Radical changes in the regulatory landscape in addition to enormously expensive costs pertaining to dealing with problem mortgages, have elevated banks’ cost structures over the last several years.  Revenues have been flat due to lackluster economic growth particularly in the banks’ bread and butter areas of real estate and commercial lending.  To confront these issues...Read More

In the reps and warranties case including MBIA and Bank of America, a judge has increased the chances for a settlement by ruling that Bank of America CEO Brian Moynihan must testify.  I think it is in both companies interest to settle this case as MBIA needs the cash flow, and Bank of America needs...Read More

For those of you that are looking to buy a home that you plan on living in for a while now is the time to buy!  Prices are affordable and interest rates are unbelievably cheap.  Even if prices go down a little further, with rates this low on a 30 year mortgage it is hard...Read More

When most people think of Warren Buffett’s investment philosophy they think of his large positions in iconic companies such as Coca Cola, Burlington Northern, Geico, Wells Fargo, etc.  These investments are core positions where he was able to allocate huge sums of money with the understanding that the franchise values would continue to grow over...Read More

I wanted to highlight a few key points but honestly I think I’d be doing you a disservice as the whole thing was wonderful.  He add really interesting color on Apple (AAPL), Pepsi (PEP), and normalized profit margins.  Yacktman is one of my favorite fund managers and is somebody that I pay close attention to....Read More

As we’ve stated before Chinese infrastructure spending has likely gone too far, too fast, and has provided a tremendous boost to many commodity businesses.  The most susceptible to a slowdown in China are mining companies that have created the materials for the heavy-industry infrastructure.  When you combine the inflated prices that this demand has caused...Read More

This article shortly and succinctly outlines the problems that some of these European countries are having in establishing a competitive economy.  Ridiculous labor laws that stifle business are devastating particularly in such a globalized economic environment where lower labor costs can allow a competitor to “eat the lunch” of the higher cost business.  These types...Read More

Chesapeake Energy (CHK) is blessed with wonderful assets and a management team that has regularly been leading innovators in the energy space as far as predicting trends and technological developments.  The problem with the company is that they are run like an aggressive “wildcat” firm as opposed to multi-billion dollar behemoth.  Balance sheet issues such...Read More

Alfredo Saenz is exactly right that the ECB needs to get in front of the issue and buy Spanish debt as yields climb.  As stated before this won’t solve the structural problems but neither will delaying the issue.  Policymakers have continuously waited for the market to force them to make a move instead of taking...Read More

This article outlines the fact that U.S. banks earnings might be down slightly from the first quarter of 2011.  While this may be true is should be a pretty strong quarter overall and it should augur for further growth for the large banks.  Costs are still elevated from the mortgage problems and net interest margins...Read More