Top Clinton Aides Blew a Chance to Avert the Financial Crisis

Posted by & filed under Economic Analysis, Growth & Valuation, Industry Analysis, Management Issues.

Description: The U.S. economy and the stock market were booming on April 21, 1998, when the heaviest hitters of the Clinton administration met to discuss a controversial topic: whether the government should regulate a profitable but risky corner of the financial markets. Treasury Secretary Robert Rubin, the former Goldman Sachs (GS) co-chairman, attended. So did his deputy, Larry Summers, and Alan Greenspan, chairman of the Federal Reserve. The meeting’s odd woman out was Brooksley Born, the little-known chairwoman of a little-known agency, the Commodity Futures Trading Commission (CFTC), who exhorted her colleagues to consider regulating privately traded derivatives such as swaps contracts.

Source: Businessweek.com

Date: May 01, 2014

Link: http://www.businessweek.com/articles/2014-05-01/clinton-officials-missed-chance-to-avert-2008-financial-crisis#r=hp-lst

Questions for Discussions:

  • Summarize the key points presented in this report.
  • Do you agree with the conclusions?

Why Only One Top Banker Went to Jail for the Financial Crisis

Posted by & filed under Company Analysis, Governments & Regulators, Industry Analysis.

Description: This article is a collaboration between The Times and ProPublica, the independent nonprofit investigative organization.

Source: NYTimes.com

Date: Apr 30, 2014

Link: http://www.nytimes.com/2014/05/04/magazine/only-one-top-banker-jail-financial-crisis.html?ref=business

Questions for discussion:

  • Summarize the key commentary about the financial crisis.
  • Do you think the authorities have done their jobs or that more needs to be done about those responsible?

Sen. Warren: Onus on you, Mr. Regulator

Posted by & filed under Governments & Regulators, Growth & Valuation, Management Issues.

Description: Sen. Elizabeth Warren explains why financial regulators — including ones in her own party — need to get tougher with the U.S. banking system and says she has ‘a lot of tools in the toolbox’ to passing legislation.

Source: CNNMoney.com – video report

Date: Apr 24, 2014

Link: http://money.cnn.com/video/news/2014/04/25/elizabeth-warren-bank-regulators-finance-reform-congress-consumer-protection-financial-bureau.cnnmoney/index.html

Questions for Discussions:

  • Do you agree with Sen. Warren’s understanding of the situation?
  • Should banking be divided along the lines she advocates?
  • Would it make banking “safer”?

El-Erain fears ‘global recession’

Posted by & filed under Economic Analysis, Growth & Valuation, Industry Analysis.

Description: Chief Economic Adviser at Allianz Mohamed El-Erian says without a political solution in Ukraine, sanctions could lead to increased energy prices and a global recession.

Source: CNNMoney.com – video report

Date: April 24, 2014

Link: http://money.cnn.com/video/investing/2014/04/25/investing-russia-ukraine-economic-sanctions-global-markets-recession-risk.cnnmoney/index.html 

Questions for Discussions:

  • Summarize Mohamed El-Erian’s concerns for the global economy.
  • Do you agree with his analysis?
  • How much risk do you think there is for this scenario unfolding?

Caffeine jolt for Starbucks stock

Posted by & filed under Company Analysis, Financial analysis, Growth & Valuation, Industry Analysis.

Description: The cold weather may have hurt Starbucks rival Dunkin’ Donuts. But Starbucks had a strong quarter and is optimistic about the rest of 2014. And there’s talk it may want to buy a stake in SodaStream.

Source: CNNMoney.com – video report

Date: Apr 25, 2014

Link: http://money.cnn.com/video/investing/2014/04/25/investing-the-buzz-starbucks-coffee-dunkin-donuts.cnnmoney/index.html

Questions for Discussions:

  • Summarize the financial situation at Starbucks.
  • Do you think any M/A with SodaStream would be a good move for the two companies?

Shaq’s Still Scoring in Retirement

Posted by & filed under Company Analysis, Growth & Valuation, Industry Analysis, Management Issues.

Description: After 19 seasons in the NBA, O’Neal retired in 2011. He was one of the most dominant big men in the history of the game, a 7-foot-1, 325-pound behemoth with quick feet and explosive power. He won four championships and a Most Valuable Player award, played in 15 All-Star games, scored 28,596 points, and collected $292 million in paychecks from six teams. O’Neal is still hustling. During four days in New Orleans, he’ll make three stops on his never-ending promotional tour and be on national television every night.

Source: Businessweek.com

Date: Apr 24, 2014

Link: http://www.businessweek.com/articles/2014-04-24/retired-shaquille-oneal-cultivates-fame-and-fortune#p1

Questions for Discussions:

  • Summarize the financial deals celebrities like Shaq can generate during and after their performing days are over?
  • Why do these payments make financial sense for the businesses that sign up with them?
  • What are there risks involved for both sides?

Taking On Adam Smith (and Karl Marx)

Posted by & filed under Economic Analysis, Growth & Valuation, Management Issues.

Description: Thomas Piketty turned 18 in 1989, when the Berlin Wall fell, so he was spared the tortured, decades-long French intellectual debate about the virtues and vices of communism. Even more telling, he remembers, was a trip he took with a close friend to Romania in early 1990, after the collapse of the Soviet empire.

Source: NYTimes.com

Date: Apr 19, 2014

Link: http://www.nytimes.com/2014/04/20/business/international/taking-on-adam-smith-and-karl-marx.html

Questions for discussion:

  • Summarize the key commentary about the world of finance and the how wealth is created and distributed.
  • Do you agree with these assessments?

 

In the market or under the mattress?

Posted by & filed under Growth & Valuation, Market Analysis.

Description: Financial planners say that you should put your money in the market to save for the future—but many people would rather keep it under their mattress.

Source: CNNMoney.com – video report

Date: Apr 17, 2014

Link: http://money.cnn.com/video/pf/2014/04/17/pf-money-in-the-market-or-under-the-mattress.moneymag/index.html

Questions for Discussions:

  • Why do you suppose some people are not interested in investing in the stock market?
  • How is the stock market “risky”?
  • What is the cost and benefit for those who prefer to keep their money under their mattresses?

Is Now A Good Time To Get Into Tech Stocks

Posted by & filed under Company Analysis, Growth & Valuation, Industry Analysis.

Description: S&P Capital IQ ‘s Scott Kessler discusses the outlook for tech stocks with Julie Hyman on Bloomberg Television’s “Bottom Line.” (Source: Bloomberg)

Source: Bloomberg.com – video report

Date: April 11, 2014

Link: http://www.bloomberg.com/video/is-now-a-good-time-to-get-into-tech-stocks-5_ASoiGJSEKEF6Zaa6meIA.html

Questions for Discussions:

  • What does Scott Kessler have to say about tech stocks?
  • Do you agree with his assessments?

Google Earnings Show Struggle With Shift to Mobile

Posted by & filed under Company Analysis, Financial analysis, Growth & Valuation, Industry Analysis.

Description: Google said yesterday that revenue, excluding sales passed on to partners, was $12.2 billion in the first quarter. Julie Hyman reports on Bloomberg Television’s “Bloomberg Surveillance.” (Source: Bloomberg)

Source: Bloomberg.com – video report

Date: Apr 17, 2014

Link: http://www.bloomberg.com/video/google-earnings-show-struggle-with-shift-to-mobile-JbaMuBzyQmiMHIH8ceg2xQ.html

Questions for Discussions:

  • Summarize the financial information presented and the reasons provided.
  • Do believe this is a growing trend?
  • How would you approach investing in Google at this time?