Frontrunning: August 6
Submitted by Tyler Durden on 08/06/2009 - 08:02- Liquidity deluge - markets higher after UK recession shockingly discovered to be deeper than expected; BOE pumps another $84 billion (Bloomberg)
- Judge won't approve Bank of America, SEC settlement (Reuters)
- Chrysler May Replace 300C Engineering With Joint Fiat Platform (Bloomberg)
- Senate to vote today on cash for clunkers (Reuters)
- AIG breakup is fee bonanza (WSJ)
Daily Highlights: 8.06.09
Submitted by Tyler Durden on 08/06/2009 - 07:39- Stiglitz said he expects a “very slow recovery” in the U.S. economy and that a replacement for Fed Chair Bernanke should be considered.
- Treasury Dept, responding to demand from China, other investors, to boost sale of TIPS.
- Asian stocks rise on confidence economy is recovering; Alumina, NTT gain.
- ECB, BOE may decide against further stimulus as evidence points to recovery.
NZ Employment Continues To Deteriorate
Submitted by Cornelius on 08/06/2009 - 06:21Despite the story of recovery, New Zealand continues to show signs of weakness.
Cornyn On The White House Stasi Solicitation, Or Would McCarthy Love flag@whitehouse.gov? (Hint: Yes)
Submitted by Tyler Durden on 08/05/2009 - 22:36Senator Cornyn foolishly thinks McCarthyism has no place in 2009. And here we were, happy recipients of the first one million flagged complaints in less than 24 hours...
Daily Credit Summary: August 5 - Tailed Off
Submitted by Tyler Durden on 08/05/2009 - 18:15Spreads were mixed in the US with all but ExHVOL tighter (but spread moves were very marginal today with extremely narrow ranges in IG and HY once again). Indices typically underperformed single-names with skews mostly narrower as IG underperformed but narrowed the skew (notable since the skew is at contract tights and intrinsics are hovering at critical support levels from last fall), HVOL underperformed but narrowed the skew, ExHVOL intrinsics beat and narrowed the skew, XO's skew increased as the index outperformed, and HY outperformed but narrowed the skew (as we heard a HY12 arb list doing the rounds).
Another Exhausting Day, Appropriately Capped With Baseball
Submitted by Tyler Durden on 08/05/2009 - 17:07No jobs = no recovery
Come to think of it... he's right
A Few Pictures Are Worth A Thousand Mortgage Mods
Submitted by Tyler Durden on 08/05/2009 - 16:22
Deutsche Bank - "By Q1, 2011 a projected 48% of total mortgage borrowers will have negative equity."
Nuff said
$75 Billion In New Treasuries On Deck
Submitted by Tyler Durden on 08/05/2009 - 15:10
If you missed your chance to stock up on double ply UST (T is for toiler) paper, fear not: you will have another chance to buy some again... and again... and again. The first opportunity will be on August 11th and 12th, when a total of $75 billion pieces of paper, backed by another rapidly deflating piece of paper will be made available for your indirect (or is that direct?) auction pleasure.
Schapiro Opens Mouth, Confirms Rumors Of Utter Cluelessness
Submitted by Tyler Durden on 08/05/2009 - 14:03Just one question for Mary - why the hell did it take you and your even more conflicted and confused predecessor so long to get off your back and do something about Flash?
I am convinced, however, that you will be all over Dark Pools. And if not, we will hold your hands on that one. You can count on it.
Dollar Breaks... Again
Submitted by Tyler Durden on 08/05/2009 - 13:47
For those rare occasions when a megasqueeze in financials just won't raise the market:
"Break dollar in case of manipulation failure"
In other news, everyone at the SEC is currently on a 7 hour long coffee break, spiking the top line of SBUX and GMCR.
Rosenberg Estimates Consumer Spending Could Have Declined 10% Annualized Without Stimulus
Submitted by Cornelius on 08/05/2009 - 13:20Title says it all.
TrimTabs Continues Throwing Sand In The Eyes Of Fake Economic Data
Submitted by Tyler Durden on 08/05/2009 - 12:54TrimTabs: "We know now that by ignoring real-time data, the BEA was providing an inaccurate view of the economy’s health."
The Rats Are Abandoning The Sunken Titanic: Lockhart Resigns From Federal Housing Finance Agency
Submitted by Tyler Durden on 08/05/2009 - 12:41Developing story: James Lockhart III, the man who is (was) overseeing Fannie and Freddie, has resigned. From the green shoots bleachers - FRE and FNM's pristine condition now allows them to supervise themselves.
Cash For Clunkers Moves To Toxic Financial Stocks
Submitted by Tyler Durden on 08/05/2009 - 12:16
AIG (short interest of 16%) and CIT (13%) are today's latest squeeze puppets. Because non-bankruptcy prospects before both companies are just so hot. Will whoever is pulling all the borrow please fess up already.
Substantial, Over Half A Trillion Net, CDS Derisking Since March Lows
Submitted by Tyler Durden on 08/05/2009 - 12:04
Analyzing CDS open interest data since the March 6 lows demonstrates a troubling trend: there has been over half a trillion in net derisking across various industries, with financials leading the pack with over $130 billion. The global tightening in the CDS universes across all sectors is one direct consequence of this substantial shift to derisking.
