to imagine stern, conservative men like J.P. Morgan and Andrew Mellon giving in to the incredible excesses of the latest round of would-be magnates.

While tales like Stephen Schwarzman's million dollar birthday and Dick Fuld's five homes tend to capture the public's attention, these outrageous expenditures are only the tip of the iceberg. From $175 hamburgers at the Wall Street Burger Shoppe to John Thain's $1.22 million office redecoration, it has become increasingly clear that New York's financial workers have spent the last few years living in a completely alien world. What's more, they are either unable or unwilling to adapt to the changing realities of America's economy.

Continue reading Wall Street, 2009: Deaf, blind, and just plain dumb

Wall Street, 2009: Deaf, blind, and just plain dumb originally appeared on BloggingStocks on Fri, 30 Jan 2009 16:40:00 EST. Please see our terms for use of feeds.

Read | Read | Permalink | Email this | Comments]]>arianna huffingtonAriannaHuffingtonBank of AmericaBankOfAmericaDick FuldDickFuldJohn ThainJohnThainMerrill LynchMerrillLynchWall Street bonusesWallStreetBonusesFri, 30 Jan 2009 16:40:00 EST<![CDATA[Big Three use bailout bucks to sue state governments]]>http://www.bloggingstocks.com/2009/01/29/big-three-use-bailout-bucks-to-sue-government/http://www.bloggingstocks.com/2009/01/29/big-three-use-bailout-bucks-to-sue-government/http://www.bloggingstocks.com/2009/01/29/big-three-use-bailout-bucks-to-sue-government/#commentsFiled under: , , ,

Looking over the recent history of America's automakers, one theme seems to stand out. Regardless of their situation, the economy, or the issue at hand, the Big Three have an almost preternatural ability to determine the most foolish course of action and pursue it with amazing vigor.

Regardless of whether we're talking about the Ford Motor Company's (NYSE: F) decision to focus its attention on cars (to the detriment of its truck lines), Chrysler's decision to channel stuff its dealerships, or General Motors' (NYSE: GM) decision to sit on its fuel cell cars, Detroit seems determined to misjudge the economy and the customers.

At their best, the three have minimized innovation while milking their successes. At their worst, they have spent time and money on expensive acquisitions or dead-end technologies, to the detriment of their bottom line.

Continue reading Big Three use bailout bucks to sue state governments

Big Three use bailout bucks to sue state governments originally appeared on BloggingStocks on Thu, 29 Jan 2009 12:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>barack obamaBarackObamachryslerffeaturedFordgeneral motorsgeneral motors corp.GeneralMotorsGeneralMotorsCorp.gmThu, 29 Jan 2009 12:00:00 EST<![CDATA[Arm candy: The ultimate executive compensation]]>http://www.bloggingstocks.com/2009/01/28/arm-candy-the-ultimate-executive-compensation/http://www.bloggingstocks.com/2009/01/28/arm-candy-the-ultimate-executive-compensation/http://www.bloggingstocks.com/2009/01/28/arm-candy-the-ultimate-executive-compensation/#commentsFiled under: , , , , , , ,

I have to admit that I'm a little naïve. While I've long since realized that rich men and pretty girls go together like frat parties and crab lice, I always assumed that the connection was tenuous and unformed. Basically, I imagined that it was a matter of overlapping social circles: bars, nightclubs and restaurants use financial sector employees to boost their bottom line by buying overpriced drinks and over-engineered food. In order to get these socially inept adrenaline junkies in the door, hot spots try to attract models by offering free crudite, well-appointed vomitoria, and... you guessed it, large numbers of financial sector employees. Thus, the models find their money men, the money men get their gold diggers, and the restaurants get a lot of money.

Now, I'm not a total rube. I never thought for a second that this connection was the result of random chance or pure romance. After all, there is nothing like a model to enhance the reputation and self-image of a hedge fund manager. Conversely, after Baywatch went off the air, financial-sector employees became the ultimate means for aging models to parley their looks into long-term financial security. Both groups have something to offer the other; while this may not be the basis for true love, it certainly serves as a stable foundation for a business arrangement.

Continue reading Arm candy: The ultimate executive compensation

Arm candy: The ultimate executive compensation originally appeared on BloggingStocks on Wed, 28 Jan 2009 19:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Craigs ListCraigsListDating a banker anonymousDatingABankerAnonymousEdward HayesEdwardHayesHEGIMcSweeneysNew York PostNewYorkPostWed, 28 Jan 2009 19:00:00 EST<![CDATA[2008: When Wall Street scandals started to sound like a Dickens novel]]>http://www.bloggingstocks.com/2009/01/09/2008-when-wall-street-scandals-started-to-sound-like-a-dickens/http://www.bloggingstocks.com/2009/01/09/2008-when-wall-street-scandals-started-to-sound-like-a-dickens/http://www.bloggingstocks.com/2009/01/09/2008-when-wall-street-scandals-started-to-sound-like-a-dickens/#comments
I got my first clue that something was up back in September, when Lehman Brothers filed for bankruptcy. Amid scandals over bailouts and backroom deals, congressional testimony and AIG retreats, one figure quickly emerged from the mass of bloated plutocrats and greedy execs clamoring for bonuses. Everything about Dick Fuld, from his cartoonishly aggressive management style, to his whining over Congress' refusal to bail out Lehman, to his striking resemblance to Rocky and Bullwinkle's Fearless Leader, made him the perfect poster boy for corporate greed. As more details leaked out, including the story about Fuld being pummeled by one of his employees, much was made of his name. In the public mind and this writer's heart, Richard Fuld was permanently transformed into a complete Dick. All in all, I was hardly surprised to see Lehman fold.

Another clue came when the story leaked out that Merrill Lynch CEO John Thain tried to collect a $10 million bonus. The fact that this bonus was, supposedly, based on Thain's performance in a year when Merrill lost billions of dollars made Thain's chutzpah almost legendary. My wife, who has had dealings with Thain in the past, noted that this aristocratic sense of entitlement permeated every single one of their interactions. I, on the other hand, couldn't help but remember the words of the witches in Macbeth, who hail the Scotsman as Thane of Cawdor, Thane of Glamis, and King hereafter. There seemed to be something ironic about an ambitious, clawing Thain who so clearly felt himself deserving of the spoils of war.

There have since been others. For example, when I first heard of Bernie Madoff, I thought nothing of his last name. However, when I learned that the proper pronunciation isn't "MAD-off" but rather "MADE-off," I couldn't help but laugh. For somebody who "made off" with billions of dollars, Bernie has a name that would put Dickens to shame. Following him, of course, there's been Joseph Forte, the Ponzi schemer who put on a "strong" front, but couldn't hide the fact that making money wasn't his forte. Frankly, punning off these guys is so easy that it's almost embarrassing.

Continue reading 2008: When Wall Street scandals started to sound like a Dickens novel

2008: When Wall Street scandals started to sound like a Dickens novel originally appeared on BloggingStocks on Fri, 09 Jan 2009 18:15:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bernie madoffBernieMadoffdeutsche bankDeutscheBankdick fuldDickFuldhumorjohn galtjohn thainJohnGaltJohnThainFri, 09 Jan 2009 18:15:00 EST<![CDATA[When in doubt, bail out!]]>http://www.bloggingstocks.com/2008/12/29/when-in-doubt-bail-out/http://www.bloggingstocks.com/2008/12/29/when-in-doubt-bail-out/http://www.bloggingstocks.com/2008/12/29/when-in-doubt-bail-out/#commentsFiled under: , , , ,

When it comes to explaining the great subprime mortgage crisis of 2008, there appear to be three clear narratives. The first blames cynical or stupid borrowers who got in over their heads, lied on their applications, borrowed more than they could, didn't read the fine print on their contracts, and ended up drowning in debt. The second narrative attacks "predatory" lenders who tempted these foolish borrowers with houses that they didn't need and mortgages that they couldn't afford. The third narrative blames the financial professionals who bundled mortgages together into securitized debt packages that were then passed around like little toxic time bombs.

While these three narratives all contain a certain measure of truth, most people tend to choose one and stick with it. Personally, having been given the hard sell from a predatory lender, I tend to allot them a fair bit of the blame. Moreover, having watched the bailout farce unspool over the past few months, I feel a certain amount of disgust at the behavior of financial institutions that treated the housing bubble like a license to print money, but are now begging for taxpayer money to save their ailing companies. Needless to say, this feeling is only compounded by the fact that some of the bailout money has been used to pay for bloated executive compensation packages. Added to this, the lack of transparency in the bailout is somewhat terrifying; given the recent behavior of these financial institutions, I can't completely discount the possibility that they're blowing the dough on booze and hookers.

The latest stage in this saga occurred a few days ago when commercial real estate developers began lobbying for a bailout. Citing slowly rising delinquency rates and the pending due dates of various mortgage-backed securities, they are in the beginning stages of painting what is sure to be a dire, apocalyptic vision of the horrifying disasters that will befall the world if they should go under.

Continue reading When in doubt, bail out!

When in doubt, bail out! originally appeared on BloggingStocks on Mon, 29 Dec 2008 16:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Mon, 29 Dec 2008 16:30:00 EST<![CDATA[Madoff, airlines, Wall Street: We don't need no stinkin' regulation!]]>http://www.bloggingstocks.com/2008/12/24/madoff-airlines-wall-street-we-dont-need-no-stinkin-regulat/http://www.bloggingstocks.com/2008/12/24/madoff-airlines-wall-street-we-dont-need-no-stinkin-regulat/http://www.bloggingstocks.com/2008/12/24/madoff-airlines-wall-street-we-dont-need-no-stinkin-regulat/#commentssigns, like Madoff's incredible secrecy, his surprisingly consistent rate of return, and the clubby nature of his selling staff, there were far more obvious portents. For example, Madoff's chief compliance officer was his brother Peter, and one of the compliance attorneys was his niece. For that matter, the fact that Harry Markopolos, a Boston accountant, has been urging the SEC to investigate Madoff for the last nine years should have been a hint. The same, of course, goes for the 2006 SEC investigation that found violations, but didn't feel obliged to take any substantive action.

As the SEC attempts to assign blame in finest Three Stooges form, it's worth noting that this is hardly the first time that a lack of serious governmental regulation has reared its ugly head this year. At the moment, mobs are currently clamoring for Dick Fuld's head, with a healthy side order of Hank Greenberg, John Thain, John Mack, Lloyd Blankfein, Jimmy Cain, and pretty much everyone who works in New York's financial district. The general perspective seems to be that these men engaged in business practices that ran the gamut from risky to actionable and now should be forced to pay for the economy that they have ruined.

Continue reading Madoff, airlines, Wall Street: We don't need no stinkin' regulation!

Madoff, airlines, Wall Street: We don't need no stinkin' regulation! originally appeared on BloggingStocks on Wed, 24 Dec 2008 16:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Bernard MadoffBernardMadoffDick FuldDickFuldHank GreenbergHankGreenbergHarry MarkopolosHarryMarkopolosJet BlueJetBlueJimmy CainJimmyCainJohn MackJohn ThainJohnMackJohnThainLloyd BlankfeinLloydBlankfeinmadoffNew York magazineNewYorkMagazinePeter MadoffPeterMadoffTarmac Task ForceTarmacTaskForceWed, 24 Dec 2008 16:30:00 EST<![CDATA[Madoff, Lehman, and suicidal stupidity]]>http://www.bloggingstocks.com/2008/12/15/madoff-lehman-and-suicidal-stupidity/http://www.bloggingstocks.com/2008/12/15/madoff-lehman-and-suicidal-stupidity/http://www.bloggingstocks.com/2008/12/15/madoff-lehman-and-suicidal-stupidity/#commentsFiled under: , ,

At their base level, Ponzi schemes are incredibly simple: the schemer promises a consistent, impressive return on an investment, which he funds by soliciting new investors and using their money to pay off earlier investors. If the schemer can successfully project an air of reliability, he can often convince his investors to keep their principal in the fund, which means that he only has to pay dividends, improving his profit margin and extending the longevity of his scam.

Any intelligent person recognizes that a Ponzi scheme is, essentially, suicidal. Even in a consistently strong market, there will come a day when people will withdraw from the fund, investigators will shut it down, or the financial house of cards will fall apart. The best that a Ponzi schemer can hope for is that he will die before he is caught or will somehow be able to pull out all funds and make a run for it. In the case of Bernard Madoff, it's pretty clear that he was counting on the former. While this didn't work out, one could make a strong argument that Madoff's life currently isn't worth a plugged nickel: even if he somehow survives the next few months without suffering a massive coronary, chances are that a former investor or fellow inmate (or both!) will soon introduce him to the business end of a shank.

Continue reading Madoff, Lehman, and suicidal stupidity

Madoff, Lehman, and suicidal stupidity originally appeared on BloggingStocks on Mon, 15 Dec 2008 15:53:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bernard madoffBernardMadoffjohn thainJohnThainlehman brothersLehmanBrothersmadoffmark dreierMarkDreierponzi schemePonziSchemerichard fuldRichardFuldMon, 15 Dec 2008 15:53:00 EST<![CDATA[Waiting for the other shoe to drop: The looming credit crisis]]>http://www.bloggingstocks.com/2008/12/01/waiting-for-the-other-shoe-to-drop-the-looming-credit-crisis/http://www.bloggingstocks.com/2008/12/01/waiting-for-the-other-shoe-to-drop-the-looming-credit-crisis/http://www.bloggingstocks.com/2008/12/01/waiting-for-the-other-shoe-to-drop-the-looming-credit-crisis/#commentsFiled under: , ,

I still remember when I realized that a real estate crisis was on its way. My wife and I were contemplating buying a home in Roanoke, Virginia, and began talking to a mortgage broker. When we saw the final offer, we realized that, if the real estate market continued on a stable path, and if the (then marginal) neighborhood continued to have a declining crime rate, and if the price of gas didn't go up, and if neither my wife nor I became seriously ill, then we would be great. In five years, when the rate went variable, we would refinance and everything would work out beautifully.

That was in 2004.

Thinking about it, my wife and I soon realized that those were a lot of ifs; while we wanted the house, we knew that we couldn't base our financial future on a deck of cards. After turning down the offer, I thought more and more about it and began to get worried. If a lot of people were buying into the kind of mortgage that my wife and I had declined, and if they had similar expectations about refinancing when their rates went variable, then it seemed likely that the mortgage industry was sitting on a major time bomb.

Continue reading Waiting for the other shoe to drop: The looming credit crisis

Waiting for the other shoe to drop: The looming credit crisis originally appeared on BloggingStocks on Mon, 01 Dec 2008 18:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>AIGBear StearnsBearStearnsCredit cardsCreditCardsfeaturedfinancial crisisFinancialCrisisLehman BrothersLehmanBrothersNew York TimesNewYorkTimesrecessionMon, 01 Dec 2008 18:00:00 EST<![CDATA[Citigroup bailout sheds light on just what the taxpayers are buying]]>http://www.bloggingstocks.com/2008/11/29/citigroup-bailout-sheds-light-on-just-what-the-taxpayers-are-buy/http://www.bloggingstocks.com/2008/11/29/citigroup-bailout-sheds-light-on-just-what-the-taxpayers-are-buy/http://www.bloggingstocks.com/2008/11/29/citigroup-bailout-sheds-light-on-just-what-the-taxpayers-are-buy/#commentsFiled under: , , ,

We are unfortunately not privy to the backroom deals and promises that are passing between Treasury Secretary Henry Paulson and the honchos who are benefiting from the government's massive bailout. However, two things are becoming increasingly clear: first, the financial industry has not gotten the memo about changing their business practices, and, second, the $700 billion in tax money that is keeping these companies afloat is not finding its way down to the average citizen. The big bailout was originally sold as a desperate maneuver to keep Wall Street afloat. Paulson has indicated that these funds would enable lending companies to service their toxic debt and, in turn, continue lending. In this way, America would be able to count on the credit that kept it running; businesses would be able to meet their payrolls, people would be able to buy houses, and the world would continue to turn.

Instead, some banks seem to be going on a buying spree, snatching up smaller, less successful institutions while prices are low and the getting is good. Citigroup (NYSE: C), for example, used the Wall Street fire sale to make a bid for Wachovia and pick up Forum Financial, shortly before asking for a second huge bailout. Similarly, Bank of America (NYSE: BAC) has decided to take over Merrill Lynch. A clever MBA could, undoubtedly, filter these purchases through a secret capitalism decoder ring and come up with a logical reason for them, but one wonders how gobbling up companies (and their toxic debt) is likely to help Bank of America and Citigroup to stay afloat, much less enable them to extend money to consumers. It is becoming clearer and clearer that the huge influx of taxpayer money is less about saving consumers than it is about enabling big companies to get even bigger.

Continue reading Citigroup bailout sheds light on just what the taxpayers are buying

Citigroup bailout sheds light on just what the taxpayers are buying originally appeared on BloggingStocks on Sat, 29 Nov 2008 13:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>AIGBACbailoutBank of AmericaCitigroupfeaturedMerrill LynchMets stadiumPaulsonWachoviaSat, 29 Nov 2008 13:40:00 EST<![CDATA[Next year's investment plan: What Obama's green energy economy might portend]]>http://www.bloggingstocks.com/2008/11/29/next-years-investment-plan-what-obamas-green-energy-economy-m/http://www.bloggingstocks.com/2008/11/29/next-years-investment-plan-what-obamas-green-energy-economy-m/http://www.bloggingstocks.com/2008/11/29/next-years-investment-plan-what-obamas-green-energy-economy-m/#commentsFiled under: , ,

Over the past few months, as election rhetoric heated up and the economy has cooled, one of Barack Obama's recurring themes has been that the secret to America's future will be the development of an alternative-energy economy. To a populace that has grown increasingly weary of the lackadaisical government approach to economic disaster, this has been particularly galvanizing, and was undoubtedly a major influence on the election. Now that Obama has won, however, the next question is how he will transform those exciting New Deal-esque words into concrete action.

John Podesta, co-chairman of the Obama/Biden transition team, may provide a useful insight into this question. In his day job, Podesta is president of the Center for American Progress (CAP), a liberal think tank that is based in Washington D.C. CAP has already drafted a green-energy stimulus plan; with several programs that are ready to go, it would create 2 million jobs, and would cost a relatively meager $50 billion. While there is no guarantee that CAP's plan will be adopted, given Podesta's proximity to the presidency, it seems likely that at least part of it will become reality within the next year. For a savvy investor, this could be a blueprint for industries that are, potentially, poised to explode with a massive influx of new funds.

Green Autos: Obama has made it very clear that he intends to directly tie any automotive bailout to the development of green technologies. CAP's plan calls for a 4% per year increase in fuel-efficiency standards, as well as investment in new battery technology for plug-in hybrids. With this in mind, it's worth seriously considering which automakers are best poised to go forth with more fuel-efficient models. Furthermore, programs like CAP's "Cash for Clunkers" could be a major boon for companies that process or deal in recycled metals.

Continue reading Next year's investment plan: What Obama's green energy economy might portend

Next year's investment plan: What Obama's green energy economy might portend originally appeared on BloggingStocks on Sat, 29 Nov 2008 09:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>3Malternative energyauto bailoutBarack ObamaBombardierCAPCenter for American ProgressCleantech AmericaCoskatafeaturedFordgreen energygreen infrastructureHDHome DepothybridsinthenewsJohn PodestaKawasakiMMMObamaSat, 29 Nov 2008 09:40:00 EST<![CDATA[Playboy's economic indicator: The Playmate Index]]>http://www.bloggingstocks.com/2008/11/18/in-search-of-an-economic-indicator-the-playmate-index/http://www.bloggingstocks.com/2008/11/18/in-search-of-an-economic-indicator-the-playmate-index/http://www.bloggingstocks.com/2008/11/18/in-search-of-an-economic-indicator-the-playmate-index/#commentsFiled under: , ,

Recently, various writers have been alluding to Terry Pettijohn's now-mythical survey of the relationship between Playboy Playmates and the economy. Pettijohn's argument is that, as times get tougher, male concepts of beauty shift toward more mature, stable-looking women who are older, taller, and less curvy. Conversely, in boom times, the woman of choice would be shorter, younger, and more hourglass-shaped.

While my knowledge of Playboy Playmates was once disturbingly encyclopedic, I have to admit that I have been out of the game for quite some time now. That said, I'd have to question Professor Pettijohn's methodology, if only for the fact that the Playboy ideal has shown far less fluctuation over the years than society at large. To put it bluntly, many of the heroin addict-thin models that grace the pages of women's fashion magazines would never be allowed within arm's length of a Playboy pictorial. Like the Rockettes, Playmates have traditionally remained within a comfortably healthy median, neither ballerina scrawny nor fully zaftig.

Now, arguably, there could be some comparisons drawn between economic boom/bust cycles and the shapes of women's bodies. Certainly, the androgynous flapper look of the 1920's, the Twiggy look of the 1960's, and the starvation victim/heroin addict look of the late 1990's/early 2000's are somewhat comparable. Similarly, the hourglass 1940's, 1950's, and 1980's have similar style cues. While it would be silly to take these comparisons to extremes, fashion goes in cycles, and those cycles overlap somewhat with the economy. However, this is far from a direct confluence; the 1930's look, for example, was still boyish, and our current ultra-thin look has been developing for quite some time.

Continue reading Playboy's economic indicator: The Playmate Index

Playboy's economic indicator: The Playmate Index originally appeared on BloggingStocks on Tue, 18 Nov 2008 15:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>economic indicatorsEconomicIndicatorsfeaturedkate mossKateMossplayboyplaymatesRockettesTerry PettijohnTerryPettijohntwiggyVenus of WillendorfVenusOfWillendorfTue, 18 Nov 2008 15:00:00 EST<![CDATA[Up and down in the stock market: The sad saga of trader #804]]>http://www.bloggingstocks.com/2008/11/17/up-and-down-in-the-stock-market-the-sad-saga-of-trader-804/http://www.bloggingstocks.com/2008/11/17/up-and-down-in-the-stock-market-the-sad-saga-of-trader-804/http://www.bloggingstocks.com/2008/11/17/up-and-down-in-the-stock-market-the-sad-saga-of-trader-804/#commentsFiled under: , ,

It seems like it happened years ago, but it's been only about a month since Wall Street had its huge, post-plummet surge. Touting it as the biggest one-day point gain in the history of the market, newspapers around the country featured pictures of financial industry professionals grinning and bouncing, hugging each other like it was V-J day and they were all unwed nurses wearing fresh lipstick.

In The New York Daily News, the stock market dancing monkey du Jour was a red-headed guy with a close-cropped hairdo, extravagant sideburns, and the standard blue trader's jacket. In picture after picture, the paper featured him leering, giving a thumbs-up, and hugging a burly fellow trader who was a dead-ringer for actor Michael Lerner.

At the time, I heaped scorn upon the head of the poor unknown trader, mocking his excessive enthusiasm, mildly frightening grin, and overall air of mindless faith in the system. Being something of a cynic, I knew that today's high would be almost matched by tomorrow's low, which would be followed by another dizzying high, and so on as the market tried to find equilibrium. I saw the redheaded trader's excessive enthusiasm as indicative of the kind of cocksure investing that got us into this mess in the first place.

Continue reading Up and down in the stock market: The sad saga of trader #804

Up and down in the stock market: The sad saga of trader #804 originally appeared on BloggingStocks on Mon, 17 Nov 2008 17:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>cccircuit cityCircuitCitycolumbus dispatchColumbusDispatchMichael LernerMichaelLernerNew York Daily NewsNewYorkDailyNewsTrader 804Trader804Mon, 17 Nov 2008 17:00:00 EST<![CDATA[Investing in a bipolar market: Take another peek at staples]]>http://www.bloggingstocks.com/2008/10/28/investing-in-a-bipolar-market-take-another-peek-at-staples/http://www.bloggingstocks.com/2008/10/28/investing-in-a-bipolar-market-take-another-peek-at-staples/http://www.bloggingstocks.com/2008/10/28/investing-in-a-bipolar-market-take-another-peek-at-staples/#commentsFiled under: , , ,

Almost a year ago, when Steve Halpern suggested that investors take a second look at Procter & Gamble (NYSE: PG), he offered a very sound argument: the manufacturer had a strong domestic and international presence, was trading well and -- perhaps most importantly -- was heavily involved in staples. Over the ensuing year, Halpern's advice has proven to be pretty strong. In fact, on September 29, when the bottom was falling out of the market, P&G was one of the three stocks in the S&P 500 that fell the least.

P&G, as well as the other two stocks that fell the least, Kraft Foods (NYSE: KFT) and Coca-Cola Enterprises (NYSE: CCE), and the one S&P stock that actually rose, Campbell Soup Company (NYSE: CPB) have a few things in common. First off, they all are connected to products that make people feel safe. These sorts of brands (which Kevin Roberts calls Lovemarks) are almost recession-proof. When things get bad and people lose faith in the market, they experience an ever-greater desire to reach for a Coke and a smile, grab a bowl of "Mmm! Mmm! Good!" Campbell's soup and eat a plate of Kraft Macaroni and Cheese. Given their ability to evoke memories of a comforting childhood, these mid-level brands will often experience an uptick in troubling times.

The other thing that all these companies have in common is that they are staples. In boom times, people tend to eat out more, subcontract cleaning and laundry services, and try pricier, upscale brands. In tougher times, however, the tendency to eat in and do one's own laundry means that companies like Kraft, Coca-Cola and P&G may actually find themselves in a better financial position. This isn't to say that staples don't have ups and downs, but rather that their fluctuations tend to be less severe -- and they sometimes even buck the prevailing market trends!

Investing in a bipolar market: Take another peek at staples originally appeared on BloggingStocks on Tue, 28 Oct 2008 14:57:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>campbell soupCampbellSoupcoca colaCocaColakraft foodsKraftFoodspgprocter and gambleProcterAndGambleTue, 28 Oct 2008 14:57:00 EST<![CDATA[Boxing on Wall Street: Wouldn't you love to watch traders get beaten?]]>http://www.bloggingstocks.com/2008/10/27/boxing-on-wall-street-wouldnt-you-love-to-watch-traders-get-be/http://www.bloggingstocks.com/2008/10/27/boxing-on-wall-street-wouldnt-you-love-to-watch-traders-get-be/http://www.bloggingstocks.com/2008/10/27/boxing-on-wall-street-wouldnt-you-love-to-watch-traders-get-be/#commentsFiled under:

Over the past few weeks, as the full dimensions of the economic meltdown have come into focus, most analysts have concluded that the financial crisis is the child of numerous parents, including predatory lenders, deregulating legislators, and excessively optimistic borrowers. Even so, the vast majority of the responsibility has managed to attach itself to the financial industry.

While taking the blame for tanking the economy, establishing Republican socialism, and possibly destroying Western Civilization, Wall Street has had its own problems. As the major players in the financial industry have crashed and burned or been eaten up by other, lesser players, the streets have been filled with the saddest form of performance art. Once arrogant masters who strode the universe on the southern end of Manhattan have become masters of the cardboard box, carrying their personals home to overpriced condos that were purchased at the height of a real-estate boom. The dive in the housing market, which has already hurt so much of the country, has only threatened New York; right now, fingers are crossed from TriBeCa to Harlem.

In the midst of this, Doubledown Media held its annual Wall Street Boxing Charity Championship in New York's Hammerstein ballroom. Admission prices ranged from $125 for general seating to $10,000 for a ringside table, and the event raised money for two charities: a youth village in Rwanda and Tuesday's Children, an organization that serves the families of 9/11 victims. The fight card featured professionals from some of Wall Street's biggest names; for anybody who is particularly interested, the winners included a guy from Deutsche Bank, a guy from Citi, and a guy from the NYMEX. The guy from Morgan Stanley lost in a decision.

Continue reading Boxing on Wall Street: Wouldn't you love to watch traders get beaten?

Boxing on Wall Street: Wouldn't you love to watch traders get beaten? originally appeared on BloggingStocks on Mon, 27 Oct 2008 17:20:00 EST. Please see our terms for use of feeds.

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