Archive - May 24, 2010

• Most European markets, ex UK, closed for Whit Monday
• LIBOR/OIS: Dollar spread widens again (Market News)
• Gold rising as euro weakens spurs more speculation (Bloomberg)
• "Seriously, GLD is not a scam. But PHYS might be" (Index Universe) - Seriously, if anyone can explain to us what this article is complaining about we would be grateful (h/t Robert)
• Defaults on apartment-building loans set record for US banks (Bloomberg)
• Kunstler: Something Happened: (Clusterfuck Nation)
• European fear crisis threatens liberal benefits (NYT)
• CajaSur seizure marks change for Spain's ailing banks (Bloomberg)

• April sales of previously owned homes likely got a big boost from tax incentives.
• Asia stocks gain as China rises most in seven months on policy speculation.
• China presses US to end tech export controls.
• China shares up as fears of tighter policy ease amid hopes of rising yuan.
• Corn futures advances on speculation that China may boost imports from the U.S.
• Defaults on apartment-building mortgages held by US banks climbed to a record 4.6% in Q1.
• Dubai officials lay out need for financial reform following the credit crisis.
• Euro falls, ends 3-day gain, on concern debt crisis to spread.

Did someone just spill some Gulf Of Mexico 2010 special BP vintage in the UK water supply? First Janjuah comes out bearish guns blazing, and now even the biggest permabull of them all, Goldman's Jim O'Neill, issues some very overcast observations, the most cheerful of which is the ominous stop of the clock of St. Paul's cathedral on Thursday when the market broke the 200 DMA... and yes, speculators will be blamed.

Dear All

I am deeply troubled by the world and markets. THIS IS AN UBER BEAR EARLY WARNING ALERT:...I know its not what folks in general want to hear but hopefully you'll understand that I am trying to do my little bit to help....

First please refer back to my last comment, dd 26th April (Bob's World: What an idiot!)....2 takeaways from this note in particular - 1) my bearish trading call on risk assets, looking for a 10%/10%+ S&P selloff over late Apr and May from the 1220 level, driven by sovereign concerns, was spot on - maybe not bearish enough!, and 2) the point of market and taxpayer revulsion with the horrendous Keynesian/monetarist nightmare forced upon us by policymakers has come to bear. Sovereign limits and sovereign credibility concerns are not now a future risk - they are HERE. The enormous failure here is that the private sector has barely had time to catch a breath, let alone develop any form of self sustaining private sector recovery, before these limits have already begun to hit home.

Spain is starting to show its true colors re: the NPAs in its banking system. When the dam bursts, one should expect a mini-daisy chain reaction to kick off due to the contagion effect. The only question is, which of the PIIGS group will come clean first? Or will they all keep sweeping the NPAs under the carpet until there is no more carpet to sweep under? In the mean time, those bank options are up 300% to 400% and counting...

RANsquawk European Morning Briefing - Stocks, Bonds, FX etc. – 24/05/10