Archive - Nov 9, 2011 - Blog entry
The Price of Hope in the Mayhem of US Manufacturing
Submitted by testosteronepit on 11/09/2011 23:10 -0500Toyota and Honda are planning to export U.S.-made vehicles to Korea. But to what banana-republic levels will the dollar and real wages have to sink before U.S. manufacturing is competitive with China?
MF Global, Repo-to-Maturity and Large Bank OBS exposures
Submitted by rcwhalen on 11/09/2011 16:18 -0500Indeed, the MF Global failure suggests that the US and EU banking systems may be facing a far larger problem than even the most bearish analysts suspect.
Bye, Bye Japan (EWJ)
Submitted by thetechnicaltake on 11/09/2011 15:23 -0500The ramifications of the “set up” are rather significant.
Analyzing the Popular Proposals for Mortgage Principal Writedowns, Part III
Submitted by Stone Street Advisors on 11/09/2011 14:23 -0500The answer to the question “How to Stop the Drop in Home Values” is not a matter of knee jerk reactions, more moral hazard, bad policy pushed through on a populist wind, or a problem you solve by principal reductions.
What Was That I Heard About Squids Raising Capital Because They Can't Trade?
Submitted by Reggie Middleton on 11/09/2011 13:28 -0500Yeah, that's right! I said it. They CAN'T TRADE!!! Haven't I proven my point yet?
Italy’s Woes Spell ‘Nightmare’ for BNP - Just As I Predicted But Everybody Is Missing The Point!!!
Submitted by Reggie Middleton on 11/09/2011 13:23 -0500The Fat Lady Singeth, yet no one is listening!!!
Italiano Absurdo
Submitted by ilene on 11/09/2011 12:52 -0500The notion of more austerity and economic growth solving Italy’s debt trap is the pinnacle of silly season.
MoDeRN GReeK TRaGeDY
Submitted by williambanzai7 on 11/09/2011 11:50 -0500"I am not an Athenian or a Greek, but a citizen of the EURO."-- George Socrates
This is No Cyclical Recession… It is a Secular DE-pression
Submitted by Phoenix Capital Research on 11/09/2011 10:56 -0500
To put US household debt levels into a historical perspective, in order for US households to return to their long-term average for leverage ratios and their historic relationship to GDP growth we’d need to write off between $4-4.5 TRILLION in household debt (an amount equal to about 30% of total household debt outstanding).
How Long Does It Take For Losing Money To Result In Lost Money? The Effects Of Rampant Bond Selling on Devalued Sovereign Debt
Submitted by Reggie Middleton on 11/09/2011 09:38 -0500For years I have warned of the impending European collapse. Now, as it is happening, we still have banks getting away with nonsensical 60% writedowns on essentially worthless debt. LGD > 100+% - You ain't seen the worst of it, not by a long shot!
Italian Bondage
Submitted by Pivotfarm on 11/09/2011 07:29 -0500
Italian borrowing costs reached breaking point on Wednesday after Prime Minister Silvio Berlusconi's promise to resign failed to raise optimism about the country's ability to deliver on long-promised economic reforms.
Italian 10-year bond yields shot above the 7 percent level that is widely deemed unsustainable, reflecting investors' concerns that they may not get their money back, a fear that also showed up in a jump in the cost of insuring against Italian debt default.
