Archive - Jul 22, 2010 - Blog entry

The Public Sector Pension Investment Board (PSP Investments) announced today that it recorded an investment return of 21.5% for the fiscal year ended March 31, 2010 (fiscal year 2010), exceeding the Policy Benchmark return of 19.8% by 1.7%. The 2010 performance is one of PSP Investments’ best performances to date and reflects a return to fundamentals from the distressed valuations resulting from the liquidity crisis of the past two years.

Not much, just ...

It took them three years to figure out they had it wrong. It will make a difference when they change their ways.

Swell ...

As if to confirm the recent slams from Dagong, the largest Chinese credit rating agency, WSJ reported today that the U.S.-based big three credit firms have made an urgent new request of their clients: Do not use our names on bond issues.

I'm NOT saying - and I never had said - that the well has been leaking since February. I AM asking - and government investigators are ALSO asking - whether containment problems starting months ago are related to the April blow out.

The Baltic Dry Index is shouting loud and clear for a double dip in the world economy. International container shipping rates point to a global economic recovery centered in Asia, and trickling down to the U.S. and Europe. Who to Believe? Open the envelope, please!

I don’t even think these guys bothered to read the results at all. They are comparing revenues pre-multi billion dollar acquisition with the post acquisition entity. Hey, I can double my revenues if I purchased a company that had 3x my revenues too! This is just sloppy! Yet, these euphoric headlines were all over the place as MS stock climbs nearly 10%. Yes, MS did relatively better than GS, but GS is a federally insured hedge fund (that’s right, I said it)...

Markets in a Flash
• Markets in Asian countries had mixed sessions over night. China and Hong Kong rose while Japan fell.
• The Nikkie fell as the Japanese Yen gained hurting the countries exporters.
• European equity markets are trading higher after European economic data beats expectations.
• Commodities markets are looking strong today as European data is strong. Gold falls back further from $1200.
• The USD looks weaker today after investors sought safety in the currency yesterday after Bernanke’s comments.
• US equity futures are following to European lead and are pointing to a higher open.

Actually, I did tell you last quarter (and 2 years ago) that not only is Goldman basically the world's largest, federally insured hedge fund (with trading influenced earnings volatility to prove it), but that most pundits have forgotten their balance sheet threatens solvency in times of high volatility and rapidly declining prices. 2008, anyone? Anyone???