Sergey Aleynikov Strikes Back, Files Goldman Subpoena
Submitted by Tyler Durden on 08/10/2009 - 10:54Sergey's alleged Goldman code-theft case, which seemed to be on the fast track to being promptly settled out of court, just took an odd turn. Matt Goldstein over at Reuters reports that instead of keeping quiet, Sergey has taken the offensive and has filed a subpoena on Goldman Sachs, "seeking access to some information." Goldman's response is a not very surprising motion in federal court to quash the subpoena. Either this is a red herring by Sergey, trying to make his plea deal case stronger, or there is indeed something in Goldman's books that needs further observation, and would, presumably, shed much needed light on either the Aleynikov affair, HFT, or both.
Historical And Forecast Loan Data
Submitted by Tyler Durden on 08/10/2009 - 10:39A major segment of the credit market - secured loans - still has to show the kind of comparable primary issuance pick up that has been witnessed in equities and riskier high-yield debt. Primary loan volumes are still running at half of the comparable 2008 period, particularly in the middle-market.
Guest Post: Dear Goldman Clients
Submitted by Tyler Durden on 08/10/2009 - 09:59"The games are over and as people around the country are uniting, the likes of which this country has not seen in 200 years, I can assure you change is indeed coming. It is time to demand accountability from those running your funds. This has gone on far too long and is totally out of control."
Guest Post: False Auction Spells Caution For Stock Market After August NFP
Submitted by Tyler Durden on 08/10/2009 - 09:33The author of “Market Profile” Peter Steidlmayer has offered us one invaluable insight into how markets
behave and it borders on genius. Unfortunately, he has so many other insights that very few folks can find
the needle in the haystack that he called “false auctions.”
Meet Richard Bernstein's Jolly And Much More Optimistic Replacement David Bianco
Submitted by Tyler Durden on 08/10/2009 - 09:14With normalized cover page headlines like these:
- Robust S&P 500 EPS growth expected for 2010 and 2011
- S&P 500 EPS recovery to outpace the US GDP recovery
- Financials to contribute to EPS growth in 2010 and 2011
- Normalized S&P 500 EPS is above our 2009E and 2010E EPS
- Our normalized EPS supports a strategically bullish stance
is there any wonder how happy Bernstein and Rosenberg must have been to go to work every day?
July Budget Deficit Grows By $181 Billion, YTD Individual And Corporate Receipts Tumble
Submitted by Tyler Durden on 08/10/2009 - 08:59The Congressional Budget Office released its preliminary July 2009 budget numbers - the budget deficit is now expected to be $181 billion, an 80% increase compared to the July 2008 deficit of $101 billion.
Liquidity Provider Van der Moolen Files Bankruptcy Due To Lack Of Liquidity
Submitted by Tyler Durden on 08/10/2009 - 08:15In a sign of HFT's encroaching dominance in the market, and the changing equity market liquidity provisioning landscape, Dutch specialist firm Van Der Moolen earlier filed for protection from creditors, the European equivalent of a chapter 11 filing. As expected, the monopoly of the "very few" is starting to eat the peripheral players.
Frontrunning: August 10
Submitted by Tyler Durden on 08/10/2009 - 07:55- Today's CRE green shoot - Maguire properties warns of loan defaults, prepares to hand over 7 buildings with over $1 billion in associated debt to creditors (WSJ)
- Poorer consumers are worst affected as banks make $38 billion in overdraft fees (FT)
- Effort to rein in pay on Wall Street hits "guaranteed bonuses" hurdle (NYT)
- Aluminum joins oil in speculator ranks - price rises despite falling demand (FT)
- GDP RIP (NYT)
Daily Highlights: 8.10.09
Submitted by Tyler Durden on 08/10/2009 - 07:32- One million flee as typhoon hits China's eastern coast.
- Asian stock markets rose Monday after a better-than-expected US jobs report.
- Australia's central bank signaled it will start raising interest rates.
- Economy isn't strong enough to support a long-running stock, bond recovery: cons. view.
- China accuses Rio Tinto of deceit; says Co's actions led to $102B in overcharges.
- China home prices rise in July for 2nd month; up 1 percent amid stimulus spending.
The Future Of Flashed Options
Submitted by Tyler Durden on 08/09/2009 - 16:35With the ban of Flash orders in equity markets now practically a done deal, politicians, and hopefully regulators, will start focusing their attention on Flash derivative products which facilitate not only a two tiered market but potential market abuse by the priliged few who have access to advance looks in assorted securities classes.
Sunday Readings
Submitted by Tyler Durden on 08/09/2009 - 09:56- Paulson's calls to Goldman tested ethics during crisis (NYT)
- Satyajit Das: Mixed Metaphors (Evro Intelligence Part 1, Part 2 h/t Paul)
- Rio Tinto spying cost China steelmakers $102 billion (Bloomberg)
- IMF puts total cost of crisis at $11.9 trillion (Telegraph)
- Economic bottom calls: willful ignorance (Market Ticker)
- For private equity, a very public disaster (NYT)
Studio Zero
Submitted by Marla Singer on 08/09/2009 - 07:12Many of you have asked us about the purpose of "Radio Zero." All of us have avoided answering. What is true, is that there are some surprises in store for our readers down the line. Unfortunately, revealing them at this point would do definitional violence to the word "surprise." We can, however, reveal to you that a fully-functioning sound studio and streaming audio server is a key component of our plans.
To wit: Studio Zero.
Open Market Operations And Statistics
Submitted by Tyler Durden on 08/08/2009 - 17:00
Zero Hedge presents its statistical findings regarding US Treasury Auctions and Permanent Open Market Operations
Saturday Readings
Submitted by Tyler Durden on 08/08/2009 - 11:51- Here we go: Geithner formally asks Congress to lift $12.1 trillion statutory debt limit, saying it could be breached as early as October, Amex Centurion happy to comply (Reuters)
- Totally unrelated - psychopaths have faulty brain connections, scientists say (Reuters)
- Must read: Deleveraging the U.S. Economy (Comstock Partners, h/t Vince)
- Health debate turns hostile at town hall meeting (NYT)
- Healthcare critics make childish claims, Obama says (Reuters)
- The history of the stock market (Mint)
Radio Zero: Upward Flashback
Submitted by Marla Singer on 08/07/2009 - 22:46We figured we would warm you up a bit for Radio Zero this weekend. So, first, "Upward," an encore presentation of Radio Zero from a few weeks ago. 11:45 ET. Sharp (by which, I mean "fashionably late.") Then, later tonight (or early this morning), Radio Zero goes live again! Start with us now...
http://cdo.zerohedge.com:8000/listen.pls
...and we'll see you for more later.
Later has arrived! Chat the DJ up.
