Archive - Jun 4, 2010

Another horrendous day shaping up for Europe. Spanish Bund spreads have surged to all time highs just south of 200 bps, Hungary confirms that it was not exaggerating comments about chances of (not) avoiding Greek situation, pushing its CDS even wider, the EURCHF has dropped to under 1.40 and the SNB has not intervened yet, while the EURUSD is down to 4 year lows below 1.21. The nail in the euro coffin is a report by Reuters that a growing number of Chinese exporters turn down euro payment, flatly refuting anything SAFE may be saying officially.

SocGen is plunging after Reuters has reported rumors about concerns of a massive loss in the firm's derivative division. Deja vu? "Societe Generale, which declined to comment on market rumour, fell 6.3 percent. BBVA and Credit Agricole fell 5 and 3.8 percent respectively."

Is 10% of all higher education in the US nothing more than a scam? The gravy train is about to end. Education’s version of the subprime crisis. A crack down on deceptive marketing practices, where degree programs are sold like time shares. The student loan default rate at for profit schools is thought to be as high as 50%. Sticking the government with the tab. Starve these schools of subsidized government funding, and their shares are history. And just try and get a job with one of these Mickey Mouse degrees. (APOL), (CPLA), (DV).

RANsquawk European Morning Briefing - Stocks, Bonds, FX etc. – 04/06/10