Republican Senator John McCain is joining the growing ranks of "Let General Motors (NYSE: GM) file for bankruptcy" advocates.

"The best thing that could probably happen to General Motors, in my view, is they go into Chapter 11," he told Fox News yesterday. A bankruptcy filing, he explained, would allow the company to more quickly restructure itself to become "stronger, better, leaner."

Speaking on ABC, Senator Richard Shelby echoed his sentiments, saying that "subsidization of anything for very long never works. . . I've suggested they go into Chapter 11. That's where they belong. And they could reorganize."

Continue reading McCain to GM: Go bankrupt!

McCain to GM: Go bankrupt! originally appeared on BloggingStocks on Mon, 09 Mar 2009 08:20:00 EST. Please see our terms for use of feeds.

This post is part of our feature on Money Losers of 2008. See all 20.

Willard Mitt Romney, governor of Massachusetts from 2003 to 2007, was the wealthiest of all the 2008 presidential candidates. When he formally announced his candidacy for the Republican nomination for president on February 13, 2007, the former venture capitalist was believed to have amassed a fortune worth as much as $250 million.

After the first fundraiser for his presidential campaign committee on January 9, 2007, Romney had already brought in $6.5 million, more than the amounts raised by any other Republican contender. Meg Whitman, CEO of eBay and a former colleague of Romney, signed on as a financial co-chair of his presidential campaign. And first quarter 2007 fund-raising information showed Romney leading the Republican field with more than $23 million, though that was less than funds raised by Democratic contenders Hillary Clinton and Barack Obama in the same period. Fund-raising results for the second quarter revealed that Romney had lent $8.9 million to his campaign from his personal funds, as well as that he had spent $20.7 million, more than any other Republican candidate. By the end of 2007, he had raised $88.5 million, but $35.4 million of that came from his own pocket.

Winning the money race, strategically outspending other candidates on advertising in the early primary states, and promising to donate his salary as president to charity (as he had done as governor) wasn't enough to secure Romney the nomination. He dropped out of the race after disappointing Super Tuesday results in February 2008, when opponent John McCain solidified his position as the party's frontrunner. Romney won only 11 state primaries and caucuses, 4.7 million votes, and 291 delegates. According to Federal Election Commission filings, all told, the campaign spent $113.6 million, $44.6 of which came from Romney himself.

Continue reading Money losers of 2008: Mitt Romney ran for president and all he got was ...

Money losers of 2008: Mitt Romney ran for president and all he got was ... originally appeared on BloggingStocks on Sun, 28 Dec 2008 15:40:00 EST. Please see our terms for use of feeds.

This post is part of our feature on Money Winners of 2008. See all 20.

They called her Caribou Barbie. Saturday Night Live lampooned her mercilessly during the presidential election. The media elite denounced her as an idiot and a right-wing loony tune. But Alaska Gov. Sarah Palin is not going to fade into the snow of the beautiful state she governs. In fact, she is coming to a book store near you.

Media reports indicate that the former vice presidential nominee is expected to earn $7 million to tell her life story to a ghost writer. That's not too shabby considering that former president Bill Clinton got about $11 million for his life story and he actually was the leader of the free world. Barack Obama and his former rival John McCain both have earned big money from their books, so why shouldn't Palin.

There was also some talk during the campaign about a talk show or reality show starring the woman responsible for giving Tina Fey's career a boost -- as if it really needed one -- but that seems to have gone nowhere.

Palin, though, will have the last laugh on her naysayers, including me. During her brief time in the spotlight, Palin transformed herself from an obscure politician to a cultural icon. Along the way, she infuriated many voters and charmed more than a few. The power of Palin's celebrity will entice people who may not agree with her politically to buy her book. Her devoted fans will line up at the bookstores to buy it as well. Palin's tome has the makings of a best-seller.

Continue reading Money winners of 2008: Sarah Palin, coming to a book store near you

Money winners of 2008: Sarah Palin, coming to a book store near you originally appeared on BloggingStocks on Sat, 13 Dec 2008 15:40:00 EST. Please see our terms for use of feeds.

This post is part of AOL Money & Finance's Best & Worst in Money 2008 feature.

Well, 2008 has come and gone. If you were looking to be entertained over the past 12 months, you had a lot of choices. From Batman's battle with the maniacal Joker to Hannah Montana singing her little heart out in 3-D, there was something for everyone. Let's look at five of the hottest properties that made their way into the heart of the cultural mindshare in '08.

Up first is The Dark Knight, the second iteration of director Christopher Nolan's new vision of the Caped Crusader. That movie killed at the box office, and Time Warner (NYSE: TWX) could not have been happier. Knight scored almost $1 billion at the global box office. More than half that number was captured in the domestic marketplace. There's no question that the movie mesmerized the collective intellect of the audience. There's also no question that Heath Ledger, who tragically passed away earlier in the year, impressed everyone with his portrayal of the chaotic and cruel Joker villain. I, however, do have a question. Is it just me, or was Knight not as awesome a film as the hype makes it out to be? I saw it, thought it was okay. I don't know, I'm just not sure that this new entry in the cinematic Batman mythos would have brought in as many bucks if the notoriety of Ledger's death wasn't attached to these particular reels of celluloid. To be honest, I didn't think Ledger did that unique of a job. And I thought The Joker's voice was annoying, almost sounding like Sam Raimi -- did anyone else happen to think that? Maybe it's just me. Nevertheless, I salute the success of Knight and respect the project for the impact it had on theaters 'round the world.

Continue reading Best & Worst in Money 2008: Hottest in entertainment

Best & Worst in Money 2008: Hottest in entertainment originally appeared on BloggingStocks on Sat, 06 Dec 2008 10:40:00 EST. Please see our terms for use of feeds.

This post is part of a feature in which he wonder whatever happened to some notorious financial felons. See all 17.

I thought we'd have heard more about Charles Keating over the last few weeks of the 2008 presidential election, but much to my surprise the Obama campaign refrained from mentioning him. Keating was once the chairman of the Lincoln Savings and Loan Association, the infamous bank at the center of the S&L scandal of the 1980s; that scandal featured none other than John McCain, one of the "Keating Five" group of disgraced senators and more recently the Republican Party's nominee for president. But McCain's connection to Keating didn't seem to play a role in the 2008 election, and McCain lost the race for reasons other than being connected to one of the great financial crooks in recent memory.

To be fair, Keating was not a big fan of John McCain. He reportedly called him a "wimp" behind his back, accusing him of lacking the courage to fight the regulators who sought to reign in Keating's bank. McCain, along with John Glenn, were cleared by the Senate Ethics Committee of impropriety in their relationship with Keating, though they were publicly criticized for exercising "poor judgment." McCain later said that trying to help Keating was "the worst mistake of my life," though he didn't seem too upset about riding around the Caribbean on Keating's private jet.

Continue reading Financial Felons: Charles Keating

Financial Felons: Charles Keating originally appeared on BloggingStocks on Sat, 22 Nov 2008 18:10:00 EST. Please see our terms for use of feeds.

Continue reading The market already expects Barack Obama to win

The market already expects Barack Obama to win originally appeared on BloggingStocks on Mon, 03 Nov 2008 12:29:00 EST. Please see our terms for use of feeds.

Most major polls have U.S. Sen. Barack Obama, D-Illinois, leading U.S. Sen. John McCain, R-Arizona, in the contest for U.S. president. And, if the election were held today, instead of on Tuesday, November 4, Election Day, Obama would register a decisive victory in the all-important electoral college, as well as in the popular vote.

As of late Friday, NPR.org's survey of polls had the electoral vote at Obama, 291, McCain 163. Four battleground states are still in play: Ohio, where Obama lead by 5%; Florida, Obama by 3.5%; Indiana, McCain by 1.7%; and Missouri, McCain by about 0.5%. Concerning the national vote, on Friday, Gallup.com's daily tracking poll had Obama leading McCain, 52% to 41%.

Still, as most political aides will tell you, "the only poll that really counts is the one on Election Day, Tuesday, November 4." In other words, polls can err; that's why they have a margin of error, typically +/- 2%.

Polls only recently have become more accurate. Some notable poll mistakes include the 1980 U.S. presidential election, when some polls had incumbent President Jimmy Carter, a Democrat slightly ahead of the challenger, then Gov. Ronald Reagan, a Republican. Reagan, of course won the 1980 election in a landslide.

Pres. Truman had the last laugh on pollers

But the biggest polling error in a presidential election has to be the 1948 election between President Harry S. Truman, a Democrat, and challenger Gov. Thomas E. Dewey, a Republican.

The polls predicted that Dewey would win by a large margin. They were wrong: Truman won a decisive victory, 303-189, in the electoral college.

Continue reading The only poll that really counts is the one on Election Day, Tuesday, November 4

The only poll that really counts is the one on Election Day, Tuesday, November 4 originally appeared on BloggingStocks on Sat, 01 Nov 2008 12:40:00 EST. Please see our terms for use of feeds.

Continue reading John McCain pledges to cut taxes and will still lose big

John McCain pledges to cut taxes and will still lose big originally appeared on BloggingStocks on Fri, 31 Oct 2008 13:46:00 EST. Please see our terms for use of feeds.

Continue reading Currency traders: Obama wins, buy the dollar; McCain wins, short the dollar

Currency traders: Obama wins, buy the dollar; McCain wins, short the dollar originally appeared on BloggingStocks on Fri, 31 Oct 2008 12:30:00 EST. Please see our terms for use of feeds.

Continue reading InTrade's electoral college vote predictor sees: Obama, 364, McCain, 174

InTrade's electoral college vote predictor sees: Obama, 364, McCain, 174 originally appeared on BloggingStocks on Thu, 23 Oct 2008 13:57:00 EST. Please see our terms for use of feeds.

Continue reading Are you ready for the last two weeks of presidential campaign pain?

Are you ready for the last two weeks of presidential campaign pain? originally appeared on BloggingStocks on Wed, 22 Oct 2008 16:48:00 EST. Please see our terms for use of feeds.

Google Inc.

Continue reading Google this: CEO Eric Schmidt wants to join the Obama cabinet

Google this: CEO Eric Schmidt wants to join the Obama cabinet originally appeared on BloggingStocks on Mon, 20 Oct 2008 12:50:00 EST. Please see our terms for use of feeds.

Continue reading Is a second stimulus check up ahead?

Is a second stimulus check up ahead? originally appeared on BloggingStocks on Wed, 15 Oct 2008 15:00:00 EST. Please see our terms for use of feeds.

The financial crisis is not over. If things were back to normal, banks would be lending to each other and to businesses and individuals. But measures of bank lending risk suggest fear is 12 times as high as it would be in normal times. The reason? Banks know more than you do about what's wrong. And they're not talking about it because they don't want you to withdraw your deposits and sell your stock. What they know is that on October 21st, some of the biggest players on Wall Street could be required to come up with $400 billion that some may not be able to pay.

Last month, the White House decided that we could afford to let Lehman Brothers file for bankruptcy. That proved to be an enormous mistake. It triggered a run on money market funds because one of the oldest such funds, Reserve Primary, broke the buck since it held Lehman Brothers paper. The U.S. responded with a $50 billion guarantee of money market funds. But the biggest consequence of that mistake is in the $54.6 trillion market for Credit Default Swaps (CDSs).

A CDS is like selling insurance on your car to hundreds of people who don't own it -- yet if your car goes up in flames each of those people collects the full value of your car. More specifically, CDSs are insurance against a bond or loan default. Why are CDSs so dangerous? Three reasons: a CDS seller does not need to put any capital aside to cover losses if the security defaults, the buyer doesn't need to own the asset it wants to protect, and there is no central place where information about all these CDS deals is collected and updated.

Continue reading Will Lehman bankruptcy drop a $400 billion shoe on October 21st?

Will Lehman bankruptcy drop a $400 billion shoe on October 21st? originally appeared on BloggingStocks on Wed, 15 Oct 2008 10:20:00 EST. Please see our terms for use of feeds.

This post is part of a series in which TheStockAdvisors.com asked financial experts to name their top stock pick if McCain or if Obama wins the election.

"A McCain victory would allow for a first year expensing of new equipment and technology; as such, we would recommend Molex (NASDAQ: MOLX), which is positioned in the technology value chain," says Thomas Vass in The Technology Stock Advisor.

"To provide an immediate boost to capital expenditures and reward investments in cutting edge technologies, John McCain would allow companies to expense the costs of new equipment or technology in the first year.

"High technology value chains -- such as computer and electronic equipment and information services -- are likely to benefit by this economic policy.

"Molex has an international value chain that will benefit greatly from the new policy because its customers will be able to buy technology goods at a much lower cost as a result of the new accelerated tax write-off.

"MOLX meets the Technology Stock Advisor screening criteria and has been in the TSA active portfolio since July of 2006. Standard & Poor's gives MOLX a B rating for quality. Our buy price target is $26. The target sell price is $40."

Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.

McCain stock: Invest in the high-tech value chain Molex originally appeared on BloggingStocks on Sun, 12 Oct 2008 16:00:00 EST. Please see our terms for use of feeds.

This post is part of a series in which TheStockAdvisors.com asked financial experts to name their top stock pick if McCain or if Obama wins the election.

"A President McCain will be pro-growth but should be more aggressive in oversight as it pertains to mergers and acquisitions; with that being said, we like CenturyTel Inc. (NYSE: CTL)," says Kelley Wright, editor of Investment Quality Trends.

"CTL provides a variety of communications services to 25 states in primarily rural area and small to mid-size cities.

"The company offers local and long distance services, as well as enhanced voice services, as well as high-speed and dial-up Internet.

"In June the company increased its annual dividend to $2.80 from $0.27, reflecting its confidence in their growth model and as a deterrent to possible suitors.

"The blue-chip stocks that we recommend, including CTL, show exemplary long-term dividend growth, a P/E ratio of 15 or less, a payout ratio of 50% or less, debt of 50% or less, and technical characteristics on the daily and weekly charts that suggests the potential for imminent capital appreciation.

"Currently yielding almost 7.0%, CTL offers tremendous value in both dividend yield and the potential for long-term capital appreciation."

Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.

McCain stock: Pro-growth strategy for CenturyTel (CTL) originally appeared on BloggingStocks on Sun, 12 Oct 2008 10:00:00 EST. Please see our terms for use of feeds.

John McCain has made several unexpected moves during his campaign. For instance, he picked Alaska Governor Sarah Palin as his vice president. After an initial surge of support, her charming personality has given way to revelations about her lack of familiarity with the issues and Troopergate -- which led a bipartisan committee to conclude that she violated an Alaskan law prohibiting abuse of power. Now McCain may be questioning whether this maverick move hurt him more than it helped.

McCain also decided to suspend his campaign last month to deal with the financial crisis. Coincidentally, this decision came just a few days before McCain was to debate his opponent during a week when he was down in the polls. As it turns out, McCain resumed his campaign in time for the debate but without fixing the crisis. Did this maverick move strengthen McCain's image as a strong, effective leader?

At the end of a week in which the S&P 500 fell over 18%, more than it ever has in any previous week in history, some in the Republican party are questioning whether McCain's campaign is functioning as well as it could. Former Massachusetts governor, Mitt Romney, has suggested that what McCain needs is a "broad vision of how he would lead the country through the economic crisis," according to the New York Times. This comment suggests a maverick move that McCain could take to revive his chances: replace Palin with Romney.

Continue reading Memo to McCain: Replace Palin with Romney

Memo to McCain: Replace Palin with Romney originally appeared on BloggingStocks on Sun, 12 Oct 2008 08:20:00 EST. Please see our terms for use of feeds.

This post is part of a series in which TheStockAdvisors.com asked financial experts to name their top stock pick if McCain or if Obama wins the election.

"John McCain has said that nuclear power must be part of a plan to address climate change and reduce our dependence on foreign oil; to benefit from this plan, buy Shaw Group (NYSE: SGR), which constructs and maintains nuclear power plants," says Paul Tracy in his Street Authority Market Advisor.

"Today, nearly half of U.S. electricity is created via conventional coal-fired plants. This made sense for us for decades -- coal is so cheap and plentiful here that the United States is often referred to as the Saudi Arabia of coal.

"However, in the past few years, the tide of public sentiment has shifted against the energy source. Primarily this is due to the emissions created by burning coal for electricity.

"In addition to the well known release of carbon dioxide, coal emissions also contain traces of mercury. On top of that, the rise of China and other emerging markets has led to higher costs for coal.

"So with a public that is increasingly interested in alternative sources of electricity and a president who is committed to increasing nuclear power usage, the companies that build and maintain nuclear plants sit in the perfect position to benefit.

"In particular, I think Louisiana-based Shaw Group is a stock to watch. SGR's largest end market is the construction and maintenance of power plants, including both plants fired by fossil fuels and nuclear facilities.

"The company also owns a 20% stake in Westinghouse Electric, one of the world's leading designers and builders of nuclear power plants.

Continue reading McCain stock: Shaw Group (SGR) goes nuclear

McCain stock: Shaw Group (SGR) goes nuclear originally appeared on BloggingStocks on Sat, 11 Oct 2008 13:00:00 EST. Please see our terms for use of feeds.

This post is part of a series in which TheStockAdvisors.com asked financial experts to name their top stock pick if McCain or if Obama wins the election.

"If McCain is elected, we would suggest USEC (NYSE: USU); after slumbering for over 20 years, nuclear power is quickly emerging from hibernation and will be satisfying a much larger percentage of the nation's energy-hungry appetite during McCain administration," says value investor Nathan Slaughter, editor of Half-Priced Stocks.

"Currently, there are 104 nuclear plants in operation nationwide, which combined, account for 20% of the country's electricity. But both of those totals are set to rise markedly. Current forecasts suggest nuclear facilities could double their share and ultimately account for 40% of power in the U.S.

"There are several factors underpinning this resurgence in nuclear energy, not the least of which is $100 per barrel oil and elevated prices for natural gas and coal.

"Believe it or not, one kilogram of uranium-235 has the stored energy equivalent of 1,500 tons of coal. And while up-front construction expenses can be high, ongoing operating costs for nuclear reactors are running just $15-20 per megawatt hour, far cheaper than traditional plants.

"John McCain is an outspoken champion for the nuclear power movement, outlining ambitious plans to commit $315 billion towards the construction of 45 new reactors over the next two decades.

"Beyond that, he has a clear goal of achieving energy independence by building '100 new plants to power the homes and factories and cities of America.'

"All of this spells plenty of opportunity for USEC, owner of the nation's only uranium enrichment facility. The company is in the business of supplying fuel for commercial reactors around the world -- and competition is sparse.

"The firm also benefits from a longstanding nuclear non-proliferation treaty with Russia. Specifically, USEC participates in the salvaging of old Soviet nuclear warheads under the 'Megatons to Megawatts' program.

"The company has carved out a dominant market share and now supplies about half of the nation's enriched uranium (most of the rest comes from Russia).

Continue reading McCain stock: Mining gains with uranium miner USEC (USU)

McCain stock: Mining gains with uranium miner USEC (USU) originally appeared on BloggingStocks on Fri, 10 Oct 2008 17:30:00 EST. Please see our terms for use of feeds.

This post is part of a series in which TheStockAdvisors.com asked financial experts to name their top stock pick if McCain or if Obama wins the election.

"The GOP is traditionally known as the party that spends more on defense; thus, if McCain wins the election, one stock to benefit would be defense firm General Dynamics (NYSE: GD)," says John Reese, editor of Validea, which follows the strategies of "legendary" investors such as Warren Buffett and Peter Lynch.

"While McCain has talked tough about reforming the defense budget, he has also pledged to increase the size of the military, modernize the armed services, and push hard for strong missile defense systems -- all of which require serious spending.

"As a major producer of battle tanks and assault vehicles, armaments and munitions, battleships and nuclear submarines, and military information technology systems, this Virginia-based firm is thus likely to have quite a bit of work on its hands during a McCain presidency.

"Just as importantly, General Dynamics' finances and fundamentals are very strong, earning approval from both my Peter Lynch and Warren Buffett-based Guru Strategies -- computer models that are each based on the approach of a different investing great.

"Because of its moderate 18.14% long-term growth rate and huge annual sales of $28.7 billion, General Dynamics is considered a 'stalwart' by my Lynch strategy, the type of large, steady firm that Lynch found offered protection during downturns or recessions.

"Two big reasons my Lynch model is high on this stalwart: its yield-adjusted P/E/Growth ratio of 0.75, which signals that the stock is a bargain right now, and its 18.79% debt/equity ratio, a sign that GD has the conservative financing Lynch liked to see."

My Buffett-based model, meanwhile, likes General Dynamics' consistency. Over the past decade, its EPS have declined just once, rising from $1.46 to $5.10 in that time.

"The company's annual return on equity -- a figure Buffett used to find firms with the 'durable competitive advantage' he famously prizes -- has been at least 16.4% every year.

"GD has also retained $22.30 in per-share earnings in the past decade while increasing EPS by $3.64, showing it can earn investors a 16.3% return on the earnings it keeps. That's a sign of the strong management Buffett is also known to look for."

Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.

McCain stock: Defense play with General Dynamics (GD) originally appeared on BloggingStocks on Fri, 10 Oct 2008 10:10:00 EST. Please see our terms for use of feeds.