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Security concerns create EU-US diplomatic row

America’s security concerns due to terrorism are having unwanted side effects in relations with the EU. Handelsblatt, the German newspaper is reporting that visa requirements for some EU citizens is causing the EU to retaliate with visa requirements of its own for U.S. diplomats. The U.S. has definitely become more stringent since 9/11 regarding foreigners. Security concerns are probably behind […]

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Security concerns boomerang on the US

America’s security concerns due to terrorism are having unwanted side effects in relations with the EU. Handelsblatt, the German newspaper is reporting that visa requirements for some EU citizens is causing the EU to retaliate with visa requirements of its own for U.S. diplomats. With fingerprinting for foreign visitors and passenger lists for jets coming from the EU has the […]

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Costco getting hit by energy costs

Costco is getting hammered today because it warned earnings will fall short due to higher inflation. Costco Wholesale Corp., which had been one of the few bright spots in retailing, said today that its earnings will miss Wall Street expectations, as it struggles with higher energy costs that are crimping its bottom line. Shares in the nation’s no. 1 warehouse […]

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George W. Bush: “There is no question about it. Wall Street got drunk”

Talking about the financial markets and the housing mess, George W. Bush offered up these pearls of wisdom: “There is no question about it. Wall Street got drunk…. That’s one reason I asked you to turn off your TV cameras….[Wall Street] got drunk and now it’s got a hangover……The question is, how long will it [take to] sober up and […]

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Tapping the 401K and unrealized gains

I just picked up on a MarketWatch article about 401(k) debit cards through Tim Iacono’s blog. It marks a pretty astounding trend in financial innovation. Debit cards are straightforward. You use them for purchases and money is deducted from your bank account. But when the debited account is your 401(k) retirement plan, critics angrily line up to take a swipe […]

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UBS: New York Attorney General to file suit

As the downturn gathers steam, lawsuits against financial firms are going to rise. Below is the latest in lawsuits. The associated WSJ article is available only to subscribers. New York state Attorney General Andrew Cuomo is preparing to file civil securities-fraud charges against UBS The Wall Street Journal reported. The suit, which reportedly may be filed as early as this […]

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News Round-Up: 23 Jul 2008

While I don’t agree with all the opinions expressed in the articles below, they are all still very good reads. Today, there is a lot more on politics. Warning: some articles may be controversial. Politics Why Jesse Jackson Hates Obama – WSJ Senate Clears First Hurdle for Oil Speculation Bill – Bloomberg Infrastructure Spending and Stabilization Policy – Economist’s View […]

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Oil to sink to $100

Oil at $100? That’s certainly my call and I’ll stick to it. So far my call of oil peaking at $150 is holding.( We’ll see for how long). On July 9th, after oil’s first pullback to $138 I said: Yesterday, oil fell the most in one day since the start of the Gulf War in January 1991 to close at […]

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Corporate defaults mean more hedge fund blow-ups

As the economy hits stall speed, it is only to be expected that corporate default rates are set to rise. In fact, they have risen already, doubling since 2007. Through last week, 42 companies, all but one based in the U.S., have defaulted, affecting $33.6 billion worth of debt, according to rating agency Standard & Poor’s. That compares to 16 […]

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The EU looks to become regulator-in-chief

As an unofficial Eurosceptic, I always view EU power grabs through a lens of distrust. Now, the EU is looking to increase its power by further regulating financial markets. But, the heavy-handiness of the regulation surely will be counterproductive. The regulation backlash due to the credit crunch is obviously taking hold in Europe and will be in the U.S. before […]

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Too big to fail?

Recently, the SEC restricted short selling on a list of 19 stocks because of turmoil following the Fannie-Freddie worries last week. In effect, the SEC was signaling that these institutions are too big to fail because a number of these companies were not subject to rumors of massive losses while a number of institutions not on this list were. Obviously, […]

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Regional banks are suffering

In the aftermath of the Meltdown of the GSEs and the heavy-handed regulatory solution used to stem the tide, regional banks are in focus for investors as they stand to the take the brunt of short-selling. Financial services bears know full well that the regionals are not too big to fail. No one is coming to their rescue like the […]

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