Sentiment Leech

Older Sibling is Watching You

2009-05-03T22:37:00.000-07:00

Selena Cuffe, President and CEO of Heritage Link Brands, LLC, banks at First Republic. From ad posters she says, It's not really a bank--it's like having an older sibling look out for your best interests.I wonder if Mrs. Cuffe is paraphrasing, gender-neutral--like, a quote from the first page of 1984: It was one of those pictures which are so contrived that the eyes follow you about when you move

Shackles of Liberty

2009-03-24T17:58:00.000-07:00

In April 1917 United States enter the World War. To pay for this War to End All Wars, the government sells equally oxymoronic Liberty Bonds. A striking feature of these "Liberty Loans" is how the government compels citizens to finance them.16th amendment authorizes a federal income tax in 1913, and the marginal tax rate rises to 77% in 1918. Liberty Loans are additional money that the government

Intentions and Results

2009-03-23T21:33:00.000-07:00

On January 15, 2009 Chesley Burnett "Sully" Sullenberger III displays exceptional airmanship when he lands his A320 in the Hudson. All 155 people aboard US Airways Flight 1549 survive. This highly improbable outcome makes Mr. Sullenberger an instant celebrity.Mr. Sullenberger's passengers are extremely lucky to have him as captain on that particular flight. Mr. Sullenberger's other business is

World's First

2009-03-17T15:35:00.000-07:00

RIM and Verizon are running a most bizarre ad campaign. How embarrassing would it be if competitors, say Apple and AT&T, beat them to the punch? They would be stuck with the world's second touch screen Blackberry.If you don't like coming in second, you can always qualify your achievement.Storm, the World's First Touch Screen BlackberryAlan Shepard, the World's First American in Space

Obama's Kissinger

2008-12-22T14:46:00.000-08:00

Dr. Henry Alfred Kissinger is a naturalized citizen of the United States. His foreign birth prevents him from seeking the presidency or the vice-presidency. Dr. Kissinger became Secretary of State, the third most powerful position in the United States executive branch. In certain respects, Dr. Kissinger had more power then the presidents he served. President Nixon resigned in disgrace. President

Talk to Chuck About the Uptick Rule

2008-12-11T18:42:00.000-08:00

When the uptick rule was invented 70 years ago, stocks were quoted in fractions of a dollar. The smallest "tick" then was typically $1/8, plus another $1/8 in commission. For almost a decade now, US stocks have been quoted in decimal dollars and cents. The minimum uptick now is $.01, and they happen more frequently because of their smaller size and larger volume. Whatever effect the rule had then

The Royal They

2008-12-09T17:53:00.000-08:00

I received an email recently from a website that read, in part:This is a reminder that on , sent you an invitation to become part of their professional network at .The administrators at were quite certain that is a single individual; they were less sure of his sex. (I happen to know and that he is a man.) I think that this increasingly common attempt

One Night at a Time

2008-12-08T13:43:00.000-08:00

Jeffrey McCracken and Alex Frangos report what they believe is a leading indicator for commercial real estate: Extended Stay Hotels Inc. is in early talks that could result in turning the hotel chain over to its lenders, a sign of the deep trouble awaiting the commercial real-estate business.[..]Hotel landlords typically are the first to feel the pain in a downturn because hotels have the

What, $1?

2008-12-05T01:04:00.000-08:00

President's Commission on Restoring Our Trees to Springtime

2008-12-02T14:33:00.000-08:00

Ed Seykota observed a couple of weeks ago:The official government response to Autumn is to declare it a crisis and then to authorize billions to form an agency to try to stick the leaves back up on the trees.

Why Congress Should Rescue GM--and When

2008-12-02T01:06:00.000-08:00

The automakers are begging Congress for a $25 billion handout. I see no reason why Congress should refuse. Specifically, I think members have incentives to make it happen before the lame-duck session ends, but not before showing the companies who is the boss.Why $25B in lame duck sessionMembers are debating a $500B stimulus package; next to that, $25B is small potatoes. On the other hand, $25B is

Do You See What I See?

2008-11-25T18:23:00.000-08:00

Peter A. McKay reflected on a pattern today which I noted yesterday and on Nov. 8th:The Dow suffered a drop of about 60 points as Mr. Obama was speaking -- a pattern that has emerged following his other post-election press conferences. But as has been the case in every full day of trading that has included remarks from him, the Dow on Tuesday eventually returned to and exceeded its level prior to

Obama Speaks, Market Listens

2008-11-24T10:38:00.000-08:00

Peter A. McKay writes: Mr. Obama officially announced his economic team in a press conference that ended around 12:30 p.m. Eastern. As he spoke, the market gave back about a third of its gains but remained solidly in the black.Is there a pattern here? One guess would be that those who pay attention to Mr. Obama's press conferences are bullish on his administration. While they are away--listening

What Housing Overhang

2008-11-21T14:21:00.001-08:00

Housing starts fell to lowest level since World War II, but you wouldn't know it driving around Silicon Valley.Home values here are 50% off their peaks 2-3 years ago. My next-door neighbor has had his house on the market since June and has reduced his asking price twice. He has no takers. His isn't the only house for sale in the area. Meanwhile, I pass three separate construction sites on my 5-

Mother of All Disclaimers

2008-11-20T17:49:00.000-08:00

I opened an account with a futures brokerage recently. I received the following email from them. I guess they wanted to make sure my email didn't bounce. It shattered my previous record to signal-to-disclaimer ratio.Subject: FW: Email test To: undisclosed-recipients:;No need to reply . DISCLAIMER: [redacted] is a US registered futures commission merchant and a member of the NFA and is a US

I've Seen the Future, and It's GM

2008-11-20T12:03:00.000-08:00

No Photoshop, this is a real GM ad. Scary, ain't it?

The Next Shoe

2008-11-18T11:36:00.000-08:00

Yesterday, Jon Hilsenrath wrote that banks keep lending, but that isn't easing the crisis. He points to a recent paper by Harvard Business School economists David Scharfstein and Victoria Ivashina which says, by way of introduction: There appears to have been an increase in drawdowns of revolving credit facilities. Many of these drawdowns are undertaken by low credit quality firms concerned about

Not Even This

2008-11-17T16:06:00.001-08:00

Somali pirates hijack Saudi tanker loaded with oil and front-month crude slides $2 to under $55 a barrel, a fresh 22-month low. One wonders what could lift prices.That said, you've got to be wondering about these pirates. I wouldn't go messing with the Saudis or stealing from them if I were a pirate. I hear Saudis can hurt people they don't like, and I hear Saudi jurisprudence is swift.I know

How Bad are Luxury Car Sales?

2008-11-15T20:19:00.001-08:00

A Porsche dealership in Redwood City, Calif., tonight.Same dealership, a week later, with a better camera. Lights still out.

The Kaliningrad Euphemism

2008-11-14T10:38:00.000-08:00

There's been a lot of talk lately about Russia's plans to deploy new missiles in Kaliningrad Oblast. Alan Cullison's description in today's Journal is typical:Kaliningrad is a Russian enclave in Europe that borders NATO members Poland and LithuaniaThe exclave district is two countries away from Russia proper and, 17 years after the breakup of Soviet Union, is still named after a Communist party

What Do You Want to Finance Today?

2008-11-13T16:48:00.000-08:00

Microsoft to Offer 0% Financing For Its Business Software, reports Kerry E. Grace.Hell, it worked so well for Detroit, why not Redmond?

Oil prices hit lowest points in almost two years

2008-11-12T11:15:00.000-08:00

New York's light sweet crude on Wednesday slid to 56.35 dollars a barrel -- a level not seen since March 2007.[..]"If these prices continue... many projects will be postponed" and there will be an "energy crisis in two years," Libya's Oil Minister Shukri Ghanem told AFP by telephone. (afp.google.com)What I hear: panic.

I Can See it Clearly

2008-11-08T14:36:00.000-08:00

Markets Rally Despite Gloom, Peter A. McKay tells us:In his first press conference since the election, President-elect Barack Obama focused on economic issues. [..] The Dow trimmed its gain from about 250 points to about 80 points while Mr. Obama was speaking, but it recovered almost all its gains by the closing bell. (emphasis mine)What I forecast: he's going to do a lot more talking in the next

The Hedge Funds are Selling, the Hedge Funds are Selling

2008-11-07T23:53:00.000-08:00

Hedge Fund Selling Puts New Stress on Market, Jenny Strasburg and Gregory Zuckerman report:Hedge funds have emerged as the latest serious problem in the global financial system. As their losses mount, they're selling off securities to meet demands for cash from lenders and investors. Compounding the problem is a surge in notices from investors indicating they want out.What I hear: volatility is

Sustainable Capitalism

2008-11-05T12:16:00.000-08:00

In their post-election op-ed, "We Need Sustainable Capitalism", Al Gore and David Blood said:Forty years ago, Robert F. Kennedy reminded Americans that the Dow Jones Industrial Average and Gross National Product measure neither our national spirit nor our national achievement. [..] As he put it, "the Gross National Product [..] measures everything, in short, except that which makes life

The Carter Bounce

2008-11-04T12:45:00.000-08:00

Annelena Lobb asked yesterday, "Will stocks rally with a new face in the White House?"There are two relatively recent historical precedents for the current election, where a new president will take office amid a serious financial crisis. [New president] will confront ugly economic challenges like Franklin D. Roosevelt did after his 1932 victory and Ronald Reagan did in 1980.The Dow Jones

OPEC Blues

2008-11-03T23:32:00.001-08:00

The president of the Organization of Petroleum Exporting Countries, Chakib Khelil, on Sunday said the cartel's recently announced production cut "will take a long time to take hold" and shore up prices because demand for oil remains below OPEC's revised production level, Agence France-Presse reported. (WSJ, 11/3/2008, emphasis mine)What I hear: production cut on Oct. 24th didn't work, we don't

Ex-President Obama

2008-11-03T13:56:00.000-08:00

I was trying to imagine what Barack Obama might do when he retires from the Presidency he will presumably win tomorrow. He will be either 51 or 55--many years of productive life ahead of him. I tried to picture him as an ex-President community organizer. Tried to picture him back in Congress. Even tried to picture him pulling a Taft and becoming a Chief Justice. I'm pretty sure he won't go

Market Capitulation

2008-10-30T12:14:00.000-07:00

On Oct. 25th, Jason Zweig discussed capitulation in his WSJ column:There's a belief that the market can hit bottom only when vast numbers of investors finally capitulate, throwing in the towel and selling off the last of their stock portfolios."The idea is, 'We'll know we've hit bottom when the fat lady capitulates,'" says finance professor Robert A. Schwartz of Baruch College at the City

Leech Statistics

2008-10-30T00:01:00.000-07:00