Archive for November, 2014

At This Year’s Thanksgiving Table, the Knives Are Out for Goldman

8 | By Shah Gilani

A happy belated Thanksgiving to you all.

If yours wasn’t happy, just think – it could have been a lot worse. You could have been the turkey and gotten slaughtered, like the turkey in this tale I’m about to tell you.

It’s a tale of two birds of a feather, one a greedy, fat butterball stuffed with gibberish and ripped-off profits.

And then there’s the other bird. It’s not just easy pickins for the butterball investment banker that stuffed it royally, but itself a turkey of international renown.

Keep reading, and find out why we may soon get to see the insides of one of the crookedest birds around…

How the Fed Sees Itself Is Not Pretty

5 | By Shah Gilani

Talk about putting your foot in your mouth. This would be funny if it wasn’t sickening.

During congressional questioning on Friday, Sen. Elizabeth Warren (D. Mass.) commented that the U.S. Federal Reserve‘s job is like that of “a cop on the beat.”

And that’s when New York Fed President William Dudley inserted a foot in his big mouth.

He responded, “I don’t think our primary purpose as supervisors is a cop on the beat, it’s more like a fire warden; make sure that the institution is well run so that, you know, it’s not going to catch on fire and burn down. And managed in a way that if the institution is stressed that it doesn’t collapse and threaten the rest of the financial system.”

In other words, there’s no “policing” going on.

Dudley said it – not me.

But today I’ll share with you what I do have to say – and I’ll show how the close relations between Wall Street and Washington could lead to yet another financial conflagration…

Science Finally Proves What We Already Knew About Bankers

19 | By Shah Gilani

“Business culture in the banking industry is favoring, or at least tolerating, fraudulent or unethical behaviors.”

That’s what Ernst Fehr told reporters in a telephone interview this week.
Fehr is an economist at the University of Zürich in Switzerland who co-led a study about business behavior.

Fehr’s study proves what we’ve all long knew – but it wasn’t the only piece of news last week that demonstrates the crookedness of bankers.

Today I’ll show you how Wall Street‘s manipulations are affecting the prices we pay for everything from the cars we drive to our pots and pans.

So you know you want to know more about this…

Looking for Signs of a “Toppy” Market

1 | By Wall Street Insights and Indictments Staff

As we head into the final weeks of 2014, many stocks are at all-time highs. Among others, Target Corp. (NYSE: TGT), Keurig Green Mountain Inc. (Nasdaq: GMCR) and Microsoft Corporation (Nasdaq: MSFT) are all at or close to their historic peaks.

On Tuesday, Shah talked with Stuart Varney on Fox Business about which of these companies are looking tired – and which ones are likely to hold or spike even higher as we head into the holiday season…

Why Sleazy Auto Lenders Are the Nation’s Most Reckless Drivers

10 | By Shah Gilani

There’s a lot of action over in the subprime auto sector, and it’s not pretty

The saying is “Where there’s smoke, there’s fire.” So, it’s probably just a matter of time before the mainstream media and the general public catch on and see the flames being vigorously fanned by greedy lenders.

It’s the same old story – and one I’ve recounted here before.

Lenders are making subprime auto loans to low-income (and no-income) borrowers, most of whom are down on their luck. And the lenders are teeing those folks up to hit them out of the park again.

The name of the game is yield. That’s what it’s been since the U.S. Federal Reserve started manipulating interest rates further and further down.

Yield-hungry investors want more income. Fee-hungry bankers want to deliver it to them. And car-hungry buyers are getting suckered.

A lot of the country’s current economic “optimism” is predicated on surging auto sales. So, maybe the state of the economy isn’t as rosy as the president, Congress and the media would like us to believe.

And today I’ll show you why…

The Case for a 2014 Year-End Rally

10 | By Shah Gilani

U.S. stocks have been making new highs in recent days. And I believe we’re looking at strong odds for a market rally that lasts to the end of the year.

There are lots of reasons why stocks are headed higher, but one in particular is both surprising and telling.

It’s also a difference maker.

You see, if you understand what that “catalyst” is, you can pick some winners yourself.

And today we’re going to look at it together…

Shah Takes on Two Heavyweight Prizefighters: Amazon.com and Alibaba

0 | By Wall Street Insights and Indictments Staff

Shah appeared on Varney & Co. on Wednesday to tackle one of the biggest concerns heading into the spending season – security. Will shy retail shoppers affect the future of stocks like Alibaba Group Holding Ltd. (NYSE: BABA) and Amazon.com Inc. (Nasdaq: AMZN)?

Shah tells us who we should be buying and who we should be selling…

Unemployment May Be Down, but Our Future Looks Like a Disaster

46 | By Shah Gilani

Finally, things are better, right?

I’m talking about the Friday employment numbers, not the election.

Though they do have something in common. I’ll get to that.

But first let’s celebrate how good we all feel now that unemployment is down to 5.8% — its lowest level since July 2008.

OK, now it’s time to get back to the election, which put Republicans back in charge of the U.S. Senate.

But not because I’m going to comment on it. At least not yet…

To Win the Money Game, You Must Learn to Trust Yourself

3 | By Shah Gilani

First, you’ve got to be in it to win it.

That’s what I told you all earlier this week when I answered one of your questions about how to start making money in the trading markets.

Get started by taking positions in stocks, exchange-traded funds (ETFs) or whatever it is that you know something about. Next, learn more about what you don’t know, and then keep learning.

The second basic principle when you get started is that you have to be OK with losing some money – but never lose more than you can laugh off. And you must learn from every loss. Understand what happened and why.

Of course, there’s a lot more to it than that. So today I’ll answer some more of your questions.

Consider these columns the first couple chapters of our How-to-Make-Money Manual.

Is that something you’d want to read?…