Showing posts from 2012

David Tepper: The Fed Expects Inflation Will Not Be Triggered Until Unemployment Falls to 6%

In an interview on CNBC's Squawk Box December 17, 2012: David Tepper, president & founder, Appaloosa Management, says what the Fed has done helped the markets. He also says he believes the Fed sees a 6 percent unemployment rate is the trigger for inflation. He also says Obama's legacy will be defined by entitlement reform.

ECRI’s Achuthan: Ignore GDP and the Fiscal Cliff, U.S. Is Already in Recession

Aaron Tasker of the Daily Ticker Interviews Lakshman Achuthan November 29, 2012:

The U.S. economy grew 2.7% in the third quarter, up from a previously reported 2% the government reported Thursday. But the guts of the report raised some concern, notably a big increase in inventories and a big downward revision to consumer spending.

For most economists, the GDP report provides further evidence of a U.S. economy that's growing modestly, but far from robustly. For Lakshman Achuthan, co-founder of the Economic Cycle Research Institute, the report is a distraction from the real story: the U.S. economy is already in recession.

Read more here.

Marc Faber: Unintended Consequences of Easy Monetary Policies

Marc Faber's Presentation to Hedge Funds World Middle East 2012
March 5-8, 2012, Jumeirah Beach Hotel, Dubai, United Arab Emirates

Expansive Keynesian monetary and fiscal policies, instead of smoothing economic cycles, is increasing economic and financial markets volatility instead, Dr. Faber contends in this presentation.

Kyle Bass: The Central Bankers' Potemkin Village

Kyle Bass in his November 15, 2012, letter to investors, exposes the flaws in the monetary excesses occurring around the globe and explains why this will end badly.

Kyle Bass

Kyle Bass: Germany Will Leave Euro Within 3 to 4 Years

In an interview on Bloomberg TV's Market Makers with Stephanie Ruhle on November 16, 2012, Kyle Bass says that Milton Friedman was right when he said the currency union will fall apart when they hit a bump in the road. He thinks Germany will leave in 3 to 4 years to avoid ceding its national sovereignty and funding the wasteful spending of other nations. He would not invest in Europe right now but wait for things to deteriorate further.

Marc Faber: Obama Is `Very Negative' for the Economy

Marc Faber, publisher of the Gloom, Boom & Doom report, talks about the potential impact of President Barack Obama's reelection on the U.S. economy and financial markets. He speaks with Trish Regan and Adam Johnson on Bloomberg Television's "Street Smart." (Source: Bloomberg)

As a result of the reelection of Obama, there will be more regulatio and a disincentive for business men to hire people and higher taxes. You still have Ben Bernanke and because of money printing, you have very high corporate earnings. The global economic slowdown will affect markets negatively. At a minimum the market will drop at least 20 percent over the next few months.

Faber thinks there will be a year-end rally and a cosmetic deal with the fiscal cliff. He believes we are already in recession.

Neil Barofsky Warns of Coming Financial Crisis; Calls for New Reforms

In an interview conducted by Bill Moyers October 26, 2012, Former Special Inspector General for TARP, Neil Barofsky, talks about the need for new reforms in banking regulation and oversight and warns that the financial system is headed for another crisis.


BILL MOYERS: And now for another reality check -- a far cry from the humbug and rhetorical static afflicting our election campaigns. Let’s talk about something President Obama and Governor Romney barely mentioned in their debates: banking reform. It’s four years since the economic meltdown knocked America and the world to our knees, four years since that massive taxpayer bailout. But if you listened to the candidates, the enormity and severity of this continuing crisis hardly merit notice. Barack Obama pledges change but touts Dodd-Frank, a bulky, watered-down version of financial reform that scarcely makes a ripple in the vast sea of corruption and abuse. Mitt Romney campaigns as the banker’s pal and says he’ll make Dod…

Larry Fink on Market Sell-Off: "Market Is Now Responding to the Pending Fiscal Cliff"

Larry Fink, chairman and CEO of BlackRock, on CNBC's Squawk Box, October 26, 2012.


Steve Liesman: Let's talk about the recent marekt sell-off. It's been sharp and it's causing a lot of concern. What's the cause in your opinion? Is the market telling us something about the economy that we don't already know?

Larry Fink: I think the market is now responding to the pending fiscal cliff. We're starting to approach the election. There's uncertainty about who will be President and how the fiscal cliff will be resolved. CEO's today are pensive about what to do next. They're just sitting back. They're not hiring as much. They're probably not spending as much. So, there's a deceleration in the economy and we all are starting to feel it. Additionally we were expecting a little more resolution in Europe. We're waiting for Spain to act and accept conditionality and that' s probably been delayed by a couple of weeks.

Edward Griffin: 'The Fed's sole purpose: keeping the banks afloat'

G. Edward Griffith, in an address October 10, 2012, from the Casey/Sprott fall summit and posted by Casey Research:

Is the Federal Reserve really doing such a bad job… or does it actually do exactly what it's supposed to do, but the average American is in the dark about what that is?

In this explosive video, Casey Summit speaker G. Edward Griffin, author of The Creature from Jekyll Island, talks about the Fed's real role in the US economy and why – contrary to common belief – it is not this banking cartel's mission to act in the best interest of the American public.

Read the full text here.

Sam Zell: America Needs Presidential Leadership, Not Class-Warfare, and a Consensus in Congress, Not One-Party Imposed Laws Like Obamacare

Sam Zell, chairman of Equity Group Investments, on CNBC's Squawk Box
October 2, 2012
First Segment

Sam Zell,
October 2, 2012
Second Segment

Sam Zell
October 2, 2012
Third Segment


First Segment:

for the next two hours we are joined by one of the top real estate investors in the world. we are lucky enough to have sam zell, the chairman and co-founder of equity group investments here on set. thank you for coming in today.

my pleasure, it's fun.

nobody knows real estate like you do. we've been watching a lot of different things play out in this space. you were talking with joe off camera about qe3 and what you think about the fed's latest move. how does that shake things up in the real estate world? what does it mean for investing on the commercial and residential side?

the best answer i'd give you is that we were beginning to see the excess flow of capital, we're seeing too much capital chasing too few opportunities and consequently i think number one…

Fed's Evans: QE III and Fed's Monetary Policy Easing Will Continue Until Unemployment Falls Below 7%

CNBC's Steve Liesman interviews Chicago Federal Reserve President Charlie Evans
October 1, 2012

Rough Transcript:

let's get to our newsmaker of the morning. steve liesman joins us from chicago with a very exclusive interview. steve?

yes, thanks very much.

i'm here in chicago with the chicago federal reserve president charlie evans. nice to be here. a year ago you laid out this idea of pegging policy to unemployment, and to inflation, given what the federal reserve just did, do you feel vindicated and the follow-up to that is do you feel satisfied, is it enough?

well, last year i was here and i was talking a lot about our dual mandate responsibilities and i mentioned that with the unemployment rate at that time at 9% that was unacceptably high and we need to focus more on our dual mandate responsibilities. i feel good that our most recent statement and policy is focusing on strongly on the labor market, we're looking for substantial improvement in labor market conditio…

Marc Faber: "The Monetary Policies of the United States Will Destroy the World"

Marc Faber, publisher of the Gloom, Boom & Doom report, talks on September 14, 2012, about Federal Reserve policy and his investment strategy. Faber, speaking with Betty Liu on Bloomberg Television's "In the Loop," also discusses gold prices and the property market. (Source: Bloomberg)

Selected Quotes:

"Even if Romeny wins the election, the next Fed chairman will be a money printer. And so it will go on. The Europeans will print money. The Chinese will print money. Everybody will print money and the purchasing power of paper money will go down. And I don't like bonds. I don't particularly like equities, but I think equities are a better space to be in than bonds.”


"I own corporate bonds. I bought some bonds from Kazakhstan because Kazakhstan economically is a much sounder country than the United States or any European country."


"The fallacy in the United States is to think that this will go to the man on the street. It won't. It…

Marc Faber: Bernanke Should Resign

Marc Faber is interviewed on CNBC at 5:30 am on September 14, 2012

Isaac: Dodd-Frank Is Killing Small Banks, Lending to Small Business, and Creating More Big Banks

Former FDIC Chairman Bill Isaac is interviewed on CNBC's Squawk Box September 12, 2012:

The following transcript has not been checked for accuracy.

all week long we've been looking at the future of the banking industry of another industry leader joining us now, bill isaac, a global head of financial institutions for fdi consulting and the former chairman of fdic. you didn't have to move to cincinnati to be chairman, did you? no, i didn't. it doesn't matter. you are anyway. they can say, you know who our chairman is? and they'll say bill isaac, and that gives them a lot of credit. have you been able to hear what mr. kovacevich has been saying today? i've heard some of it. do you guys agree? what do you agree on? and what do you disagree on with what he said? or is it shades of gray? oh, there i go. not fifty shades. how many shades of gray? we'll take any opportunity to take this right in the toilet. but -- what are you reading? no, i'm not. but i d…

Kovacevich: "If We Did Not Have Fannie and Freddie, This Crisis Would Never Have Occured"

Wells Fargo's ceo Dick Kovacevich talks about the causes of the financial crisis on CNBC's Squawk Box, September 12, 2012

The following transcript has not been checked for accuracy.

right now, though, more from our guest host today, dick kovacevich who is the former chairman and ceo of wells fargo. when we were talking a little bit ago, you were talking about how the financial crisis was caused, in your view, this was eight banks, 12 s & loans, citi, you could go back to those and go to the heads of those at that time. you think there were real problems happening. yeah, 11 and 12 s & ls, and one commercial bank, the rest were commercial banks. i think it was greed. they had to know that this stuff was not good. we went from -- there's always been subprime mortgages. we went from about 10% of the mortgage market to at the peak to 50% of the mortgage market being subprime lending. and this is no doc, low doc stated income, an open invitation for fraud. we know that …

Jim Rogers: Politicians' Green Light to ECB Sovereign Bond Purchases "Same Old Garbage"

Jim Rogers is interviewed on CNBC in London. Rogers dismisses recent developments in Europe where Germany's Chancellor Angela Merkel has agreed to some monetization of the debt via European Central Bank purchases of sovereign bonds from highly-indebted countries. This is not a game-changer and will make things worse because it will lead eventually to more debasement of the currency, high inflation and higher commodity costs. "These guys have been saying the same old garbage for a long time," he tells CNBC.

Washington Policies Spawned the Toxic Mortgages and Assets That Brought Us the Financial Crisis

Lecture to Ethics Class
Carey School of Business, Johns Hopkins University
Legg-Mason Building, Baltimore East Harbor Campus
Inner Harbor, Baltimore, Maryland

August 27, 2012

By Robert Stowe England

It’s nearly four years since the advent of financial crisis. Yet, for most Americans, a thick fog still shrouds its origins

Finding the answer to what went wrong is what compelled me to write Black Box Casino. In the end, it was a detective story where even a list of important actors could run into the hundreds.

At the center of origins of the crisis is a single industry – the mortgage industry.

As senior writer for Mortgage Banking magazine since 1988, I have reported on the vast changes sweeping through the industry for more than two decades.

The mortgage industry in 2008 was nothing like it was when I started covering it.

Twenty years ago the mortgage industry was disciplined by the free market. It was flexible and innovative. New loan products would appear and market players would exp…