Top Equity News wishes you and your family the happiest and warmest Thanksgiving blessings. Despite all of our thorns, we are blessed to live in a county of red, white and blue roses. It is something we should all be thankful for.
We will make today’s article the inaugural Top Equity Turkey awards. TEN will briefly review some of the – umm – not so smart things that have occurred so far in 2011.
Europe Debt PIIGS and friends:
The back and forth between proposed fixes and their quick dismissals has roiled markets all year. The EU has scrambled to assemble plan after plan to help prevent countries like Greece, Italy, Ireland… avoid default.
The fear is that banks holding these cockroach bonds could collapse in the event of a PIIGS default. Nobody knows just how many of these critters are behind the wall of Euro financial institutions. Many believe the worst-case scenario will make the subprime debt crisis look like daisies and kites in comparison.
Debt Ceiling Debate:
Do you remember this one It seems so long ago.
As the federal government started to rub up against its borrowing limit, D.C. battled over how much more we could borrow – until next time.
Politicos waited until midnight to agree on the Budget Control Act of 2011, which increased the debt limit by $400 billion immediately, allows the President to request a further increase of $500 billion, subject to disapproval, a veto and a revote to override the veto, and finally, the President may request a final increase of $1.2-1.5 trillion, subject to the same disapproval, a veto and a revote process.
It also established the…
Super Committee:
The super duper panel of 6 republicans and 6 democrats was supposed to find $1.2 trillion in debt reduction, or unenforceable automatic cuts will kick in in 2013. Needless to say, in a heated political environment, the only thing super about the committee was its failure.
US Downgrade:
Four days after the self-inflicted Debt Ceiling wound was bandaged, S&P stepped in and lowered the US debt rating from AAA to AA+. S&P was and is looking for $4 trillion in cuts to keep/restore the gold-standard rating. However, pulling teeth with a string and a doorknob might be easier than cutting D.C. spending by $400 billion a year for 10 years.
Now that the super duper committee has failed, look for other credit agencies to follow S&P’s lead.
Netflix:
Did any company do more damage to its stock price than Netflix Management announced they were going to split subscriptions in two parts – one for online streaming and one for DVDs in the mail – and raise their prices.
The stock crashed and Netflix lost more than 800,000 subscribers, including me!
Solyndra:
In March of 2009, The United States Department of Energy gave the solar panel company a $535 million loan guarantee, placed investors at the head of the line in case of a bankruptcy, and received a $25.1 million tax break from California.
Almost one year later, Solyndra closed its doors, filed for Chapter 11 bankruptcy, and fired all its employees.
A half of a billion dollars gone in a year It appears the fed’s picks winners about as well as…
MF Global:
Ex New Jersey Governor and Senator, Jon Corzine, became CEO of this trading firm in March 2010. Today, they are the 8th largest bankruptcy in US history and under investigation for as much as a $1.2 billion “material shortfall” in customer funds. In other words, stolen, embezzled, looted…
Reports say MF bet on Euro Zone sovereign debt in house accounts using client’s money. They lost the bet and client’s cash went up in smoke with it. And to think the ex-Goldman guy Corzine was a possible Treasury Secretary candidate. However, it’s not called stealing when the government wastes other people’s money.
Bank Fees:
The poster-child for this stupid idea was Bank of America announcing a $5 a month fee for clients using their BoA debit cards. Other major banks announced similar hikes, but account holders revolted, clogged up the phone lines, crashed websites, and withdrew their money and headed over to the local credit union.
It didn’t take too long for the banks to reverse course and say uncle. Now, financial institutions are looking for less transparent ways to nickel and dime customers to broke.
Rogue UBS Trader:
And you think the market has been tough on you. In September, a rogue ETF trader placed unauthorized trades and lost the Swiss Banking giant $2.3 billion with a B.
The fallout included the resignation of CEO, Oswald J. Grbel, and the departure of the co-heads of equities. The trader, 31-year-old Kweku M. Adoboli, says he is deeply sorry for the loss and a lack of a miracle. It’s amazing how the prospect of jail-time clarifies things.
It’s still only November, and with a month to go, this incomplete list is sure to grow.
Happy Thanksgiving everybody! Be sure to enjoy your family time, overdose on good food and relax watching some football and movies. See you again on Black-Friday as Top Equity News will alert you to the best retail stock deals.
Big, Fat and Overcooked 2011 Turkeys is an article from: 
