Archive - Jun 12, 2009

Using the Fed's Flow of Funds (Z.1) report allows readers to calculate overall corporate leverage: a quick and dirty proxy for a top down leverage analysis. Much in the same way that corporate leverage is derived, the Z.1 provides the data needed to calculate the ratio of net debt to LTM internal funds/adjusted after-tax profits.

Using the Fed's Flow of Funds (Z.1) report allows readers to calculate overall corporate leverage: a quick and dirty proxy for a top down leverage analysis. Much in the same way that corporate leverage is derived, the Z.1 provides the data needed to calculate the ratio of net debt to LTM internal funds/adjusted after-tax profits.

Zero Hedge has always been fascinated by the behemoths of securities lending (or not so much lately) State Street and Bank Of New York: these firms, which allegedly had just marginal toxic exposure, were in the front lines for the TARP bailout and have traditionally been handled with velvet gloves by the administration. In fact, many would say the custodian firms are in a league of importance much higher than even Goldman or JP Morgan as with their repo activity, security lending and cash collateral reinvestment, they are the de facto center of the shadow banking system.

• Retail sales rose 0.5% during May, but much of the gain due to gasoline station receipts.
• Jobless rate will remain above 9% through the end of 2010: Economists.
• IEA slightly raised its 2009 world crude-demand f'cast for the first time in 10 months.
• Global economy to contract by close to 3%, worse than the prev.
  

• Record 21.% drop in Eurozone industrial output (April)
• May import prices rises 1.3% (Bloomberg)
• High gas prices could slow recovery (NYT)
• Investors hope for delay in S&P's CMBS rating changes (Reuters hat tip Adam)
• The
  

• And after all that talk of simplifying risk, BlackRock buys quant behemoth BGI, for $2.7 trillion in combined assets. This is a nuclear black swan waiting to happen (WSJ)
• Blast from the past (or is it present?): Jimmy Carter vs.
  

We are happy to announce that the HR 1207 "Audit The Fed" Bill is now one large step closer to reality, having garnered the necessary 218 co-sponsors to ensure passage. It has, in fact, 222 co-sponsors as of today and more are appearing by the hour. Please click here for the official press release.

Not exactly what was seized by the look of the Italian photographs, but it is rare to see high-denomination bearer bonds so we thought we'd attach one.

Not exactly what was seized by the look of the Italian photographs, but it is rare to see high-denomination bearer bonds so we thought we'd attach one.

Note: this analysis does not include $153 billion in various (presumably non counterfeit) bearer bonds that the Federal reserve will now never be able to monetize.

Total Federal Reserve balance sheet assets for the week of June 3 of $2,067 billion consisting of:

Note: this analysis does not include $153 billion in various (presumably non counterfeit) bearer bonds that the Federal reserve will now never be able to monetize.

Total Federal Reserve balance sheet assets for the week of June 3 of $2,067 billion consisting of:

Note: this analysis does not include $153 billion in various (presumably non counterfeit) bearer bonds that the Federal reserve will now never be able to monetize.

Total Federal Reserve balance sheet assets for the week of June 3 of $2,067 billion consisting of: