Archive - Aug 2010 - Blog entry

The 10 year T-Note is currently yielding 2.5%, and the fed`s latest quantitative easing initiative is becoming counterproductive to their stated purpose of trying to stimulate the economy by encouraging more risk taking. The issue is that Mr. Ben Bernanke and the Fed governors although great academicians have failed to take account for how traders and financial markets impact and take advantage of Fed policy.

The study was funded by BP, and many experts don't buy it, but it may still be a glimmer of hope ...

Today's big news item is home sales volume falls 27%. This is not news, and just tells us what we already know about housing loan demand.

While housing prices are expected to continue declining near-term due to uptick in foreclosures, we expect the significant amount of investment capital which has been pulled from equities and currently sits in Treasuries and/or money markets will become redeployed into the housing market in 2011 which will therefore begin clearing supply of houses available and put a bottom under housing prices especially at the low-end of the market.

That long title should convey my message quite well...

Are you going to fly in this thing?

We often hear figures about the 90% (or even more) that lose money on a consist basis. It’s a ‘fact’ often quoted by gurus and a common belief held by traders. The question for professional traders then becomes how do we benefit from this landslide of people on the wrong side of a trade?

A discussion of the essential nature of leverage and liquidity when trading futures and options contracts.

On June 30, 2010, Maiden Lane celebrated her second anniversary, though her composition was mark-to-markedly different than the $30 billion toxic brew of Bear Stearns assets with which she was originally stuffed. We first revealed the curious trading performed by BlackRock Financial Management on...

It sits on a staggering $30 billion of cash worth $95 a share, and annually generates another $27 in free cash flow. While it may be a one trick pony, with 97% of its revenues coming from search, that’s not a problem if the equine’s name is Seabiscuit, with a 70% global market share. A turnaround at YouTube. (GOOG), (BIDU).

Garrison Hill Capital Management issued its latest report on the macro economic environment. The firm looks at the ridiculousness of the European stress tests, summarizing as to why the CEBS report is absolutely meaningless

Fun new app from FHFA. Cost? $400 billion.

When Fairfax Financial purchases $23 billion worth of protection (notional value) against the threat of deflation in the coming 10 years, you have to wonder whether financial retraction looms ahead...

Heck of a job ...

What does Illinois have in common with Bear Stearns, Ambac Financial, LTCM and Greece? Come on fellas, let's roll the dice. I've got some pension money in case I come up snake eyes...