David Sokol No Longer Replacing Buffett as Berkshire Hathaway CEO

David Sokol has been the primary guy in the running, and Warren Buffett's top pick, to replace the Oracle of Omaha as the CEO of Berkshire Hathaway. Well David is no longer available for the position.

Just ask him.

David Sokol recently withdrew himself and resigned from the expected job and responsibility of running what is perhaps the most successful holdings company ever to invest.

He has allegedly stepped down after information about some personal trades of a company he purchased stock in which has recently been bought by Berkshire Hathaway.

Buffett has said that the decision does not come as a derivative of that trade nor the surfacing of that news.

I my self have to wonder a bit as the media is hitting this thing pretty hard. But I have enough confidence in Buffett to take his word... for the most part.

So now the real question is this...

Who will hop in the driver seat now that David Sokol is out?


It is a big question that needs answering. Warren who is still in relatively good health is 80 years old. He is not senile yet and still seems to navigate his way around a prospectus and balance sheet pretty well but hey... he is old.

They say there are four internal potential candidates that are already being considered.


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Big Banks Bet and Bank on Trading Profits - BoA and Chase Ride Trading Revenue to Profitability

Both JP Morgan and Chase and Bank of America reported profitable quarters this earnings season go around.

Though Chase has been in better shape over this economic down turn both banks profitable quarters relied on their investment banking activities.

Chase Bank reported 3.3 billion dollars for the first quarters profit. Bank of America came in right behind them with 3.2 billion dollars. 3/4's or 75% of Chase Bank profits came from trading and investment banking activities and 2/3 or about 65% of Bank of Americas profits came from their newly found investment banking operations. This profitable Merrill Lynch deal has beat the overall outside consensus and expectations. Just goes to show you that old Ken Lewis knew and still likely knows what he is talking about.


Though it is the new guy Brian M. over there amidst the executive offices of Bank of America who is wiping the sweat of his forehead as the new CEO of Bank of America.

The New CEO, Brian T. Moynihan of BoA is doing a great job in my opinion. He is making some great decisions as the banking giant's leader.

His focus on image, loss mitigation, referral networking with the new investment banking operations and corporate banking division, and what ever else he is doing is certainly getting the job done (at least from what I have seen).

My finance hat goes off to him, as well as Ken Lewis who deserves some credit from the media, and of course the genius over there at Chase Bank, Mr. Diamond.

The stock prices of these two banking giants were unfortunately blocked and pushed down due to the outrageous claims of mortgage backed securities fraud against Goldman Sachs. This claim and lawsuit courtesy of the SEC.


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Economic Growth - GDP 2.2% - Is It Real?

The final numbers are in for the third quarter and the numbers show a 2.2% growth in the Gross Domestic Product, also referred to as GDP. Now this figure can be good or bad news depending on who you talk to.

If you ask me any positive growth is great news. I mean things have seemed so bad that the notion that economic activity is on the rise is extremely appealing.

On the other hand the expectations were set for about 3% so many investors were spooked when they saw a figure that was about 30% or so lower then they were thinking. Though other figures that came out along side these numbers helped ease the pain. For instance existing home sales, as well as home prices were both very positive.

I for one am just glad to see things going the right direction. But I can no help but to feel a bit skeptical of the numbers.

When I am out and about in the real world things just don't match the financial head lines. For instance, I noticed that the trick or treat tradition no longer exists in any comparative form to just 10 years ago. Though this is an observation of a local area, and hardly a sophisticated indicator, it does tell me that if there is growth, then the lack of trick or treaters must be accounted for some where. But where? I also noticed that there were no xmass tree dealers in town this year. They use to pack each and every parking lot. Where did they go?

I have seen little reason to believe that there has been any sort of growth. All I have witnessed, for my self, is less.

A little less of everything.

Any Thoughts?

Australia Interest Rates Increased - Stock Market Soars

Australia raised their interest rates or rather the cost to borrow money. Investors took this as a sign of hope and the stock market rallied on the news release of Australia's interest rate hike.

Why does the Interest Rate Increase Executed by the Reserve Bank of Australia Boost Investor Confidence and Hopes of Recovery?

If the derived confidence from this seemingly rise in cost to do business in the world of borrowing money seems a bit bizarre or counter intuitive you are correct. Under traditional market circumstances the rise in interest rates which directly correlates or even directly causes the cost of borrowing to increase. But even so, we are not operating under normal market conditions.

Investors see this as a sign that markets are stabilizing. Here is the reasoning:

• Governments have kept interest rates or the cost of borrowing down to record low levels because they want to inject supply into the credit or capital markets.
• The Australia Government's decision to raise interest rates signals the confidence of improving markets in Australia and thus part of the international economy in which all investors are a part of.

The US interest rates or cost of debt has remained and is expected to remain at very low levels.

GM Insiders bail out - Idiot Investors buy Pink shares over the counter

May 2009

This post is just to share the sec fillings of 6 insiders at GM who have bailed on there own company as they see there stock holders getting wiped out. The six insiders dumped all there shares entirely. If you own this stock sell it.

I am not sure why folks seem to feel the need to speculate amongst the pink slip shares that barely exist for a company that is being split up and left with debt while the business side of the company becomes a new entity... yet people still want to buy the over the counter mucus for a dollar or so a share... I don't get it.

That is simply not smart finance.

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