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Monthly Archives: October 2012

Junk Buckets: The work of a ‘Talented CFO’

Earnings quality is increasingly poor. There’s a gap opening between the earnings from operations figure (earnings before bad stuff = what the financial media have been duped by CFOs into following) vs. the as-reported figure (real world / all-in earnings reported to the IRS). We can thank talented CFOs for this.  They’re able to burry or otherwise delay having to recognize bad stuff for […] Read the rest of this entry »

Voluntary Outright Monetary Intrusive Transactions (VOMIT)

The ECB’s new program to buy Spanish sovereign bonds -therein supporting the price and driving down the interest rate- is called Outright Monetary Transactions (OMT). I thought this title had all the charm and descriptiveness of Quantitative Easing –which is to say none.  The program name and acronym -OMT- falls short of its full potential because it does not account for 2 key descriptors: […] Read the rest of this entry »

Greedometer parameter at all-time high

One of the inputs to the Greedometer strategic algorithm is the Greedometer Put / Call ratio. Yesterday the reading registered one of the highest ever. Today will likely see the highest single day reading ever -unless there’s a pullback. Further, this week’s readings will likely be in the top 1% of weekly readings since 2004 (when I began capturing the data for this parameter). […] Read the rest of this entry »

A decidedly un-virtuous cycle

  The IMF is asking politicians not to implement so-called ‘austerity’ budgets. Good grief. That Europe, the US, and many other economies are falling into recession is regrettable. But it is neither surprising nor stoppable. There are a myriad of reasons the US and European economies are in economic recession (the odds are good the US and any remaining portion of Europe not already in […] Read the rest of this entry »

Note to self: your taxes are going up. Way up….

  It’s hard to find an article discussing government budgets/spending without encountering a political agenda – especially in this pre-election environment. Let me go on record by saying I have roughly equal disdain for both US political parties, and their US Congressional performance. By now, you are painfully aware of the ‘Fiscal Cliff’ we’re approaching. In a nutshell, various tax breaks we clearly cannot […] Read the rest of this entry »

$20B JP Morgan Shakedown

  There will be all manner of pointed and spun stories regarding today’s announced $20B lawsuit alleging fraud against JP Morgan. Being in the securities business, most will anticipate I’ll rush to JP Morgan’s defense. But anyone who knows me or has spent time reading the blog or newsletter knows the opposite is more likely since I hold the financial  industry -and large banks […] Read the rest of this entry »