Consumer Price Index for All Urban Consumers

All American Investor

2012-12: 230.979 Index 1982-84=100

@AllAmerInvest MF Global You're Doinked, Bernanke Faces Perry, Bonus Bucks, Pony up for Italian Bonds, Roubini warns of catastrophe for Goldman Sachs

MF Global Assets Have Left The Building: How, When, Where

Unlike the shell game, there is no bean under the MF Global dixie cup. The mixed bag of marketable securities taken from customer segregated accounts, used most likely to meet margin calls and satisfy “important” customers closing accounts during the last days, will, in my opinion, never be seen again.

Jon Corzine looks happy

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Bernanke shows Fed's independence with Texas trip
Three months ago, Texas Gov. Rick Perry, who is seeking the Republican presidential nod, had sent a veiled threat: Bernanke would be treated "ugly" in Texas if he continued to pursue ever-lower interest rates - a policy that Perry and some other critics say is akin to recklessly printing money.

All American Investor

CNBC Bonus Bucks Answers for Wednesday, November 9, 2011

@AllAmerInvest Deja Vu, Credit, Greek to Me, AMZN, Markets Explode UP, Perry Chickens, Super Connected Banks

Déjà vu: Today vs. March 2008

In a closer look below, the parallels between now and 2008 feels more like, well, déjà vu.

How gross and net CDS notionals really work
According to the DTCC, there is $75bn gross notional outstanding for CDS contracts referencing Greece. However, on a net basis this figure reduces substantially to $3.7bn.

Banks Bow to ‘Last Word’ From Merkel on Greek Debt
The world’s biggest banks bowed to what German Chancellor Angela Merkel called the “last word,” agreeing to write down their Greek government debt by half in the pivotal piece of the euro area’s bid to stem the financial crisis.

Amazon AWS might be a billion-dollar biz

All American Investor

The latest interview with Marc Faber (Gloom, Boom and Doom)

@AllAmerInvest CNBC Bonus Bucks, Class War, Another Downgrade, Housing, Pathological Procrastination

The Class War Has Begun

During the death throes of Herbert Hoover’s presidency in June 1932, desperate bands of men traveled to Washington and set up camp within view of the Capitol. The first contingent journeyed all the way from Portland, Oregon, but others soon converged from all over—alone, in groups, with families—until their main Hooverville on the Anacostia River’s fetid mudflats swelled to a population as high as 20,000.

US in possible downgrade encore shock
The “not-so-super” Deficit Commission is very unlikely to come up with a credible deficit reduction plan. The committee is more divided than the overall Congress.

CNBC Portfolio Challenge Bonus Bucks Answers

All American Investor

@AllAmerInvest Amazon Playing to Win, Groupon IPO, Yahoo deal, Jobless Report, Buy a House Get a Visa

Amazon (AMZN) Brings Big Guns To The Publishing War

Amazon is playing to win in the ebook platform wars, and isn't afraid of pulling out the big guns. It is securing exclusive deals. It is building its own publishing house. It is doing everything to increase the number of available titles (see chart).

We believe the winning Kindle platform is likely to have network effects: the more titles it will have, the more consumers it will have, which will lead more titles to the platform and so on, in a virtuous cycle. This is the right move on Amazon's part. It will be fascinating to see what happens when Amazon get serious about streaming video.

Number of ebooks available for sale on US Kindle store

http://read.bi/qnDOIj

Unemployment Insurance Weekly Claims Detailed Report, 403,000
http://bit.ly/pko7o3


Groupon cutting back size of IPO
http://nyti.ms/oM7TYh

Yahoo (YHOO) may get bid from Microsoft
http://on.wsj.com/n5in3l

CNBC Million Dollar Portfolio Challenge Bonus Bucks Answers
http://bit.ly/q8ca5B

@AllAmerInvest Electric DeLorean, Amerislump, Economic Lies, Gold Doink, PPI, Bonus Bucks, Cars Talk, Siri Sings

Electric DeLorean: First Drive

This weekend I drove the Electric DeLorean. I'm not laughing anymore.

http://jalo.ps/q3CR56

The Producer Price Index for finished goods rose 0.8 percent in September
http://1.usa.gov/poAyUp

THE SEVEN BIGGEST ECONOMIC LIES
http://bit.ly/pXDbOr

The Amerislump  Is Upon Us
http://bit.ly/o4dYd1

Bank of America, Goldman Sachs Add to Earnings Disappointment
http://on.wsj.com/o5KB74

All American Investor

Bonus Bucks Answers
http://bit.ly/mSHmq0

@AllAmerInvest Doink, Empire New York, Euro Zone, CNBC, Gold, Rimm, Nike

Stocks: Investors on edge over Europe, earnings

U.S. stocks headed for a weak open Monday as relatively strong earnings from Citigroup and Wells Fargo failed to eliminate persistent jitters over Europe's debt crisis.

http://cnnmon.ie/o9Uoya

The Federal Reserve Bank of New York’s general economic index rose to minus 8.5 from minus 8.8 in September. Economists projected an improvement to minus 4, based on the median of 53 forecasts in a Bloomberg News survey.
http://bloom.bg/q0XIoB


Euro zone eyes yet another "comprehensive strategy"
http://reut.rs/n6nQHo

All American Investor

CNBC Portfolio Challenge Bonus Bucks Answers for Monday, October 17, 2011

@AllAmerInvest Reserve Currency, iPhone 4S, Good Story, Freak Out, Dexia, World Could End

What makes a reserve currency?

The issue now, says HSBC, is that many economies are beginning to question the use of the dollar in managing their own monetary systems. And, there are a lot of dollarised economies out there that could turn:

http://on.ft.com/pvjuPG

All American Investor

CNBC Portfolio Challenge Bonus Bucks Answers for Wednesday, October 5, 2011 http://bit.ly/qMOJoo

Get Ready For Long Lines, And Big Sales For iPhone 4S
http://read.bi/qK6naM

Random Walk Author Likes Templeton China Fund

Princeton professor Burton Malkiel is best knows for his book, A Random Walk Down Wall Street.

His newest book is also a worthwhile read for investors interested in China--From Wall Street to the Great Wall: How Investors Can Profit from China's Booming Economy.

Here is a quick look at Malkiel's portfolio:

• 20% Vanguard Total Stock Market ETF (VTI) (Tracks a broad index of U.S. companies)
  
• 20% Vanguard FTSE All-World ex-US ETF (VEU) (Tracks a broad index of stocks from developed and emerging foreign markets.)
  
• 20% Vanguard Total Bond Market ETF (BND) (Tracks a broad index of high-quality U.S. bonds)
  
• 10% Vanguard Capital Opportunity (VHCOX) (An actively managed fund that likes big growth companies down on their luck)
  
• 10% Vanguard Emerging Markets ETF (VWO) (Tracks an index of stocks developing nations)
  
• 10% Templeton Dragon (TDF) (Invests in stocks from China and nearby nations)
  
• 10% Matthew's India (MINDX) (Invests in stocks from India)
  

It should be noted his portfolio consists mostly of passively managed and exchange-traded funds. You might be surprised he is heavily invested in stocks with a third of his portfolio invested in emerging markets.

If you are looking to get up to snuff on China I recommend his book. You might also want to take a close look at his portfolio holdings listed above.

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Random Walk Author Likes Templeton China Fund

Financial Meltdown--Where there is Smoke, there is Fire

At dinner he described the situation to me. He said, “Where there is smoke there is fire”. He went on to explain that any time a major financial institution gets in trouble you could draw a circle around its location and expect the problem to spread to any other financial institution in a 150 mile radius (keep in mind this was the 1980s and before the Internet). He went on to explain the interconnectivity of financial institutions in a geographic proximity....His trip and fact finding mission convinced him that there was going to be a real financial crisis in Texas and that it would likely devastate the major banks and savings and loans in the region. This was a very unpopular stance that cost him his job....It also was the catalyst of a stock market crash in 1987....I am reminded of other sayings that I heard early in my career on Wall Street—“never try and catch a falling knife”. I find myself thinking right now—“Cash is King”.

Financial Meltdown--Where there is Smoke, there is Fire

Back in the 1980s I learned an important lesson. At the time, I was with Bear Stearns and working in their Dallas, Texas office. The head of credit came to Texas, from New York, to visit the state’s major banks and Savings and Loans. He was there to discuss their financial statements. Specifically, he was trying to get a handle on their financial viability and credit risk. There was a growing concern about the quality of credit and soundness of financial institutions in the southwest and California. The head of credit spent a couple of days in Dallas and Houston talking to the CFOs of these banks. Late in day, at the end of the trip, I saw him sitting alone in the office and asked him what he was doing. He informed me he was done but was not scheduled to fly out until the next morning. I saw this as an opportunity to “pick” his brain and learn something. So, I invited him out to dinner.

At dinner he described the situation to me. He said, “Where there is smoke there is fire”. He went on to explain that any time a major financial institution gets in trouble you could draw a circle around its location and expect the problem to spread to any other financial institution in a 150 mile radius (keep in mind this was the 1980s and before the Internet). He went on to explain the interconnectivity of financial institution in a geographic proximity. His trip and fact finding mission convinced him that there was going to be a real financial crisis in Texas and that it would likely devastate the major banks and savings and loans in the region. This was a very unpopular stance that cost him his job. At the end of the day he was right. Both of the major banks in Dallas failed (Republic and First Interstate) and all of the major S and L’s in Texas failed (Sunbelt and Bright Bank to name two). This resulted in the formation of the Resolution Trust Corporation, a government agency set up to dispose of the massive amount of defaulted loans owned by these financial institutions. It also was the catalyst of a stock market crash in 1987.

For years I have been telling my friends that the derivatives and swaps markets would turn out to be the equivalent of the savings and loan fiasco but on a scale that could never be imagined. Let me ask you, do you know anyone that predicted that Bear Stearns, Lehman Brothers and AIG would go up in smoke? That Merrill Lynch would be offered at a fire sale? Have you heard prior discussions about the interconnectivity of all these financial institutions? Are they within a 150 mile radius?

AIG, the next to go, is a good example of the direness of the current situation. AIG has been racking up enormous profits for a very long time. Just last week they were considered to be solvent. They are loaded with cash. They are claiming $1,000,000,000,000 in assets (Trillion). They operate world wide. If you ask, AIG will tell you their problem is not a solvency issue it’s a liquidity issue. It seems that the financial community is no longer buying this argument and no one is willing to stand up and throw money at the problem. AIG does not have the necessary assets to collateralize the $75 billion in loans it needs right now to keep operating. If they go down someone will be on the hook for the insurance side of the business. I bet you thought as an insurance company there were being regulated. Partially true, but this does not include the part of the business that is all wrapped up in the credit default swaps market and other derivatives designed to leverage the balance sheet and create “monster” profits. It appears the Fed and government regulators have finally decided that bailouts aren’t working and decided to say no to Lehman and AIG. Lehman is bankrupt and it appears that AIG will declare bankruptcy soon. The too big fail rule is no longer in effect.

It would be foolish to believe that once AIG goes over the cliff it will bring an end to the financial crisis we are seeing today. You should be thinking of the interconnectivity of AIG, and all the counterparties that are doing business with AIG worldwide. Companies doing business with them will get wounded, maybe mortally wounded. What looked like a US problem is now a global problem. This will spill into financial markets world wide.

It appears it is finally being recognized that this is not smoke, it’s a FIRE. It appears that “too big to fail” is no longer a workable strategy to fix the problem. It appears the reality of the credit swaps derivatives market is finally being recognized. It’s likely that much of this paper is worthless or only worth cents on the dollar. This financial crisis is not likely to go away over night. There is more to come before all this “paper” can get unwound or find a home. In the interim there is an enormous risk in the stock and other financial markets.

The Fed will address this issue by adding massive liquidity to the markets. The world’s central banks will do the same. It is the right thing to do. But, it is a short term fix that is like prescribing an aspirin for a major infection. It might lower your fever but it won’t cure your illness.

In closing, I am reminded of other sayings that I heard early in my career on Wall Street—“never try and catch a falling knife”. But, right now I find myself thinking—“Cash is King”.

Trivia: CNBC Bonus Bucks Answers for Monday, April 23, 2007

CNBC Portfolio Challenge Bonus Bucks Answers for Monday, April 23, 2007 and CNBC Million Dollar Portfolio Challenge

Amazon.com is launching a new support center in which European country?

Barclays announced it will acquire ABN Amro in a deal worth how much?

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Barclays announced it will acquire ABN Amro in a deal worth how much?

CNBC Portfolio Challenge Bonus Bucks Answers for Monday, April 23, 2007 and CNBC Million Dollar Portfolio Challenge

Amazon.com is launching a new support center in which European country?

Barclays announced it will acquire ABN Amro in a deal worth how much?

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CNBC Bonus Bucks Trivia Answers
CNBC Bonus Bucks Answers for Monday, April 23, 2007 and CNBC Million Dollar Portfolio Challenge Bonus Bucks Answers

Eli Lilly beat the street this morning and boosted its full-year guidance. By how much did they beat the street?

CNBC Portfolio Challenge Bonus Bucks Answers for Monday, April 16, 2007 and CNBC Million Dollar Portfolio Challenge

Sallie Mae has agreed to sell the company to J.C. Flowers. How much will they pay per share?

Eli Lilly beat the street this morning and boosted its full-year guidance. By how much did they beat the street?

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CNBC Bonus Bucks Answers for Monday, April 16, 2007 and CNBC Million Dollar Portfolio Challenge Bonus Bucks Answers

Sallie Mae has agreed to sell the company to J.C. Flowers. How much will they pay per share?

Eli Lilly beat the street this morning and boosted its full-year guidance. By how much did they beat the street?

Which of the following is NOT a feature of a new $350 million complex being built in Dubai?

CNBC Portfolio Challenge Bonus Bucks Answers for Thursday, April 12, 2007 and CNBC Million Dollar Portfolio Challenge

How much is Nestle paying Novartis for baby food giant Gerber?
Which of the following is NOT a feature of a new $350 million complex being built in Dubai?
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How much is Nestle paying Novartis for baby food giant Gerber?
Which of the following is NOT a feature of a new $350 million complex being built in Dubai?

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