Archive - Apr 23, 2009

While the vicious love quadrangle (no pun intended Mr. Rattner) of Bernanke, Geithner, Lewis and Vikram pound the table on just how well lubricated the credit markets have become, the truth is that aside from ultra high quality Investment Grade names and TLPG-backed financial issuance, the credit market is for all practical purposes still in critical condition and about to be carted off to the morgue. The fact is that YTD issuance in the riskier HY and loan markets (see chart below) stands at a meager $22 billion - the lowest level in recent history.

While the vicious love quadrangle (no pun intended Mr. Rattner) of Bernanke, Geithner, Lewis and Vikram pound the table on just how well lubricated the credit markets have become, the truth is that aside from ultra high quality Investment Grade names and TLPG-backed financial issuance, the credit market is for all practical purposes still in critical condition and about to be carted off to the morgue. The fact is that YTD issuance in the riskier HY and loan markets (see chart below) stands at a meager $22 billion - the lowest level in recent history.

It is no secret that the administration, and especially Barney Frank, has made public enemy number one out of the rating agencies (and particularly Moody's), mostly in line with populist rhetoric and scapegoating. Of course, when the rating agencies satisfied a role that helped housing prices go higher, keep people happier and officials like Barney Frank in office longer, all was good. When things turn sour, the Franks of the world know to keep the attention away from Washington.

It is no secret that the administration, and especially Barney Frank, has made public enemy number one out of the rating agencies (and particularly Moody's), mostly in line with populist rhetoric and scapegoating. Of course, when the rating agencies satisfied a role that helped housing prices go higher, keep people happier and officials like Barney Frank in office longer, all was good. When things turn sour, the Franks of the world know to keep the attention away from Washington.

It is no secret that the administration, and especially Barney Frank, has made public enemy number one out of the rating agencies (and particularly Moody's), mostly in line with populist rhetoric and scapegoating. Of course, when the rating agencies satisfied a role that helped housing prices go higher, keep people happier and officials like Barney Frank in office longer, all was good. When things turn sour, the Franks of the world know to keep the attention away from Washington.

• Initial and continuing Jobless claims both worse than estimates at 640k and 6,137k.

• Must read on CNBC propaganda: "Immelt and NBC Uni CEO Jeff Zucker supposedly told top CNBC executives and talent to be less critical of President Obama and his policies" This explains why nobody with half a brain watches CNBC anymore (THR hat tip Guest)
• REITs advised to recap in equity market before rally is over (FT, hat tip IMA5U)
  

In yet another piece of revisionist brilliance, the pillar of intellectual fortitude formerly known as Barney Frank has passed legislation that will.... lower credit card interest rates.

Yes, ladies and gentlemen, this horrific deja vu is truly a massive glitch in the administration's matrix. Let's recap:

1) ZIRP (that's Zero Interest Rate Policy for you lucky souls who do not know this acronym)... yes, not even Greenspan sunk so low
2) Promotion of rampant TALFage, aka securitization