According to documents filed in Manhattan's US District Court, JPMorgan Chase, UBS AG, Bear Stears, Lehman, Societe Generale are among the more than a dozen Wall Street firms involved in a conspiracy to pay below market rates to US state and local governments. Although the mainstream media mentioned it only in passing, this case will provide the best glimpse yet into one of Wall Street's most closely guarded "secrets" - collusion in the $2.8 trillion muni markets that enriched Wall Street at the expense of Main Street....again. Jail time and convictions for the more than two dozen bankers involved as co-conspirators will get Wall Street's  attention...more penalties are just balance sheet … [Read more...]

It's time to roll into one of our favorite cities for one of my favorite events, the Las Vegas World MoneyShow. I'll be speaking on several topics including the latest from China as well as the best opportunities in global markets right now as I see them. To register, call 800-970-4355 or click here.It's a great show with super presentations and a lot of smart people in attendance. Plus Caesars Palace is always great. Hope to see you there! … [Read more...]

The ink isn't even dry and already the backlash is starting.  Caterpillar noted that the new bill would cost that company $100 million...straight off the bottom line and right out of shareholders' pockets in the first year alone. Medtronic which makes medical devices noted that the company is going to lay off 1,000 workers to cope. And Verizon sent a letter to every employee earlier this week observing that there will be immediate changes in policies and price increases.  Washington is completely delusional. Not only is this bill going to result in immediate higher insurance costs, but it's going to negatively impact 2010 earnings as corporations have to redo their numbers to account … [Read more...]

If the EU is serious about saving the Euro, the best thing for the EU would be to let Greece fail instead of violating its own no-bailout rules. First, bailing out Greece rewards Greece's inept leadership and sends a message to the world that the Eurozone doesn't take its own rules seriously. This weakens the currency by effectively bundling the trash with the diamonds. Second, put this in perspective. Greece's failure would be like Montana going bankrupt. It wouldn't be popular but at less than 2% of the EU's economic output, it's really not a big deal. What's really at stake here is much more serious.  By violating its own rules, the EU is proving that they don't have the cajones … [Read more...]

China has been a net treasury seller for three straight months according to Treasury Department data released yesterday in Washington. That nation's holdings dropped $5.8 billion to $889 billion in U.S. paper. Meanwhile, Japan's holdings declined by $300 million to $765.4 billion. International purchases of long term equities, notes and bonds totalled a net $19.1 billion down significantly from the $63.3 billion recorded in December. The key point here is that foreign central banks appear to be losing patience exactly as I said they would and this is likely the first in a renewed series of calls from both China and Japan that the U.S. must reassure investors about the safety and quality of … [Read more...]

China is building 42 high speed rail lines by 2012 as part of a national effort to implement 12,500 new miles of rail - the largest single net addition to any nation's rail lines in more than 100 years. Meanwhile, the American plan for high speed rail is to link Tampa to Orlando. Sigh.... … [Read more...]

A recent USA Today analysis of Federal data shows that Federal employees earn higher average salaries than private-sector jobs in 8 out of 10 occupations: accountants, nurses, chemists, surveyors, cooks, clerks and janitors included among others. Overall, federal workers earned an average of $67,691 in 2008 versus $60,046 according to Bureau of Labor statistics data. 2009 data is not yet available. And, get this...these salary figures do NOT include the value of health, pension and other benefits which average $40,785 per worker versus a mere $9,882 per private worker according to the Bureau of Economic Analysis. Why am I not surprised??!! … [Read more...]