Archive - Apr 2009

Zero Hedge has often been critical of the administration's current policies, which are not unique or novel, or even sufficient, as many claim, to prevent a relapse based on a confluence of economic events that pushed the country into the Great Depression, and can be simply qualified as inflationary spending and credit bubble reflation. By peddling debt at even cheaper rates than the much maligned Greenspan did during the great initial credit bubble inflation, what is happening right now does not differ one bit from the scenario that brought us here.

Of course, as expected, the White House is placing the full blame for the impending bankruptcy on the hold out hedge funds. Here is the stupendously hypocritical statement releaseed from the White House:

"[The hedge funds'] failure to act in either their own economic interest or the national interest does not diminish the accomplishments made by Chrysler, Fiat and its stakeholders nor will it impede the new opporunity Chrysler now has to restructure and emerge stronger going forward."

• The quants are brewing real trouble at Morgan Stanley (WSJ)
• Europe erases 2009 losses (Bloomberg)
• Chrysler bankruptcy looms as deal on debt falters (NYT)
• Howard Kagan sues Harbinger for $63 million of back pay (

• GM bondholders present bold counteroffer: kick government out and end up with control of the company (WSJ)
• WHO warns swine flu pandemic imminent as virus thrives in North America (Bloomberg)
• FBI looking into losses at Freddie Mac (WSJ)
• Taiwan stocks rally the most since 1991 on historic China investment (

Zero Hedge is always happy to discover something rotten in the state of capital markets. We are even happier when others dig independently and come up with their own startling conclusions. Tonight - we are very happy.

Zero Hedge is always happy to discover something rotten in the state of capital markets. We are even happier when others dig independently and come up with their own startling conclusions. Tonight - we are very happy.

Following up on yesterday's job search request for a credit analyst to head the PPT's corporate bond purchase program (only job requirement is familiarity with the phrase "lift the offer" - if you know what "hit the bid" means, you are disqualified), here is another one, courtesy of The Ladders, in which the Working Group is realizing it really is underqualified to run $10 trillion worth of securities bought 30%-1000% higher than fair value.

When you end up angering CalPERS, this should not come as much of a surprise. At least he retains the CEO title: Walter Massey will replace Lewis as Chairman. Now maybe Bernanke can be stripped of the title Uberload of the Formerly Free Financial Markets and Emperor of the Amazingly Ubiquitous SPY Bid.

Some relevant charts to back up the greenness (or lack thereoff) of any shoots that may have appeared today (compliments of Alex).

Some relevant charts to back up the greenness (or lack thereoff) of any shoots that may have appeared today (compliments of Alex).

The Daily Telegraph has compiled some rather sobering data on what the economic cost of the flu pandemic could ultimately be. This is a little less rosy than Steve Liesman's prediction that everything will blow over in a day or two. As a reminder the WHO is raising the epidemic to level 5, its second highest threat level: presumably they have not gotten the memo.

From the Daily Telegraph:

Spreads were mostly tighter in the US today amid very low liquidity with IG tighter, HVOL flat (index arb activity), ExHVOL better, XO stronger, and HY rallying. Indices generally outperformed intrinsics with skews widening in general as IG's skew decompressed as the index beat intrinsics, HVOL underperformed but narrowed the skew, ExHVOL outperformed pushing the skew wider, XO's skew increased as the index outperformed, and HY outperformed but narrowed the skew.

Government Capital LLC's automotive subsidiaries are multiplying.

April 29 (Bloomberg) -- President Barack Obama plans to announce tomorrow that Chrysler LLC will be placed into Chapter 11 bankruptcy, leading to an alliance with Italian automaker Fiat SpA, people involved in the matter said.

Administration officials are still resolving outstanding issues, and the plan is not finished yet, said one of the people, who declined to be named. Any bankruptcy filing could come as soon as tomorrow, people familiar with the matter said.