Archive - Sep 2009
September 25th
"Have The Federal Reserve Or Prime Brokers Ever Tried To Manipulate The Stock Market?"
Submitted by Tyler Durden on 09/25/2009 11:22 -0500Alan Grayson doing his immaculate Jaws impression here. And the man is definitely smelling a wounded and bleeding Fed. Must watch clip.
Grayson to Fed General Counsel Scott Alvarez: "Do you mind if we have a GAO audit to see if there has been front-running or insider trading by [Fed Primary Dealer JP Morgan]? Do you mind? Is that ok with you?"
Yen Carry Unwind And Shift Into Dollar Carry Extends, US Stocks Decoupling From Dollar Weakness
Submitted by Tyler Durden on 09/25/2009 10:51 -0500
The dollar pain continues as the dollar drops below the 90 Yen support level. Surprisingly despite the dollar weakness, there is no capital flow into domestic risky assets (10 Years are well bid). In fact, the bid in HY, the latest risk casualty of bubble psychology, is weakening. Is the carry trade now financing safer/foreign assets? If so, is yield chasing finally over?
Declassified State Dept Data Highlights Global High-Level Arrangement To "Remain Masters Of Gold" By "The Reshuffle Club"
Submitted by Tyler Durden on 09/25/2009 10:10 -0500"If we want to have a chance to remain the masters of gold an international agreement on the rules of the game as outlined above seems to be a matter of urgency. We would fool ourselves in thinking that we have time enough to wait and see how the S.D.R.'s will develop. In fact, the challenge really seems to be to achieve by international agreement within a very short period of time what otherwise could only have been the outcome of a gradual development of many years."
- U.S. Department of State, March 1968
S&P Technical Update
Submitted by Tyler Durden on 09/25/2009 09:19 -0500Other technical observations show the MACD has turned momentum but we are not in negative territory just yet, quite a way from it. Certainly expect the market to attempt a run higher into the close to turns things around and not close the week in trouble.
Consumer Confidence Does Not Ignite YoYo Market
Submitted by Tyler Durden on 09/25/2009 09:09 -0500
More troubling to TPTB should be the immediate reversal following yet another "stunner" out of UMich, Consumer Confidence or "The Market Is Up Because The Market Is Up Because The Market Is Up, etc." index.
Rydex Market Timers: All In
Submitted by thetechnicaltake on 09/25/2009 09:07 -0500Yesterday's mini sell off has brought out the dip buyers.
Visualizing The Upcoming Treasury Funding Crisis
Submitted by Tyler Durden on 09/25/2009 08:40 -0500In his interview yesterday Julian Robertson expressed substantial concerns about the ongoing US debt funding threat, using words such as "Armageddon" to describe what will happen when and if China and Japan stop buying US debt. More disturbingly, as was pointed out on Zero Hedge first, and was subsequently picked up by the WSJ, the Fed has accounted for half of all Treasury purchases in Q2 ($164 billion of total of $339 billion). Below we present data for what could be construed as a Treasury funding crisis borne out of lack of demand for longer maturities, once the QE portion of UST purchases expires. This crisis could hit as soon as October.
Frontrunning: September 25
Submitted by Tyler Durden on 09/25/2009 08:07 -0500- Former PPT member Kevin Warsh voices in: The Fed's job is only half over (WSJ)
- Still waiting for the inventory bounce: durable good orders drop 2.4% in August, worst since January (Bloomberg)
- Mattress-maker Simmons finally throws in the towel, to file Chapter 11 (AP)
- Investors don't feel like taking chances with stocks, spending (USA Today)
- Battle brews over unused TARP cash (WSJ)
Key Price Levels: Mission Accomplished
Submitted by thetechnicaltake on 09/25/2009 07:41 -0500There probably is a lot of back slapping going around at the Fed and Treasury Department these days as the markets have risen on a flood of liquidity.
Daily Highlights: 9.25.09
Submitted by Tyler Durden on 09/25/2009 07:41 -0500- Asian stocks decline on Nomura’s share sale, US housing data.
- China’s stocks fell, with Shanghai Composite set for its biggest weekly loss in 6 weeks.
- Dollar, Yen rise on speculation G-20 will act to curb riskier investments.
- Fed regulators say banks, other institutions face $53B in losses on loans.
- Freddie Mac announces $1B reopening of 2.125% three-year Reference Notes security.
- G-20 poised to crack down on bankers' pay, increase policy coordination.
September 24th
And The Spirit Aerosystems Bet Winner Is... Zero Hedge
Submitted by Tyler Durden on 09/24/2009 22:45 -0500Earlier today we bet against the Goldman Sachs - Fed complex, claiming that either Bank Of America or Goldman Sachs would end up being the underwriter for the Spirit Aerosystems $300 million bond offering. We were right.
Guest Post: If Corporations Cannot Vote, Should They Have The Right To Spend Money In Elections?
Submitted by Tyler Durden on 09/24/2009 22:25 -0500An irony of Shakespearean proportions is unfolding as I write this: the Town Hall discourse revolves around complaints government is getting too big, yet in the quieter halls of the US Supreme Court corporations are on the verge of capturing the largest swath of power since they were ruled legal persons. Let’s take a closer look before we wake up in an Orwellian distopia.
Federal Reserve Balance Sheet Update: Week Of September 23
Submitted by Tyler Durden on 09/24/2009 21:43 -0500
Total Federal Reserve balance sheet assets for the week of September 23 of $2,133 billion ($44.5 billion higher compared to the prior week's $2,088 bn), and this time just $41 billion shy of the all time high of $2,174 billion recorded on April 22
Freddie Pays Big for New CFO
Submitted by Bruce Krasting on 09/24/2009 20:32 -0500What do you have to do to make $675,000 at Freddie Mac? Not much. Why is the gigantic piece of dead wood hiring big buck talent? Big money politics, of course.
NOTE: AFTER I WROTE THIS ADDITIONAL DETAILS CAME OUT: KARI GOT A $2MM BONUS AND A GUARANTEE OF $3.75MIL!!!!
The Last Hedge Fund Hurrah?
Submitted by Leo Kolivakis on 09/24/2009 19:11 -0500It's amazing how a year after the worst financial crisis in post-war history, when hedge funds were closing the gates of hedge hell, things have not changed on Wall Street.





