Posts filed under “Think Tank”

First Appointments to the to Financial Crisis Inquiry Commission

It is modeled on the Pecora Commission, a Senate panel that investigated causes of the Great Depression during the 1930s. The Pecora Commission led to major changes in federal law.

Speaker and Majority Leader appointed Phil Angelides as chairman of the Commission.
Angelides was elected California State Treasurer from 1999 to 2007

House Speaker

• Brooksley Born, who was appointed by President Clinton as Chair of the Commodities Futures Trading Commission from 1996-1999.

• John W. Thompson, who is Chairman of the Board of Directors of Symantec Corporation, a leading security software provider.

Senate Majority Leader appointed:

• Senator Bob Graham, the former U.S. Senator and former Governor of Florida. Senator Graham brings a wealth of experience and understanding of finance to this appointment from his years of service as a senior member of the Senate Finance Committee.

• Heather Murren, a retired Managing Director for Global Securities Research and Economics at Merrill Lynch. At Merrill Lynch, Ms. Murren was the group head for Global Consumer Products Equity Research.

• Byron Georgiou, who is a Las Vegas-based businessman and attorney. Mr. Georgiou serves on the advisory board of the Harvard Law School Program on Corporate Governance which hosts the leading blog on corporate governance and financial regulation.

Democrat Appointments to Financial Crisis Inquiry Commission
July 15, 2009, 12:08 PM ET
Real Time Economics

Category: Markets, Think Tank

CIT is Not the FDIC’s Problem

The team of Treasury Secretary Tim Geithner and OCC chief John Dugan are trying to paint Sheila Bair and the FDIC as the villains in the CIT situation. CK this missive I just got from one of the members of the working press: “The lobbyists are ready to string Bair up and claim this could…Read More

Category: Credit, Markets, Think Tank

Pick your poison

On the same day Treasury Secretary Geithner said “It is the policy of the US and it will remain the policy of the US to remain committed to a strong dollar” and that it will “remain the principal reserve currency,” the $ index is back below 80 and a close here would be the lowest…Read More

Category: MacroNotes

King Report: Who Pays Taxes?



Last night Bill O’Reilly, in a segment about ‘connected firms’ profiting from cap & trade, stated
Goldman made $2B in 2008 but PAID NO FEDERAL INCOME TAXES!

Long-time readers know that we regularly inveigh against US policy that allows corporations to run two sets of books – one for investors and one for taxes. So when the usual suspects appear to whine that US corporations need tax relief, remember that many US corporations pay little or no income taxes while they report great earnings…How much federal income tax will Goldman pay this year? Where’s Congress?

A few weeks ago we warned that just like the previous two years, BLS seasonal adjustments prevented early spring commodity inflation (rallies) from appearing in PPI in CPI; but in June the seasonal adjustment process would inject the inflation that occurred early. This occurred yesterday with PPI.

Though PPI at 1.8% was double expectations, in reality inflation was not that strong in June. The BLS understated energy and food inflation in the spring and will overstate inflation in June & July.

Press releases noted that energy inflation (+6.6%, gasoline +18.5%) was the reason for the jump in PPI.

Once again we have better than expected retail sales (+0.65% m/m) due to inflation. ‘Core retail sales were 0.26%… Ex-food services, retail sales declined 10.3% y/y…Why won’t the government report ‘core retail sales’ (ex-food & energy) like it does for PPI and CPI?

Read More

Category: Markets, Think Tank

industrial Production

June Industrial Production fell .4% and is the 17th month of decline in the last 18. It was .2% better than expected but May was revised down .1% so overall it was about in line. Capacity Utilization fell to 68% from 68.2% in May but was a touch more than the consensus of 67.9%. It’s…Read More

Category: MacroNotes

Economic data

The July NY Fed survey was -.6, above expectations of -5 and up from -9.4 in June. New Orders jumped to +5.9 from -8.2, the first positive reading since Sept ’08 but Backlogs fell 2 points to -12.50. Employment was up a modest one point at -20.8 but it’s the least negative reading since it…Read More

Category: MacroNotes

A nice shift in focus to business from political science

The good thing about earnings season is that it allows us to focus our attention again to company fundamentals and less so on what the government will do to ‘fix things.’ Regardless of whether it was just inventory restocking or signs of a real recovery, Intel’s results being well received has a better feeling to…Read More

Category: MacroNotes

Taleb Offers Positive Black Swan on Otherwise Dull Day

Good Evening: Yesterday’s stock market rally continued today when neither the earnings reports nor the economic releases contained any bombshells. CSX, JNJ, and GS all reported positive earnings, though only Goldman really surprised to the upside. Of course, since GS had its rally yesterday after the Whitney upgrade, the company’s shares barely managed to hold…Read More

Category: Markets, Think Tank

What Is Goldman Sachs?

> Jim has run Bianco Research out of Chicago since November 1990. He has been producing fixed income commentaries with a circulation of hundreds of portfolio managers and traders. Jim’s commentaries have a special emphasis on: money flow characteristics of primary dealers, mutual funds, hedge funds, futures traders, banks, and institutional investors. Prior to founding…Read More

Category: Earnings, Think Tank

Business Inventories

May Business Inventories fell 1%, .2% more than expected and April was revised down by .2%. It’s the 9th straight month of declines. With sales down .1%, the inventory to sales ratio fell to 1.42 from 1.43 and its at the lowest level since Oct ’08 when it was at 1.36. The record low was…Read More

Category: MacroNotes