Archive - Apr 1, 2009

Tyler Durden's picture

Further details on CDS clearinghouse





As we have noted before, we are big fans of the the clearinghouse idea for derivatives - particularly CDSs.  Overall, Geithner's plan is going to have a tremendous influence on the financial markets going forward and Zero Hedge is closely following any details that emerge.

 

Tyler Durden's picture

Further Escalation Of The AIG-Bank Counterparty Scandal





In a letter released by Barney Frank, the Chairman of the Committee of House Financial Services is requesting information from Geithner and Bernanke as to how AIG may have treated its U.S. bank counterparties differently from foreign banks.

Frank is referencing a letter by Spencer Bachus in which the latter raises yet another aspect of the AIG debacle, namely that disproportionate treatment by AIG may have benefited foreign banks by up to 70%.

 

Tyler Durden's picture

Unemployment As A Coincident Indicator





Reader Michael points out an interesting observation on the lagging versus coincident nature of unemployment as an indicator of economic health. His thoughts below:

I am skeptical of a lot of the "good news", and note that a recent mini-bounce in the Conference Board Leading Indicator was only due to the expansion in the money supply; all other variables were negative. I also think Rosenberg is on the right track in terms of higher than expected savings rates, and the over-extrapolation of recent housing and production data.

 

Tyler Durden's picture

Unemployment As A Coincident Indicator





Reader Michael points out an interesting observation on the lagging versus coincident nature of unemployment as an indicator of economic health. His thoughts below:

I am skeptical of a lot of the "good news", and note that a recent mini-bounce in the Conference Board Leading Indicator was only due to the expansion in the money supply; all other variables were negative. I also think Rosenberg is on the right track in terms of higher than expected savings rates, and the over-extrapolation of recent housing and production data.

 

Tyler Durden's picture

Daily Credit Market Summary: April 1 - Stock Better, Credit Worse Part 2





Creditresearch.com notes: Spreads were mixed to mostly wider in the US today with IG worse, HVOL wider, ExHVOL weaker, XO wider, and HY rallying. Indices generally outperformed intrinsics with skews widening in general as IG's skew decompressed as the index beat intrinsics, HVOL outperformed but widened the skew, ExHVOL outperformed pushing the skew wider, XO's skew increased as the index outperformed, and HY outperformed but narrowed the skew.

 

Tyler Durden's picture

The Economy Is Contracting A Lot More Rapidly Than The Government Is Reporting, Per TrimTabs





TrimTabs is out with their most recent employment data, which compares to the earlier ADP report, that the market forgot about after the first 30 minutes of trading. According to TrimTabs "the U.S. economy lost 700,000 to 750,000 jobs in March as wages and salaries plunged 4.5% year-over-year. TrimTabs estimated that the economy shed 4.3 million jobs in the past 12 months, the largest annual job loss since 1970."

 

Tyler Durden's picture

The Economy Is Contracting A Lot More Rapidly Than The Government Is Reporting, Per TrimTabs





TrimTabs is out with their most recent employment data, which compares to the earlier ADP report, that the market forgot about after the first 30 minutes of trading. According to TrimTabs "the U.S. economy lost 700,000 to 750,000 jobs in March as wages and salaries plunged 4.5% year-over-year. TrimTabs estimated that the economy shed 4.3 million jobs in the past 12 months, the largest annual job loss since 1970."

 

Tyler Durden's picture

The Economy Is Contracting A Lot More Rapidly Than The Government Is Reporting, Per TrimTabs





TrimTabs is out with their most recent employment data, which compares to the earlier ADP report, that the market forgot about after the first 30 minutes of trading. According to TrimTabs "the U.S. economy lost 700,000 to 750,000 jobs in March as wages and salaries plunged 4.5% year-over-year. TrimTabs estimated that the economy shed 4.3 million jobs in the past 12 months, the largest annual job loss since 1970."

 

Tyler Durden's picture

The Looting Of RBS





Soon coming to a certain Greenwich marina corporate campus near you.

[youtube=http://www.youtube.com/watch?v=p0b_9bIpES0&hl=en&fs=1]

[youtube=http://www.youtube.com/watch?v=tX5opZ68BM8&rel=0&color1=0x6699&color2=0x...]

 

Tyler Durden's picture

Macy's, Meet Junk





Moody's is back to its wicked stop-the-stupid-rally ways by junking Macy's. Moody's cut the retailer's unsecured debt rating from Baa3 to Ba2.

 

Tyler Durden's picture

It's Official: Ratigan Going To ABC





Or so the Fast Money master claims.

 

Tyler Durden's picture

On Second Thought Scrap The GM Digital Option





Bloomberg just out, quoting a "person familiar" saying that the U.S. won't repay the $1 billion converts maturing June 1.

 

Tyler Durden's picture

This Is Not An April Fool's Joke: GM Says Q1 Implies 9.8 MM SAAR





And the bottom is in.

Sigh

 

Tyler Durden's picture

The 3-to-1 GM Digital Option





At this point nobody doubts what the final outcome for GM will be, the only question is how the company will get there, or specifically whether it will occur in court via a prepackaged bankruptcy, or out of court, through a debt-for-equity exchange, and as Obama's flip flopping on the matter over the past 3 days has demonstrated, there is a lot of political capital resting on either outcome. Another question is why did Obama limit the new extension to 60 days.

 

Tyler Durden's picture

Best April Fool's Joke





From David Rosenberg "Turning Bullish"

Some of the point he does not joke about

Savings rate could head back to the 10-12% range

 
Do NOT follow this link or you will be banned from the site!