I was driving along the other day with my son and daughter, listening to the radio about yet another company that was laying-off employees. My son said, “The economy is so bad that McDonalds is now selling the ¼ ouncer, and parents in Beverly Hills fired their nannies and learned their children’s names.” Not to
My son was flipping through the channels last night and asked me, “Did you hear about the new giveaway on Oprah this week? Oprah gave everyone in her audience a free Chrysler dealership.” I told him to keep his day job. Quote on Bernanke’s Desk During the Civil War President Lincoln was being heavily criticized
Later today, results of the government conducted stress tests on the nation’s 19 largest are likely to reveal that some of these banks will need about $65 billion in additional capital, maybe more. Banks who need to raise money to cover potential losses in the coming two years are as follows: Bank of America Bank
According to the Associated Press, here are the 10 highest-paid CEOs for 2008 at Standard & Poor’s 500 companies based on AP calculations. The analysis includes companies that filed proxy statements with the Securities and Exchange Commission between Jan. 1 and April 20. The total pay figures are rounded and are based on the AP’s
What is the difference between death and taxes? Death does not get any worse. Along those lines, on Friday American Sterling Bank, out of Missouri, was the 24th bank in 2009 to fail. According to the OTS, the FDIC was named receiver and Metcalf Bank (also in Missouri) will assume all the deposits and purchase
Mark Twain said, “The only difference between a tax man and a taxidermist is that the taxidermist leaves the skin.” Origin of NASCAR When visiting Alabama, Georgia, and the Carolinas, one is immediately struck by the impact of NASCAR. (The origin of which is “Nice Car” said with a southern accent.) Currently, team owners are
Factory Orders Up 1.8%, Stocks Rally How ‘bout this market? Yesterday rates moved higher, and prices lower, after Factory Orders increased 1.8% in February, following a downwardly revised 3.5% drop in January, and six consecutive monthly decreases. So why wouldn’t rates come down? US stock markets continued their rally, and in fact most overseas stock
The House yesterday approved a 90% Wall Street bonus tax on a 328-93 vote. Below are excerpts from a WSJ report: The House measure was approved on a 328-93 vote and would impose a 90% surtax on bonuses granted to employees who earn more than $250,000 at companies that have received at least $5 billion
Prepayment Effects On Rates One of the things that impacts the value of servicing is the length of time that the company servicing the loan (i.e., collecting the payments) expects to have the loan on their books. No one wants to pay a 2 or 3 point premium for a loan that they service for
NYU economics professor and head of RGE Monitor Nouriel Roubini said today the latest stock rally will be short lived for many reasons and that banks like Citi, BofA and JP Morgan Chase saying they’re profitable is not exactly true—because the fine print is that they are profitable “before provisions for writedowns.” Below is the
President Obama said last week that it’s a good time to buy stocks. So this morning, instead of spending $5 on a Grande latte, I used the money to buy 100 shares of GM… FDIC Ups Fees For Banks If the taxpayers should pay for their neighbor’s mortgages, should “good” banks pay for the mistakes
Of course, March is known for many things. Saint Patrick’s Day, the Ides, possibly Easter. And, of course, “springing ahead”. This Sunday morning everyone with a clock or watch will wander from room to room, remembering how to change the time on microwaves, wondering if their computers or cell phones do it automatically. Loan Guideline
OK, I am a sucker for the etrade baby ads, along the right side of the site. Tracking TARP Money Where does your favorite bank stand in receiving TARP money? Well, here you go. Chase Exits Warehouse Business Having only 8 clients left, Chase bailed on their warehouse business. “After consideration and review, the Correspondent
In Joseph Heller’s “Catch-22”, Milo Minderbender sets up a syndicate for selling seven-cent Maltese eggs to the mess halls at a price of only five cents an egg while still making a profit. How? Seven-cent Maltese eggs cost the sellers in Malta four and one-quarter cents each to procure. Milo is actually buying the eggs
Capitalism Defined In traditional capitalism, you have two cows. You sell one and buy a bull. Your herd multiplies, and the economy grows. You sell them and retire on the income. In American capitalism you have two cows. You sell one, and force the other to produce the milk of four cows. You are surprised
Contents of Stimulus Bill The $790 billion economic stimulus plan is on track for vote today in the House, and the Senate will either vote later today or over the weekend. There will be $4 billion to repair and make more energy efficient public housing projects; $2 billion for the redevelop foreclosed and abandoned homes;