Site Policy Updates
Submitted by Marla Singer on 07/18/2009 - 16:33We've updated our disclaimer, our privacy policy and our (non)policy on conflicts / full disclosure. You should take a look. Also, if you like knowing whenever we make changes, you can subscribe to those listings.
Dollar And Yen Fall On Risk Seeking Trend
Submitted by Cornelius on 07/18/2009 - 15:41The recent fall in the dollar and yen are yet another indicator of investors moving to risk assets. What does this mean for further dollar/yen weakness?
State Street On Liquidity Black Holes
Submitted by Tyler Durden on 07/18/2009 - 14:45Liquidity, as frequent readers know, is a fascinating topic to Zero Hedge. Liquidity black holes, as one would imagine, is doulby so. However, when a firm like State Street, which is at the heart of the multi-trillion dollar stock lending endoskeleton of the market discusses both of these concepts, one must pay attention. The below report is a State Street presentation from 2003 discussing what happens in those episodes when liquidity disappears and how that impairs all other axes of proper market function.
Saturday Readings
Submitted by Tyler Durden on 07/18/2009 - 13:26Modern Banking Explained Or The Importance Of Saving Money
Submitted by Tyler Durden on 07/18/2009 - 10:25Missed this the first time around, but it explains pretty well what modern banking means for the retail investor and why it is oh so critical to save, save, save.
The Internet Sells No Hope... Yet
Submitted by Tyler Durden on 07/18/2009 - 10:07
No downward inflection points on the horizon in this set of primary data (here and here). Then again, we did not yet run it through the CNBC filter.
Dark Pools And Karl Denninger
Submitted by Tyler Durden on 07/18/2009 - 09:34No direct correlation between the two, but a couple of good videos to start off your morning: Denninger on Kudlow - ever wondered what a bear in a Pamplona stampede looks like, here is your chance - this proves again why the Brady Bunch talking head box format is the most useless medium to convey any sort of informative message (but works miracles for those Mercedes commercial CPMs). And also a much more informative piece on Dark Pools.
Guest Post: Supply Side Economics – How Is Gold Going to Fare This Year?
Submitted by Tyler Durden on 07/17/2009 - 20:47Gold started the summer doldrums looking strong and has retreated since, but what are its prospects for the rest of the year and beyond? That will largely be determined by the interplay between supply and demand; let’s take a look at the supply side.
Guest Post: The Past Week From A Lindsay Model Perspective
Submitted by Tyler Durden on 07/17/2009 - 20:36Banking analyst Meredith Whitney made a bullish “trading” call for the financial sector over the weekend,
on the premise that the govt had driven down the cost of capital so low for the banksters that they had
made it easy for them to make money and ramp up their depleted tangible book values. Whitney’s call
alone drove the stock market up 4% on Monday July 13 from its overnight lows. By Wednesday, the stock
market had round-tripped and taken out its previous month high and was up 8% from its intraweek lows.
Radio Zero: DMCA Fridays
Submitted by Marla Singer on 07/17/2009 - 20:30And you thought they were done. Nope! Zero Hedge has gotten two more takedown notices. No, we aren't kidding. This just means more Radio Zero for you.
11:30 Eastern. 15 minutes prior for URL details (as usual). I'll be fashionably late (as usual).
The URL: http://cdo.zerohedge.com:8000/listen.pls (Our new test server!)
Radio Zero is EXPENSIVE. Consider donating to Zero Hedge.
Weekly Credit Summary: July 17
Submitted by Tyler Durden on 07/17/2009 - 18:56Spreads were significantly tighter this week with HY dramatically outperforming IG as tighteners outpaced wideners by over twelve-to-one. LCDX appeared to be the long credit vehicle of choice though as investors moved into the most senior part of the capital structure systemically. High-beta underperformed low-beta names (in large part due to CIT's impact on the tail risk names) as we saw IG, HVOL, and ExHVOL indices considerably outperform intrinsics and widening the skew almost 10bps in IG12.
Interactive Brokers Having A Really Tough Day With Locates, Meg_C Wishes It Was Tomorrow
Submitted by Tyler Durden on 07/17/2009 - 17:16Based upon information available through 14:30 today, we remain unable to locate and borrow / re-borrow the shares necessary to meet delivery obligations on certain short stock positions in your account. As current SEC regulations now strictly enforce delivery obligations, these short stock positions will be subject to forced buy-in by IB should our continued efforts to borrow or re-borrow the necessary shares today be unsuccessful.
Goldman Sachs Principal Transactions Update: Humming Nicely
Submitted by Tyler Durden on 07/17/2009 - 16:56
Goldman principal PT shares transacted increased by over 40% from the prior week: 550 million to 765 million, clocking at near 50% of total NYSE principal volume - about par for the course.
Stop Trading
Submitted by Tyler Durden on 07/17/2009 - 14:25One trader's (to be named as XXX) attempts to understand why his money has to go straight to the big banks' top line following a DDRX buy in courtesy of Interactive Brokers. The following is the record of the chat session that transpired minutes ago.
