34725 search results for ""

Key Industrial Indicators Say US Is Still In Long Term Depression

Last week we reviewed the US industrial production (IP) and saw that it contracting for more than a year. The IP indexes represent the production of factories, mines, and utilities in unit volume, not dollar sales, both by total output and output by industry. While these indexes do not represent service industries directly, they do indirectly because electric…

Earnings Magic Exposed

Following the end of each fiscal quarter, SEC registered corporations release their financial statements. Typically, investors and the media place a lot of importance on these results. Consequently, stock prices tend to rise or fall based on how the financial …

This Ratings Agency’s Fall Could Be Hugely Profitable

I was excited to get news on Friday that the U.S. Department of Justice was breathing down the neck of ratings agency Moody’s Corp. The two parties are “negotiating” over allegations of fraud relating to mortgage bonds that Moody’s rated AAA from 2004 to 2007. As we all know, the bonds (and their sterling ratings) turned out to be beer-battered, deep-fried garbage in most cases.

Moody’s shares had been coasting along near a 52-week high of $110, but they gapped down to $102.60 on the news and haven’t come back since.

They’re not likely to, either.

I’m thinking Moody’s has a ways to go before it gets out of these woods, meaning its stock could sink a lot lower.

We’ll all get the chance to make some money on this lemon, but first let me answer some burning questions about this company that I don’t see anyone else asking, like why Loretta Lynch and the Justice Department picked now, of all times, to turn up at Moody’s front door.

Don’t Diss the Dark Ages

Much was lost when the Western Roman Empire collapsed, but islands of literacy, learning and security arose despite the constant conflicts and threats of invasion.Once dissed as The Dark Ages, the Medieval Era is more properly viewed as a successful ad…