Financial Foot In Mouth » USA Predictions and Gaffes

Tips Should Not Be Included

admin — Mon, 21 May 2012 10:36:56 +0000

Recently, when the Dow Jones stood at 13,212.04, the “Daily Telegraph” was maintaining that America had hit “a sweet spot” and Clare Hart was explaining why “Uncle Sam has a lot more to offer British investors”. Ms Hart felt that the investment environment was, “..a lot less hostile and some of the big weight (had) been lifted off the market – and investors` minds”, going on to say that, “At a certain point, people begin to feel better about things”.

Well, hold that feeling because, just over seven weeks on, the Dow has lost 6.37% of its value and that sweet spot has turned a bit sour. We know it should be a marathon not a sprint but, in either race, it helps to set off in the right direction.

Laffer Minute

admin — Thu, 17 May 2012 13:26:57 +0000

Yet another tirade against the worryingly accurate predictions of Peter Schiff back in 2007, this time seen on CNN.

It would be interesting to see how Arthur`s portfolio shaped up over the ensuing couple of years.

Sub-Prime Is A Tiny, Tiny Blip

admin — Wed, 09 May 2012 13:41:01 +0000

During a tirade against Peter Schiff on Fox News, Ben Stein also opined that, “I think stocks will be a heck of a lot higher a year from now. The financials are super bargains” – before going on to recommend Merrill Lynch as “an astonishingly well-run company” (subsequently rescued by Bank of America).

Hey, stop equivocating and tell us what you really think, Ben.

It`s Impossible To Violate The Regulatory Environment

admin — Mon, 23 Apr 2012 11:00:15 +0000

Of course, the rest is history – Mr Madoff`s Ponzi scheme was uncovered the following year and it turned out costing investors some $65 billion.

The clue must have been in the word “virtually”.

Which One Of You Said That?

admin — Fri, 06 Apr 2012 13:28:50 +0000

Just five months later, in October 2011, M F Global collapsed, leaving a shortfall in investor funds estimated at $1.6 billion. The Financial Services Compensation Scheme is now set to begin paying out compensation to customers of M F Global.

Incidentally, why is it the case that corporate aggrandisement in the form of a global name is so often a precursor to failure? – e.g. Barlow Clowes International, Bank of Credit and Commerce International, Enron International, M B Global, Swissair International, Setanta Sports International. Ambition should be made of sterner stuff (William Shakespeare).

Goldman Sachs` Muppet Show

admin — Fri, 16 Mar 2012 17:27:09 +0000

Evangelical conviction apart, the somewhat agnostic resignation of Greg Smith from his post of Head of Goldman`s U.S. Equity Derivatives Business in Europe, Africa and the Middle East suggests that belief in the Goldman Sachs deity may be waning. If Goldman`s clients were irritated to learn that they were commonly referred to as “Muppets”, they were probably incandescent at Greg Smith`s disclosure that, “it makes me ill how callously people talk about ripping clients off. I truly believe that this decline in the firm`s moral fibre represents the single most serious threat to its long run survival”. Perhaps an opportunity has arisen for a better religious balance to be struck with today`s unexpected availability on to the job market of Dr Rowan Williams, who, one assumes, could begin a Damascene conversion with the Goldman Sachs Ethical Fund.

“They Didn`t Lose One Dollar”

admin — Wed, 14 Mar 2012 13:30:17 +0000

Well, they didn`t lose ONE dollar. AIG did, however, need to tap the American taxpayer for $182 billion the following year in order to save the U.S.A.`s largest insurance company from bankruptcy caused largely by credit default transactions.

America`s Future Not So Bonny, Clyde?

admin — Mon, 12 Mar 2012 18:16:36 +0000

Ronald Reagan`s Visionary Adviser on Japan. Good job we didn`t bet the house on that one.

Hewlett Packard`s considered rejection of Steve Jobs and Steve Wozniak

admin — Mon, 12 Mar 2012 17:38:44 +0000

To all those aspiring entrepreneurs who may occasionally take criticism and rejection too seriously, the message must be, “if at first you don`t succeed..” and, whatever you do, don`t set too much store in others`views.

Balancing The Books – the George W. Bush way

admin — Sat, 03 Mar 2012 17:12:22 +0000

Editor`s Notes: Just over 10 years later, the debt repayment programme appears to have slipped a tad – standing at $15,488,891,296,248. Here`s to the next 10 years, Chinese permitting.