Bond Action Back In The Spotlight
Submitted by Tyler Durden on 07/14/2009 - 15:04
The bond ski jumpers are back.
Gasparino Tells CNBC To Stop Protecting Goldman
Submitted by Tyler Durden on 07/14/2009 - 13:35In a scathing expose of Goldman (has Goldman suddenly become the media's punching bag), Gasparino gets yanked off the air for telling it how it is. Chaz concludes by telling CNBC to stop protecting Goldman (fast forward to the 3 minute mark). Crickets ensue as MC Cabrera pulls off her best Blue Steel impersonation.
Are The Fed's Rapidly Disappearaning Central Bank Liquidity Swaps Crushing The Dollar?
Submitted by Tyler Durden on 07/14/2009 - 13:15
As frequent readers know, Zero Hedge compiles an update of the Fed's balance sheet every week,
based on the most recent H.3 and H.4.1 statements. One odd trend that has caught our attention is the virtual disappearance of central bank liquidity swaps as disclosed in the weekly H.4.1 report. The historical low level for this metric was in the pre-Lehman days when it averaged about $60 billion weekly. Then in the depth of the crisis it peaked at just under $600 billion in December 2008. Yet, oddly, even though Europe's economic and monetary situation has deteriorated since then, the foreign CB swaps have plunged, and are now almost at pre-Lehman levels: the most recent reading was of $100 billion, a half a trillion decline from the peak!
Eliot Spitzer On Matt Taibbi and Goldman Sachs
Submitted by Tyler Durden on 07/14/2009 - 12:42The anti-Goldman sentiment keeps on growing: next up is Bloomberg's interview with former Attorney General Eliot Spitzer in which he chimes in with his views of Taibbi's Goldman Sachs article and Goldman's money making prowess ("because it is a conspiracy does not mean it is wrong").
In a impressively coherent presentation, the former Governor also talks
about bankrupt states and the lack of regulation (his family life
disclosure may be fast forwarded). Must watch. (Bloomberg has made their videos almost unlinkable for some insane reason: click on the Bloomberg AV page and select the top Editors' Video Pick).
Merrill's RateLab Retorts To Zero Hedge
Submitted by Tyler Durden on 07/14/2009 - 11:49Zero Hedge's good-natured critique of Merrill Lynch's most recent RateLab issue seems to have circulated. We present the response by its author to our earlier comments."
David Faber On Goldman CRE Write Downs And REIT Pain
Submitted by Tyler Durden on 07/14/2009 - 10:14David Faber discusses Goldman's real estate losses, and draws some conclusions about the upcoming pain for REITs. And yet, thanks to Goldman, which has been instrumental in upgrading and issuing stock for the REITs (and having a massive blow out quarter thanks in large part to its REIT underwriting activity), the sector is doing unprecedentedly well. Surely one has to wonder just what must happen at this point for people to realize what a ticking time bomb Commercial REITs are?
Economic Confidence Slide Accelerates
Submitted by Tyler Durden on 07/14/2009 - 09:17
The latest economic confidence numbers out of Investors Business Daily and TechnoMetrica Market Intelligence. As expected, reality always catches up with fiction.
Some More Forward Risk Arbitrage
Submitted by Tyler Durden on 07/14/2009 - 09:03
VIX-VXV hits steepest levels in a long time. Short-term vol being driven down by dispersion traders (selling correlation), cyclical/seasonal pressures, and risk transfer. Then again all these synthetic risk measures are likely screwed up beyond belief.
$1.4 Billion In Commercial Real Estate Writedowns At Goldman Sachs
Submitted by Tyler Durden on 07/14/2009 - 08:43Developing story: from Goldman conference call.
US Sliding Into Socialism
Submitted by Tyler Durden on 07/14/2009 - 08:37Presumably this is news. Compliments of Jim DeMint and CNBC.
Dennis Kneale In Good Company
Submitted by Tyler Durden on 07/14/2009 - 08:14
Not sure if this is a compliment to Dennis, for front-running the intellectual titans over at Merrill Lynch, or to Merrill, for agreeing with DK.
Daily Highlights: 7.14.09
Submitted by Tyler Durden on 07/14/2009 - 08:10- EU launched a probe into a Belgian state subsidy.
- EU to take Austria to court for not demanding repayment of hidden subsidy linkedto bank sale.
- Geithner will aim to reassure Middle East investors.
- Retail sales for June up .6%; PPI up 1.8%, more than expected.
- Singapore’s economy grew 20% in the second quarter --first time in a year since
And Here Is Why VaR And Liquidity Risk Are Kinda A Big Deal
Submitted by Tyler Durden on 07/14/2009 - 08:01One of the least understood concepts on Wall Street - Value At Risk aka VaR. For a good practical example of what happens when it goes ballistic, see the Goldman Press Release. And for some observations on why VaR could be the latest black swan-in-waiting, as well as for a much more in depth overview of liquidity, especially as it pertains to lack of diversity, please read the attached presentation out of the Professional Risk Managers' International Association.
Goldman Blow Out Q2 Revenues On Principal Trading; VaR Hits New All Time Record: $245 MM Total VaR
Submitted by Tyler Durden on 07/14/2009 - 07:45
As if anyone expected less than one of the most ridiculous beats ever. Notable: VaR hits what looks like another record high at $245 million, higher by $5 million from the last March record. One can barely hold their breath to see the number of $100 MM+ trading days in the quarter.
The Modern Day Reverse Alchemists
Submitted by Tyler Durden on 07/14/2009 - 07:13From GATA's Adrian Douglas:
In the Middle Ages alchemists toiled in vain to transmute lead into gold. One wonders why they used such an expensive starting material, such as lead, when modern alchemists in the gold
world have succeeded in transmuting paper into gold. This article reveals the anatomy of a scam
that has been perpetrated on investors and goes a long way to explain and tie together
developments in the precious metals markets in recent years.
