Archive - Feb 22, 2011
ToNiGHT'S SKY (February 23, 2011/12 PM Eastern Swindler Time)
Submitted by williambanzai7 on 02/22/2011 22:22 -0500Brought to you by the Banzai7 Observatory on Mt. Polar Bear...
A Visual Reminder Of US Social Stratification
Submitted by Tyler Durden on 02/22/2011 21:13 -0500
While many watch the revolutions starting virtually on a daily basis in the "developing world", few are concerned that these have any chance of occurring in the United States: "our society is far more cohesive and far less stratified" the rebuttal logic goes. Is it? Over the past two years, the one social class that has received the most voluminous amount of opprobrium is the ubiquitously derogatory "bankster" which represents far more a wealth and income qualification, that a job description. Americans it appears are becoming increasingly sensitive to the stratification within our own society, even if on a subliminal level. And while we have repeatedly shown before in visual terms just how polarized US society is, it worth reminding every few months or so, that the US is rapidly becoming a banana republic not only in its approach to legislative and judicial matters (not to mention regulatory), but toward the distribution of income and wealth. Not that there is anything wrong with a stratified society: after all, that is the purest hallmark of a capitalist society. However when one introduces the basest elements of socialism (and, ostensibly, communism and fascism according to some) in its midst, then things get far more transparent and subjective. Below we once again bring to our readers attention, in easily digestible format, the dramatic schisms that continue to tear through the fabric of US society. And if there is anything that the revolutions in the Maghreb should have taught us by now is that extreme social polarization can only last for so long before a violent snapback restores equilibrium, usually through bloodshed and death.
The Buzzword is Austerity
Submitted by thetechnicaltake on 02/22/2011 19:51 -0500In essence, the opportunity to enact austerity and fiscal restraint passed a long time ago.
Korean Bank Run Spreading: Eighth Bank Closes Following "Massive Withdrawals"
Submitted by Tyler Durden on 02/22/2011 19:28 -0500The quietest bank run that has so far completely evaded mainstream attention, that of Korea, is spreading, and an eighth bank has now shuttered after "Domin Bank, a savings bank with a capital adequacy ratio below 5
percent, voluntarily decided yesterday to suspend its operations
temporarily because of massive withdrawals." As JoongAng reports: "The decision took both depositors and financial regulators by surprise
since it was the first time that a local bank shut its doors on its own." Apparently the courageous decision by the Financial Services Chairman Kim Seok-dong to deposit $17,864 in a troubled bank has not done much if anything to prevent the locals from realizing that their banking system is built on a house of cards.
SERS | Spouse Electronic Recording System
Submitted by 4closureFraud on 02/22/2011 19:18 -0500If you can’t beat ‘em, join ‘em!
"Guru" Report Card: Grading the Picks of Top Pros Including Buffett, Tepper, Whitman and Hussman
Submitted by Value Expectations on 02/22/2011 18:33 -0500Investors involved in the equity markets often pay close attention to which stocks the prominent fund managers in the market are buying and selling every quarter when 13F filings begin to roll in. These reports provide insight into how the brightest investing minds and most successful money managers are currently investing their money and shed light on any big bets being made by these "gurus".
Which US Banks Are Managing Billions For The $32 Billion Libyan Sovereign Wealth Fund?
Submitted by Tyler Durden on 02/22/2011 18:28 -0500Following the previous post taking a tangential if insightful peek into Gaddafi's personal eccentricities, we next look at something far more important, where once again courtesy of Wikileaks disclosure, we find that the Libyan Sovereign Wealth Fund (Libyan Investment Authority, or LIA), whose holdings were first dissected on Zero Hedge, and whose AUM is supposedly a massive $32 billion, has "several American banks each managing USD 300-500 million of the LIA's funds." Perhaps now that UniCredit has plunged by 12% in the past few days due to the recognition of Libya's involvement in the bank it is time for the US banks who manage billions in capital for the LIA, to step up. After all even most of the country's ambassadors have vocally recused themselves of any association with the government. Perhaps our banks can show a comparable level of objectivity and at the loss of a few million in management fees clean their conscience, before someone does it for them. Also curious is the fact that the LIA appears to have had its own direct involvement with a certified ponzi after having been approached by both Stanford (with a rumored investment by the LIA being the end result) as well as the one, the only, original (post-modern) ponzmaster, Bernie Madoff.
Classified Cables On Gaddafi's 38 Year Old "Voluptuous Blonde" Ukrainian Concubine/Nurse, And "Other Eccentricities"
Submitted by Tyler Durden on 02/22/2011 18:04 -0500Following today's rambling hour + long filibuster on TV, suddenly many Americans, most of whom had never heard of Gaddafi, suddenly either have a definitive opinion of his persona, or are quite curious by it. Alas, since he appears to have little to no presence in the US yellow press, we are forced to resort to Wikileaks cable 09TRIPOLI771 "A GLIMPSE INTO LIBYAN LEADER QADHAFI’S ECCENTRICITIES" where in addition to all the things one would expect to find in such a cable, we learn of a peculiar love interest involving the Libyan dictator: namely a "voluptuous blonde" Ukraninian, who is supposedly his personal nurse, but more importantly, concubine. So for the gossip crowd here goes: "Qadhafi relies heavily on his long-time Ukrainian nurse, Galyna XXXXXXXXXXXX, who has been described as a “voluptuous blonde.” Of the rumored staff of four Ukrainian nurses that cater to the Leader’s health and well-being, XXXXXXXXXXXX emphasized to multiple Emboffs that Qadhafi cannot travel without XXXXXXXXXXXX, as she alone “knows his routine.” When XXXXXXXXXXXX’s late visa application resulted in her Security Advisory Opinion being received on the day Qadhafi’s party planned to travel to the U.S., the Libyan Government sent a private jet to ferry her from Libya to Portugal to meet up with the Leader during his rest-stop. Some embassy contacts have claimed that Qadhafi and the 38 year-old XXXXXXXXXXXX have a romantic relationship. While he did not comment on such rumors, a XXXXXXXXXXXX recently confirmed that the Ukrainian nurses “travel everywhere with the Leader.”
Guest Post: Why I'm Buying Silver At $30
Submitted by Tyler Durden on 02/22/2011 17:13 -0500
The silver price has bounced 27% since January 28, a huge advance for a measly 16 trading days. It's already soared past its 2010 high and was selling for less than $16 this time last year, a double in 12 months. So, is it pricy? Or should we ignore the run-up and keep buying? I've read a few articles that say we should expect silver to drop to the $25 level, and one pinpointed $22. Others, of course, see bullish tea leaves for the near term and believe it's headed higher. Of those that assert silver will decline, most believe it will be temporary, though one writer claims the bull market in precious metals is over (I think he's a holdout from the gold-is-a-bubble camp). These authors could be right about a near-term decline, but I'm less concerned with what the price does this month or even the next few months, and more focused on where it's likely headed over the next few years. Caution: the chart ahead may cause excitement. While there are lots of reasons to be bullish on silver, what everyone really wants to know is how high the price can go. Here's one hint, based strictly on historical price performance.
Has The Chairman Stopped Ordering Ink? Hewlett Packard Plummets After Hours On Major Downward Guidance Revision
Submitted by Tyler Durden on 02/22/2011 17:06 -0500
Looking at the price of HPQ after hours, one would think that the company was a biotech which just missed its Phase 3 trial. The rapidity with which it has lost $10 billion in market cap does not leave many other options... Of course, there is always the chance that Ben Bernanke may have just said no to future purchases of green ink, although we deem it highly unlikely. The real reason for the plunge in the stock was the company's earnings, which confirm that the new paradigm of economic growth, may be just slightly problematic. While the company missed on revenue, coming in at $32.3 Bn on expectations of $32.97 Bn, it is the forecast that left many stunned: HPQ now sees Q2 adjusted EPS $1.19-1.21 vs. Exp. $1.26, and full year revenue of $130-131.5bln vs. $132-133.5bln previously, and consensus of USD 133.1bln. So now in addition to plunging margins (Cisco) we are finally starting to see headline growth... And all the sellsiders continue to hike the 2011 EPS on what again?
RANsquawk Market Wrap Up - Stocks, Bonds, FX etc. – 22/02/11
Submitted by RANSquawk Video on 02/22/2011 16:37 -0500RANsquawk Market Wrap Up - Stocks, Bonds, FX etc. – 22/02/11
Gaddafi Said To Have Ordered Libyan Oil Infrastructure Sabotage
Submitted by Tyler Durden on 02/22/2011 16:07 -0500When we asked yesterday whether Ghadaffi will pull an inverse Louis XV and burn down all of Libya's oilfields on his way out (to either Saudi Arabia, or the afterworld) a la Saddam Hussein in Kuwait, we assumed this was a rhetorical question. Alas, we did not realize the kind of irrational madman we were evaluating. Turns out the rhetorical is about to become all too real: according to Reuters, "Time magazine's intelligence columnist reported on Tuesday that Libyan leader Muammar Gaddafi has ordered his security forces to sabotage the country's oil facilities, citing a source close to the government. In a column posted on Time's website, Robert Baer said the sabotage would begin by blowing up pipelines to the Mediterranean. However he added that the same source had also told him two weeks ago that unrest in neighboring countries would never spread to Libya -- an assertion that has turned out to be wrong." Should the dictator indeed proceed and destroy the country's oil infrastructure, which as we noted earlier exports over 1.5 million barrels of crude a day, mostly to Italy, Goldman may have to revise it $97.50 WTI target double digits higher.
Volume Surges To Year's Highest, As 20 DMA Support About To Be Tested
Submitted by Tyler Durden on 02/22/2011 15:48 -0500
The technicians out there will be salivating over the action in the ES today, which has continued to drip all day, and is now a point away from the 20 DMA at 1,311.30. In this relentless meltup, this moving average has been breached just several times since Jackson Hole. Yet the one to keep an eye out for is the 50 DMA, which has been a key support over the past 6 months. Should that level be taken out (1,282), the next level is 1,234, after which there is no support for a long, long time. Yet the most, or least for the cynics, surprising observation is that today's ES volume is about to hit the highest of the year, taking out the last January surge... which also was on major downswing. At least the banks made some money on equity commission trading, although with the Treasury curve flattening rapidly, that may not be much of a consolation.
Mohamed El-Erian Says We Can Not Assume The Dollar Will Retain Its Reserve Currency Status
Submitted by Tyler Durden on 02/22/2011 15:02 -0500
Mohamed El-Erian made one of his regular media appearances today (in addition to his almost daily Op-Ed, released earlier) appearing on Bloomberg Surveillance with Tom Keene and talking the developments in the Maghreb. While the full highlights are presented below, there are two items of note. El-Erian once again hits on what we believe will be the keyword of 2011: stagflation. To wit: "we have to appreciate that in the west, what is happening in Egypt and North Africa results in stagflation in the short term. So higher inflation and lower growth because of higher oil prices that take away purchasing power and transfer wealth somewhere else; because of higher geopolitical risk, which tends to diminish animal spirit and therefore impact investment; and let's not forget that the Middle East is a market, particularly for European exports. So from an economic perspective, it is important for the west to understand that these are stagflationary winds that have been added to the global economy." It is important, but not necessary: as long as the manipulated, liquidity glutted market continues to misrepresent the true state of the economy, nobody will care until it is too late. And speaking of "too late", validating our sarcastic observations over the past several weeks that the dollar is no longer the "flight to safety" currency (that would be the PM complex, and the swiss franc if anything), is the Pimco CIO's suddenly very dour outlook on the weakening US Dollar: "It is a warning shot to America that we cannot simply assume flight to quality, flight to safety. That people are starting to worry about the fiscal situation in the U.S., worrying about the level of debt and what they're hearing about states and municipalities. I would take this as a warning shot that we cannot assume that we will maintain the standing of the reserve currency as we have in the past." That's a given - the question however remains, which fiat currency, if any, is willing and ready to step in and replace the USD? With all eyes continuing to be look at the CNY, how long before China finally takes the plunge to find out just who is the real reserve currency in the world?







