Posts Tagged ‘House Committee on Small Business’

CIT Down

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CIT Down

Courtesy of Simon Johnson at The Baseline Scenario

At the end of the day, CIT had nothing.  Their asset quality was poor, their systemic risk implications seemed limited, Sheila Bair dug in her heels, and Jeffrey Peek (CEO) didn’t have sufficiently strong connections to get her overruled.

CIT had friends, but not enough - and maybe this tells us something about the shifting political sands.  The Financial Services Roundtable (top financial CEOs) came out in force, the House Committee on Small Business reportedly made worried noises, and Barney Frank sounded supportive.  But the American Bankers Association (the broader mass of bankers) publicly stood on the sidelines and Senate Banking – and prominent senators – seemed otherwise engaged. 

CIT’s small and mid-size customers are important to the recovery.  But the reckoning is that this business can be easily sold to someone else – after all, this is exactly what bankruptcy can get right in the U.S. 

So the question became: is CIT too big – on its liabilities side – to fail?  And if $80bn financial firms are now “too big to fail”, what does that imply for other potential bailout conversations and for our fiscal future? 

In the final analysis, CIT wasn’t even big enough to meet Secretary Geithner face-to-face – he’s still out of the country.

The bottom line: we need fewer $800bn firms and more $80bn firms.  If Goldman Sachs were broken into 10 independent pieces, we could all sleep much more soundly.

By Simon Johnson

(More in my NYT.com column this morning – what are the implications of CIT’s failure for overall levels of capital in the banking system?  This will run shortly.)

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Here’s the problem, Friends in Low Places

 

 


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Mapping The Market

The Industry That Was Crushed By The Obama Administration

By Jean-Luc

Good riddance – cleaned up a lot of frauds there:

The Industry That Was Crushed By The Obama Administration

In early 2009, the seven largest publicly traded college operators were worth a combined $51 billion. Today, they’ve been all but wiped out.

When Barack Obama took office, America’s seven largest publicly traded college operators were worth a combined $51 billion, with more than 815,000 students enrolled at campuses spread across the country. The schools were flooded with with people seeking shelter from the recession, returning to school to pick up new skills.

Almost eight years later, the industry has been decimated. The seven largest listed operators are worth just over $6 billion, and the most valuable co...



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Zero Hedge

Citi Has One Unpleasant Chart For Anyone Thinking Of Buying Twitter

Courtesy of ZeroHedge. View original post here.

With rumors swirling that Twitter may be acquired at any moment, with such suitor names thrown out as Disney, Salesforce, and even Google, overnight Citigroup released a scathing report explaining why a Twitter acquisition would be a bad idea. As the bank's Jason Bazinet, who probably is catering to clients who are short TWTR says, "at a superficial level, this sort of transaction seems to make sense. With its recent BAMTech investment, Disney is taking early steps to pivot its cable nets business to the web. And, of course, Twitter recently took steps to move into live video including on-line st...



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ValueWalk

IVA Funds September 2016 Conference Call Transcript

By Umair Tariq. Originally published at ValueWalk.

IVA Funds conference call transcript for the month ended of September 2016.

As of the most recent prospectus, the expense ratios for the funds are as follows: IVA Worldwide Fund: 1.25% (A shares), 1.00% (I shares); IVA International Fund: 1.25% (A Shares), 1.00% (I shares). Maximum sales charge for the A shares is 5.00%.

H/T Value Investing World

IVA Funds

As of August 31, 2016, the IVA Worldwide Fund’s top 10 holdings were: Gold Bullion (6.4%); Astellas Pharma, Inc. (4.4%); Berkshire Hathaway, Inc. Class A, Class B (4.1%); Samsung Electronics Co., Ltd. (4.1%); News Corporation Class A, Class B (2.5%); Nestle SA (2.4%); DeVr...



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Phil's Favorites

Can Donald Trump Really Save U.S. Coal?

Courtesy of Leonard Hyman & William Tilles at OilPrice.com

On September 22, Donald Trump reaffirmed his intent to revive the American coal industry - without many details on how to do it. What influences the price and demand for coal? Can Donald Trump influence the forces behind these market drivers?

We nominate these four factors as the most important drivers of coal prices: production and demand for steel, because the coal industry sells and exports metallurgical coal used in steel production; demand for electricity, insofar as much electricity is still generated from coal; Chinese government interference in the steel and metallurgical coal markets, because China is the world's largest steel producer and most of the companies there are state owned; and, lastly, the price of natural gas because coal competes directly with ...



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Kimble Charting Solutions

Japanese YEN testing triple breakout level

Courtesy of Chris Kimble.

Below looks at the Japanese Yen over the past 20-years.

For the majority of the time, the YEN has remained inside of rising channel (A). Now a big test is in play, after breaking support.

CLICK ON CHART TO ENLARGE

The Yen remained inside rising channel (A) from the mid 1990’s until 2014, where it broke below rising support. The rally that has taken place since the lows ...



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Market News

News You Can Use From Phil's Stock World

 

Financial Markets and Economy

Japan Shares Drop as More Than Half the Topix Trades Ex-Dividend (Bloomberg)

Japanese shares fell as more than half the companies on the benchmark Topix index traded without the right to the next dividend payment.

The Story of Post-Brexit Britain, In Charts (Bloomberg)

The surprise vote in favor of the U.K. leaving the European Union on June 23 unleashed shockwaves across the global economy, wiping trillions off the value of global assets. The referendum reshaped the British political landscape, and genera...



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Chart School

RTT browsing latest..

Courtesy of Read the Ticker.

Please review a collection of WWW browsing results.



Date Found: Saturday, 26 March 2016, 02:36:15 PM

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Comment: ZH: Its a BULLARD market, the FED jaw boning is keeping the market up!



Date Found: Sunday, 27 March 2016, 02:31:30 PM

Click for popup. Clear your browser cache if image is not showing.
Comment: RTT: World trade near 2008/09 lows. SP500 near all time highs. PLACE YOUR BETS! Roll up! Roll up!



Date Found: Tuesday, 29 March 2016, 02:42:11 PM

Click for popup. Clear your browser cach...



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OpTrader

Swing trading portfolio - week of September 26th, 2016

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Members' Corner

Market Liquidity and Macroeconomic Bullshit

 

Market Liquidity and Macroeconomic Bullshit

Courtesy of The Nattering Naybob

STJL - "Apparently macroeconomics is all bullshit – ROFL! Paging Naybob now… Famous Economist Paul Romer Says Macroeconomics Is All Bullshit."

The Nattering One muses... Macroeconomics as practiced by academics and those in charge is pure voodoo. Better to chant over goat blood, bird feathers and scattered entrails...

As for reality, overnight CNH HIBOR (...



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Digital Currencies

Gold, Silver and Blockchain - Fintech Solutions To Negative Rates, Bail-ins, Currency Debasement and Cashless

Courtesy of ZeroHedge. View original post here.

By Jan Skoyles

I was so pleased yesterday by the announcement that I have joined the Research team at GoldCore as it meant that I could finally start talking about it and was back in a role that lets me indulge in my passion by researching and geeking out on all things gold, silver and money.

...



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Biotech

Epizyme - A Waiting Game

Reminder: Pharmboy is available to chat with Members, comments are found below each post.

Epizyme was founded in 2007, and trying to create drugs to treat patient's cancer by focusing on genetically-linked differences between normal and cancer cells. Cancer areas of focus include leukemia, Non-Hodgkin's lymphoma and breast cancer.  One of the Epizme cofounders, H. Robert Horvitz, won the Nobel Prize in Medicine in 2002 for "discoveries concerning genetic regulation of organ development and programmed cell death."

Before discussing the drug targets of Epizyme, understanding epigenetics is crucial to comprehend the company's goals.  

Genetic components are the DNA sequences that are 'inherited.'  Some of these genes are stronger than others in their expression (e.g., eye color).  Yet, some genes turn on or off due to external factors (environmental), and it is und...



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All About Trends

Mid-Day Update

Reminder: Harlan is available to chat with Members, comments are found below each post.

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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Promotions

PSW is more than just stock talk!

 

We know you love coming here for our Stocks & Options education, strategy and trade ideas, and for Phil's daily commentary which you can't live without, but there's more!

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