Archive - Jun 2009

Readers curious to know how the Fed transparency petition is progressing will be happy to know that Ron Paul's HR 1207 proposed bill, "The Federal Reserve Transparency Act" now has 206 co-sponsors. Alan Grayson's democratic canvassing for bill support has proven quite successful. A mere 2 weeks ago there was just 165 cosponsors, mostly republicans.

NYSE volume unchanged from yesterday's siesta-inspired participation.

In bonds, forward curves getting pancaked. The 5 Yr bond has over 2% differential between spot and the 5 year forward. But the biggest action is in the near end: presumably the 3 Month T-Bill will see a 5% ramp up in the next 5 years.

NYSE volume unchanged from yesterday's siesta-inspired participation.

In bonds, forward curves getting pancaked. The 5 Yr bond has over 2% differential between spot and the 5 year forward. But the biggest action is in the near end: presumably the 3 Month T-Bill will see a 5% ramp up in the next 5 years.

In the greatest diplomatic gaffe since Bush Sr.

Developing Story from Bloomberg.

Please, please, please let Maxine Waters do the interrogation.

More from the WSJ:

[youtube=http://www.youtube.com/watch?v=zOZnRUZKf48&hl=en&fs=1&]

Just when people were wondering why Bank Of Countrywide Lynch wasn't paying back the TARP, (well, that, and a several hundred billion in toxic assets) Reuters is reporting that the legal fees of Agent Orange, who was recently charged by the SEC with fraud and insider trading, will be paid for by TARP-for-life member BofA.

After the 3 year auction closed earlier, with a solid 2.82 bid to cover (presumably the 3 Yr is on the attractive side of the curve, the 10 Yr - not so much), the curve has again resumed steepening, with buyers easily preferring to bid on the left side of the 3 year. Thursday will be a major day: will Chinese students be laughing in Geithner's face again: a significant supply of 10 and 30 Years could make that very likely.

Today several financial companies were given permission to repay their TARP crutches. The market yawned. As expected, nowhere in Geithner's prepared statement was there even a brief mention of that "other" crutch, the TLGP subsidies that banks have used over the past 6 months.

An interesting tidbit from Rosie's am commentary. He points out that between commodity inflation (gas prices), the pounding in mortgages (drop in mortgage refis and implied housing net worth) and dropping wages (yes, the skyrocketing unemployment rate does tend to do that), and there go the purported stimulus package benefits.

As Zero Hedge expected in today's Frontrunning, it was only a matter of time before White & Case picked up on Fiat spokesperson Gualberto Ranieri's words, after he said "Fiat won't walk away from Chrysler." As has been repeatedly noted, the key argument presented by Chrysler and the USA, is that Fiat would bail if it had a chance.

[youtube=http://www.youtube.com/watch?v=KWu-efNN8PM&hl=en&fs=1&]

hat tip James

Impaired claimant groups are gradually starting to get smart about what ultra-fast 363 auto sales imply for them - nothing good. The latest development in the GM case involves the company's asbestos-injury claimants, as the Detroit Free Press reports. The group has requested official committee representation in the GM case as it believes the GM 363 sale may be unconstitutional since it has been left out of negotiations.

Casino, chemicals, retailers, private jet and auto loan heatmapping continues. Solid, solid companies.