Icahn On The Receiving End For Once
Submitted by Tyler Durden on 08/14/2009 - 11:49A lawsuit filed several months ago by R2 Investments puts activist investor Carl Icahn on the defensive for once.
Introducing: The Zero Hedge Tip Line
Submitted by Marla Singer on 08/14/2009 - 11:13We've opened up the Zero Hedge tips line and our (one-person) satellite offices in Zurich and London. Just in case you happen to come across something Zero Hedge worthy when your Blackberry is on the fritz.
So This Is Where All The Volume Disappeared To
Submitted by Tyler Durden on 08/14/2009 - 10:53
Down-day volume dominating. How long before some exchange breaks again?
US Consumer Is Battered But Not Beaten
Submitted by Cornelius on 08/14/2009 - 10:24The recent release of the Michigan consumer confidence numbers tells a mixed story on current consumer psychology.
Colonial Taken Into Receivership, Spun Off To BB&T
Submitted by Tyler Durden on 08/14/2009 - 10:18
The Deposit Insurance Fund must be so happy it won't be depleted today. Who will buy Corus next?
Goldman Sachs: REIT Valuation Back To "Bubble Levels"
Submitted by Tyler Durden on 08/14/2009 - 09:42"While the worst of the current US recession appears to have passed, we caution that CRE trends are just starting to soften and will remain weak into 2011; as such, REITs should underperform the broader equity markets during the next stage of the recovery (6-9 months). In fact, we anticipate a decline in FFO of more than 10% for REITs next year, on top of the 15-20% expected decline in 2009. Hence, 2011 should be the bottom with growth resuming thereafter. Over the next 12-24 months, we see the combination of rising CRE loan defaults, deteriorating fundamentals (similar to the 2001 downturn), and more stringent lending standards (50% LTV loans at higher rates) resulting in a “challenging road ahead” for REITs." - Goldman Sachs
August Consumer Sentiment Declines To 63.2 From 66 In July
Submitted by Tyler Durden on 08/14/2009 - 09:01It seems consumers are focusing on more than merely their 401(k) these days. Now it may be time for the administration to focus on jobs, wages, deflation, budget deficits, tax rates, burgeoning sovereign debt, sticky consumer debt,bankrupt states dispensing IOUs, wealth destruction and other items that actually impact the day to day lives of the US public.
Wall Street's Continuing Syndication Of Its Own "Secured" Debt Via Equity Markets
Submitted by Tyler Durden on 08/14/2009 - 08:49In April Zero Hedge discussed the potential conflict of interest of secured lenders providing equity financing to companies in which they are the primary secured lender, with a "debt repayment" use of proceeds, in essence using the raised equity to pay down the debt on which the underwriters themselves are on the hook for. Not surprisingly, this was all occurring in the context of REITs - the same companies that face a massive credit crunch as numerous CRE loans come due for refinancing in the 2011-2014 timeframe. It seems this game of "bait and switch" continues unabated.
Frontrunning: August 14
Submitted by Tyler Durden on 08/14/2009 - 08:11- Toxic loans topping 5% may push 150 banks to point of no return (Bloomberg)
- Aussie dollar hits new 11 month high (FT)
- California to redeem IOUs early (WSJ)
- Floyd Norris: Teetering on failure but meeting standards (NYT)
- No new normal as JP Morgan sees V-shaped recovery on robust growth (Bloomberg)
Daily Highlights: 8.14.09
Submitted by Tyler Durden on 08/14/2009 - 07:36- Asian stocks gain on speculation improving earnings will extend a 5-month rally in equities.
- China may boost spending on oil, mining acquisitions by half this year.
- Crude Oil rises a third day as economic recovery to spur demand for fuels.
- Hong Kong's yearlong recession may be over as China rebound bolsters trade.
- India may spark $39B of share sales with cap on controlling stakes.
- Japanese demand for services unexpectedly rose in June on stimulus measures.
- US Industrial output probably rebounded in July as auto plants reopened.
Federal Reserve Balance Sheet Update: Week Of August 12
Submitted by Tyler Durden on 08/13/2009 - 22:53
Foreign holdings of US Securities decreased for the first time in 5 months by $299 million sequentially (weekly) to $2,809.9 billion from $2,810.2 billion in the prior month. Keep in mind in the same time period the Fed purchased over $16.6 billion of Treasuries, indicating that in the last week the Fed was the only purchaser of Treasuries. In a normal environment this would be a very troubling development.
Radio Zero: Studio Zero Goes Beta
Submitted by Marla Singer on 08/13/2009 - 21:35Having moving into our new facility and having liberated or resurrected a number of pieces of audio hardware thought long lost, eventually we had to put the new digs through their paces. What better night than a Thursday for Studio Zero's first public beta?
The fun begins at 10:45pm ET and continues until the red bull runs out and the convenience store down the street is closed.
Update: http://cdo.zerohedge.com:8000/listen.pls
Chat up the DJ(s) and send us mp3 requests: AIM: radiozh
Collapse In The Wake Of The Fed's Wall Street Bubble
Submitted by Tyler Durden on 08/13/2009 - 21:06"We see the summer pause as natural and as unemployment rises, there’ll be more foreclosures and lower prices. The depression is only pausing to catch its breath." - Bob Chapman
The New Bull Market Fallacy
Submitted by Tyler Durden on 08/13/2009 - 18:40An impressively comprehensive and succinct explanation of the events that have gotten us here, and where we may be heading.
Was Larry Summers Selling CDOs To Asian Sovereign Wealth Funds After The Collapse Of The Bear Stearns Hedge Fund?
Submitted by Tyler Durden on 08/13/2009 - 18:16The man cited to be Ben Bernanke's replacement if and when the stock market (not the economy) takes a decided turn for the worse, Larry Summers, has been implicated in an act that may make his transitioning into his role of running monetary policy for the world's biggest economy slightly more complicated. A report that was issued several months ago by Asia Times' blog discloses that the man who has President Obama's attention on all matters financial was in fact selling the AAA-rated tranches of toxic CDOs held by his former employer, multi billion hedge fund D.E. Shaw after the collapse of the CDO-loaded Bear Stearns hedge fund.
