Archive - Apr 2009

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

Financial company stock prices have been on a tear these days, undoubtedly based on glowing, solid results. After all didn't Wells just have a blow out quarter? What is that you say, $5 billion in "earnings" were based on FAS 157-4 reversal and accounting gimmicks?

Financial company stock prices have been on a tear these days, undoubtedly based on glowing, solid results. After all didn't Wells just have a blow out quarter? What is that you say, $5 billion in "earnings" were based on FAS 157-4 reversal and accounting gimmicks?

Financial company stock prices have been on a tear these days, undoubtedly based on glowing, solid results. After all didn't Wells just have a blow out quarter? What is that you say, $5 billion in "earnings" were based on FAS 157-4 reversal and accounting gimmicks?

Such is the punchline of rating agency Egan-Jones, which did not drink the equity market kool aid today and reaffirmed it D rating on the company. With GM shares trading barely changed despite the company's announcement it is effectively bankrupt, it is curious what shareholders expect out of the upcoming in- (most likely) or out-of-court restructuring. Yes, there is always the possilbe hail mary option value that Kirk will come out of left field and offer to buy the company, pledging the MGM Mirage as collateral (again) but aside from that?

Spreads were mixed in the US today with IG tighter, HVOL improving, ExHVOL better, XO stronger, and HY selling off. 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 underperformed but compressed the skew, and HY's skew widened as it underperformed.

Just another day at the NYSE where people are either all buying, or all selling. NYSE is going from +1,300 (upticks) to -1,000 (downticks) in a matter of seconds.

I can just hear Steve Grasso somewhere saying how swell this is.

Just another day at the NYSE where people are either all buying, or all selling. NYSE is going from +1,300 (upticks) to -1,000 (downticks) in a matter of seconds.

I can just hear Steve Grasso somewhere saying how swell this is.

Just another day at the NYSE where people are either all buying, or all selling. NYSE is going from +1,300 (upticks) to -1,000 (downticks) in a matter of seconds.

I can just hear Steve Grasso somewhere saying how swell this is.

Just another day at the NYSE where people are either all buying, or all selling. NYSE is going from +1,300 (upticks) to -1,000 (downticks) in a matter of seconds.

I can just hear Steve Grasso somewhere saying how swell this is.

10 Year Treasuries trading as if the whole QE thing never happened. Courtesy of visible and invisible hands which have made holders dump their bonds and chase after an insane market.

Totally unconflicted commentary from Paul McCulley of Pimco "The data is indicating we are in the bottoming process. The rate of decline is slowing." Took the words right out of Grasso's mouth.

Time for QE 2.0? Why not - the Treasury and the Fed are not know for getting things right the first time around... or fifth...

10 Year Treasuries trading as if the whole QE thing never happened. Courtesy of visible and invisible hands which have made holders dump their bonds and chase after an insane market.

Totally unconflicted commentary from Paul McCulley of Pimco "The data is indicating we are in the bottoming process. The rate of decline is slowing." Took the words right out of Grasso's mouth.

Time for QE 2.0? Why not - the Treasury and the Fed are not know for getting things right the first time around... or fifth...