Archive - Sep 2011

September 28th

EconMatters's picture

How To Land A Tech Job at Apple, Google and Facebook





As dismal as the U.S. employment outlook seems to be, tech sector led by innovation is one of the very few bright spots left with corporations looking to insource IT and Indian firms coming to the U.S. hunting for IT engineers.  

 

Tyler Durden's picture

Deputy PM Says Tax Limits of Greek Society Exhausted





As G-Pap goes from meeting to meeting with his hand held out making promises to asset strip and tax his country into oblivion, AP is reporting that Deputy PM Theodore Pangalos believes that the country's tax-ability is exhausted (and has exhausted for some time). It is truly astounding that this farce has gone on for so long even as it appears (from the riots/strikes/press) that everyone (serfs and lords alike now) sees through the plans.

 

Tyler Durden's picture

Alessio Rastani Makes Prime Time TV Circuit





The "BBC TV" trader, whose clip Zero Hedge first presented to the broader world and has since become an internet sensation with well over 1 million views, has just made the prime time TV circuit with a first stop on CNN. Here is some more of his story.

 

Tyler Durden's picture

"A Panorama Of The European Debt System" - The Definitive Primer Of The Eurozone





Morgan Stanley has released "A panorama of the European Debt system" - easily the most comprehensive summary analysis (in 83 pages) of the Eurozone. To wit from the authors: "In this primer, we have compiled the key background information and statistics relevant to the context in which the European debt markets operate, encompassing Europe’s Institutional Framework, the ECB and the banking system, as well as sovereign, corporate and household debt, both in aggregate and by country. The compilation reflects the most frequently asked questions our economics and strategy teams receive from clients globally." Anyone who has ever had questions or been generaly curious about the uber-dysfuctional European debt system, and that would be everyone, especially the ECB, must read this document, if nothing else for the plethora of pretty charts.

 

Tyler Durden's picture

Man Arrested In Sting Operation For Intending To Blow Up Pentagon, Capitol





Diversion time. According to The Hill, in an elaborate sting/entrapment operation, the FBI arrested Rezwan Ferdaus for plotting to use drone airplanes loaded with C4 explosives and fly them into the Pentagon and Capitol. Ferdaus was made to believe he was working with members of al Qaeda, who were actually undercover agents. From The Hill: "According to the DOJ, Ferdaus aimed to create a devastating psychological impact with the attacks, saying at one point, “I just can't stop; there is no other choice for me." "Although Ferdaus was presented with multiple opportunities to back out of his plan, including, being told that his attack would likely kill women and children, the affidavit alleges that Ferdaus never wavered in his desire to carry out the attacks,” reads a DOJ press release." It is ironic how every time there is a major drop in the market or the president's rating reaches new lows we are reminded just how profoundly everyone overestimates their security, and supposedly liberty, in this (once) greatest country on earth.

 

Tyler Durden's picture

Prominent Deflationist Schilling Sees Deflation, A China Hard Landing And 800 On The S&P





When one compiles the annals of the great deflationists of the early 21st century, they will be hard pressed to decide who is deserving of the title most ferocious deflationist in a runoff between David Rosenberg and Gary Schilling. And while David did not have much notable to say today, despite his daily release of interesting and insightful commentary from his perch atop Gluskin Sheff, Gary Schilling took advantage of the media vacuum to appear on Bloomberg TV and preach, what else, deflation. Among the topics touched upon were the #1 issue du jour - the Chinese hard landing, presented earlier here, and the resulting collapse in copper, on bond market volatility, on investing and speculation, and lastly on the S&P, which just like Rosenberg, he see as deserving of a 10x multiple applied to a soon to be revised S&P 500 EPS of 80 (do the math). All in all sensible stuff except for one thing: his statement "Inflating away is an excess supply world is almost impossible, even for the Fed" leaves a little to be desired. While he may be spot on, it does not mean the Fed will not try. And try it will: we expect rumblings for full blown LSAP to commence in a few days, and QE4 in which the Fed will pull a BOJ and buy ETFs, REITs (in addition to MBS and Agency bonds) early in 2012, after which it will be time to quietly depart from these continental US, or else load up on lead, spam and precious metals.

 

williambanzai7's picture

ViSUAL CoMBaT DaiLY (9.29.11)





"These days many politicians are demanding change. Just like homeless people."--George Carlin

 

Phoenix Capital Research's picture

The Bailout Gravy Train is Over





My primary point with all of this is that the bailout/ intervention gravy train has come to an end. Indeed, while the lemmings pile into stocks believing in this nonsense, smart investors are already preparing for the next leg down in the markets. The reason is simple: last week’s sell off is JUST the beginning of what's coming.

 

Tyler Durden's picture

Add The Ukraine To List Of Countries On Verge Of Technical Default





Update: the correct translation is that as of 5pm the debt has not been paid.

In this messed up post-Keynesian world which is so insolvent, it is virtually impossible to keep track of who is about to default, either technically, selectively, or really, who is already bankrupt, who is hyperinflating, and so forth. And while we all know that Europe and the US can at best hope to kick the can for a month at a time until finally they all have to face the truth, we are happy to bring to your attention the latest entrant to the technical default club: Ukraine, which will shortly join its former USSR satellite Belarus in the hyperinflation club. The fact is that the Ukraine is slowly imploding - the government had stopped Treasury payments for all budget expenses in an attempt to accumulate the cash needed to make a coupon payment on debt and which apparently investors are unwilling to roll. In all fairness, the news update indicates that the country just barely made the 5.3 billion hryvnia payment, but that may be it for now. What about the next one? Time to add some Ukraine CDS to that bankrupt sovereign basket, no matter how overflowing it may be at this point.

 

Tyler Durden's picture

Guest Post: Government Corruption Causes Mass Blackout





Around 11:15 this morning, I left my flat and headed towards the Cape Town Gold Coin Exchange to check out their kruggerrand prices today. (Note: They charge around 10% over spot, and buy coins for about 1% over spot. This is inclusive for all major coins that they carry. They have kruggerrands, eagles, and maple leaf coins in stock.) I was sitting at a red light not too far from the new football stadium they built for last year’s World Cup tournament, when suddenly all the traffic lights went out. I thought it was just a weird anomaly, so I proceeded cautiously. By the time I reached the coin shop, I realized that the whole city was without power. Again. Entire buildings had shut down, stores closed, and schools let out. It was a full-blown blackout… and it lasted for several hours. This sort of thing is not uncommon in South Africa. Politicians will tell you that electrical demand is outpacing supply because of the country’s rapidly growing economy. That’s one way to put it– lemons into lemonade.

 

Tyler Durden's picture

No More Shorting Of Financials In Europe... Ever?





The second sequential ban of short selling in Europe, which was supposed to expire at the end of the month, has just been extended. At this point we are certain Europe will not allow shorting of financial stocks. Ever. Or at least until the Eurozone implodes... Which will be far sooner than 'ever.'

  • ITALY MARKET REGULATOR CONSOB EXTENDS SHORT-SELLING BAN - BBG
  • SPAIN'S CNMV REGULATOR EXTENDS SHORT-SELLING BAN - BBG

Next to join the part: France. In other news, since the short sale ban was instituted, SocGen is down 18.5% and UniCredit is down 26.6%.

 

Tyler Durden's picture

With 5 Year Trading -220 bps Special In Repo, 5 Year Drops Sub-1% Following Record Auction





Those who follow the repo market are well aware that something is quite odd with the 5 Year point on the repo curve. While most other bonds trade normal, the 5 Year OTR trades special. And not just special: really special (see chart below) at -225 bps, a number which has soared in the past 4 days, when it was just 0.00% on September 22. And while we will not discuss what is happening in the repo market in this post (judging by this fact, nothing good), it did help with today's brand spanking new record low yield 5 Year bond auction, which courtesy of the repo skew and certainly courtesy of Operation Twist, just priced at an all time low 1.015%, well inside of the 1.03% When Issued, and printed at a 3.04 Bid To Cover, substantially above the recent average 2.76, not to mention a surge in Indirect Bidding to the tune of 46%, well above the average. So even though the 5 Year auction was a stunning success, sending the 5 Year to under 1%, what it telegraphs is that there is something very messed up in shadow banking, where both money markets and repo are getting gutted courtesy of Europe. We expect ongoing such risk transfer from shadow into sovereign debt: a development which as we discussed previously is very bad.

 

Phoenix Capital Research's picture

How the Collapse Will Play Out and How to Play For It





 

Because of the intertwined nature of the derivatives market, a Greek default could result in systemic risk for the simple fact that if one of the banks that goes down with Greece has extensive exposure to Spain as well, then things could get ugly very, VERY fast.

 

 

Tyler Durden's picture

Man Down As Hedge Fund Redemptions Arrive: 25% Of Hedge Funds Industry To Follow Into That Good Night





It was just yesterday that we, as it happens prophetically, said that "we fear the hedge fund space, which at last check was approaching $2 trillion in AUM, will collapse by 25% after the new year when the full carnage of the redemption requests is made public...we certainly had no idea just how pervasive the decimation within the hedge funds ranks was until we saw the mid-September results. We really, really hope the collusive short squeeze-cum-month end rally works out for the hedge fund community, because it really will be "or else." Well, as of today it is nearing "or else" for the world's largest hedge fund Man Group, which is down, yup, 25% today on, you guessed it, redemptions. There is, however, good news for all hedge fund managers reading us today: you will know whether or not you are in business next year, by this friday. As Dow Jones reports, "Friday marks a deadline for investors in many hedge funds with monthly and quarterly liquidity to say they want their capital back." In other words the pain is over, as 25% of hedge fund managers will hear their death sentence in 48 hours and the painful expectation of the inevitable ends.

 
Do NOT follow this link or you will be banned from the site!