Posts filed under “Regulation”

Davos: Is Capitalism, as We Know It, Dead?

As a record number of heads of state gather with business moguls in Davos, WSJ’s Andy Jordan wonders whether the World Economic Forum’s focus will be on finger-pointing or collaboration to halt the current global financial-markets slide.

1/27/2009

Category: Bailouts, Credit, Economy, Psychology, Regulation, Video

Bust, Bankruptcy, Bailouts: What Should We Do Now?

I am speaking at an AEI panel today, with Tim Bitsberger,  Joshua Rosner of Graham Fisher & Co., Walker Todd, of the American Institute for Economic Research, and R. Christopher Whalen of Institutional Risk Analytics. Summary: The credit crunch and financial panic of 2008 triggered a remarkable series of government interventions and bailouts, including huge…Read More

Category: Bailouts, Credit, Derivatives, Politics, Really, really bad calls, Regulation

Blame the Enablers

I couldn’t agree with this article more: Madoff Enablers Winked at Suspected Front-Running. I look at Madoff as a Sociopath — he is a sick individual. The enablers, on the other hand, were simply greedy hacks who didn’t, (and probably couldn’t) do the suitable investigation and due diligence into Madoff’s asset management business. Were they…Read More

Category: Finance, Investing, Legal, Regulation

Geithner, Obama and China

Geithner, Obama and China by David Kotok
January 24, 2009

David R. Kotok co-founded Cumberland Advisors in 1973 and has been its Chief Investment Officer since inception. He holds a B.S. in Economics from The Wharton School of the University of Pennsylvania, an M.S. in Organizational Dynamics from The School of Arts and Sciences at the University of Pennsylvania, and a Masters in Philosophy from the University of Pennsylvania. Mr. Kotok’s articles and financial market commentary have appeared in The New York Times, The Wall Street Journal, Barron’s, and other publications. He is a frequent contributor to CNBC programs. Mr. Kotok is also a member of the National Business Economics Issues Council (NBEIC), the National Association for Business Economics (NABE), the Philadelphia Council for Business Economics (PCBE), and the Philadelphia Financial Economists Group (PFEG).

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Following Treasury Secretary designee Tim Geithner’s public confirmation hearing, an extensive Q & A occurred in writing. We have posted a copy of the US Senate Finance Committee’s 100-page text on our website. See: http://www.cumber.com/special/geithnerquestions2009.pdf . This is must reading for any serious investor, economist, strategist, analyst, or observer. In this text you will find what is on the minds of the Senators, and you will gain insight into the polices that will be forthcoming from the Obama administration.

One telling example is found in the following quote that has already created international consternation. Geithner twice answered questions about currency and China. In so doing he has placed the Obama administration squarely in the middle of the tension between the United States and the largest international buyer and holder of US debt: China. This happened as the same Obama administration is unveiling a package that will add to the TARP financing needs and the cyclical deficit financing needs and cause the United States to borrow about $2 trillion this year. Two trillion dollars of newly issued Treasury debt – and this is how the question was answered. Not once but twice.

Geithner (on page 81 and again on page 95) answered: “President Obama – backed by the conclusions of a broad range of economists – believes that China is manipulating its currency. President Obama has pledged as President to use aggressively all the diplomatic avenues open to him to seek change in China’s currency practices.”

“Manipulation?” “Aggressively?“ This is strong language. Geithner did not do this on his own authority. These are prepared answers. He is citing the new President, not once but twice.

China’s response was fast and direct. China’s commerce ministry said in Beijing that China “has never used so-called currency manipulation to gain benefits in its international trade. Directing unsubstantiated criticism at China on the exchange-rate issue will only help US protectionism and will not help towards a real solution to the issue.”

Are we seeing the world’s largest and third largest economies calling each other names in the middle of a global economic and financial meltdown?

Read More

Category: Bailouts, BP Cafe, Markets, Regulation, Taxes and Policy

A conversation with Senator Chuck Schumer

Charlie Rose has a conversation with Senator Chuck Schumer

Category: Bailouts, Politics, Regulation, Video

Good-Bye and Good Riddance to Chris Cox

“Chairman Cox has increased to 34 percent of the S.E.C. work force from 32 percent in 2005 and 29 percent in the 1990s. This investment in investor protection already is paying significant dividends.” The baldfaced lie above was issued under SEC Chairman Cox about how he had improved the agency enforecement staff to protect investors….Read More

Category: Bailouts, Investing, Legal, Markets, Regulation

Volcker Report

Be sure to check out the Volcker report we published over the weekend . . . Paul Volcker / Group of 30 Report on Reform

Category: Bailouts, Credit, Regulation

Bush’s Economic Mistakes

With all inauguration coverage, all the time today, I thought we might try to keep the focus on erconomic/market related matters. Time magazine has an article on Bush’s economics mistakes that I would direct you to except for the annoying 9 page clicks required (click whores!). Rather than send you there, I’ll give you the…Read More

Category: Economy, Financial Press, Markets, Politics, Regulation

More Cablevision Redirect Nonsense

In September, I mentioned that my internet provider, Optimum OnLine by Cable Vision, was hijacking my typos and searches via their DNS Redirect. The company line is that this is a form of search assistance — but that’s transparent bullshit. I didn’t ask for search, and I know how to use Google. Besides, this defeats…Read More

Category: Legal, Regulation, Web/Tech

Madoff Never Traded?

Alternative title: The End of Self-Regulation A Boston Globe article today reveals that Madoff’s firms may never have traded — despite NASD/FINRA audits every 2 years since 1960. “As investigators try to untangle the scheme that Bernard L. Madoff hid from investors and regulators for a decade or more, one basic fact is emerging: He…Read More

Category: Legal, Markets, Regulation