Archive - Jul 2009

This one falls into the category of one picture is worth a thousand optimistic promises. Compliments of Out Of The Frying Pan.

This is so much more than just a short covering rally. Oh wait, it's not.

Irene, I would love to get a copy of your book. Are you willing to exchange one Digital Dickweed coffee mug for a few hundred copies? I am sure you have them lying around, and it sounds about equitable.

Also, good thing of Irene to admit that any variant of forntrunning is illegal. We are with you!

Cause you know selling luxury hotels ahead of a 90% ramp up in the S&P makes all the sense in the world.

There has been (finally) a lot of attention to program trading, a theme Zero Hedge has been focusing on for 4 months. This week, the NYSE finally switched over to its new methodology of providing program trading, which, as Zero Hedge announced previously, involves the decommissioning of the DPTR and the delay/cancellation of implementation of "the proposed redefined program trading account type indicators (J and K)."

Timmy G. ducked another question on the future of Fannie and Freddie today. Maybe he gave a clue what is brewing while he was ducking.

It can hardly have escaped your notice that a battle of epic proportions, simmering at the fringes for months, was this very week finally joined. Pursuing what can only be termed a "Möbius strip news cycle" strategy, certain "financial news" programs have taken to throwing those pesky "parasitic" bloggers to the proverbial wolves at every opportunity.

MSNBC's explanatory take on how the Federal Reserve "bailed" the system out and why the Fed is so keen on perpetuating its secrecy.

Eliot Spitzer: "The Fed is a Ponzi scheme, an inside job, it is outrageous, it is time for congress to say enough of this"

One feels the pain of New York City Comptroller Bill Thompson, Jr. Not only does he have to deal with the continuing lunacy over in Albany and the still ongoing power struggle in the wake of Spitzer's abrupt implosion, but he has to scramble to contain the fall out in the world's most financially dependent city. His only wildcard: hope, whether it be preached by 1,000 billboards across America, or Obama appearing on TV every 15 minutes to remind Americans that the only way out of a credit crisis is to max out their credit cards, or by watching comedy channels disguised as financial reporting.

"This is a vicious bear market rally"

• Asian markets rise on improving economic data, strong earnings.
• Europe truck sales down for 14th month.
• Existing-home sales rose 3.6% in June from the previous month.
• U.K. second-quarter GDP fell 0.8%, according to preliminary reading.
• US Mortgage rates rise to 5.2% in first gain in 4 weeks: Freddie Mac.
• 3M Co. posts 2Q EPS of $1.20, beating cons est. by 28%; ups Y09 EPS f'cast.

• CIT bankruptcy to follow even if exchange offer is successful, uncaring robots run futures up on news (Bloomberg)
• Earnings really starting to suck: Schlumberger profit down 57% (AP), in other news economy irrelevant to the recovery
• Slowest diamond sales since 1974, good for another 10 points on the S&P (Bloomberg)
• In the meantime JP Morgan is increasing banker base pay, while bonuses will likely remain as high as always (Bloomberg)
• Euro rises on improved confidence Europe will never export another product again, market on 10th straight up day, 355 more to go (Bloomberg)
• In the meantime the "strong" German recovery is weaker than its US counterpart, as Obama keeps handing out blue pills (FT)

Folks, its Freaky Friday today. Lots of economic data coming out of the cupboard in the Eurozone, mostly PMI and Business Climate numbers. UK's preliminary GDP q/q and services index are out as well today, both quite weak; no green shots here folks. Preliminary printing of the UK GDP figures shows biggest Y/Y fall since the series began in 1955, annualised to -5.6% !

If you answered “C) Both of the above”, not only would you be correct, you'd have the logical reasoning skills required to be a decabox pundit on a respected financial news network.

"We are taking your complaint regarding Goldman Sachs and its proprietary software that may be used to manipulate the markets very seriously, and have referred it to the appropriate people within the SEC."