RCM Comment: I posted a challenge yesterday and as yet only one taker. I received an email from Gary Rosenthal (a/k/a, Dad) labeling the stories correctly. So, is the contest over? Should I send him the prize? I think the answer has to be, no, on account of the proverbial apple and its proximity to the tree perhaps disqualifying Dad. […]
RCM Comment: For today’s read I have put together a selection of stories for your amusement. One story is a fantasy, one a horror and one a Greek tragedy. Let’s make this Audience Participation Day: The first person to send me a comment labeling the stories correctly will receive a genuine Rosenthal Capital Management polo shirt. Good luck… ECONX Consumer […]
RCM Comment: The US$ is breaking down again today and has taken out key support. I continue to write about this weakness because the ramifications of the continued demise of the US$ are far reaching. Allow me to list a few thoughts to keep in mind while we watch the US$ developments: Weakness in the US$ goes hand in hand […]
FT – The US Treasury would provide a backstop to stricken states like California, which are struggling to raise debt, under legislation due to be introduced to Congress. Proposals published on Thursday would see the Treasury acting as a reinsurer in the market and the Federal Reserve setting up bond purchase agreements, which were commonly provided by banks until the […]
Zero Hedge: The latest G.19 filing shows a massive drop in both revolving and non-revolving consumer credit, which has fallen to a one year low at $2.551 trillion, an $11 billion reduction sequentially in credit, split about even between revolving and non-revolving. RCM Comment: The government is trying desperately to spend its way out of this recession, but it cannot […]
The equity markets continue to work their way higher as the government-sponsored and controlled bank stress test pageantry is in full swing. In my business we commonly refer to this type of charade as “putting lipstick on a pig”. However, the herd is content at the moment to try and make that silk purse, so we must respect the trend […]
I feel compelled today to discuss what I am hearing is the eminent demise of the Gold bull market. I have been forced to field emails, phone calls and, yes, even a text message on this topic over the last couple of weeks. To say the least, I am disappointed with some in our flock. Over the last 3 years […]
RCM Comment: I have been writing at length about the creative “better than expected” EPS coming from the banking sector. Today, I offer the analysis of Dave, a colleague on gata.org who really nails the Wells Fargo fraud, enjoy. “So far — and especially in Q1 — Wells/Wachovia benefited from gov’t and bank-specific foreclosure prevention and moratorium. This kept Q1 […]
RCM Comment: IT’S ABOUT TIME!! By Timothy R. Homan Bloomberg News Saturday, April 18, 2009 Former Federal Reserve Chairman Paul Volcker said Congress will probably review the authority granted to the Fed following emergency credit programs doubling the central bank’s balance sheet to $2.19 trillion. “I don’t think the political system will tolerate the degree of activity that the Federal […]
Big banks with government support VS. Smaller banks operating in the real world “Better than expected” EPS (the big banks) Wells Fargo (WFC) Goldman Sachs (GS) J P Morgan (JPM) Bank of America (BAC) Worse than expect EPS (the smaller banks) Keycorp (KEY) Pacwest Bancorp (PACW) SVB Financial (SIVB) US Bancorp (USB) Zion Bancorp (ZION) State Street (STT) Bank of […]
