Category Archives: Uncategorized
From 1998-2008 Securities Firms contributed $512,816,632 to political campaigns AND spent $599,955,649 in lobbying efforts.
My Comment: Front page of the WSJ has an article discussing R&D spending for the 28 largest spenders. Even though revenues are 7.7%, research and development spending is down less than 1%. This is somewhat surprising because auto, semiconductors and pharma are big contributors among the top 28 firms. This is a good sigh because R&D spending today will fill the innovation pipeline for the future growth.
My Comments: Where do I start? I know the US porn industry earlier this year asked for a $5 billion bailout. It was HARD for me to take it seriously. This is a funny story about a Euroland porn protesting in front of the Milan Stock Exchange. Before we judge, we need to see this young lady’s entire body of work!
If the plan fails and investors default, who gets stuck holding the bag? Taxpayers lose because the loans to buy the bad assets are non-recourse. The investors (i.e. hedge funds, pension plans, ultra high net worth individuals) are putting up just a fractional amount of cash to purchase the bad assets. By some estimates they are only investing 3-10% of their own capital, the rest comes from us. The taxpayers have most of the “skin in the game,” not the private investors. If the plan fails, the private investors will like just default on the money borrowed from the fed to purchase the assets, leaving the taxpayer high and dry. Continue reading
Goldman Sachs is over $100 per share for the first time since October 2008. After the market closed Nike announced it beat the quarterly earnings estimate by 20 cents. Oracle announced its first ever dividend of $.05 per share. Does this mean Oracle’s war chest of cash won’t be used to make a blockbuster acquisition?
Don’t believe the hype on these positive headlines. Announcements like these may push the market higher on Thursday’s opening, but these are the exceptions to the overall market, which remains weak. Banks and consumer discretionary stocks have rallied over the last 7 trading days, but it shouldn’t last. General Mills disappointed by 8 cents on higher costs of ingredients and stronger dollar. If the maker of Hamburger Helper and Cheerios is struggling, a larger portion of corporate America is hurting than the trading of the 7 days indicates. Kraft, Heinz, Kellogg and ConAgra were down over 2% on the earnings report of General Mills.