Entries from November 2008
David Pierson of the LA Times reports that unemployment is soaring the the Inland Empire (San Bernadino, Riverside and eastern LA counties), hitting 9.5% as of October. Given that we are now well into November, it is probably above 10% now. And these are the official statistics that economists agree understate the real number of unemployed by not counting those who are working part time while looking for full time jobs, and “discouraged workers” who want to work but have given up actively looking for a job.
Meanwhile next year tax shortfalls will mean more local government layoffs. Construction employment will continue to decline as financing dries up and the last buildings that were under construction when the economy turned are completed. Retail employment will also continue to decline as consumers are either pinched or under fear they soon will be.
Categories: news · real estate market
Tagged: california economy, Inland Empire
Big banks and financial companies have long gotten away with not disclosing clear and accurate valuations of many types of financial assets. When I heard that the Financial Accounting Standards Board was seeking comments on proposed stronger financial disclosure rules over one type of financial asset, “Variable Interest Entities,” I reviewed the changes and then wrote a letter in support.
As it turns out, my letter was the first of 31 to be submitted. The second letter was submitted by a leading independent accountant, Jack Ciesielski, who also offered his unqualified support for the FASB proposal.
He maintains a blog on accounting issues here: http://www.accountingobserver.com/blog/
After our two letters in support came a flood of opposition letters from such models of probity, foresight, and clear and forthright financial reporting as AIG, GMAC, Freddie Mac, Fannie Mae, MBIA, UBS, and Mortgage Bankers Association.
Links to all of the letters submitted to the FASB are here.
Categories: law
Tagged: accounting rules, banks, fasb
In retrospect perhaps I should have broken this long article up into several new ones. In it I comment on the prospects for solar stocks, gold, Goldman Sachs, Lorillard, Ambic, and GM senior debt. In particular, I comment on what the election of Barack Obama and a larger Democratic majority in Congress means for several investments.
One theme in this article touches on that I hope to explore further is that I believe equity markets are systematically underestimating inflation volatility.
Categories: news · stocks
Tagged: bgm, csiq, eslr, fslr, gm debt, gold bears, goldman sachs, gs, lo, lorillard, menthol cigarette ban, solar stocks, trina solar, tsl, xgm, yge, yingli
