Archive - Feb 7, 2009

This week's run up in the market was, without doubt, purely an exercise in front-running the government's pumping of more taxpayers' funds into financial "assets" and the pricing in of yet another rally (as well as some greater fool expectations thrown in for good measure) in light of continuing depression-worthy economic releases. The two main expectations for Monday's Treasury announcement revolve around an "aggregator" bank and toxic asset "ring-fencing." These are unique in that both perform crisis intervention before recognition of bank insolvency, or apriori triage.

This week's run up in the market was, without doubt, purely an exercise in front-running the government's pumping of more taxpayers' funds into financial "assets" and the pricing in of yet another rally (as well as some greater fool expectations thrown in for good measure) in light of continuing depression-worthy economic releases. The two main expectations for Monday's Treasury announcement revolve around an "aggregator" bank and toxic asset "ring-fencing." These are unique in that both perform crisis intervention before recognition of bank insolvency, or apriori triage.

More on the commercial real-estate bubble pop as vacancies skyrocket and rents plunge (NYT)

More on the commercial real-estate bubble pop as vacancies skyrocket and rents plunge (NYT)

While the markets keep chugging along, bank failures continue to accelerate (all FDIC recorded bank failures listed here).

While the markets keep chugging along, bank failures continue to accelerate (all FDIC recorded bank failures listed here).

This is unbelievable. Verizon thinks math is a matter of opinion.

[youtube=http://www.youtube.com/watch?v=lCJ3Oz5JVKs&hl=en&fs=1]

from Markit

from Markit

from Markit

France, Germany and Japan all less risky than the U.S.

France, Germany and Japan all less risky than the U.S.

Senator Bob Corker is likely the smartest member of Senate currently. While on a relative basis this is not saying much when one juxtaposes him with the intellectual fortitude (or lack thereof) of his 99 peers, Bob, unlike the entire current administration, will actually think before he condemns future generations of Americans to a miserable hyperleveraged and hyperinflated existence.

As we wrote two weeks ago in detail, the massive unwind of basis trades in the post-Lehman world was a crushing blow to numerous hedge funds, Merrill Lynch's prop desk, the reason why Citadel has to post a 100% return this year just to be able to pocket any incentive fees, and cost Boaz Weinstein his investing career (contrary to his aspirations to start a new

As we wrote two weeks ago in detail, the massive unwind of basis trades in the post-Lehman world was a crushing blow to numerous hedge funds, Merrill Lynch's prop desk, the reason why Citadel has to post a 100% return this year just to be able to pocket any incentive fees, and cost Boaz Weinstein his investing career (contrary to his aspirations to start a new