Archive - May 2010

Goldman may have hit the iceberg, but at least David Kostin keeps on playing the groupthink music which always validates Farrell's rule #9. "Portfolio managers with whom we met on the West Coast this week expressed strong bullishness on the near-term direction of US equities and several had earnings estimates for 2010 and 2011 that were substantially above both our and bottom-up consensus forecasts." In other words everyone is convinced that the Fed will never regain its monetary independence and keep ZIRP at least until Obama's second presidential campaign.

Spreads were decidedly wider this week with HY notably underperforming IG but equity underperforming credit in general. US HY underperformance was the standout in credit markets with Europe ending very marginally wider in corporates as we suspect some of the technicals impacting index compression in the US started to unwind as risk appetites shrank.

Having now returned from extended sick leave and coming to you from within her digitally wired ISOPORT™ (the CDC approved portable, negative pressure isolation enclosure in which she now resides full-time) Marla Singer is pleased to share with you:

- A small but finite risk of exposure to plague in the form of multi-drug resistant Streptococcus Pneumoniae

- The lingering side effects of ongoing and massive doses of vancomycin and linezoli (including altered taste perception- brown sugar Pop Tarts™ now taste like foie gras to her, though cornflakes apparently remain as bland as ever)

- A large supply of Laudanum painstakingly hoarded from the 19th century medical facilities in which she was imprisoned housed and soon to be available for resale through the Zero Hedge Store (Act now! Supplies are limited!)

- A (hopefully) temporary loss of speech (induced by repeated intubation)

- Advanced, multi-lingual electronic speech synthesizer with integrated wheelchair (one beep for "yes," two beeps for "no")

- Several advance copies of her new book: The Complete Guide to Defrauding ObamaCare (with an introduction by Dick Fuld)

Oh, and

- 12 hours of Radio Zero (brought to you by the complete lack of circadian rhythm long hospital stays apparently induce)

Join us around... well, around now.

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