Archive - May 8, 2009 - Story

According to the most recent data out of the NYSE, Goldman's principal program trading dropped an astonishing 25%, hitting a many week low absolute number. Not only that, but the portion of Goldman's principal PT trades as a percentage of total, and as a multiple of agency and customer facilitation also dropped substantially. Now, if Goldman is indeed, in the words of Ed Canaday, merely providing market liquidity under the guise of the SLP program, did the NYSE all of a sudden just feel the need for much less liquidity last week?

One of the few sane voices in the desert has left the (Merrill Lynch) building. David Rosenberg, on his way out, leaves everyone with an economist's dozen of rules to remember.

David, so long, and thanks for all the fish.

Rosie's rules to remember:

1) In order for an economic forecast to be relevant, it must be combined with a market call.

2) Never be a slave to the data – they are no substitute for astute observation of the big picture.

• Huge decision for commercial-mortgage investors tomorrow in bankruptcy court (WSJ)
• Hong Kong chairman says rally overdone, won't buy stocks (Bloomberg)
• Market fear rising bond yields (FT)
• Euro declines on speculation ECB official will signal rate cut (

Quant and heat mapping: inflation up, deflation down, quality marginally up, garbage pillaged. Marginal quant leveraging.