tag:blogger.com,1999:blog-33150938332327027362024-02-06T23:11:51.745-05:00Cohn-Reilly ReportFinancial and Economic News Blog. Cohn-Reilly Report will discuss, debate and analyze the Economy as it relates to domestic and global Markets, including the Federal Reserve, investment Banks, and Government. This Blog discusses financial issues affected by the current events, covering everything from Wall Street to Main Street and Capital Hill. There will also be Special Articles from our colleagues to keep readers intrigued and well informed.Cohn-Reilly Reporthttp://www.blogger.com/profile/07867547358819644037noreply@blogger.comBlogger105125tag:blogger.com,1999:blog-3315093833232702736.post-48227980943255316432013-07-23T23:08:00.000-04:002013-07-27T12:42:17.419-04:00WANTED: Transformational Leaders:<font face="trebuchet ms" size="+1" color="navy">Detroit in Bankruptcy After Years of Neglect and Lack of Leadership</font><p><font face="trebuchet ms"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhEMVbCqcqwxwgJNtck1cbGssywob1uG1RAxuTzMLvc3eXQ9Z5J5TZhxc0xwkvMS_di23G9tOOZQCutRpi7vG9vyI9-kdioZUT3x0jMfJ753_7GigapigZlU5_pKJq040BCpPM5gYOKKw/s1600/Detroit-BankruptcySMALL.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="205" width="303" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhEMVbCqcqwxwgJNtck1cbGssywob1uG1RAxuTzMLvc3eXQ9Z5J5TZhxc0xwkvMS_di23G9tOOZQCutRpi7vG9vyI9-kdioZUT3x0jMfJ753_7GigapigZlU5_pKJq040BCpPM5gYOKKw/s320/Detroit-BankruptcySMALL.jpg" /></a></div><font face="trebuchet ms" size="+2" color="#1F88A7">B</font>ack in the last quarter of 2010, as the big three Auto manufacturers lobbied for bail outs, and later filed for bankruptcy, Detroit's fate was all but sealed. Well, the fat lady is singing, and this is a political and public relations mess. There are hints of mismanagement or misappropriation of funds and a fair share of finger pointing - but at the core of the municipality's fiscal crisis are the Pension funds. How will the courts handle retiree payouts: will they remain at par or will they be reduced? The residents of Detroit are in for an interesting turn of events. This is a serious wake up call, to say the least.<br>
<font face="times new roman" size="+2" color="#1F88A7">H</font>ow did this filing come about? Well, from what I can tell, Snyder seemed to have been trying to quietly handle the crisis. Seeing the writing on the wall, Governor Snyder wanted to avoid a possible downgrade of Michigan’s credit rating, which is likely following a messy<i> "unmanaged" </i>bankruptcy. The crisis management strategy was to get ahead of the problem, so that the worst case scenario is a "Structured" bankruptcy - thereby minimizing the negative impact on the State's overall credit rating. The <a href="http://www.wsj.com">Wall St. Journal</a> reported that Snyder brought in Kevyn Orr as an Emergency Money Manager to work aggressively to get Detroit’s fiscal house in order. Snyder's secret weapon, Orr, was apparently granted “dictatorship” style authority, essentially rendering the city’s finance department and controller powerless. Kevyn Orr was the lead attorney handling the Chrysler structured bankruptcy, so it could be construed as a sound decision. However, from another perspective, one might say that hiring a bankruptcy attorney is like appointing a wolf to watch over a hen house. <br>
<font face="times new roman" size="+2" color="#1F88A7">H</font>ow serious is it when a city files for Bankruptcy? . <div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhgNwG1fT8tIU5eGCHXXvVro7mUTym_wTv4fTE1G6zvLPRUJMiRYBHzPFMh6ymrQwGm5P9v0QRqhwGtQT17JloL4nED7Gcn8qzDPHQRe75bL7Hei3mjSCYO3HYU59RQkDWeK_5bRLs-8w/s1600/ThePROMISE-orr.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="181" width="220" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhgNwG1fT8tIU5eGCHXXvVro7mUTym_wTv4fTE1G6zvLPRUJMiRYBHzPFMh6ymrQwGm5P9v0QRqhwGtQT17JloL4nED7Gcn8qzDPHQRe75bL7Hei3mjSCYO3HYU59RQkDWeK_5bRLs-8w/s200/ThePROMISE-orr.jpg" /></a></div><br> <font face="times new roman" size="+2" color="#1F88A7">C</font>alifornia has probably seen the most cases of bankruptcy than any other state - with city after city filing for bankruptcy protection as a result of the housing crisis and pour money management. The jury is still out as to whether California's troubled counties will recover gracefully. Whatever the case, the road back to solvency is a long and arduous one. As for Detroit, it was clearly heading in the wrong direction prior to the start of Great Recession. In fact, long before the Recession rocked the nation, and later Europe, Detroit was already showing obvious signs of fiscal discord. Their key source of jobs and tax revenue stemmed from the auto industry and ancillary products and services. Although many local businesses and retailers benefited from the economic "trickled down". <br>
<font face="times new roman" size="+2" color="#1F88A7">I</font>n all fairness, we can't place Detroit's troubles entirely on the shoulders of the auto industry. There are multiple factors playing into the city's demise. For example: tax revenues over the past 25 years have been on a steady decline as the population and businesses fled to greener pastures. The City of Detroit, at its peak (1950s), had a population of 1.8 million, but the most recent Census Bureau records illustrate a more than 65% decline. The disturbing reality is that Detroit presently has a population of merely 700 thousand - particularly considering the demographics and socio-economic landscape. Adding insult to injury, over the past 5 to 6 decades the population exodus happen to be primarily the middle class, leaving the city with a disproportionate number of low-income residents. What this boils down to is a dwindling tax revenue base, and increased spending for public assistance, healthcare and other subsidy programs. The economic cycle can only spirals downward from there, unless a drastic changes are made. <br>
<font face="times new roman" size="+2" color="#1F88A7">T</font>he “Economics-101” explanation would be as follows: When you have a predominately low-income or impoverished population, this translates to a largely unskilled and uneducated labor force – which means local-area businesses can’t fill higher paying jobs that require specialized skills or education. This distressed socio –economic environment drives business out. In turn, joblessness decreases consumer spending, which ultimately cause retailers to close down. <br>
High unemployment was not Detroit’s biggest problem. Job creation doesn't help in this scenario unless there’s a strategy implemented to attract businesses and manufacturers with jobs that match the skills of the population. Sheer job creation (in a vacuum)is nothing unless there is also a comprehensive plan to educate or provide training to upgrade the skills of the local workforce.<br><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi6dI2sWh5DeCiMy44Ys3iYUVx7OSQeZRmsGOBGlkvZXfzQB6FFSTClqYg8V9ORg75H0jNiV-7xzm2-7GX51EPXwk8rB1GJA6r8sB6Za7Ir30A4oU5jkEWdyJBac4zJYtWbaCBkH-tOPQ/s1600/HousesRunDown1.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi6dI2sWh5DeCiMy44Ys3iYUVx7OSQeZRmsGOBGlkvZXfzQB6FFSTClqYg8V9ORg75H0jNiV-7xzm2-7GX51EPXwk8rB1GJA6r8sB6Za7Ir30A4oU5jkEWdyJBac4zJYtWbaCBkH-tOPQ/s320/HousesRunDown1.jpg" /></a></div>
<font face="times new roman" size="+2" color="#1F88A7"><color="#1F88A7">Y</font>ears of neglect and misguided development spending has come to a head. There's been ample time (we are talking decades) for <i>anyone</i> from the parade of politicians to step up and show <i>real</i> leadership. It’s hard to believe that none of the government agencies or organizations could have developed a long-term urban renewal strategy to transform Detroit into a thriving economic force.
As far back as I can remember, Detroit was known for its high crime, and unemployment, but the combined burden of high unemployment, crime, foreclosures and abandon properties - against the backdrop of diminishing revenues, and $18 billion in debt obligations – you’re looking at a time bomb.<br>
<font face="times new roman" size="+2" color="#1F88A7">P</font>olitical fallout is eminent, and everyone will be watching to see if Obama will extend an “bail out” to Detroit, since he was vehemently supportive of the big-3 auto makers in their time of need. With any luck, the people, politicians, unions, educators and activists will be open minded enough to work together and find a common ground for rebuilding Detroit. This may turn out to be for the best in the long run <p><br>
K. Reilly<br>
The Cohn-Reilly Report<br>
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</font><div class="blogger-post-footer">www.Cohn-ReillyReport.com</div>Cohn-Reilly Reporthttp://www.blogger.com/profile/07867547358819644037noreply@blogger.com0tag:blogger.com,1999:blog-3315093833232702736.post-9445678376993566242013-06-21T14:59:00.000-04:002013-07-27T12:42:50.481-04:00Redbox Fully loaded: Can Netflix Stay 1-Step Ahead ? <font face="trebuchet ms"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjrU-EcWg2dGQ19yX4LSAxgycBww-e5VF4HBpHfRJFjwudlN0s4kijCgxpArtdseZO__nVuTw2YAYJ8Dqrf9CvhAmVQmJekWdvFbvGP9ytVej8G6N0HxSg8VQdlzw553jUhB5dHEYUyDw/s1600/RedboxVsNetflix.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="207" width="229" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjrU-EcWg2dGQ19yX4LSAxgycBww-e5VF4HBpHfRJFjwudlN0s4kijCgxpArtdseZO__nVuTw2YAYJ8Dqrf9CvhAmVQmJekWdvFbvGP9ytVej8G6N0HxSg8VQdlzw553jUhB5dHEYUyDw/s320/RedboxVsNetflix.jpg" /></a></div><font face="times new roman" color="#c00000" size="+2">R</font>edbox unearthed the details of a joint venture with Verizon Communication, which delivers the required infrastructure for streaming video service at (you guessed it) $8 per month, under the brand name, “Redbox Instant”. Although, this exciting new business division does not include movie downloads as yet. The anticipated venture comes on the heels of their announcement in March that it purchased NCR’s entertainment division for $100 million, hammering the nail in the <a href=”http://news.cnet.com/8301-31001_3-57372197-261/redbox-pays-$100-million-for-NCR's-blockbuster-express/”>Blockbuster Express</a> coffin. Kudos to Redbox for its successful execution of its expansion plan, that brings them to a head-to-head competition with the <b><i>Market Leader</i></b>, Netflix. <br>
<font face="times new roman" color="#c00000" size="+2">Y</font>ou may recall the of Summer of 2011, when Netflix's CEO (Reed Hastings) made the grave mistake of announcing their brilliant plan to separate the DVD Rental and Streaming Video business into two revenue streams. Charging $8.00 per month for each – essentially doubling the cost for customers who were enjoying access to both for only $8. The ill-fated plan was announced one moment and denounced the next, as customers made their feelings of disgust known. A mass exodus of 800,000 customers within a matter of weeks was an undeniable message to the business community that the Customer is Boss. By October, in response to the backlash, Hastings apologized to customers. He announced that the company decided not to separate the services for now, adding that they were moving too fast.<br>
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgJ5xN9l5L-JdixBmtB4mOsMjST3RLlMRdhASWBh4uhJ_K-rRdTtCfMzTRijPJYX3XObM9Ko0Jadxv3OsVt4QsMwK_q7vzInMdg7iYBb4NQ3oV1BpYAqjVTDix3oHegKSYfI27PS1DThw/s1600/BoockbusterKIOKS.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgJ5xN9l5L-JdixBmtB4mOsMjST3RLlMRdhASWBh4uhJ_K-rRdTtCfMzTRijPJYX3XObM9Ko0Jadxv3OsVt4QsMwK_q7vzInMdg7iYBb4NQ3oV1BpYAqjVTDix3oHegKSYfI27PS1DThw/s200/BoockbusterKIOKS.jpg" /></a></div><font face="times new roman" color="#c00000" size="+2">N</font>etflix reported a loss of 800,000 subscribers in the 3rd quarter of 2011. Since Analysts predicted a loss of only 600,000, the market reacted unfavorably with a swiftly decline of over 20%. The company warned of more defections and stated that they anticipate losses for the first quarter of 2012 as a result of expanding their business to Europe. Netflix did not anticipate the fast and furious decline in market valuation, eroding their stock price from its highs The $305 per share in July 2011 to below $53 by September. By the year's end, Netflix has lost a million subscribers in the aftermath. <br>
<p><div align="center"><font color="navy"><i>This costly business strategy turned out to be a public relations nightmare for Netflix, but an absolute dream for Redbox, waiting in the wings. </i></div></font><p>
<font face="times new roman" color="#c00000" size="+2">U</font>sing the Netflix business model, Redbox came onto the scene quietly, but well prepared to gradually scoop up stray Netflix customers. Then the Netflix blunder created a glorious opportunity or “gift” for any company poised to take advantage of it……. that company was Redbox. The gift translated into instant market share and name recognition, as news coverage of Netflix’s new strategy made reference to Redbox in just about every report.Jusk think; a sizable number of displaced Netflix customers were now searching the net for a comparable alternative to the DVD and streaming video service. Redbox scrapped-up stray, and disgruntled customers for the first 90 days following Nextflix’s announcement. It’s quite possible that Redbox pulled in the entire 4% market share Netflix lost. <br>
<font face="times new roman" color="#c00000" size="+2">A</font>s a business major in grad school, students learn a great deal about the world of business through reading piles of case studies and statistics about corporations that were successful versus those that folded. We learn that the fate and longevity of a product or service has a lot to do with originality or satisfying an underserved demand. In such a scenario, the first to enter the market with a new product idea or service is referred to as <b><i>“Market Maker”</i></b>, or <b><i>“Market Leader”</i></b>. The Market Leader holds an enormous advantage over those that follow in their footsteps. Research has shown that market leaders are likely to maintain the lion's share of the market for decades – unless the product or service becomes obsolete, such is the case (for example) with beepers. In keeping with this statistic, Netflix did eventually recover having lost 85% of their valuation, and approximately 4% of their business. <br>
<font face="times new roman" color="#c00000" size="+2">N</font>evertheless, the Netflix blunder, nearly two years ago, served to kick-start the new-comer, Redbox. As unhappy consumers fled Netflix, the gift of market share was well received and now Redbox is ready for a new challenge – <b><i>Streaming videos</i></b>.
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjFuxG6bH3PZj0wQsOyp2IAS1uNnWjJZzltXcJgAtyp8YI8q3_W0c6pUQEOu8sYQ52clwOpBMaCEmmVCWYDFliDX7lREVc2umpt2zySaPo3NpGD7Ey-H7RoJmkj7OUKU-FOJsMq9rYY_w/s1600/President&CEO.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjFuxG6bH3PZj0wQsOyp2IAS1uNnWjJZzltXcJgAtyp8YI8q3_W0c6pUQEOu8sYQ52clwOpBMaCEmmVCWYDFliDX7lREVc2umpt2zySaPo3NpGD7Ey-H7RoJmkj7OUKU-FOJsMq9rYY_w/s200/President&CEO.jpg" /></a></div>By December of 2012, Redbox had increased its market share to 45%¸ up from 34% the previous year. Redbox’s founder Gregg Kaplan, leaves his post as President and COO, passing the role of President over to Anne Saunders, and Shawn Strickland as CEO of Redbox Instant - who will hopefully continue with equally successful leadership. <br>
<font face="times new roman" color="#c00000" size="+2">W</font>ell Netflix, “It is On”! You don’t have to be a market expert to conclude that this will be a battle for market share we haven’t seen since the early days of Coke and Pepsi. I look forward to the continued growth of Redbox, and hope the competition will inspire higher standards and consistently low prices. Redbox Instant, will be offered on the Roku box, and made available on Sony Playstation-4 consoles. Good luck Redbox, and may the force be with you! <p>
K. Reilly<br>
The Cohn-Reilly Report<br>
<a href="http://www.facebook.com/cohn.reilly">www.facebook.com/cohn.reilly</a></font><div class="blogger-post-footer">www.Cohn-ReillyReport.com</div>Cohn-Reilly Reporthttp://www.blogger.com/profile/07867547358819644037noreply@blogger.com0tag:blogger.com,1999:blog-3315093833232702736.post-20171237801594486292013-04-06T22:22:00.001-04:002013-04-14T02:04:43.240-04:00Employment Not As Rosy As You May Think<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhFGJUeoYxXxTspChlgxTcDVYXTmuMr-DjDUtDLw4cYEzRDTz_iQAgTVsUB4gMc71f3iLBvTjsuEzhQU5Jc6D3F1gzkjPmycbNCiJ3NVn_Ggslly1R1FRKEHpo2eOithealmT2ripSdVQ/s1600/CHARLIEunemployment1COLLAGE.jpg" imageanchor="1" style="clear:right; float:right; margin-left:1em; margin-bottom:1em"><img border="0" height="202" width="182" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhFGJUeoYxXxTspChlgxTcDVYXTmuMr-DjDUtDLw4cYEzRDTz_iQAgTVsUB4gMc71f3iLBvTjsuEzhQU5Jc6D3F1gzkjPmycbNCiJ3NVn_Ggslly1R1FRKEHpo2eOithealmT2ripSdVQ/s320/CHARLIEunemployment1COLLAGE.jpg" /></a>
<font face="trebuchet ms"><font face="times new roman"color="c00000" size="+2">A</font>lthough the unemployment rate has been below 8% since October, there seems to be a disconnect between what the government and media are telling us about how good things are with jobs and what is real. <p>
<font face="times new roman"color="c00000" size="+2">T</font>here are job openings at a level not seen in years. However, the time it takes to fill a job has increased to 23 business days compared to 15 in mid-2009. Although the economy is improving, the reality is companies are reluctant to hire, holding up the process by making candidates interview over weeks or months, before a decision is made, if one is made at all. <p>
<font color="navy"><i>“There’s a fear that the economy is going to go down again, so the message you get from C.F.O.’s is to be careful about hiring someone,” said John Sullivan,</font></i> a management professor at San Francisco State University who runs a human resources consulting business. “There’s this great fear of making a mistake, of wasting money in a tight economy.” The result is an unreported hiring freeze that seems to be in place, especially for higher skilled workers. <p>
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEib6hvU_ChsKmV7au-StSsE0Jt0XekE1agDO7GZKcIlantCzv9krmx0gQWQrEkSu0BbrcH34jKn2M3LUen6M9DkSBWSIqsAbfiblBmmpbAR_kbumIr9DG8K5784kcs1KJlBRlsBQBF8IQ/s1600/CHARLIEunemployment2.jpg" imageanchor="1" style="clear:left; float:left; margin-right:1em; margin-bottom:1em"><img border="0" height="180" width="279" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEib6hvU_ChsKmV7au-StSsE0Jt0XekE1agDO7GZKcIlantCzv9krmx0gQWQrEkSu0BbrcH34jKn2M3LUen6M9DkSBWSIqsAbfiblBmmpbAR_kbumIr9DG8K5784kcs1KJlBRlsBQBF8IQ/s320/CHARLIEunemployment2.jpg" /></a><font face="times new roman"color="c00000" size="+2">“I</font>f you have an opening and are not sure about the economy, it’s pretty cheap to wait for a month or two,” said Nicholas Bloom, an economics professor at Stanford University. But in the aggregate, those little delays are stretching out the recovery process. “It’s like one of those horror movies, an economic Friday the 13th, where this recession never seems to die.”<p>
<font face="times new roman"color="c00000" size="+2">A</font>lthough job creation has improved over the last two years, it has little impact on the backlog of unemployed workers. Uncertainty, regarding the effect of fiscal policies in Washington adds to employer indecisiveness. In addition, employers want to make sure that workers who have been out of a job for months or years are up to date with current skills, said Robert Shimer, an economics professor at the University of Chicago, before they agree to on board a candidate. <p>
<font face="times new roman"color="c00000" size="+2">E</font>mployers are under no pressure to hire – one reason as indicated in government labor reports, is high productivity. What this means is employees are working double and triple duty because employers are reluctant to hire additional staff. If they do, to lower labor costs, some companies have imported talent from abroad, especially in the technical fields, at much lower rates than their counterparts in the USA would normally command. In addition, outsourcing continues overseas, further reducing opportunities. <p>
<font face="times new roman"color="c00000" size="+2">U</font>ntil the psychological barriers are lifted regarding the fate of the economy and changes are made to reward companies who hire American workers, frustration may continue for quite some time, for domestically unemployed workers.<p>
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<div class="blogger-post-footer">www.Cohn-ReillyReport.com</div>Cohn-Reilly Reporthttp://www.blogger.com/profile/07867547358819644037noreply@blogger.com31tag:blogger.com,1999:blog-3315093833232702736.post-1738914514143191712013-03-11T22:05:00.000-04:002013-06-09T19:13:41.918-04:00A MARKET ON FIRE<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgjElcvIaBi89hU_jeKZ3WYgVhAgAkWsN14C2otnw9_4c7H_AcKUzd4IB-Kw1uSFIi8HikXYOS_dh0s3f9x2Cc6CqfGCqRlcgy7o8Gi-kh9sY7S6VYEEmIAuiUeiM7pm72YQh3SEDoTEg/s1600/MarketON-fire-2.jpg" imageanchor="1" style="clear:right; float:right; margin-left:1em; margin-bottom:1em"><img border="0" height="185" width="266" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgjElcvIaBi89hU_jeKZ3WYgVhAgAkWsN14C2otnw9_4c7H_AcKUzd4IB-Kw1uSFIi8HikXYOS_dh0s3f9x2Cc6CqfGCqRlcgy7o8Gi-kh9sY7S6VYEEmIAuiUeiM7pm72YQh3SEDoTEg/s320/MarketON-fire-2.jpg" /></a></div><font face="trebuchet ms"><font face="times new roman" color="0000bf" size="+2">M</font>arket hits record levels, finally settling above 2007 levels. Happy Days are here again! The better than expected Unemployment report for February boosted trading to yield a triple digit bump on the DOW index. With 236,000 jobs created in last month, the unemployment rate slips to 7.7%, making it the lowest rate since December 2008. February’s impressive turnout nearly doubled January’s total - making it the second best payroll growth in 12 months. Last month’s triumph may be second to November’s payroll growth - but it’s clearly a more significant milestone, given the political gridlock and sequestration anxiety. <p>
<font face="times new roman" color="0000bf" size="+2">
T</font>here is no denying, the market is on fire. This begs the question: ”Does this mean we’re officially out of the woods with respect to our struggling economy?” Remarkably, of the trillions of dollars in investment capital that was either lost in declines or fled the market four years ago, it appears to have made its way back into the stock market. As for today, we have sufficiently surpassed the highs of 2007, but we’re looking at levels that bely the overall economic picture - particularly from the standpoint of government debt and anticipated spending cuts. <p>
<font face="times new roman" color="0000bf" size="+2">
M</font>arket for 2013 is already yielding 10% growth, just in the first two months. We have seen 10% market growth for an entire year. <div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjofOfRNTSy7y_MBm4GBEPiYJbx0lnrsH43Iy42Kb5eNZKif7Cw49Pwf93YxISnFDfqVtXCC8S13KhxHCw_GDxtEXhYPqg34PKyWZNkkxWXsmGE2HRyoNcY8a7v28fPoYS9FLy-W3eMfw/s1600/DotComBubble2.jpg" imageanchor="1" style="clear:left; float:left; margin-right:1em; margin-bottom:1em"><img border="0" height="135" width="196
" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjofOfRNTSy7y_MBm4GBEPiYJbx0lnrsH43Iy42Kb5eNZKif7Cw49Pwf93YxISnFDfqVtXCC8S13KhxHCw_GDxtEXhYPqg34PKyWZNkkxWXsmGE2HRyoNcY8a7v28fPoYS9FLy-W3eMfw/s320/DotComBubble2.jpg" /></a></div>
Is this a repeat of “irrational exuberance”? (a now famous phrase coined by former Federal Reserve Chairman Alan Greenspan). Perhaps you recall - not long after Greenspan warned that the over priced tech stocks was caused by irrational exuberance, the Dot Com bubble burst. <font face="times new roman" color="0000bf" size="+2">T</font>his historic occurrence resulted in massive losses that sent investors running for cover. Billions of dollars in losses, rendered many of Silicon Valley’s young millionaires nearly broke. The state of the country’s economy was significantly more stable at that time, thus the Dot Com bust was not nearly as devastating as it could have been. Since the US economy (as it stands today) is still in a rather delicate state, regardless of the zealous market – it wouldn’t easily recover without collateral damage, and a possible slip back into a recession. <p><div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhsdTP0G_ISbxMsN7Wv8ASIQrmI55Fnk04Q1ZIaZ6WIaRNp18D216tkMr2RLL-Xox2C9Uc2jIR7mxS05u_zOPXpy716uuISOTwGHky1L3n_rCD14bKqdDDFL0ApVeZoTak2pj86QJwbDA/s1600/housingImproves.jpg" imageanchor="1" style="clear:right; float:right; margin-left:1em; margin-bottom:1em"><img border="0" height="218" width="194" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhsdTP0G_ISbxMsN7Wv8ASIQrmI55Fnk04Q1ZIaZ6WIaRNp18D216tkMr2RLL-Xox2C9Uc2jIR7mxS05u_zOPXpy716uuISOTwGHky1L3n_rCD14bKqdDDFL0ApVeZoTak2pj86QJwbDA/s320/housingImproves.jpg" /></a></div>
<font face="times new roman" color="0000bf" size="+2">
T</font>he economic indicators are mixed, but there ARE clear signs of stabilization. For example, Manufacturing industry is showing signs of growth, the Housing market is rebounding, and employers are finally feeling confident enough to hire. Nevertheless, the Stock Market is out pacing all indicators, and seemingly ignorant to political issues that threaten fiscal mayhem. Warren Buffet was quoted last week as saying “Markets are Stronger than Government”, and this has proven to be true. Hopefully, we’ve learned from our mistakes, and current market prices are based upon substantiated valuations. My optimism is tempered by reflection. <p>
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<div class="blogger-post-footer">www.Cohn-ReillyReport.com</div>Cohn-Reilly Reporthttp://www.blogger.com/profile/07867547358819644037noreply@blogger.com65tag:blogger.com,1999:blog-3315093833232702736.post-12716538083455077582013-03-04T23:08:00.001-05:002013-06-10T21:07:07.538-04:00Desperate Times Call for Desperate Measures:Yahoo CEO is Poised for the Challenge<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiwX7gYLGemdgoPOJHuC96b4_EyeJbjgajJQShikYkgg9xo6H5p2YBpahXTdjPGvkDj4ioSiFq-BkJk8C7gEK-dDrQsPrcuGSe-PAhVacjxdHd8X-D-6uqbx_u69mc3yLn5odC-rlFFTA/s1600/Desperate+Times-RED.jpg" imageanchor="1" style="clear:right; float:right; margin-left:1em; margin-bottom:1em"><img border="0" height="256" width="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiwX7gYLGemdgoPOJHuC96b4_EyeJbjgajJQShikYkgg9xo6H5p2YBpahXTdjPGvkDj4ioSiFq-BkJk8C7gEK-dDrQsPrcuGSe-PAhVacjxdHd8X-D-6uqbx_u69mc3yLn5odC-rlFFTA/s320/Desperate+Times-RED.jpg"/></a></div><font face="trebuchet"><font face="times new roman" color="0000bf" size="+2">Y</font>ahoo CEO Declares “No Pain, no Gain” Policies, and sparks fly.
Marissa Mayer, Yahoo’s New CEO, makes a gutsy move, as she dares to go against the grain to get the company back on track. Marissa Mayer was brought in to turn the company around, and given the steep decline in valuation, a new vision and direction is drastically in order. As the saying goes; “desperate times cause for desperate measures”, and Mayer has declared telecommuting a “No, No”, among other new policies. In an apparent move to bolster innovation and collaboration within the company, Marissa Mayer has taken a very unpopular step toward reinventing Yahoo, and rebuilding their value and competitive edge.<br>
<font face="times new roman" color="0000bf" size="+2">O</font>ver a decade ago, when Yahoo was the technology darling of NASDAQ, it traded as high as $445 a share (Jan 1999) - while today it trades under $25 per share. That said, the dynamic CEO certainly has her work cut out for her. As brilliant as she is beautiful, Mayer broke the gender barrier at Google, as being the first female engineer there. Often described as “tough as nails” Mayer rose through the ranks – steadily up the Google management ladder, but seemed to have recently been overlooked for Larry Page’s Senior Leadership Team. Perhaps that made it a whole lot easier for Mayer to say goodbye to Google.<p>
<font face="times new roman" color="0000bf" size="+2">A</font>fter an exhaustive search, for their next CEO, Yahoo stunned the tech community when they crowned Marissa Mayer as their next Chief Executive. In just six months, Yahoo’s newest CEO has created firestorm of media attention, and an unrelenting buzz, even rising to thelevel of outrage at times. This could be both good and bad for the company, but time will tell which way the pendulum will ultimately swing in that regard <p>
<font face="times new roman" color="0000bf" size="+2">T</font>echnology advancements have pushed the envelope in favor of telecommuting, while the troubled economy forced corporations of all sizes to rethink their policies and staffing structures. The global fiscal crisis created an opportunity for corporations to develop creative staffing and compensation structures to optimize space and costs. The tech companies had already created a blueprint that was implemented in varying degrees over the past decade.<p>
<font face="times new roman" color="0000bf" size="+2">S</font>o why is the move away from Telecommuting so controversial? In this age of advanced technology, the internet and wireless communication fostered globalization, and with it came the Telecommuting. Multinational corporations and small companies alike sought to optimize efficiency and costs by implementing mixed workforce <i>(sometimes in different countries)</i> which gave prominence to remote work options. Telecommuting has become a high accepted and commonly utilized working method, particularly for younger, innovative companies. A highly positive perception of Tech firms stem from the fact that the technology firms of the 21st century emphasized the importance of employee satisfaction concepts that promote employee-centric policies in support of work/life balance. <br>
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjqyjcMQ28ngoH3JekdejsYbjIyLRXrN7I3lR1VZgMJYr3GLvg5WhyA_d0rT_9N6Qd9t4ZD7bpXdUvtuSQuFgi7-xgItU2984tVa-MByX-rNO8MOyHdHMm9Q7I-z6A1wmUj0fyHgWjJCA/s1600/Scott-Thompson.jpg" imageanchor="1" style="clear:right; float:left; margin-right:1em; margin-bottom:1em"><img border="0" height="170" width="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjqyjcMQ28ngoH3JekdejsYbjIyLRXrN7I3lR1VZgMJYr3GLvg5WhyA_d0rT_9N6Qd9t4ZD7bpXdUvtuSQuFgi7-xgItU2984tVa-MByX-rNO8MOyHdHMm9Q7I-z6A1wmUj0fyHgWjJCA/s320/Scott-Thompson.jpg" /></a></div><font face="times new roman" color="0000bf" size="+2">M</font>eanwhile, a simple ban on telecommuting initiated by Yahoo’s CEO has sparked a major controversy - as tech experts voice their argument in for or against Mayer’s policy. For the record, Forbes has cited their support for Mayer’s Policy, while a Bloomberg contributor<i> (Slayer)</i> views the decision as daunting. Is Mayer’s decision to reverse the Telecommuting policy at Yahoo prompting fear that corporations that bought into employee-centric life/work concepts will dial back on their family friendly policies? Many strategists and analyst claim that this drastic change may be seen as a blow to working women, yielding a negative perception of Yahoo. Citing the “working woman” will be disproportionately impacted by any shift away from telecommuting.<font color="navy"><b><u> Well, you might be surprised to learn that although working women are perceived to the hardest hit by any trending policy away from telecommuting, it is actually men that will feel it the most. As it happens, the male population makes up the lion’s share of the telecommuters, yielding 73 % of the total number of remote workers in this country.</u></b></font><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhPYJ8gp9Q3FywnCSXHey71AFdFv4YlpE7h-w1ZRUyhZGsd76Mw91LTnl8kfYjjMn78alcAnOEqaeB4xqhOiQZJ5r_289PTvVf7EHtGoL95fBOfhreFR_3A9WkppIfk5e5LNcccmLrUSA/s1600/SleepingWorkerSMALL.jpg" imageanchor="1" style="clear:right; float:left; margin-right:1em; margin-bottom:1em"><img border="0" height="170" width="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhPYJ8gp9Q3FywnCSXHey71AFdFv4YlpE7h-w1ZRUyhZGsd76Mw91LTnl8kfYjjMn78alcAnOEqaeB4xqhOiQZJ5r_289PTvVf7EHtGoL95fBOfhreFR_3A9WkppIfk5e5LNcccmLrUSA/s320/SleepingWorkerSMALL.jpg" /></a></div><p>
<font face="times new roman" color="0000bf" size="+2">N</font>evertheless, this whole spectacle seems odd, and yet so telling of how powerful Marissa Mayer actually is. It is almost as if the future of Telecommuting is riding on this one decision, particularly due to the high profile of Yahoo, being one of THE most visible brands in the world.
The fact is, Mayer has a sound strategy to get the company culture back to cutting edge innovation. In the spirit of mavericks like Steve Jobs, there’s a need for “all hands on deck” attitude to shake the company up. In all fairness, given Mayer’s Degree in engineering and Masters in Science Technology, she is far more suited for the challenge than her predecessors. The 4th quarter earnings report yields a 26% increase, year over year. That's a clear indication that Mayer's strategy is already having a positive impact on the company.<p>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiy9UvL1A7qOKyNFxMfWKh6deg7Nd5V9y4s6Sd2ILSDH6RB4VfuIdRt4j9JHYYlwIIHIaE5DS6ErVIEHuhz5dX0TV1It2qyWuoG9a6eO5rDuyjSfVfcoxYqGAVdYBSDdsjs5XQv9o5DJg/s1600/Business+As+Usual-2.jpg" imageanchor="1" style="clear:right; float:right; margin-left:1em; margin-bottom:1em"><img border="0" height="200" width="163" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiy9UvL1A7qOKyNFxMfWKh6deg7Nd5V9y4s6Sd2ILSDH6RB4VfuIdRt4j9JHYYlwIIHIaE5DS6ErVIEHuhz5dX0TV1It2qyWuoG9a6eO5rDuyjSfVfcoxYqGAVdYBSDdsjs5XQv9o5DJg/s200/Business+As+Usual-2.jpg" /></a></div><font face="trebuchet ms"><font color="#0000bf" size="+2">Y</font>et again, the Golden Child of Wall St. is revealed as a fox in sheep’s clothing.<br>
<font face="times new roman" color="#0000bf" size="+2">I</font> was engaged in a debate about the role Goldman Sachs may have played in the downfall of Greece’s economy with a relative <i>(through marriage)</i> who migrated from Greece to the United States when she was 10. My research on the near collapse of the US financial market clearly points to the gradual deregulation and the unethical banking practices. There are a number of factors that contributed to the fiscal crisis, particularly the securitization of subprime Housing Loans, re-packaged and sold Globally as “A” rated paper. Regardless of the fact that the underlying debt was “C” rated, banks had the audacity to sell the mortgage-backed securities as “A” rated, low risk bonds. Of course, we can’t ignore the rampant Securities and Banking fraud, which generated hundreds of charges and investigations by the SEC against Banks and Hedge Funds. <br>
<font face="times new roman" color="#0000bf" size="+2">I</font>’ve written numerous articles about the Euro crisis. Like many economists, I believe the U.S. fiscal crisis precipitated the downward spiral of a number of EU members. This is mainly because of large quantities of foreign investment in U.S. Housing securities, which went sour. Much to my surprise, in the process of gathering data surrounding the global crisis, I learned that EU members; Greece, Italy, Spain and France, carried out non-transparent, accounting practices for over a decade. No doubt the high debt ratios hidden by accounting loop-holes would have eventually brought the weakest EU members to fiscal ruin at some point anyway.<font face="times new roman" color="#0000bf" size="+2">A</font>lthough, our financial calamity accelerated the timeline of the reveal. America's financial troubles was the equivalent of lighter fluid, igniting the masked problems of the EU’s weakest links.<p> <p><font face="times new roman" color="#0000bf" size="+2">A</font>pparently the Greek-American community seem to have a different slant on how Greece's economy found itself engulfed in a fiscal and political battle for stability. The lack of transparency and debt-to-revenue ratio was certainly taking its toll on the weakest EU members. This was made worse when changing leadership was blind-sighted by the urgency of country’s debt portfolio – particularly the derivative-structured debt owed to Goldman Sachs. When the housing market collapsed, interest rates increased, drastically increasing the debt service on the Goldman/Sardelis deal<br>
<font face="times new roman" color="#0000bf" size="+2">M</font>y Greek-American in-law (who shall remain nameless), vehemently contends that Goldman Sachs is the monster that brought her beloved country to its knees. This is hardly the case, since Greece's debt was already 127% of its GDP by 2009. Also, by that time, Greece was seeking a bailout for over 300 billion Euros. Nevertheless, She was referring to a secret transaction between Goldman and the Managing Director of Public Debt Management Agency (Christoforos Sardelis), back in 2001, where a masked loan of $2.8 billion Euros was signed, sealed and delivered. Executed completely under the radar. The loan, which was thought to be earmarked for the preparation of hosting the 2004 Olympics, was later revealed not to be the case. Although I admit, the unholy alliance with Goldman was a financial set back, it was not the smoking gun. <p>
<font face="times new roman" color="#0000bf" size="+2">T</font>he under-the-radar transaction executed by Sardelis and Goldman was a <a href= “http://www.investopedia.com/terms/c/currencyswap.asp”> Currency Swap</a>. Given the variable rate structure, there was mounting debt service, as interest rates increased, making it difficult for Greece to contain. I appears that Greece’s Debt Management Agency didn’t thoroughly analyze the deal to determine the long-term impact of this type of debt structure for Greece, given their compromised economy. A simple “what if” analysis would have helped them to analyze the impact of increasing interest rates. The Currency Swap transaction belongs to the derivative family, which are always complicated to quantify or analyze given the fluctuating market, currency and structure. These are highly risky transactions, and certainly not recommended for unstable municipalities suffering from high debt, declining GDP, and 25% unemployment. <div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhYDWfVqb9tmFCB5o0TJuNfKkP92fUZtMfP3xazFsF-tVSaUJXSA0qBeCPFtoPeIyQwf-yDtAaFkhWuxz5LFnxsVz_kpRQ5qVFAc2N5Mkao-VhRXJEOhjcjzbpZH_pkqM5iU62g61V26Q/s1600/papandreou.jpg" imageanchor="1" style="margin-left:1em; margin-right:1em"><img border="0" height="170" width="182" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhYDWfVqb9tmFCB5o0TJuNfKkP92fUZtMfP3xazFsF-tVSaUJXSA0qBeCPFtoPeIyQwf-yDtAaFkhWuxz5LFnxsVz_kpRQ5qVFAc2N5Mkao-VhRXJEOhjcjzbpZH_pkqM5iU62g61V26Q/s200/papandreou.jpg" /></a></div><font face="times new roman" color="#0000bf" size="+2">T</font>he secret deal between Sardelis and Goldman could be classified as irresponsible given the size of the debt, and the fact that it was tied to fluctuating interest rates. The operative word being, “fluctuating”. Regardless of Sardelis’ good intentions, “it takes two to tango”. Therefore, Sardelis is equally at fault. My Greek-American in-law may be reluctant to accept it, but the blame has to be shared. <p>
<font face="times new roman" color="#0000bf" size="+2">S</font>ince 2010, when I initially started writing about the Euro crisis, I learned that Sardelis was motivated by the Maastricht Treaty, requiring all EU members to show “improvement” in their public finances. This Goldman swap was a "dance with the devil" and simply a desperate attempt to “hide” the debt from the country’s books to comply with the Maastricht Treaty. These swaps were one of several techniques that European governments used to meet the terms of the treaty. There were certainly alternatives techniques available, so why did Goldman push this particular structure? Whatever the case, Sardelis was out of his element, and out smarted by his trusted Bankers. It was reported in the <a href="http://www.wsj.com">Wall St. journal</a><u> that Goldman served up fictitious, historical exchange rates for the transaction,</u> which earned them $760 million in U.S. fees. <br>
<center><i><b><font color="0000bf">Attemps to Implement Austerity Measures Lead to Violent Protests.</i></b></font></center>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgfKG3yRwkJgotYXUb4A5kS5obrQgXawXPV1TRK8hbd8PfXix4s8Fx2g_VY6BWqKx3_WoC7YroRcnd3h810phj9LBEdCe27u3tIpqo_YDMH27Aqcjl5CjNLfWfd_K4XIIHkQ7GPY5L3gg/s1600/ProtestsINgreece.jpg" imageanchor="1" style="margin-left:1em; margin-right:1em"><img border="0" height="224" width="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgfKG3yRwkJgotYXUb4A5kS5obrQgXawXPV1TRK8hbd8PfXix4s8Fx2g_VY6BWqKx3_WoC7YroRcnd3h810phj9LBEdCe27u3tIpqo_YDMH27Aqcjl5CjNLfWfd_K4XIIHkQ7GPY5L3gg/s200/ProtestsINgreece.jpg" /></a></div>
<font face="times new roman" color="#0000bf" size="+2">B</font>y the time Spyros Papanicolaou took over the Public Debt Management Agency in 2005, the loan had ballooned to over 5 billion Euros. Given the role that Goldman played in the fiscal unraveling of the housing market, which sent trimmers across the globe, you would think that their CEO, Blankfein, would consider a forgiveness of some portion of the debt. Goldman and Papanicolaou did get around to restructuring the debt, but I’d be willing to bet there was no forgiveness of debt.<p>
<font face="times new roman" color="#0000bf" size="+2">G</font>oldman Sachs may soon be faced with a public image dilemma, but until then I supposed they’ll continue to carryout their Mission to squeeze clients for every possible dollar.<p>
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<div class="blogger-post-footer">www.Cohn-ReillyReport.com</div>Cohn-Reilly Reporthttp://www.blogger.com/profile/07867547358819644037noreply@blogger.com53tag:blogger.com,1999:blog-3315093833232702736.post-1461155663823003332012-12-01T15:25:00.002-05:002013-03-23T02:51:21.201-04:00Romney’s Victory Website: And The Ugly Truth About Politics <div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg9gvW4ki4ncmJ0OQv6AdmSzPCj7Ic5BpsEx_SKggdXL120QrP-s86vhj1KrJ_Bveg-8-LF7R6CGXgazVTlCHR06b1zC_IildHuXX5Q0eMTYoJCyr-_Z3aYlX8fzXgeZg7YMr9mkNIz6g/s1600/RomneyVictoryAverted.jpg" imageanchor="1" style="clear:left; float:left;margin-right:1em; margin-bottom:1em"><img border="0" height="210" width="300" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg9gvW4ki4ncmJ0OQv6AdmSzPCj7Ic5BpsEx_SKggdXL120QrP-s86vhj1KrJ_Bveg-8-LF7R6CGXgazVTlCHR06b1zC_IildHuXX5Q0eMTYoJCyr-_Z3aYlX8fzXgeZg7YMr9mkNIz6g/s200/RomneyVictoryAverted.jpg" /></a></div>
<font face="trebuchet ms"><font face="times new roman" color="#8000" size="+2">
I</font>t appears that Mitt Romney and his GOP “posse” had a Vision that the Election was going to yield a landslide victory! Although they could not have been more wrong, their arrogance was palpable. I am sure by now you’ve heard reports about Mitt Romney admitting that he only wrote a Victory speech. That is more than positive thinking, that is sheer arrogance (and not the most attractive trait in a candidate). Fox news, and other conservative media outlets had pre-election panels, and Election-day panel discussions, that harshly laid out reasons why Democrats, and Obama, will be shown the door.
<font face="times new roman" color="#8000" size="+2">D</font>uring the early afternoon on November 6th, the conservative news anchors and pundits entertained themselves by predicting what the Romney Cabinet would resemble. Who are the likely candidates for the Romney Administration, and who would be passed over for one reason or another. It was not unlike pre-Super Bowl chatter, only this game will impact the entire country, and the world. As the day progressed, the conservative political analysts were confident and excited. <div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiSANcoeoyCu3Hwn44gR_erlOoHQTPL5pCBl_ryJ8waJKHor2WUlfozXR0DXcVLD398BsfbGJw3Sq-gj5OpLPacSGtuubUgPnQ5Pq1G5HFu9C2BCKPk4ojKjRWXLHknEFt0u9aAsgAEEg/s1600/MittRomneyWebsite-1stPage-BETTER.jpg" imageanchor="1" style="margin-left:1em; margin-right:1em"><img border="0" height="248" width="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiSANcoeoyCu3Hwn44gR_erlOoHQTPL5pCBl_ryJ8waJKHor2WUlfozXR0DXcVLD398BsfbGJw3Sq-gj5OpLPacSGtuubUgPnQ5Pq1G5HFu9C2BCKPk4ojKjRWXLHknEFt0u9aAsgAEEg/s200/MittRomneyWebsite-1stPage-BETTER.jpg" /></a></div><font face="times new roman" color="#8000" size="+2">T</font>here seem to be such utter certainty, that I was startled by it. It was like being in an alternate world, chiefly because I couldn't see how one-plus-one could equal four. It appeared that Fox News, and conservative Talk Radio, converted simple math (adding likely Romney votes) into an algebraic equation....and it all made sense to <i>THEM</i>.
Looking at the issues influencing voters, which bore out to be true, I took note of the following issues: <p>
<font color="8000"><b></b></font> Women in America want the right to choose what goes on with their bodies, and don’t appreciate being referred to as “Binders of women” <br/>
<font color="8000"><b></b></font> Latinos are concerned about immigration laws that impact their children and families.<br/>
<font color="8000"><b></b></font> FEMA should be left alone; States and local governments, and citizens need financial help after Natural Disasters .<br/>
<font color="8000"><b></b></font> A sizable portion of the “47%”, Romney wrote off, were retired, or veterans who have paid a lifetime of taxes, or risks their lives fighting for this Country. They’ve earned the right to Social Security, and other government programs<br/>
<font color="8000"><b></b></font> Auto Makers, their 181,000 auto workers and their families were happy that Obama didn’t take Romney’s advice to “let them go bankrupt”<br/>
<font color="8000"><b></b></font> Gays are passionate about having heir marriage legally recognized, giving them the same rights as heterosexual married couples.<br/>
<font color="8000"><b> </b></font>Youth votes are more likely to vote for Democrat, given the “Occupy Wall Street” movement, which blames the wealthiest 1 %, and the Bush Administration for the economic and fiscal crisis<br/><p>
<font face="times new roman" color="#8000" size="+2">T</font>he above political and social issues can be translated to a simple addition problem. Accordingly, the 7 bullet points could be treated as an aggregate of votes away from the republican candidate, Mitt Romney. Although the slow economy and high unemployment were working against Obama, as long as the turnout were <i><b>as strong</b></i>, or better than 2008, he had a good chance of winning re-election. <p><font color="##0000bf"> <i>So why then, were the Republicans and Carl Rove so vehemently certain that Romney would be elected the 45th President of the United States? To the extent that he had his Victory Website rolled out early Thursday morning?</i></font><p><div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiPxGXbOPOR6F2a5R-ciaF0ES6UlKw4Slaxncm4cZcxH6VyqnT-iX-s7CERSKM4_omxMFNx0UgxSZLeQQlhA1XTRznNrxi5lyu3VJCrOTdNs9DYw-To8O_IQKBel1LZGNoii4bjIm1IOA/s1600/ConCession.jpg" imageanchor="1" style="clear:right; float:right; margin-left:1em; margin-bottom:1em"><img border="0" height="200" width="197" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiPxGXbOPOR6F2a5R-ciaF0ES6UlKw4Slaxncm4cZcxH6VyqnT-iX-s7CERSKM4_omxMFNx0UgxSZLeQQlhA1XTRznNrxi5lyu3VJCrOTdNs9DYw-To8O_IQKBel1LZGNoii4bjIm1IOA/s200/ConCession.jpg" /></a></div>
<p>
<font face="times new roman" color="#8000" size="+2">P</font>erhaps this tidbit of information will provide a clue: Shortly after Obama’s stunning victory, I read a disturbing article that attempted to explain a complicated web of investment companies and venture capital that involved Mitt Romney’s son, Tagg Romney. In a nutshell, Tagg Romney owns the company that invested in the company that bought a controlling interest in a Voting Machine Vendor. What? I was so shocked, that it took the wind out of me. What this amounts to is so incredibly unethical, I can’t help but to think of Watergate.
So, that explains the why the Romney camp felt so sure they would be moving into the White House. This is unfathomable and beyond a mere “conflict of interest” issue. <font face="times new roman" color="#8000" size="+2">T</font>his also explains why several concerned voters released video tapes the rigged voting machines they encountered, and posted it on YouTube. One male Caucasian Voter illustrated that when he chose Obama for President, a check would appear next to Mitt Romney’s name. He tried it multiple times, and eventually left that booth. He did not indicate who he ultimately voted for, but stated that he just wanted to report a “strange” occurrence.<p>
<font color="#0000bf">Provided below is just one of the "Rigged Voting Booth" videos. </font><br><p>
<iframe width="294" height="210" src="http://www.youtube.com/embed/tiLiJ2grkr8" frameborder="0" allowfullscreen></iframe><br><p>
<font face="times new roman" color="#8000" size="+2">T</font>he combination of the Tagg Romney’s secret ownership of a voting machine company, and the YouTube videos of rigged voting machines is too much of a coincidence. I also believe that if this Article was misstating the facts, there would have been a lot of noise and defamation claims coming from the GOP or the Romney camp. Instead there is silence - as if the planned strategy was not to respond, so that the issue would quickly go away. I am almost certain that the Obama Administration is too busy to pursue the matter, especially since the stolen votes did not help them achieve their goal. The outcome of the this election, begs the questions: If Nixon hadn't won the election, would the Watergate break-in become the scandal that rocked Capital Hill - to destroy Nixon's political career? Given the lack of attention drawn to the Rigged Voting Machines connected to Tagg's Venure Capital Company, I can't help but wonder if Watergate would have become one of the biggest scandals in America's political history, if Nixon did not get Elected? Whatever the case, politics is left with a black eye, as democracy stumles on. <p>
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<div class="blogger-post-footer">www.Cohn-ReillyReport.com</div>Cohn-Reilly Reporthttp://www.blogger.com/profile/07867547358819644037noreply@blogger.com5tag:blogger.com,1999:blog-3315093833232702736.post-26026961536451499862012-11-19T22:56:00.000-05:002013-03-23T03:03:27.892-04:00 Industry Outlook: Technology Driven Jobs Growth <div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgbrVorXK4yyz-XecddnzweHcxqb2zuv1NgS_QM-SsDH1deRM0nQf_nb6wSa43uRPTez1HFJL2bTZWJ1aeTs5ilz50vmTWEmI4Ef6NROwhLSGUDvYGp-jl3f8nVKn35MTaNQ_YOiUnlzA/s1600/IndustryOutlook.jpg" imageanchor="1" style="clear:left; float:left;margin-right:1em; margin-bottom:1em"><img border="0" height="186" width="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgbrVorXK4yyz-XecddnzweHcxqb2zuv1NgS_QM-SsDH1deRM0nQf_nb6wSa43uRPTez1HFJL2bTZWJ1aeTs5ilz50vmTWEmI4Ef6NROwhLSGUDvYGp-jl3f8nVKn35MTaNQ_YOiUnlzA/s200/IndustryOutlook.jpg" /></a></div><font face="trebuchet MS"><font face="Times new Roman"size="+2" color="#800000">T</font>he Department of Labor names the Service Sector as one of the top five industries that will drive the economy over the next 6 years, out pacing all other industries <font face="Times new Roman"size="+2" color="#800000">A</font>ccording to a recent Bureau of Statistics Report, the service sector employs approximately 112.8 million people. Given the continuous advancements of technology, technology related occupations are expected to grow 25.9%, while the service sector (including project management and consulting) will be the driving force in the economic growth through 2018. It is no surprise that the demand for IT consulting and system upgrades will foster increased business, driven solely by the face-paced changes in technology. <p><font face="Times new Roman"size="+2" color="#800000">T</font>his is really good news for a wide range of career paths particularly; project managers, IT consultants, and risk analysts, network security specialists, developers, corporate trainers and recruiters. The Industry Outlook page indicates the Department of Labor anticipates 18 percent growth in the IT management and consulting services through 2020, out pacing all other occupations by 4 percent. <div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgdGheFrvg-8Wnm1Bep4rbj4rhXaVre_5LrngoyULMcVM8Y6x5S7tKvY_cNV5LiGO6lXGjo0Wxa7Kkis6_7EUAB4LsdttAE_hQMaq4UKz1-JEmEnugcxqW8aN5Aehya-Y3L8E4eqihU3Q/s1600/TeckArray.jpg" imageanchor="1" style="clear:right; float:right; margin-left:1em; margin-bottom:1em"><img border="0" height="170" width="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgdGheFrvg-8Wnm1Bep4rbj4rhXaVre_5LrngoyULMcVM8Y6x5S7tKvY_cNV5LiGO6lXGjo0Wxa7Kkis6_7EUAB4LsdttAE_hQMaq4UKz1-JEmEnugcxqW8aN5Aehya-Y3L8E4eqihU3Q/s200/TeckArray.jpg" /></a></div>
<font face="Times new Roman"size="+2" color="#800000">T</font>he Department of Labor Industry Outlook page indicates that the service sector will be accountable for employing as many as 131 million people between now and 2018. In their Industry Outlook Report issued the second quarter of this year, the Department of Labor points out that technological consulting services will be among the fastest growing sectors for professional and technical workers. To further support the positive outlook for IT and related Management and Service sectors, a Plunkett Research Report issued earlier this year, reiterated the projected 18 percent growth for the aforementioned industries. Like a super heroe, Technology will impact the overall business community as it continues to drive change, demand and thus economic recovery. <p><font face="Times new Roman"size="+2" color="#800000">S</font>mall and mid-size organizations struggle to keep up with advancements that influence their ability to remain competitive as the market place transforms. For this reason globalization and express technology advancements foster new opportunities for IT consultant firms (Deloitte, 2012). Industry and Occupational Outlook data can be found at <a href="http://www.dol.gov/"><font color="navy">US Department of Labor</font></a> website<p><p>
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<br><div class="blogger-post-footer">www.Cohn-ReillyReport.com</div>Cohn-Reilly Reporthttp://www.blogger.com/profile/07867547358819644037noreply@blogger.com0tag:blogger.com,1999:blog-3315093833232702736.post-84708080020257112292012-08-05T15:10:00.000-04:002013-03-23T03:11:57.005-04:00Silver Lining for Seniors:Outpacing National Unemployment <div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjFS6CJ0XOldFOEYwUSC3cJrWpYHn9hLIvRMZFkmktxnHynZaQRvAVIylGK8U9Sv7p0_vc46TSxdqN0mBo-DnDJxFjRYq6kXMzeKui81ST-ruSoqnss9C5W1LNQUYnOR-beitzTwHiBzA/s1600/SeniorsUnemployment.jpg" imageanchor="1" style="clear:right; float:right; margin-left:1em; margin-bottom:1em"><img border="0" height="200" width="168" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjFS6CJ0XOldFOEYwUSC3cJrWpYHn9hLIvRMZFkmktxnHynZaQRvAVIylGK8U9Sv7p0_vc46TSxdqN0mBo-DnDJxFjRYq6kXMzeKui81ST-ruSoqnss9C5W1LNQUYnOR-beitzTwHiBzA/s200/SeniorsUnemployment.jpg" /></a></div>
<font face="trebuchet ms"><font face="Times new Roman"size="+2" color="#0000bf">G</font>reat news for seniors comes as the economy crawls to recovery. At the depths of the recession unemployment was as high as 10%. By the 3rd quarter of this 2012, the national unemployment rate dipped below 8%, to settle at 7.9.<br/> <font face="Times new Roman"size="+2" color="#0000bf">A</font>lthough, this is a welcome turn of events, there are still millions of people unemployed or under employed. Nevertheless, it’s a positive indication that the long awaited recovery process is at work. Fortunately, seniors are the age group benefiting the most from the jobs surge. A <a href=”http://articles.nydailynews.com/2012-06-28/news/32461260_1_older-workers-age-discrimination-job-gains
”>Daily News article</a> by Elizabeth Lazarowitz reported that 70% of the jobs filled since 2010, were fill by candidates over 50. In the past two years nearly 3 million jobs were filled by seniors, which has driven the national unemployment rate for down to 6.7% for people over 50.<p>
<font face="Times new Roman"size="+2" color="#0000bf">W</font>e’ve always heard that employers have little use for their senior employees, and instead chase them out for younger, “cheaper” talent. Well…finally, the tables have turned. It took a while, but it appears that wisdom, experience and stability has become much more attractive to companies for the obvious reasons. In the aforementioned Daily News article, Kate Wendleton, president of Five O’Clock Club is quoted as saying “When employers have a choice, they say, ‘I need someone who’s seasoned and who will be up and running” What seemed to be common sense, took decades for HR executives to ascertain: Training, learning curves, and mistakes are eminently more expensive than the higher salaries required for, shall we say, "seasoned " professionals. This is exhilarating news for anyone over 50 seeking to find a job, change jobs or careers. My only question is; Why has it taken so long for companies to appreciate the immense value an experienced, older employee brings to the table? <p>
<font face="Times new Roman"size="+2" color="#0000bf">I</font>n these difficult times, companies are forced to go into stealth mode to sustain their profit margins and growth objectives. That entails staff trimming, budget cutting, and closely analyzing the performance data for a more vivid perspective on their bottom line. What do you think that ultimately revealed? New recruits - fresh out of college, usurp far more costs and waste than the tried-and-true “senior” employees. That said, those candidates over fifty, or pushing sixty should carry their experience and grey hairs with pride and confidence – as the short-sighted HR executives have finally seen the light.<p>
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<br><div class="blogger-post-footer">www.Cohn-ReillyReport.com</div>Cohn-Reilly Reporthttp://www.blogger.com/profile/07867547358819644037noreply@blogger.com0tag:blogger.com,1999:blog-3315093833232702736.post-67365354902478290972012-07-18T14:49:00.001-04:002013-03-23T03:04:36.998-04:00Doin' the Twist: The Federal Reserve Steps in to Spur the Economy<br /><div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgDRYEzqffXV8Si0WjpxgADWQjvzaHXyAKC9AwP46-IBo3jyEdjg2yY_m_5weWOWgnorNT5iMlVb8uTk5_B_iz69xXT-BwoeKAJTv52mSvnSLQKnopNk_vKvpJ0SiH-IEw-hMmqUtunZw/s1600/TWIST.jpg" imageanchor="1" style="clear:right; float:right; margin-left:1em; margin-bottom:1em"><img border="0" height="188" width="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgDRYEzqffXV8Si0WjpxgADWQjvzaHXyAKC9AwP46-IBo3jyEdjg2yY_m_5weWOWgnorNT5iMlVb8uTk5_B_iz69xXT-BwoeKAJTv52mSvnSLQKnopNk_vKvpJ0SiH-IEw-hMmqUtunZw/s200/TWIST.jpg" /></a></div><v:shapetype coordsize="21600,21600" filled="f" id="_x0000_t75" o:preferrelative="t" o:spt="75" path="m@4@5l@4@11@9@11@9@5xe" stroked="f"><span style="font-family: Calibri;">
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</v:path></v:stroke></span></v:shapetype><span style="font-family: Calibri;"><span style="font-size: 12pt; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: trebuchet ms;"><font size="+2" Color="sky blue" face="Blackadder ITC"><b>I</font></b>n
the beginning of the year, the Federal Reserve indicated their plan was to let
the economy stand on its own. By the end of last month, however, the Feds broke
down and reduced long-term interest rates in a program they refer to as <b>Operation
Twist</b>. In this program, the Feds would drive down interest rates to
encourage business activities, such as borrowing and hiring. According to a
<a href="http://www.wsj.com/">Wall Street Journal</a> article by
Peterson and Hilsenrath, the Federal Reserve officials announced that <b>Operation
Twist</b> will be extended through the end of the year, but they’re “poised to
do more”. </span><span style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></span></div>
<span style="font-family: Calibri;"><span style="font-size: 12pt; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: Calibri;"><font face="Blackadder ITC" size="+2" Color="sky blue"><b>A</font></b>t the end of the
1st Quarter, the Feds indicated that there was no need for their help. The
economic picture appeared brighter following a strong 4<sup>th</sup> Quarter,
and encouraging jobs report. <div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjbyiEMmPR_Bva0bxLIDkSvxeaPC2UxOWlXtOoA2fePKzxtPeclLEiaG2Grx74ZPhD_-tE51fFlNEpkucK2eKbMn-3dQI4vPUQ272wo88Bm2GZmpdrXLSxcDl65yqIFw0tIScqaf2JyiQ/s1600/BenBern%2540CapHill.jpg" imageanchor="1" style="clear:left; float:left;margin-right:1em; margin-bottom:1em"><img border="0" height="206" width="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjbyiEMmPR_Bva0bxLIDkSvxeaPC2UxOWlXtOoA2fePKzxtPeclLEiaG2Grx74ZPhD_-tE51fFlNEpkucK2eKbMn-3dQI4vPUQ272wo88Bm2GZmpdrXLSxcDl65yqIFw0tIScqaf2JyiQ/s200/BenBern%2540CapHill.jpg" /></a></div>
By the time the we turned the corner into the 2<sup>nd</sup>
Quarter, the economic storyline began to change amid heightened pressures from
overseas. The market, which had anticipated S&P downgrades for Spain and
France, could no longer withstand the push-back stemming from the European
Union’s fiscal and political upheaval. Globalization has its rewards, but this
isn’t one of them. When the EU sneezes, we are going to get the sniffles, as if
the distance were non-existent. </span><span style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></span><br />
<br />
<span style="font-size: 12pt; line-height: 115%; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: Calibri;"><span style="font-family: Calibri;"><font face="Blackadder ITC" size="+2" Color="sky blue"><b>A</font></b>s the Euro fiscal storm brewed, the dismal jobs
report and Facebook IPO did its part to shrivel up any confidence Investors
might have had left. The market uncertainty lingers, regardless of good economic
news. This <span style="mso-spacerun: yes;"> </span>depicts the profile of weary
investors - possibly suffering from Post-Traumatic Stress Disorder. <span style="mso-spacerun: yes;"> </span>Being the eternal optimist, I’m hoping <b>Operation
Twist</b> will have us all dancing in the isles by the end of the year.<p>
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<font color="0000bf">Anonymous said......<br></font>
This blog was... how do you say it? Relevant!! Finally I've found something which helped me. Thanks! Look at my blog post - this link - October 13, 2012<br><p>
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<font color="0000bf">Anonymous said......<br></font>
Hiya! Quick question, that's entirely off topic. Do you know how to make your site mobile friendly? My weblog looks weird when viewing from my iPhone 4. I'm trying
to find a template or plugin that might be able to resolve this issue. - October 14, 2012
<p><div class="blogger-post-footer">www.Cohn-ReillyReport.com</div>Cohn-Reilly Reporthttp://www.blogger.com/profile/07867547358819644037noreply@blogger.com3tag:blogger.com,1999:blog-3315093833232702736.post-20294073496835153032012-07-10T20:42:00.000-04:002013-03-23T03:05:08.742-04:00Financial Fraud Strikes Again<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhxhu12mjxGR2Pxpd_zGw3_yNBJyGeAe9VoZytfJxnexhgi6HSVtQGRDZDN14v_T6WBaBoht1CXWKoQF8UsEBwd5byTjSss71t_RVnFP1F9VYJ35GeSedEUF2VQ6Yqq_jsrM7auTaz3gw/s1600/PFG+fraud1.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhxhu12mjxGR2Pxpd_zGw3_yNBJyGeAe9VoZytfJxnexhgi6HSVtQGRDZDN14v_T6WBaBoht1CXWKoQF8UsEBwd5byTjSss71t_RVnFP1F9VYJ35GeSedEUF2VQ6Yqq_jsrM7auTaz3gw/s200/PFG+fraud1.jpg" width="163" /></a></div>
Haven't we had enough of financial scandals? Of course not, here we go again. This time it is with a boutique futures trading broker - Peregrine Financial Group, also known as P.F.G.. On July 9, 2012, the National Futures Association (NFA) - the industry wide, self-regulatory organization for the U.S. futures industry, made an inquiry with U.S. Bank and learned that out of the $225 million in customer segregated funds that P.F.G. had reported to the NFA as being on deposit at the Bank just days earlier, only approximately $5 million was actually on deposit. The NFA also learned that, although P.F.G. submitted confirmations that U.S. Bank account balances as of February 2010 and March 2011, were reported to be approximately $207 million and $218 million, respectively, P.F.G.'s actual balances were less than $10 million for each one of these months.<br />
<br />
On top of the reported financial fraud, a day earlier, the chairman and chief executive, Russell Wasendorf Sr., tried to commit suicide outside of the firm’s offices in Cedar Falls, Iowa .The Federal Bureau of Investigation is investigating the matter, according to a spokeswoman for the Omaha office, Sandy Breault. Ms. Breault indicated that the Chicago office of the agency might also get involved.
<br />
<br />
The Commodity Futures Trading Commission (C.F.T.C.) is seeking a restraining order against P.F.G., to prevent the destruction of any information that may be needed in the course of the investigation. The C.F.T.C. is also asking a federal court to appoint a receiver for the firm and freeze its assets.
<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh3XNkyJH2FYPkC0nk3pu_H8mfVy3NTM1wW1LOOEzUcLWEtzmoBhSXZul4NfncrRFauP8JZs0bcjE-wfdEL9F1TOOY8kZ1bUxwEUOmHOqIL4qRFCh7B6lQriI6RcGuzU4FenMSVnt-rYg/s1600/PFG+fraud2jpg.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="150" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh3XNkyJH2FYPkC0nk3pu_H8mfVy3NTM1wW1LOOEzUcLWEtzmoBhSXZul4NfncrRFauP8JZs0bcjE-wfdEL9F1TOOY8kZ1bUxwEUOmHOqIL4qRFCh7B6lQriI6RcGuzU4FenMSVnt-rYg/s200/PFG+fraud2jpg.jpg" width="200" /></a></div>
This feels a lot like a curtain call for MF Global, where $1.6 Billion is still missing. (refer to a prior article in this blog for more information about MF Global). Similarly in this case, as the complaint states: “P.F.G. and Wasendorf have used customer funds for purposes other than those intended by its customers, and consequently, have misappropriated these funds”. “The whereabouts of the funds is currently unknown".<br />
<br />
Needless to say, the operations of the firm have been halted. Unfotunately, I am one the many victims. For two years, I was an active futures trader with the company which offered proprietary trading platforms to small retail customers like myself with unique and robust features that were not available from other brokerage houses. Although it has been several years since I day traded, due to time constraints, I still kept a funded account with P.F.G.. I contacted the NFA today and registered my name as an account holder. I urge all others affected to do the same. It may not amount to much but at least it is better to take some kind of action and to make your voice heard.<br />
<br />
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<br><div class="blogger-post-footer">www.Cohn-ReillyReport.com</div>Cohn-Reilly Reporthttp://www.blogger.com/profile/07867547358819644037noreply@blogger.com0tag:blogger.com,1999:blog-3315093833232702736.post-47568922357713716342012-06-03T16:49:00.002-04:002013-03-23T03:08:08.311-04:00To Be or Not To Be: EU Shows signs of cracking<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgUguxNHjiCYua7b3S7ahanB4WS7nmGNs9sU1FoVsR0iP07zlfVLowQ_ntqGGaPaU52dkIfPJd1wFDkTiBNBTNxrpMROJwfG9PgcgmeR12WxXQjYv-BWKYSn3L9i6bRr7AN8kylQj3jQA/s1600/On+the+BrinkLARGE.jpg" imageanchor="1" style="clear:right; float:right; margin-left:1em; margin-bottom:1em"><img border="0" height="205" width="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgUguxNHjiCYua7b3S7ahanB4WS7nmGNs9sU1FoVsR0iP07zlfVLowQ_ntqGGaPaU52dkIfPJd1wFDkTiBNBTNxrpMROJwfG9PgcgmeR12WxXQjYv-BWKYSn3L9i6bRr7AN8kylQj3jQA/s200/On+the+BrinkLARGE.jpg" /></a><font face="trebuchet ms">Twenty years ago, when the idea was circulating about a unified currency in Europe, it seemed like such a brilliant concept, based upon sound economic and political arguments. Today, it almost seems like an impossible dream. Landon Thomas of the New York Times asks in his article "Can they muster the will and resources to keep the euro zone from breaking apart? <p>
As the world looks on, and markets take defensive positions, the Euro crisis unfolds like the climax of a mystery novel. Greece's dramatic elections - where the people ousted Sarkozy, opting for an unlikely candidate, François Holland. The outcome of the election was a clear sign that the people were not ready for the strict austerity measures needed to turn their economy around. Bailout alone was not going to save Greece, it was only expected to buy them time to pull their policies, and fiscal plan together. The political and civil unrest in Greece, gave little hope for a turnaround. Instead the notion of Greece leaving the European Union resurfaced with somber overtones of reality.<p>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEinfGFKugOd6DVX69h2DWVSemis7Rhnh8a3Tdqay-QAOuclAYZI3vBRZfmOpA_nNrVNWOOdcYi8dgMs3fnVrCciec9deMe4IMDP7qsJ085lPI2HUHXJKhLvul8v-8Z6_foFy3arv_KtIQ/s1600/S%2526P.jpg" imageanchor="1" style="clear:left; float:left;margin-right:1em; margin-bottom:1em"><img border="0" height="137" width="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEinfGFKugOd6DVX69h2DWVSemis7Rhnh8a3Tdqay-QAOuclAYZI3vBRZfmOpA_nNrVNWOOdcYi8dgMs3fnVrCciec9deMe4IMDP7qsJ085lPI2HUHXJKhLvul8v-8Z6_foFy3arv_KtIQ/s200/S%2526P.jpg" /></a></div>By the end of May, Spain had decided to pump 19 billion Euros into its struggling Lender, Bankia, SA, as a strategy to illustrate stability, and quell any notion that the crisis continues for its financial sector, in light of Greece's downward slide. This is a prop-up strategy that is effective in influencing perception, which is crucial in the realm of investors and financial markets. The US equivalent of $24 billion, was a rich injection that is twice the amount Spain spent in the recent past to straighten out the banking sector during US housing market collapse - causing a global rippling affect. Spain is swiftly reacting to mitigate a repeat of the fiscal mayhem stemming from billions of dollars lost in toxic mortgage-backed securities. <p>
Meanwhile, two weeks ago, S&P downgraded Bankia, and several other Spanish Banks, causing worldwide concern. The rating agency made matters worse by painting a gloomy near-term forecast for the region, citing their belief that Spain is heading toward a double dip recession. S&P also noted that there was a reasonable expectation of an increase in troubled assets. On the heels of Frances downgrade, and Spain’s fiscal concerns, the question becomes, was this unified currency such a sound economic and political move in the first place. Friday, the DOW closed 300 points lower, illustrating investor sensitivity to the Euro Crisis - although, it should be noted that market anxiety was further stimulated by the soft jobs report. <p>
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<br><div class="blogger-post-footer">www.Cohn-ReillyReport.com</div>Cohn-Reilly Reporthttp://www.blogger.com/profile/07867547358819644037noreply@blogger.com1tag:blogger.com,1999:blog-3315093833232702736.post-8863138702030478172012-05-25T04:51:00.000-04:002013-03-23T03:08:33.643-04:00BFF: Ballad of the Facebook Fiasco<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgUszUyCebWwjJ-3l9XZ6xJrRhXwSVyMaasZNkoe0N4wjgILLuJjphwEh8lsZ7QJ-0GEe8AO4hXvf2S-ZSPaqgHMl8M78rzei1zcrn0Gdgg0pQrp8iUNXQL_mlFfAEiVNvMiROlnl5aJA/s1600/BFF.jpg" imageanchor="1" style="clear:right; float:right; margin-left:1em; margin-bottom:1em"><img border="0" height="164" width="260" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgUszUyCebWwjJ-3l9XZ6xJrRhXwSVyMaasZNkoe0N4wjgILLuJjphwEh8lsZ7QJ-0GEe8AO4hXvf2S-ZSPaqgHMl8M78rzei1zcrn0Gdgg0pQrp8iUNXQL_mlFfAEiVNvMiROlnl5aJA/s200/BFF.jpg" /></a><font face="trebuchet ms">Countless individual investors, and some intrigued "average Joes" thought that the Facebook IPO was going to be the atom bomb of Silicon Valley. The Golden Egg of the privately held tech companies, and its fearless leader, Zuckerberg, was sure to deliver. As the highly anticipated IPO jettisoned into history, as being the most anticipated offering of the millennium - I too thought FACEBOOK would be the IPO not to be missed. "get in now", I thought, "or you will regret it". Of course, I truly expected that the offering would be priced in the mid-teens, $13 or $15 per share. At the very least, it would be priced at a level commensurate with the "value", of a company that has no PRODUCT, who depends solely on Advertising. Advertising as a revenue source is not at all bad, but when you take into consideration that revenue growth on an ongoing basis would mean continued popularity, increased memberships and usage. Now, therein lays the rub. Allow me to offer MySpace into evidence, as how quickly a popular "hang out" can just as quickly shift into decline. MySpace, which was somewhat of a pioneer, is now valued at approximately $1 million, and struggling to stay relevant. That said, the pricing geniuses at Morgan Stanley had to be confusing FB stock with a commodity; you know... one of those limited resources that the world could not do without. How else would you explain a $38 opening price. <p>
When a new popular issue is priced in the teens, it has no place to go but up. Sure it would fluctuate during the course of the day, but normally it would wind up quite a bit higher than the initial price. On the other hand, if you come into the market at $38, you are already at a premium, there is no place to go but down. Of course the speculation as to why the issue was priced so high, created underlying tension and uncertainty. <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg0S4ZTyWpxm2kK55drxiJI5FDv8GbtbbmXCxtMdc6xPTB0pYnyeFzO8x_VxDO8uSkT_s2Z8lKzTbVHM9uhyphenhyphenvaZMOshF2OEUfbYiTGJAoSx6p4BUnxgspLoSMOIadXL1hX94N-sfVLRaQ/s1600/FB%2526openingBEll.jpg" imageanchor="1" style="clear:left; float:left;margin-right:1em; margin-bottom:1em"><img border="0" height="187" width="288" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg0S4ZTyWpxm2kK55drxiJI5FDv8GbtbbmXCxtMdc6xPTB0pYnyeFzO8x_VxDO8uSkT_s2Z8lKzTbVHM9uhyphenhyphenvaZMOshF2OEUfbYiTGJAoSx6p4BUnxgspLoSMOIadXL1hX94N-sfVLRaQ/s200/FB%2526openingBEll.jpg" /></a>By the end of the following day, reports of unethical matters surrounding the handling of the new issue began to surface. What a Fiasco this turned out to be! A sad, and bitter reality hit as news broke of possible insider trading. It is alleged that the lead bankers handling the FACEBOOK account at Morgan Stanley had tipped off their clients with confidential information. This information was in essence a warning not to purchase the stock at the opening price. Was this a setup, designed specifically to make million on the short sale of Facebook shares. An article in Business Insider reported that Morgan Stanley provided a select few classified information about FACEBOOK's weaker than expected forecast. Within 48 hours, news circulated of an SEC and FINRA investigation into what really happened. Whatever the case, Finance Reform obviously didn't go far enough. <p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj5e3qzU1tIBv-zzt5EtkxVZP77uauRmu9f2X9_qOAAaCmMe5tmj9JIZKL4dj85DlWml_h53JYzCxoyhf_yBWO65A7D7wBznSXyuI_FpsjlQoYpUmzdY1X9qGYcJRYqY2wbsZIYYsQ0ww/s1600/SEC.jpg" imageanchor="1" style="clear:right; float:right;margin-left:1em; margin-bottom:1em"><img border="0" height="188" width="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj5e3qzU1tIBv-zzt5EtkxVZP77uauRmu9f2X9_qOAAaCmMe5tmj9JIZKL4dj85DlWml_h53JYzCxoyhf_yBWO65A7D7wBznSXyuI_FpsjlQoYpUmzdY1X9qGYcJRYqY2wbsZIYYsQ0ww/s200/SEC.jpg" /></a>Selective dissemination of "material" information concerning a cut in forecast estimates for the company would cause institutions to lose interest, which generated investor uncertainty among the small investors who weren't privy to this insider information. From the savvy individual investors, down to the average Joes jumping in to get a piece of the Facebook pie, this scandal put investors at an unfair disadvantage. The whole matter created a unprecedented IPO fiasco, leading to untold losses, and a decline of market confidence, which we could have done with out.<p>
Adding insult to injury, Nasdaq had a fair share of technical problems which only added to the mayhem. Thousands of trades were stuck in limbo for individual investors. This may actually be a blessing, giving them the opportunity to either pick up shares at a steep discount, or back out completely. Ultimately, FB shares ended up about 30% lower than its initial price, with occasional ticks upward and downward. We're not likely to see stability in this stock price until the dark cloud of confusion is lifted, legally or otherwise.<p>
My plans to purchase a hand full of shares immediately fizzled when I heard the price. A conversation with a few hopelessly optimistic friends convinced me that I should go ahead and pick up a couple shares just to be a part of the historic IPO. I never expected it would become the Fiasco of the decade. <p>
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<div class="blogger-post-footer">www.Cohn-ReillyReport.com</div>Cohn-Reilly Reporthttp://www.blogger.com/profile/07867547358819644037noreply@blogger.com0tag:blogger.com,1999:blog-3315093833232702736.post-61012560532518503852012-05-05T02:33:00.000-04:002013-03-23T03:08:49.028-04:00Economic Stability: Still in Question in the U.S. & EU<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiB6Yvz7LKE9U_TT1b7Lj8t0R5txI-_WQOJYm8Npq4UuTFgSUUxHGDo8VssfE21IOIkh3dHCXCoL_a6KU4_rhYSQ4-4vFxQv3BffppjiJe6GKEEqBBibQAcHOta1Pm7QLHzWGZciL5dZg/s1600/MarketBlues.jpg" imageanchor="1" style="clear:left; float:left;margin-right:1em; margin-bottom:1em"><img border="0" height="180" width="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiB6Yvz7LKE9U_TT1b7Lj8t0R5txI-_WQOJYm8Npq4UuTFgSUUxHGDo8VssfE21IOIkh3dHCXCoL_a6KU4_rhYSQ4-4vFxQv3BffppjiJe6GKEEqBBibQAcHOta1Pm7QLHzWGZciL5dZg/s200/MarketBlues.jpg" /></a><font face="trebuchet ms">The mixed economic indicators have been a source of much debate among analysts. The softer than expected Jobs Report, along with the spiking gas prices have turned the optimistic economic forecast on its head. An article in the Wall Street journal indicated the industries that were previously driving the economic recovery in the past year have slowed, noting that others economic indicators have stepped up their place. I'd say that's as accurate observation and interesting fodder for economists. For example: the housing market appears to be gaining a good deal of traction, and consumer spending has been consistently growing, and gaining momentum. Experts say that the up-beat consumer spending data is linked more to the unusual warm Winter, and thus not so much a real indication of a positive consumer outlook. The market has fluctuated in the last quarter of 2011, but it cannot be disputed that the DOW has flourished in spite of the slow economy to its highest levels above 13, 000. It also appears that the market seems to be a lot less sensitive to the news across the Atlantic than last year. The Ratings agency, S&P downgraded Spain's debt in January and again in March, but the market barely responded to the news. This is somewhat surprising considering the impact the Euro crisis would have on our economy if things were to spiral out of control. Perhaps the market had already compensated for the news in the last quarter of 2011, since the downgrade for France and Spain had been anticipated. <p>
<font color="#0000bf"><b><u>Indications That support Optimism</u></b></font><p>
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgv4Fftj0EpqJXWRZVVcBw1h7F7qWmMU8eIQLTFSU_lhEEpgH6tgkNt2cdDrWMrz4ZR_LK4OwgnXJqTFVvHArVROt682UD7V3Fy_SpVVJXtMjL5jo5bmosjdaUlweXhccxEpm11_pBvoA/s1600/bullish.jpg" imageanchor="1" style="clear:right; float:right; margin-left:1em; margin-bottom:1em"><img border="0" height="192" width="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgv4Fftj0EpqJXWRZVVcBw1h7F7qWmMU8eIQLTFSU_lhEEpgH6tgkNt2cdDrWMrz4ZR_LK4OwgnXJqTFVvHArVROt682UD7V3Fy_SpVVJXtMjL5jo5bmosjdaUlweXhccxEpm11_pBvoA/s200/bullish.jpg" /></a>Consumer spending has been a great influence on the economy, having a direct impact on the retail industry revenues. It should be noted that two thirds of national GDP is made up revenues from consumer spending. Consumer spending is indeed an important aspect of analyzing the economic forecast. The Housing market is showing signs of life, as housing purchases in the first quarter increased 19%. More dramatic statistics have been coming out of Miami and New York, but it’s still too soon to exhale <p>
<font color="#0000bf"><b><u>Indications That support Pessimism</u></b></font><p>
The rising oil prices have become an unavoidable threat to the recovery, but for some inexplicable reason consumers are taking advantage of the prices and low financing interest rates. The jobs report came in at 120,000 new jobs, which is the lowest number in several months. This could indicate that employers are not completely convinced that the economy is on the road to solid footing. Let's face it the perception of the economy is the most important aspect of the forecast. Economists and analyst can talk endlessly, but if the investors' perceptions do not concur, they stay out of the market, or get out.<p>
The fact is there are both positive and negative influences at work, making it more challenging to decipher the indicators. If I had to take a stab at analyzing the economic indicators, I'd be likely to lean toward an optimistic forecast because of the sheer impact that consumer spending has on the GDP, and the deep discounts in the housing values which have spurred buying. Also, the earning reports illustrated that banks are thriving amid restrictive finance reforms, and retailers are reporting positive earnings that beat analysts' expectations. Tourism in the country reached an all-time high amounting to billions in added revenues in New York alone. We will just have to wait ad see, it could really go either direction in the coming months. <p>
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<br><div class="blogger-post-footer">www.Cohn-ReillyReport.com</div>Cohn-Reilly Reporthttp://www.blogger.com/profile/07867547358819644037noreply@blogger.com0tag:blogger.com,1999:blog-3315093833232702736.post-76150259299765673362012-04-09T12:39:00.009-04:002013-03-23T02:25:28.262-04:00Stimulus-Interuptus: Feds Take Away the Punch Bowl<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhg7WMjVXmkbl_WSLbVClhrUc9wvXusU9r1l6JIi8NfXkhTyTBUaMeYlql3pNOWAK9YsBjgD2ARUHuF7497fXmHFb7943BkU3A5RR7HeSmzljVoLlz3of_1L6bju0PTZ_YiS_cdB0Ptlw/s1600/StimInterupt-2.jpg" imageanchor="1" style="clear:right; float:right; margin-left:1em; margin-bottom:1em"><img border="0" height="200" width="220" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhg7WMjVXmkbl_WSLbVClhrUc9wvXusU9r1l6JIi8NfXkhTyTBUaMeYlql3pNOWAK9YsBjgD2ARUHuF7497fXmHFb7943BkU3A5RR7HeSmzljVoLlz3of_1L6bju0PTZ_YiS_cdB0Ptlw/s200/StimInterupt-2.jpg" /></a></div><font face="trebuchet ms"><font face="times new roman" style="strong" size="+2" color="#0000bf">T</font>he economic indicators are all signaling a stabilizing, recovering economy. However, the disappointing jobs report may indicate that we’re not quite ready to pop the Champaign. In a March meeting held by the Federal Reserve, the published minutes show the feds believe that the economy is strong enough to stand on its own. No need to intervene to help it along. In the meantime, the markets reacted in a bag way.<br />
<br />
<font face="times new roman" style="strong" size="+2" color="#0000bf">T</font>he market sell off last week, was a response to the Federal Reserve taking the position that the economy no longer needs their assistance, which means no “stimulus”. A Chief Market Analyst, Doug Cote, was quoted as saying that the Feds were “taking away the punch bowl, the markets don’t like these punch bowls being taken away”. You can glean from this statement that the economic punch bowls were heavily spiked over the past 4 years to get up to this point. In fact, since the beginning of the U.S. Deep Recession, the government worked feverishly to steer the economy away from the cliff it was headed for. This meant the Federal Reserve and the White House actively propping up the financial market and the economy by implementing a cocktail of fiscal and monetary policies, which included numerous rounds of stimulus packages for various faltering industries. <br />
<br />
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiZwJXW3m4m4zRHMUG4dEr8kWzh5xOq8Gn6Tw99UkgmgrIguLCucBjvdlsO_83T6jqGM311T2LmlxM9gyJeFSTHvyRbn3o8mdmVjYYKANV1nUcUO6gbg-_gbUK2nvhrb7jvD_Lv6dfeqg/s1600/StimuliTeam.jpg" imageanchor="1" style="clear:left; float:left;margin-right:1em; margin-bottom:1em"><img border="0" height="200" width="190" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiZwJXW3m4m4zRHMUG4dEr8kWzh5xOq8Gn6Tw99UkgmgrIguLCucBjvdlsO_83T6jqGM311T2LmlxM9gyJeFSTHvyRbn3o8mdmVjYYKANV1nUcUO6gbg-_gbUK2nvhrb7jvD_Lv6dfeqg/s200/StimuliTeam.jpg" /></a></div><font face="times new roman" style="strong" size="+2" color="#0000bf">T</font>he Bush Administration, followed by the Obama Administration pulled out all the stops to get the Country back on solid footing with programs which included; the bailout of Banks and the big three auto makers, tax payers stimulus refund, the homeowners’ assistance and first home buyer programs, and even forgiveness of old student loans - the list goes on. Now, the market has to go “Cold turkey”, and function without a safety net. This was obviously an unpleasant reality when the news send trimmers throughout the investment community, sending the DOW and other major indices in a mild tailspin. <br />
<br />
<font face="times new roman" style="strong" size="+2" color="#0000bf">T</font>he next quarter will be a critical benchmark for forecasting where the economy actually is, and what that means for Main Street, and the rest of the world<br />
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<div class="blogger-post-footer">www.Cohn-ReillyReport.com</div>Cohn-Reilly Reporthttp://www.blogger.com/profile/07867547358819644037noreply@blogger.com1tag:blogger.com,1999:blog-3315093833232702736.post-46616719351109242262012-03-17T03:00:00.016-04:002013-07-30T22:56:45.002-04:00Goldman Sachs: Filing for Moral Bankruptcy<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgb7pUG1kIJyo3NXX0hFbVUWxufQxN4NKu8QsTpJarWiVApIt0O2j5EUc-91Iizk3PVzdkQTD1AL2ldA68ctji6eX_TOube-petElRNl193KAdwLRRd0NnwMu7hofgx9eosnSII-_u-CQ/s1600/GoldmanSachsMUPPETD2.jpg" imageanchor="1" style="clear:right; float:right; margin-left:1em; margin-bottom:1em"><img border="0" height="200" width="143" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgb7pUG1kIJyo3NXX0hFbVUWxufQxN4NKu8QsTpJarWiVApIt0O2j5EUc-91Iizk3PVzdkQTD1AL2ldA68ctji6eX_TOube-petElRNl193KAdwLRRd0NnwMu7hofgx9eosnSII-_u-CQ/s200/GoldmanSachsMUPPETD2.jpg" /></a></div><font face="trebuchet ms"><font style="strong" size="+2" color="#0000ff">T</font>he investment Banking community was stunned by the hard hitting statements made by Goldman’s former executive, Greg Smith. Smith's scathing, but heartfelt remarks, published in the OpEd section of the New York Times, was the topic of lively debates and criticism around the globe this week. <br />
<font style="strong" size="+2" color="#0000ff">A</font>fter reading Smith’s behind-closed-doors account of what’s really going on at Goldman, it would seem that Wall Street’s gold plated, celebrated investment bank of 143 years has somehow lost its core values on which they built their brand of “Trust” and “Integrity”. Goldman Sachs was once an awe inspiring investment bank, whose brain trust is referred to as “the best and the brightest”, but they have certainly suffered from a leadership deficiency. Strong leadership or the lack thereof, is the basis of the rise and fall of many businesses – regardless of their size. It is the “leadership” of Steve Jobs who, upon returning to Apple, was able to bring the company from the brink and take it to quintessential plateau, far beyond anyone’s imagination. That’s leadership. <br />
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiLIgg8hOtVKklBDsL3KHgsxC1LO33qdLWeYG1DKK6sbH-wvwjpjHuXh1znLxIlwXJr1MAH6Sx3nS9KcNTu3zHsYILU7Ddee4bKPHfIho6R5698D4bSNZePnPHxRmO9Oy51HAc02fhE3w/s1600/Iquit.jpg" imageanchor="1" style="clear:left; float:left;margin-right:1em; margin-bottom:1em"><img border="0" height="137" width="160" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiLIgg8hOtVKklBDsL3KHgsxC1LO33qdLWeYG1DKK6sbH-wvwjpjHuXh1znLxIlwXJr1MAH6Sx3nS9KcNTu3zHsYILU7Ddee4bKPHfIho6R5698D4bSNZePnPHxRmO9Oy51HAc02fhE3w/s200/Iquit.jpg" /></a></div><font style="strong" size="+2" color="#0000ff">M</font>r. Smith’s commentary might have easily been dismissed as a disgruntled employee, were it not for the fact that he was a highly regarded executive director, who has spent over a decade of his career there. From my perspective, Smith gains credibility for his tone, and the manner in which he described the pride he felt being a part of Goldman, and praised the company that once was. He was convincing because of his effort to be constructive in his criticism - disclosing examples of the troubling shift away from providing investment advice in the best interest of the client. Rather than simply throw destructive daggers and below-the-belt punches that serve only to damage the company, his rant was respectful but unyielding. Smith had the power to do a lot more damage than he did. Keep in mind, never once did he accuse Goldman of fraudulent practices. <br />
<font style="strong" size="+2" color="#0000ff">M</font>r. Smith’s piece focused on Morals, Ethics and Integrity, which was summarily lacking, apparently much like the leadership. Smiths cited his leaving the company because he could no longer stomach the Goldman that has emerged. The shift in focus from Client-centered investment services to, revenue-driven “elephant hunting” <font color=0000ff><a href="http://www.nytimes.com/2012/03/14/opinion/why-i-am-leaving-goldman-sachs.html?_r=1&pagewanted=all">(Smith, 2012)</a></font> has eroded the company’s code of ethics to the bare bones. Having developed an unnatural preoccupation with taking every allowable advantage of the client, Goldman Sachs is left morally bankrupt. <div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjWhdIqIBgMncNAk1vS-AOGRDzS_yG10CSx8R5XsbdizhxBi07zMTpKD-2mg4OMPUV-JAiRTgznF9KGKTpZE-82Tn4Nbugkv0-RGRoK27q7S6bMXziM_0ZfSG7FEP7hwCC3DpUBkDh1oQ/s1600/SenateHearingSACHS.jpg" imageanchor="1" style="clear:right; float:right; margin-left:1em; margin-bottom:1em"><img border="0" height="155" width="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjWhdIqIBgMncNAk1vS-AOGRDzS_yG10CSx8R5XsbdizhxBi07zMTpKD-2mg4OMPUV-JAiRTgznF9KGKTpZE-82Tn4Nbugkv0-RGRoK27q7S6bMXziM_0ZfSG7FEP7hwCC3DpUBkDh1oQ/s200/SenateHearingSACHS.jpg" /></a></div><font style="strong" size="+2" color="#0000ff">L</font>et us all be reminded of the Senate hearings, and the SEC investigations of 2010 and 2011, which resulted in fines and a multi-million dollar settlement. Meanwhile, the public has barely had a chance to digest the law suits that have come from international companies claiming Goldman mislead them about the rouge mortgage-backed securities they purchased from Goldman, without so much as a warning. <br />
<font style="strong" size="+2" color="#0000ff">T</font>he firm’s Chief Executive Lloyd Blankfein and Chief Operating Officer Gary Cohn issued a statement more than 24 hours after the OpEd sent global shockwaves throughout the investment community. As expected, they were essentially denying the allegations made by Smith. Unfortunately, it was too little, and about $2.2 billion too late, as the value of the company took a dramatic hit after Smith's public resignation letter went viral. The stock recovered all but $800 million in value the following day, due to investor excitement about positive economic statements from the Federal Reserve, and stronger than expected retail data. Still, intangible losses are mounting where trust, good will, and brand are concerned. For this reason, many question the wisdon behind the delayed reaction from Goldman. It's too early to tell what the fall out will be, and Goldman's overall Damage Control Strategy is yet to be seen. <br />
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<font color="0000bf" size="+2"><b>________________</b></font><font color="c00000">Comment</font><br> <font color="0000bf">Anonymous said......<br></font>
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My blog post : secretstogetherback.com - November 5, 2012 <br>
<font color="0000bf" size="+2"><b>________________</b></font><font color="c00000">Comment</font><br> <font color="0000bf">Anonymous said......<br></font>
I almost never leave remarks, however I browsed some of
the responses here "Goldman Sachs: Filing for Moral Bankruptcy".
I actually do have a few questions for you if you tend not to mind.
Is it simply me or does it look like some of these remarks appear like they are coming from brain dead folks? :-P And, if you are writing at other
online sites, I'd like to keep up with anything fresh you have to post. Could you post a list of every one of all your social pages like your Facebook page, twitter feed, or linkedin profile? - December 29, 2012 <br>
<font color="0000bf" size="+2"><b>________________</b></font><font color="c00000">Comment</font><br> <font color="0000bf">Anonymous said......<br></font>
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<font color="0000bf" size="+2"><b>________________</b></font><font color="c00000">Comment</font><br> <font color="0000bf">Anonymous said......<br></font><br />
Great article Katherine! The Goldman crew only needed 10 BILLION dollars (place pinky to corner of mouth)to stay afloat after the greatest heist on the planet by these guys: http://projects.propublica.org/bailout/list<br />
It only took Goldman (Gold,man!)a couple of years to repay 10 Billion dollars... what does that tell me about how easy money comes to them? <br />
At least one of them is admitting being morally bankrupt! It's about time! <br />
We should have done what Iceland did instead of screwing over the people. <br />
Now what? <br />
http://projects.propublica.org/bailout/entities/237-goldman-sachs<br />
Chris G / Mar 18, 2012 05:17 PM</font><br />
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<font color="0000bf" size="+2"><b>________________</b></font><font color="c00000">Comment</font><br> <font color="0000bf">K. Reilly said......<br></font>
<br />
Hey Chris G., thanks for your comment. I also checked out the propublica.org link, which I enjoyed scanning through. Sorry for the delayed response. <font style="strong" color="0000bf" size"+2">:)</font>
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<div class="blogger-post-footer">www.Cohn-ReillyReport.com</div>Cohn-Reilly Reporthttp://www.blogger.com/profile/07867547358819644037noreply@blogger.com73tag:blogger.com,1999:blog-3315093833232702736.post-90616772585327391122012-02-09T20:54:00.100-05:002013-03-23T03:09:58.657-04:00The Price of Deception: Settlement for Mortagage Underwriters Finalized<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiELKfDiMOIvAO-W79Vl_y6IC1LrvLTNbv6XFXmoaEgQN34nc-Wd-1mAhg42gRRItu5NTx8UF0_6ceojzPQG-DjPXa-4_KxjFtIEqNYAALy9ZQIXFJ_Mp_Pyg2NDLjbg6caJRq5DZZ0eA/s1600/HousingArticle.jpg" imageanchor="1" style="clear:right; float:right; margin-left:1em; margin-bottom:1em"><img border="0" height="176" width="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiELKfDiMOIvAO-W79Vl_y6IC1LrvLTNbv6XFXmoaEgQN34nc-Wd-1mAhg42gRRItu5NTx8UF0_6ceojzPQG-DjPXa-4_KxjFtIEqNYAALy9ZQIXFJ_Mp_Pyg2NDLjbg6caJRq5DZZ0eA/s200/HousingArticle.jpg" /></a></div>The Price of Deception: Settlement for Mortagage Underwriters Finalized <br />
The big 5 mortgage services are forced to finally face music. In the past several months banks and underwriters were preparing to sign off on the highly anticipated settlement. As Attorney Generals nationwaide descended upon Washington to iron out the details of the settlement last month, industry analyst were left to speculate. We've reported about the widespread abuses in the mortgage industry, which culminated in thousands of forclosures being thrown out of court or temporarily halted. The housing industry which is the last of the economic indicators to show signs of a turnaround, is believed to be the catalyst for the financial callapse of 2008. As the rest of the financial markets began a massive melt-down, the foreclose rate was an an average of 45% nationwide by 2009. The Obama administration tried its best to stop the bleeding with several homeowner assistance programs, but it appeared the abuses had taken its toll on the market. It simply had to run its course. <br />
It was later realized that many of the mortgage documents were not filled out properly, (leaving a questions as to what loan provider was attached to which property). This prompted intensified scrutiny, leading to a long over due investigation. During the investigation a freeze was placed on all foreclosures allowing homeowners to stay put for while until the matter was thoroughly reviewed. The implosion of the housing market slowly revealed a myriad of issues that involved abuse, fraud and deception, causing massive declines in property values. The term upside-down mortgages was commonly used to describe the steep depreciation property values that sank below the underlying mortagage owed. Later, the proliferation of foreclosures uncovered the ROBO signing scandal (mentioned above) involving, forged signatures and flawed paperwork which precipitated unfounded evictions. Imagine the devastation of homeowners being forced out of their homes, only to find it was due to erroneous paperwork. <div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhZ22AtqPw5Hk26KGLoLVtrbyvfGxM4n3aHubB593aUFFqtzqODSMjCNbFbjodKsuuZ5KqCihzzJbnvr9Agka2tK5fI-GBMivK2FfLONEWXWB0SNKfZcJvA6rPVUwdaC3zLlrC_Yqr32g/s1600/PercentLARGEsign.jpg" imageanchor="1" style="clear:left; float:left;margin-right:1em; margin-bottom:1em"><img border="0" height="200" width="193" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhZ22AtqPw5Hk26KGLoLVtrbyvfGxM4n3aHubB593aUFFqtzqODSMjCNbFbjodKsuuZ5KqCihzzJbnvr9Agka2tK5fI-GBMivK2FfLONEWXWB0SNKfZcJvA6rPVUwdaC3zLlrC_Yqr32g/s200/PercentLARGEsign.jpg" /></a></div>An effort to correct the abusive behavior illustrated by the mortgage lenders and banks has finally come to a head. The "pow wow" of federal officials and attorney generals from all 50 states resulted in an outline of the terms of the settlement. Mortgage Servicers were bracing for a multi-billion dollar hit, which was announced yesterday (February.9th). The settlement is said to be a painful $25 billion in penalties and fines. News had circulated in December that there are a few sticking points in the deal, which was met with disapproval from a few of the Attorney Generals, namely Eric Schneiderman of New York. <br />
The Obama Aministration was pushing to have the deal signed and sealed before the State of the Union Address, but that was a long shot. Surprisingly, he made no mention of it in his speech. Industry analysts and experts correctly speculated that fines would be around $25 billion, but were unclear as to the specifics of the homeowner assistance programs. I've been anxious to see the details of the settlement doe myself. Some aspects of the settlement will include limited aid from banks to overwhelmed homeowners, by reducing their loan principle. We can expect to see structured Principle Forgiveness programs, which will apply to a small number of mortgages that are wholely-owned by the banks, while Bank refinancings will be another form of aid to home owners. <br />
The housing market woes of the past three years have eroded bank share prices and caused immeasurable blows to their reputation and goodwill. Trust and confidence of the public in Banks may be a thing of the past. <br />
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<br><div class="blogger-post-footer">www.Cohn-ReillyReport.com</div>Cohn-Reilly Reporthttp://www.blogger.com/profile/07867547358819644037noreply@blogger.com0tag:blogger.com,1999:blog-3315093833232702736.post-50832757269200742882012-02-09T14:07:00.015-05:002013-03-23T02:30:02.445-04:00Crimes & Misdemeanors: FBI Closes in on Large Wall St. Funds<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi-DS19s2WmXpAH5e7WPHMKxvfk8jFjsNjC14zspmJ5QaBRK7tn2uhPzSqINn4TQaRGfs4t21kBCXRFz20D2A_W-r2EwLQ5ntx1Pfq12Z0kNs-alEFieOZfL1wbKS3cgkbvrKryOvmLKQ/s1600/C%2526M-Collage3.jpg" imageanchor="1" style="clear:left; float:left;margin-right:1em; margin-bottom:1em"><img border="0" height="163" width="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi-DS19s2WmXpAH5e7WPHMKxvfk8jFjsNjC14zspmJ5QaBRK7tn2uhPzSqINn4TQaRGfs4t21kBCXRFz20D2A_W-r2EwLQ5ntx1Pfq12Z0kNs-alEFieOZfL1wbKS3cgkbvrKryOvmLKQ/s200/C%2526M-Collage3.jpg" /></a></div>The FBI has arrested key members of a ring woking out of several states, including New York. Similar to the Galleon Group, these guys traded information concerning publicly traded companies in an apparent conspiracy to commit insider trading fraud. This ring was so productive, they were able to generate financial gains that rival the Galleon Hedge fund, who's founder recently received an 11 year sentence for insider trading. One of the hedge funds involved, Level Global Investors, raked in over $50 million in gains alone. The court documents state that a ring of traders and analysts, who formed an insider trading club, swapped information that resulted in over $60 millions in illegal profits. <br />
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhjcZ2m2pSPFf7FGeYS3Oq2tvCfn2JY2DuEkjLjZ6lNNNX3UWAS8c8EF6bEKx2SihOXxEJwqc1QOabO4Kdr9Q9RQ6lSFJZFfbMJzorYMvvOt1Fbroi7qgy38jyXsfmsiOejd9dOcrTWew/s1600/DC_Rally_OWS.jpeg" imageanchor="1" style="clear:right; float:right; margin-left:1em; margin-bottom:1em"><img border="0" height="152" width="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhjcZ2m2pSPFf7FGeYS3Oq2tvCfn2JY2DuEkjLjZ6lNNNX3UWAS8c8EF6bEKx2SihOXxEJwqc1QOabO4Kdr9Q9RQ6lSFJZFfbMJzorYMvvOt1Fbroi7qgy38jyXsfmsiOejd9dOcrTWew/s200/DC_Rally_OWS.jpeg" /></a></div>As the voices of "Occupy Wall Street" draw attention to the stark imbalances of the privileged 1%, the fraud saga continues. According to the <a href="http://wsj.com">, Wall Street Journal</a> the government has already prosecuted 63 people on charges of insider trading, yielding 56 guilty pleas or convictions. This marks an unprecedented number of cases procsecuted concerning insider trading in a three year period. Judging by this unrelenting onslought of crimes and Misdemeanors, it would appear that the Finance Reform Act is about as valuable as wall paper. That is not to demean the efforts of law makers or the Obama Administration, its merely a commentary on the industry's commitment to an "any means necessary" approach to capitalism. The only consolation is that the Feds and the SEC seem to be paying closer attention to the activities and trade patterns of hedge funds and other financial institutions that engage in trading. There's fresh optimism about the economic forecast, as job reports and other market indicators send a strong message of recovery. Neverthless, with the reluctance traders, money managers and banks to change their habits to avoid a repeat of a financial collapse, sends another message altogether: They still don't get it, and its likely that they never will.<br />
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<div class="blogger-post-footer">www.Cohn-ReillyReport.com</div>Cohn-Reilly Reporthttp://www.blogger.com/profile/07867547358819644037noreply@blogger.com0tag:blogger.com,1999:blog-3315093833232702736.post-755029573571469272012-01-27T23:28:00.015-05:002013-03-23T00:46:52.760-04:00U.S. Manufacturing: Myth Dismanteled<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiel-yTK1j4ihfo9S7GAKZW7b_3YLgEPw3h4ZzAQMceSHer8uUcSKhTO7T63AxT0ZXftfkWsb4A9QVW2FIvUpaKKy9l0DdSDnGaaqczK9mhw82Sg0LTT5a5nObCZT91-6pNPdevuXDHVg/s1600/ManuFACTuringinUSA.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="162" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiel-yTK1j4ihfo9S7GAKZW7b_3YLgEPw3h4ZzAQMceSHer8uUcSKhTO7T63AxT0ZXftfkWsb4A9QVW2FIvUpaKKy9l0DdSDnGaaqczK9mhw82Sg0LTT5a5nObCZT91-6pNPdevuXDHVg/s200/ManuFACTuringinUSA.jpg" width="200" /></a></div><span style="font-family: trebuchet ms;"><span style="color: #0000bf; font-family: times new roman;">I</span>, like many others, was convinced that America's manufacturing output was minuscule in comparison to other countries like China, India and Mexico. It certainly appeared what was left of the manufacturing industry was hanging on a thread. As it turns out, nothing could be further from the truth. <br />
<span style="color: #0000bf; font-family: times new roman;">W</span>e've all heard economists, politicians and professors mouthing off about the vast declines in U.S. manufacturing, and the erosion of jobs in that sector. Over the years, I have read countless articles complaining about America's short sided move away from manufacturing in place of innovations such as technology, and service related jobs. <br />
<span style="color: #0000bf; font-family: times new roman;">T</span>he voices of dismay grew louder and evermore judgmental during the height of the recession, as unemployment climbed to 10%. After reading Friedman's "the World is Flat" I was now convinced that the US had really bet the future on technology and white collar service industries, having recklessly turned its back on the Manufacturing industry. During the industrial revolution, America excelled in manufacturing, which made us the number one economy - and the envy of the world at one point. The perception was further ingrained ten years after the passing of NAFTA, which precipitated an outsourcing frenzy. It was now “coming home to roost” as my grandmother used to say. Senator Joseph Lieberman submitted a report concerning this very issue in 2004, entitled “Offshore Outsourcing and America’s Competitive Edge: Losing Out in the High Technology R&D and Services”. It was an obituary of statistics that indicated that we were all but buried.</span><br />
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<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEju_iRevr1-SIfpXwWxwCkRiAl9R8bNNbjMjMTJbV1IiXINWy9mjtFNUz8cd0_UBEMP9LvDVry5orzNSpm5MaNBJAemBUes7Vrn5FLM4bBT0e4pXyN0NW5ILt204vBnkRqYS3WcNneI5Q/s1600/AutoPlant.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="133" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEju_iRevr1-SIfpXwWxwCkRiAl9R8bNNbjMjMTJbV1IiXINWy9mjtFNUz8cd0_UBEMP9LvDVry5orzNSpm5MaNBJAemBUes7Vrn5FLM4bBT0e4pXyN0NW5ILt204vBnkRqYS3WcNneI5Q/s200/AutoPlant.jpg" width="200" /></a></div><span style="color: #0000bf; font-family: times new roman;"><br />
I</span>t appears that his purpose was to sounding the alarm, and stimulate discussion toward finding solutions during the Bush Administration. Although he touched upon the outsourcing concerns, ultimately his paper dealt with a broader issue, which I believe to be a compelling argument for the need for America to refocus its attention toward developing a brain trust of highly skilled talent in Engineering, Biotechnology and Science Technology to ensure that this country will better compete with the brain trust emerging from India, Russia and China in the future.<br />
<span style="color: #0000bf; font-family: times new roman;">N</span>AFTA, which was thought to be a trailblazing trade agreement when it was first past by Bill Clinton <i>(in the 90s)</i>, in hindsight, it was the catalyst for the loss of millions of manufacturing jobs. This trade agreement, meant that China was no longer the only country corporations could get cheap labor without heavy tariffs or taxes. There was now Mexico, as an outsourcing option that was more accessible. This would enable companies to save money, shipping time and reducing time zone issues. It's no surprise that corporations would want to take advantage of the reduced cost of goods in search of higher profit margins. Between 1990 and 2004 the US workforce has lost over 7.5 million manufacturing jobs. Although 4.5 million manufacturing jobs have been added back, making the net loss approximately 3 million in lost manufacturing jobs <i>(Source: U.S. Dept. of Labor)</i>. By the end of millennium, Imports had far exceeded our exports creating a widening trade deficit economists and analyst had voiced concerns about for decades. The US trade deficit with China alone has increased 44% between 2001 and 2010, amounting to over $190 billion from $114 billion. The increased trade deficit with China can be linked to the loss of 2.9 million jobs during the same period. Although the statistics are not easy to swallow, they were the building block of the Myth that America had abandoned the Manufacturing industry. In all fairness, economic indicators such as manufacturing, exports, job creation and jobs lost are the foundation for formulating forecasts for near-term economic status and provide a glimpse of potential long term ramifications. GDP and import/ export trade ratios are also utilized as a compus for growth and global growth comparisons. <span style="color: #0000bf; font-family: times new roman;">O</span>ne morning, as I cleaning up and sifting through old article clippings (Im old school, what can I say) I stumbled upon a <a href="http://online.wsj.com/article/SB10001424052748703652104576122353274221570.html">Wall Street Journal article</a> by Mark Perry, which touted the flourishing manufacturing output in the U.S. What? I thought. I was quick to abandon my cleaning project (this was as good an excuse as any), to get to the bottom of this piece. The article prompted me to conduct a little research to substantiate this myth busting claim. There is no denying that there have been a continuous loss of jobs in the manufacturing sector. <br />
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiztrStnkaQDpZ7GefwUtRIFCjihO4p5bSSb_mJopz0ll29EYnWBIDdQS0srf7dvCcw_to1Stp13JT-ecEu8EHol-sC__Jd3cayQ69cKDKabhGdZeAcbrxRjHQ77ajELfsqTGoSCxwa2g/s1600/TheBig3.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="102" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiztrStnkaQDpZ7GefwUtRIFCjihO4p5bSSb_mJopz0ll29EYnWBIDdQS0srf7dvCcw_to1Stp13JT-ecEu8EHol-sC__Jd3cayQ69cKDKabhGdZeAcbrxRjHQ77ajELfsqTGoSCxwa2g/s200/TheBig3.jpg" width="200" /></a></div><span size?+3?="" style="color: #0000bf; font-family: times new roman;">T</span>he Auto industry is just one of the industries that suffered a loss of nearly 1.5 manufacturing jobs, as the Big Three auto makers sought bailouts and closed factories in an attempt to save their faltering operations. Statistics covering the period from 1990 through 2009 indicate a loss of nearly 5 million manufacturing jobs, which meant a displacement of factory workers and managers who were forced to rebuild their skill-set by training in new industries, or returning to school, or both. The displaced workers that did not, either remained out of work, or ended up taking unskilled positions at lower pay. This is an unfortunate side effect of changing times and advancing technology. <span size?+3?="" style="color: #0000bf; font-family: times new roman;">N</span>evertheless, the manufacturing industry has been rebuilding itself while no one was looking. Although many factury jobs are gone forever, as they have been replaced with computers, we have increased our productivity 3-fold. According to the Federal Reserve, the value of our manufacturing output in of 2009 was $2.72 trillion <i>(in 2000 dollars)</i>. Today’s factory worker is so productive that their average output "value" is estimated at $234,220. This means that the output per worker is three times as high as it was 30 years ago, and twice the productivity of 1990. An article written by Dr. Walter E. Williams for <a href="http://www.wnd.com/2010/01/121034/">WND.com in 2010</a> stated the following "the Federal Reserve estimated the value of U.S. manufacturing output in 2008 was about $3.7 trillion". He went on to say, "if the U.S. manufacturing sector were a separate economy, with its own GDP, it would be tied with Germany as the world’s fourth-richest economy". We're still struggling to climb out of the economic recession, but it should be clear that we're making our way back to being a stong economy, that's decidedly back in the manufactuing business.<br />
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<span style="background-color: white; color: blue; font-size: x-large;"><strong>L</strong></span>et’s look at the current stats: the unemployment rate dropped to a near three-year low of 8.5 percent, with payrolls increasing by 200,000 in December - the biggest rise in three months. The economy added 1.6 million jobs last year, the most since 2006, and the jobless rate, which peaked at 10 percent in October 2009, has dropped 0.6 percentage point in the last four months. Commercial investment is up by 10% and inflation is relatively low.<br />
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<strong><span style="color: blue; font-size: x-large;">C</span></strong>ould Barack Obama be happier? I don’t think so. He welcomed the news and urged Congress to extend a two-month payroll tax cut through 2012 to help sustain the recovery. "We're moving in the right direction. When Congress returns they should extend the middle-class tax cut for all of this year, to make sure we keep this recovery going," he said.<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgNyE4Timm2hNgGPwT9TFQg6FJbBkgg-OG8KJDZWmFCXyJoB2NX4Wbj6GPb0pzaZHcnk6gJgqrrY0UhP_68tI6D-9boFR7jnZ_oH6YU7mW-v3G2MblCRqhJ39aNvMcsbAv9LDla4B20Sw/s1600/Economy+and+politics.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="150" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgNyE4Timm2hNgGPwT9TFQg6FJbBkgg-OG8KJDZWmFCXyJoB2NX4Wbj6GPb0pzaZHcnk6gJgqrrY0UhP_68tI6D-9boFR7jnZ_oH6YU7mW-v3G2MblCRqhJ39aNvMcsbAv9LDla4B20Sw/s200/Economy+and+politics.jpg" width="175" /></a><strong><span style="background-color: white; color: blue; font-size: x-large;">S</span></strong>till, all is far from perfect: Employment remains about 6.1 million below its pre-recession level and at December's pace of job growth, it would take about 2-1/2 years to win those jobs back. There are roughly 4.3 unemployed people for every job opening.Although construction and Courier jobs increased due to the mild weather and the holidays respectively, those jobs could be lost in January and the unemployment rate might rise as Americans who had abandoned the hunt for work are lured back into the labor market. Still, 23.7 million Americans are either out of work or underemployed.<br />
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<span style="color: blue; font-size: x-large;"><strong>T</strong></span>he jobs data could be overshadowed by Europe's debt crisis. With the labor market far from healthy, the debt crisis in Europe unresolved and tensions over Iran threatening to drive up oil prices, re-election for the current administration is by no means guaranteed.<br />
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<span style="color: blue;"><strong>_______________</strong><em>COMMENT</em></span><br />
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<span style="color: blue;">K. Reilly Said.....</span><br />
I couldn't agree with you more. Although it looks good for the current administration, there are so many variables (mentioned in your article) that could reshape the country's direction and self perception. This will impact voter concerns, and who they believe will make it all better. Welcome back Charlie!<br />
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<span style="color: blue;">K. Reilly /Jan 18, 2012 10:46 PM</span><div class="blogger-post-footer">www.Cohn-ReillyReport.com</div>Cohn-Reilly Reporthttp://www.blogger.com/profile/07867547358819644037noreply@blogger.com1tag:blogger.com,1999:blog-3315093833232702736.post-81672390500835111532012-01-18T12:03:00.011-05:002013-03-23T02:27:53.160-04:00France's nightmare realized:Is there life after downgrade for the EU<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgo4Lt50-vfLwNX3vGR3d1Egqg988BgclIweW-yki2N0PkN7kHxjfK10LflPEEcrOypiyr56KilX5o_9GvENwSpdQLraN3h4KMSaH1IB033OyUd_4HjuK1TMtyzIKJRGXLa1KnMyINDkg/s1600/DowngradeCollage2.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="125" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgo4Lt50-vfLwNX3vGR3d1Egqg988BgclIweW-yki2N0PkN7kHxjfK10LflPEEcrOypiyr56KilX5o_9GvENwSpdQLraN3h4KMSaH1IB033OyUd_4HjuK1TMtyzIKJRGXLa1KnMyINDkg/s200/DowngradeCollage2.jpg" width="250" /></a></div><span style="font-family: trebuchet ms;"><span style="color: blue; font-family: times new roman; font-size: x-large;"><strong>I</strong></span>t is likely the one thing that kept France’s Prime Minister up at night. Protecting France’s credit rating was to become Sarkozy’s greatest challenge of the past 4 months, nevertheless, Sarkozy saw it coming. France and the other EU leaders were hoping to slide under the radar for a bit longer, before S&P focused its attention on the financially stressed members. <br />
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<span style="color: blue; font-family: times new roman; font-size: x-large;"><strong>I</strong></span>’m sure that the historic downgrade of the US’s debt last year, made it all the more realistic for France. Well, last Friday was the day of reckoning for the Euro-zone, as members suffered downgrades on their debt. This was inevitable given the unresolved financial crisis which has consumed the EU in the past 18 months. Standard & Poor’s swooped down and left France and Austria stripped of their pristine Triple-A rating. It did not stop there, seven others EU members were downgraded including Italy, Portugal. Germany is the EU’s # 1 economy, and it was able to retain its triple-A rating. The anticipated, but dreaded downgrade of France’s debt, being EU’s #2 economy, will undoubtedly create a huge dilemma for the EU’s bailout plan. <br />
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<span style="color: blue; font-family: times new roman; font-size: x-large;"><strong>A</strong></span>s the downgrade of the European Union's #2 economy sinks in in the next couple of days, global perception of the European Union’s ability to bail itself out, leaves potential investors concerned. This of course translates to higher cost of borrowing. The entire bailout plan is in hinging on the EU’s ability to bounce back from this downgrade and swiftly move toward executing the bailout plan. The sooner the wheels begin turning toward resolving the issues, the better. <br />
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<div class="blogger-post-footer">www.Cohn-ReillyReport.com</div>Cohn-Reilly Reporthttp://www.blogger.com/profile/07867547358819644037noreply@blogger.com0tag:blogger.com,1999:blog-3315093833232702736.post-36729174191779921462012-01-05T00:52:00.015-05:002013-03-23T02:29:47.439-04:00Blue Chips in the Red: Kodak<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg850gPM3WLOHPkHTdSCRVC2ylkhyeNidUmyIUvXUFPL6_xVZkfqJgj3uABhs6WKEUWG8U1qUFGAlmBpljCLptFdrhmAUp5DLXBW_wTA_CZTdRRPQzAljqbvAbxxHNPuSKil-PJRGGWaw/s1600/CEO_KodakCollage.png" imageanchor="1" style="clear:right; float:right; margin-left:1em; margin-bottom:1em"><img border="0" height="200" width="194" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg850gPM3WLOHPkHTdSCRVC2ylkhyeNidUmyIUvXUFPL6_xVZkfqJgj3uABhs6WKEUWG8U1qUFGAlmBpljCLptFdrhmAUp5DLXBW_wTA_CZTdRRPQzAljqbvAbxxHNPuSKil-PJRGGWaw/s200/CEO_KodakCollage.png" /></a></div><font face="trebuchet ms"><font face="times new roman" size="+3" color="#0000ff" style="strong">I</font>n the digital world of imaging, the hardest hit in this sector, which should come as no surprise, was Kodak. The Wall Street Journal reported that Kodak may be filing for bankruptcy protection in the months to come. In the past three years, Kodak has incurred losses in 9 out of 12 quarters. For the 3rd quarter of 2011, Kodak's losses were estimated at $222 million, which had investors running for cover. Needless to say, their stock fell sharply last year. Although the company stock began the year trading at $3.00, Kodak's shares are presently fluctuating below .50 cents. Consequently, the New York Stock Exchange warned that they will move to delist Kodak if their stock price remains below $1 for over 6 months. Kodak is not quite in the "red" yet, but if the company continues operating at the same rate of quarterly losses they experienced in the third quarter of 2011, it is only a matter of time. <p><font face="times new roman" size="+1" color="#0000ff" style="strong">I</font> <font color="#0000ff" style="italic" >remember purchasing stock in the company when I was about 18 years old, and I must have paid over $40 a share. I sold my Kodak shares when the price dipped to $23.00. That's when I realized that I really didn't have the stomach for the trading the market.</font><p><font face="times new roman" size="+3" color="#0000ff" style="strong">T</font>he Iconic Blue Chip, which had been a in the forefront of the imaging products and supplies for over 130 years, has lost its grip on the cutting edge. The once stellar company is struggling to reinvent itself in the new age of camera phones, desktop publishing, , and the digital transport, upload and storage of images. Let's face it, when was the last time you bought film, or dropped off film to be developed? The impact of the ever-changing technical environment couldn't be more evident, as Kodak's valuation has suffered an 80 percent loss in the past 52 weeks. Clearly, digital advancements, and steep foreign competition has taken its toll on Kodak, making them look more like a dinosaur than a ever. By June of 2011, the company's year-end target of $1.6 -to- $1.7 billion was revised to $1.3 - to- $1.4 billion, as a reflection of their reduced expectations. The third quarter earnings report was a dismal account of continued losses, shrinking their cash reserves to $862 million, from $957 million in the 2nd quarter. As it stands, Kodak is sitting on only 10% reserves, well below standard practice. <p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjanD3QAbIt__fq_nPlC4nCXcqS6t7Vz6_Cw2Qa0eOdXs7e5F6YgVzPPWmdcVsENaVPoWUU7A-dQYAigc90UN4HGhYRkUQS0goAjpUUbqjdOjVxnb2vJ-GotzpSFs1hhQ2jDU4fGj_GGA/s1600/KodakProducts.jpg" imageanchor="1" style="clear:left; float:left;margin-right:1em; margin-bottom:1em"><img border="0" height="152" width="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjanD3QAbIt__fq_nPlC4nCXcqS6t7Vz6_Cw2Qa0eOdXs7e5F6YgVzPPWmdcVsENaVPoWUU7A-dQYAigc90UN4HGhYRkUQS0goAjpUUbqjdOjVxnb2vJ-GotzpSFs1hhQ2jDU4fGj_GGA/s200/KodakProducts.jpg" /></a></div><font face="times new roman" size="+3" color="#0000ff" style="strong">T</font>o tell the whole story, or at least put the current events in perspective, the eminent day of reckoning began nearly 12 years ago, as the tides started to shift away of processing, printing and "developing" photo images. Resisting the digital revolution, or buying time, Kodak began giving away Free Film with every film development pick-up. This was a good, albeit temporary strategy to insure repeat business. The disposable cameras was a wonderful product with a short life span,(no pun intended) but it did help to sustain revenues, and as reasonable amount of cash flow while the CEO and the his think-tank tried to come up with new "relevant" products and services. Alas, this is going to be a fight for survival with much at stake, and Kodak was seemingly not up to the challenge - or is it? Whatever the case, in the past decade, Kodak lost 95% of its value to the industry competition which bought new age, digital savvy products to the market.<br />
<font size="-1" color="0000ff" style="italics">Part 1 of 2</font><br />
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For Part 2, <a href="http://cohn-reillynewsflash.blogspot.com/2012/01/blue-chips-in-red-kodak.html">Click Here</a> <br />
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<div class="blogger-post-footer">www.Cohn-ReillyReport.com</div>Cohn-Reilly Reporthttp://www.blogger.com/profile/07867547358819644037noreply@blogger.com0tag:blogger.com,1999:blog-3315093833232702736.post-84842722384184639822011-12-29T14:18:00.010-05:002013-03-23T02:30:43.906-04:00Corzine's Blind Ambition: In case of Emergency, Break Glass<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhNBLnI713zYbUUAXh63aPL3uEWtYqo-RgDnqHHUmDqdpY6NnaBxS2SOqqlKZaFU-mFr14NgEJI_ExlOcTLgXdGOFqnRz3Z5ICT0lVZlTorKxjsfnW_mW6DCTZNbx0gFFmH6YnM6KwrIw/s1600/Corzine+Collage2.jpg" imageanchor="1" style="clear:right; float:right; margin-left:1em; margin-bottom:1em"><img border="0" height="156" width="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhNBLnI713zYbUUAXh63aPL3uEWtYqo-RgDnqHHUmDqdpY6NnaBxS2SOqqlKZaFU-mFr14NgEJI_ExlOcTLgXdGOFqnRz3Z5ICT0lVZlTorKxjsfnW_mW6DCTZNbx0gFFmH6YnM6KwrIw/s200/Corzine+Collage2.jpg" /></a></div><font face="trebuchet ms"><font size="+3" style="strong" color="#0000bf">M</font>F Global Files for Bankruptcy, Corzine resigns and turns down a $12 million severance pay. Wall Street analysts already knew how over-loaded the company was with Euro debt, so it was not a surprise outcome, by any means. However, as the story began to unfold and the facts surrounding the collapse started to unravel, suspicion grew about the probability of foul play. There were more questions than answers, and that's always a red flag. Once customer funds were discovered missing, and an SEC investigation revealed that a large sum of money was transferred into an account overseas, just two days before MF Global filed for bankruptcy, it was clear that something was terribly wrong here. <br />
<p><font face="times new roman" size="+3" style="strong" color="#0000bf">F</font>or the second time in December, Jon Corzine, former head of the now defunct MF Global, met with the senate to further explain his involvement with the missing customer funds. This time, he was accompanied by two MF Global executives, COO, Bradley Abelow and CFO, Henri Steenkamp, who also claimed to know nothing about the money. I find this very curious, since most brokerage firms have policies in place that limit check writing and transfer-of-money authority to upper management, with additional authorization from the CFO, or Treasurer in his or her absence. The Senate hearing did not turn up anything that would satisfy investigators or investors. Nevertheless frustrated Farmers (primary investors in land commodities) were able to voice their disdain for MF Global, and one in particular was quoted as saying "What they call <i>'unlawful comingling' </i>on Wall Street is called <i>'stealing'</i> back on Main Street," <div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhusuH9hHN_piCH5L-Xe6yjZxdU8QTasKRnB2T9bkfHlmjs4BXPTSLYLBoEJo2VFEfBU-DaWZYkmbGGFZecS7GwW78s9q8Z_vLZaH4ljSzD_kLdVrncPNkIeq6uPCeLy7_4TAVG-shxGQ/s1600/Corzine_at_Senate.jpg" imageanchor="1" style="clear:left; float:left;margin-right:1em; margin-bottom:1em"><img border="0" height="160" width="155" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhusuH9hHN_piCH5L-Xe6yjZxdU8QTasKRnB2T9bkfHlmjs4BXPTSLYLBoEJo2VFEfBU-DaWZYkmbGGFZecS7GwW78s9q8Z_vLZaH4ljSzD_kLdVrncPNkIeq6uPCeLy7_4TAVG-shxGQ/s200/Corzine_at_Senate.jpg" /></a></div><font face="times new roman" size="+3" style="strong" color="#0000bf">J</font>on Corzine admitted that there was a "break glass" contingency plan in place, but did not disclose the details of the emergency plan. After questions intensified, he denied that raiding the customer funds was one of the recommendations in the emergency plan. According to Corzine, he did not know what happened to the money, and proclaims that he did not direct anyone to misuse customer funds. Corzine tried his best to convince the Senate Agricultural Committee that he did not "intend" to break any rules concerning the handling of customer funds, with respect to keeping customer funds <a href="http://www.cmegroup.com/managed-futures/Feb2011/safeguarding-customers-through-segregated-funds.html">segregated from the firm's money</a>. This is reference to the requirement of all commodities and futures trading firms to segregate customer funds from company money. According to the CMEgroup.com, (Watchdog for Commodities and Futures Industry) segregating the funds protects investors in the event of defaults or bankruptcy. This regulation has a major advantage for investors, because when a company files for bankruptcy (as in the case of MF Global) , investors are last on the list, behind creditors, to see any of their money - particularly because it's next to impossible to identify how much of the company's assets belongs to the customers. Segregated funds facilitate the process of identifying which accounts belong to investors, thus investors will be able to recoup their funds without much delay. Apparently the "Segregation of Funds" regulation was not practiced at MF Global. Corzine went so far as to explain that perhaps an employee misinterpreted his instructions in an effort to try to save the company. The former CEO conveyed to the Senate subcommittee that he was not aware of any problem with segregated funds until October 30th, the day before they filed for bankruptcy. <p><font face="times new roman" size="+3" style="strong" color="#0000bf">I</font>n a new twist to this already redundant story of fraud, greed and entitlement, the Federal Authorities investigating the collapse of MF Global are now turning their attention toward one of the Wall Street watchdogs. Since MF Global was a Commodities brokerage firm, their primary regulator should have been the CME Group. The Commodities Futures and Exchange Commission is leading the investigation to examine CME's conduct before MF Global filed for bankruptcy protection. If the CME Group is the commodities regulator safeguarding customer’s money, what were they doing instead? <br />
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<font face="times new roman" size="+3" style="strong" color="#0000bf">T</font>he downfall of MF Global (and Corzine’s career) is yet another display of Wall Street greed and deception. The bottom line is, Corzine should be held accountable regardless of whether or not he "directed" anyone to move funds. In his effort to exonerate an employee, he painted a vivid picture of the company culture. The firm's inattention to compliance, without regard for their customers" protection is inexcusable. As I've stated previously in an article concerning Corzine and MF Global, the fact that he turned down the severance pay is almost an admission of guilt for some aspect of the company's downfall. I’ll continue watching this case closely to see where the investigation of the CME Group and the search for the missing $1.2 billion leads. Fortunately, the <a href="http://online.wsj.com/article/APcb5dba3691894bb4a61b19357ebe8824.html?KEYWORDS=corzine+and+MF+Global">Wall Street Journal</a> reported that the judge overseeing the bankruptcy case has approved $4.1 billion to be returned to the customers, of which $2.2 billion in frozen customer accounts will be released.<br />
<br />
<font style="italics" color="#0000bf">Cohn-Reilly Report posted an article about the obvious under story of misguided ambitions of Jon Corzine, prior to the reports of mission funds.<a href="http://cohn-reillyreport.blogspot.com/2011/11/corzines-blind-ambition-collapse-of-mf.html"> Corzine’s blind Ambition</font></a><br />
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<div class="blogger-post-footer">www.Cohn-ReillyReport.com</div>Cohn-Reilly Reporthttp://www.blogger.com/profile/07867547358819644037noreply@blogger.com0tag:blogger.com,1999:blog-3315093833232702736.post-20457030084881567972011-12-19T03:47:00.005-05:002013-03-23T02:31:18.385-04:00Europe's Deficit Deal Takes Shape: Uncertainty Lingers<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgiPB_Q49zq1Abva0WFaQu5-WV901lCd1O-oDQMBW5O52Xr4Rew0x5MZY5j_JSN_PhBfAFmaOborskZ65n5-5iMvxc2h5k5ebf2Rk7htalmPfIs8hHgfi1wW9g8s7b13BNXKn1-RwRYsg/s1600/EuroFLAGS-2.jpg" imageanchor="1" style="clear:right; float:right; margin-left:1em; margin-bottom:1em"><img border="0" height="130" width="160" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgiPB_Q49zq1Abva0WFaQu5-WV901lCd1O-oDQMBW5O52Xr4Rew0x5MZY5j_JSN_PhBfAFmaOborskZ65n5-5iMvxc2h5k5ebf2Rk7htalmPfIs8hHgfi1wW9g8s7b13BNXKn1-RwRYsg/s200/EuroFLAGS-2.jpg" /></a></div><font face="trebuchet ms"><font face="times new roman" style="strong" Color="#0000ff" size="+2">T</font>he highly anticipated Euro-zone deal, which we thought would positively impact the market failed to do so. There was a knee-jerk reaction to the news with a slight up-tick in the DOW, which indicates bolstered confidence - but this was short lived. As it turned out, before the end of the trading day the Euro had fallen, along with a tripple digit drop in stocks. Uncertainty rippled through the markets creating a domino effect, that finally resulted in a rise in borrowing costs for Italy and Spain alike. Ultimately, it appears that investors were decidedly unimpressed with the Summit deal to control the Europe's fiscal crisis. Economists believe the market rally was deflated due a resurgence of uncertainty surrounding the bailout pact, as it did not include unlimited backstop for the Euro currency. <br />
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<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjBwPMpHljZGMmI4V1NEu1VOj9UsBwJC6GOYGosZ4q-61C04sY4p_7-HnLp7qQFwfu2hhvcdI2QBNGU7MzYrxanGPhGFLig_i9UOszKaa6_jROME7UtNg6rqw9lPx0y-bTtRqdwDqBs0Q/s1600/CentralBankEruoHEAD.jpg" imageanchor="1" style="clear:left; float:left;margin-right:1em; margin-bottom:1em"><img border="0" height="170" width="128" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjBwPMpHljZGMmI4V1NEu1VOj9UsBwJC6GOYGosZ4q-61C04sY4p_7-HnLp7qQFwfu2hhvcdI2QBNGU7MzYrxanGPhGFLig_i9UOszKaa6_jROME7UtNg6rqw9lPx0y-bTtRqdwDqBs0Q/s200/CentralBankEruoHEAD.jpg" /></a></div><font face="times new roman" style="strong" Color="#0000ff" size="+2">A</font>s the saying goes; "the devil is in the details". The Euro-zone deficit deal has been structured, but economists, investors and stakeholders know its only the beginning. According to Frances's President, Sarkozy, the legal parameters and compliance for the new accord to reinforce the bailout rules are expected to be worked out before Christmas. The longer it takes to put this put this chapter behind them, the more chance for erosion of confidence, currency, and credit rating. <br />
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<div class="blogger-post-footer">www.Cohn-ReillyReport.com</div>Cohn-Reilly Reporthttp://www.blogger.com/profile/07867547358819644037noreply@blogger.com0tag:blogger.com,1999:blog-3315093833232702736.post-3327501954498962482011-11-23T23:09:00.003-05:002013-03-23T02:32:25.259-04:00Sarkozy's New Challenge: Protecting France's Credit Rating<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgViesAtDhbx2fAQf6mqljl48B1FiyHALqfGIdX83eWBNJFUbsMIZ7e5cuziR4Gt4pXwQSV46CKR7usR7GFk5bR7MpZcjhNFaP-9qr6JFLKCEEdfq-jK9rq2WvVjL1dsEyhcJT9VX_XYA/s1600/SarkozyEUROCOllage.jpg" imageanchor="1" style="clear:left; float:left;margin-right:1em; margin-bottom:1em"><img border="0" height="170" width="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgViesAtDhbx2fAQf6mqljl48B1FiyHALqfGIdX83eWBNJFUbsMIZ7e5cuziR4Gt4pXwQSV46CKR7usR7GFk5bR7MpZcjhNFaP-9qr6JFLKCEEdfq-jK9rq2WvVjL1dsEyhcJT9VX_XYA/s200/SarkozyEUROCOllage.jpg" /></a></div>Given the fact that the European Union's recovery is riding on the full faith and credit of a select few of the strongest union members. Sarkozy ia facing yet another challenge as guardian of France’s credit rating. Particularly in light of fact that France is the primary guarantor for the bailout program. <br />
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Hope for an improved fiscal outlook for both Greece and Italy, allowed markets to exhale this month. This was fueled by the progress Greece made toward naming a new president, and the new bail-out plan. Many markets have already made back much of the losses over the past few months, but volatility continues to be a concern. Attention was temporarily transferred away from Greece, and the growing concern about Italy after S&P erroneously issued a warning that they may downgrade France’s rating. In an instant, the overly sensitive market reacted, resulting in higher bond yields for France’s debt, marking a 4 month high. <br />
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<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjClxujbI4zfR_zTYK-zeMXqkkJDYA5QcHbNqyvtyqPUb4Pd17uLP-oT0gs7bGssbbwyZHu6dDO1aRo1-zzGganQFQ2DQGKlGBxqXqroI5caHVwQA36nD9wa3kf7gdEvAd5YD1QWmbZ3w/s1600/PensiveSarkozy.jpg" imageanchor="1" style="clear:right; float:right; margin-left:1em; margin-bottom:1em"><img border="0" height="161" width="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjClxujbI4zfR_zTYK-zeMXqkkJDYA5QcHbNqyvtyqPUb4Pd17uLP-oT0gs7bGssbbwyZHu6dDO1aRo1-zzGganQFQ2DQGKlGBxqXqroI5caHVwQA36nD9wa3kf7gdEvAd5YD1QWmbZ3w/s200/PensiveSarkozy.jpg" /></a></div>For the bailout to work, the euro-zone requires other triple -A nations to step up and increase their guarantees. The bailout fund is structured to hold a triple-A-rating, but this is based on the underlying strength of France’s credit rating. France is the second largest economy in the European Union, following German. However, as far as the resolution to the EU fiscal crisis, France is the blue-chip guarantor - representing the Union’s ability to navigate themselves out of the financial hole. Accordingly, a reduced rating France, will undoubtedly have an impact on the firepower of the fund. <div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgotJ49snK1O6L-KeoHnR_XIcxZOfAkYwMXEuDWX_y1wfxNuZoCxjc41hv1RUyRUvAFEO2SunYr8SWiakacr3G6Iso8cO7HIMpKhsCtzUF7dfgHpRRbGGXSODh9fNn9db-3-IbB9IaJyA/s1600/DynamicDuo.jpg" imageanchor="1" style="clear:right; float:right; margin-left:1em; margin-bottom:1em"><img border="0" height="158" width="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgotJ49snK1O6L-KeoHnR_XIcxZOfAkYwMXEuDWX_y1wfxNuZoCxjc41hv1RUyRUvAFEO2SunYr8SWiakacr3G6Iso8cO7HIMpKhsCtzUF7dfgHpRRbGGXSODh9fNn9db-3-IbB9IaJyA/s200/DynamicDuo.jpg" /></a></div>Frances President, Sarkozy, has made it his mission to protect France’s credit rating. The <a href=”http://www.wsj.com”>Wall Street Journal</a> reported that Sarkozy’s has made guarding their Triple-A credit rating a “battle ground for the coming presidential elections in the spring” Sarkozy unveiled, not one, but two austerity packages since late august in an effort to signal to investors that France can and will meet its deficit targets. <br />
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