Archive - Oct 23, 2009

UBS' Art Cashin shares deep perspectives on the economy, China, investor psychology, markets, the bubble, the Federal Reserve and more. Must watch.

• Rampant buying of Kindles did not help UK's GDP, which posted a "surprising" drop of -0.4% in Q3 (Bloomberg)
• Allan Meltzer: Banks are holding prices down because they can buy Treasurys with free money from the Fed (WSJ)
• UK GDP reaction: sterling tumbles, Gilts rally, but FTSE fine (FT Alphaville)
• New Jersey pays Goldman for swaps on non-existant bonds (Bloomberg)
• Dollar's doom puts a face on new $1 million bill (Bloomberg)
• China's 8.9% growth? No way - Beijing has spent its way to a sugar high (Forbes)

• Asian stocks rise as earnings boost outlook for recovery.
• China says employment is “stable” and will add 2 million more urban jobs this year.
• EU approved the proposed tie-up of Merck & Co. and Schering-Plough.
• Oil prices held above $81 a barrel Friday in Asia.
• Treasuries fall a third day as Asia stocks gain, US homes sales to rise.
• 3M Co.'s Q3 net fell 3.4%, beats est., raised its full-year EPS view now to $4.50-4.55.
• Amazon.com reported a 69% gain in Q3 profit and forecast healthy holiday gains.

Here is a quick look at the Ackman short, O's covenant risk and a comparison to the cash shortage at American Campus Communities. ACC's issues are more imminent!

No matter where the stock market rises to, no matter what accounting shenanigans are being pulled, and no matter what program traders or momentos are pushing for the moment, sooner or later (usually sooner than many realize) the fundamentals come home to roost. Enter Wells Fargo...