Archive - May 2009

BNO reports that that the U.S. Attorney's office in Chicago will announce another public corruption case, possibly involving an elected official at 2 p.m. local time today.

Update: Well, it is not someone else people may have been expecting... Instead it is Ike Carrothers, the chairman of the City Council's police and fire committee.

According to Bloomberg. As expected, Good GM will buy all the good stuff (anyone mind pointing out just what that is), and the garbage (Pontiac Aztek and such) will be thrown away.

Market rallies on the news that 20% of bondholders (the ad hocs) agree with the proposed plan to get warrants in a worthless company. Hm, what about the 80% who do not?

After briefly appearing in the critical ward, looks like Citi is back to comatose condition. Having raised $2 billion in 10 year non-guaranteed debt a week ago, the behemoth toxic asset cesspool that Vikram inherited is in the market again... for a TLGP-guaranteed trade. Good to see Citi's observant capital markets strategists know how to gauge the market's receptiveness to their garbage, and also when to hide in the shadow of taxpayer guarantees.

Til Schuermann, VP of Financial Intermediation at the Federal Reserve Bank of New York, is testifying today on issues in Commercial Real Estate, and his prepared remarks essentially drown the prospect of green shoots in the context of CRE.

Just as the futures buying hand starts gobbling up them spoos on the horrible housing and mortgage news, mortgages fail to stage any recovery. But please, keep equities artificially high - money out of treasuries into equities, on the road to 7% mortgages, is exactly what the doctor ordered.

Just as the futures buying hand starts gobbling up them spoos on the horrible housing and mortgage news, mortgages fail to stage any recovery. But please, keep equities artificially high - money out of treasuries into equities, on the road to 7% mortgages, is exactly what the doctor ordered.

From Bloomberg's chart of the day, reflecting the massive lag in muni weakness compared to the compost heap that is the general economy.

Bloomberg had this to say:

From Bloomberg's chart of the day, reflecting the massive lag in muni weakness compared to the compost heap that is the general economy.

Bloomberg had this to say:

So just which is it? Did the streaming ticker not pay its real time bill today?

So just which is it? Did the streaming ticker not pay its real time bill today?

Green shoots spinning in their grave - 12 percent of homeowners with a mortgage are behind on their payments or in foreclosure. Half of all adjustable-rate loans to borrowers with shaky credit were past due or in foreclosure. And we still have to see the Option ARM hurricane. California, Nevada, Arizona and Florida accounted for 46 percent of new foreclosures in the country.

A useful chart showing the historical levels of the various prices along the Treasury curve. Whoever put the steepener trade on in late 2006 (about the time Bernanke started calling the sho(r)ts) is by now rich, retired, sitting on a beach, collecting 20%.

hat tip Günter Leithold

A useful chart showing the historical levels of the various prices along the Treasury curve. Whoever put the steepener trade on in late 2006 (about the time Bernanke started calling the sho(r)ts) is by now rich, retired, sitting on a beach, collecting 20%.

hat tip Günter Leithold

For the latest and greatest thoughts in the investment community. Created by Mike O'Rourke of BTIG.

• US is considering the possibility of a single regulator for banks.
• April Existing-home sales climbed 2.9% as buyers took advantage of foreclosures.
• Treasury Yield curve steepens to record as sales of govt debt surge.
• AutoZone's Q3 net rises 9.5% to $173.7M, revs up 9.3% at $1.66B.
• BofA says has raised $26B in capital plan to date.
• GM bankruptcy is considered 'inevitable' as bondholders reject swap offer.
• GM has asked for an addln $415M for its Opel unit, stalling talks with Fiat, Magna Intl.
• Jo-Ann Stores beats by $0.19, posts Q1