Archive - Jun 1, 2009 - Story

After an explosion in early market volume for both cash and futures, the "buyer" seems to be running out of cash as the market has flatlined, which apparently has served the necessary and sufficient purposes on the day of the biggest industrial company's bankruptcy in history. And as sellers anticipate taxpayers to buy a few more trillion shares of 100x P/E stocks over the next few months, they have remained firmly out of the picture.

After an explosion in early market volume for both cash and futures, the "buyer" seems to be running out of cash as the market has flatlined, which apparently has served the necessary and sufficient purposes on the day of the biggest industrial company's bankruptcy in history. And as sellers anticipate taxpayers to buy a few more trillion shares of 100x P/E stocks over the next few months, they have remained firmly out of the picture.

The PPT is now hiring a specialist who will overhaul the trading system, and be able to buy both SPOOs and 10 Years at the same time. The current infrastructure allows for the purchase of just one of the two at a time. Today, it's not the 10 Year.

The head restructuring honcho from Evercore chimes in.

The full affidavit can be found here.

Some juicy sections:

If anyone is interested in how GM expects to burn through $20 billion of taxpayer cash over the next 9 weeks (presumably the time it will be in court), check out the table below. In addition, as these cash flow projections are always put together by a first year analyst just after a marathon green shoot smoking session, I am happy to bet an amount equal to the DIP draw down over the next 9 weeks that the final cumulative cash burn will be anywhere between 50 and 100% higher.

If anyone is interested in how GM expects to burn through $20 billion of taxpayer cash over the next 9 weeks (presumably the time it will be in court), check out the table below. In addition, as these cash flow projections are always put together by a first year analyst just after a marathon green shoot smoking session, I am happy to bet an amount equal to the DIP draw down over the next 9 weeks that the final cumulative cash burn will be anywhere between 50 and 100% higher.

The Fritz Henderson affidavit was filed earlier.

"The debtors have filed the 363 Motion because there simply is no viable alternative to the 363 Transaction to preserve the going concern value of the GM business and the employment opportunities and related benefits of that business."

For all who are curious as to the mystery behind the SPOOs buying force, I refer you to a research report published by none other than Government Sachs, titled: "Equity issuance: $100 billion YTD; we expect another $200 billion." Of course, ramping up futures does miracles for overpriced stock follow-ons (especially with GS as lead udnerwriter). In other words, the 35% rise in S&P from the 666 bottom will likely see another 70% or so ramp up as all the equity is cleared under the guidance of the Goebbels Kommendant brigade.

For all who are curious as to the mystery behind the SPOOs buying force, I refer you to a research report published by none other than Government Sachs, titled: "Equity issuance: $100 billion YTD; we expect another $200 billion." Of course, ramping up futures does miracles for overpriced stock follow-ons (especially with GS as lead udnerwriter). In other words, the 35% rise in S&P from the 666 bottom will likely see another 70% or so ramp up as all the equity is cleared under the guidance of the Goebbels Kommendant brigade.

Someone forgot to feed mortgages the crazy pills.

When a stock goes up by about 10% on a bankruptcy preannouncement, there is nothing much more to be said.

Not much action in comparable week over week bond/loan changes. Marginal tightening in both loans and bonds offset the reversal widening that was witnessed for the first time last week. Average universe loan and bond spreads were at 548 bps and 1,040 bps, compared to 554 bps and 1,117 bps in the prior week.

Not much action in comparable week over week bond/loan changes. Marginal tightening in both loans and bonds offset the reversal widening that was witnessed for the first time last week. Average universe loan and bond spreads were at 548 bps and 1,040 bps, compared to 554 bps and 1,117 bps in the prior week.

All auto loans were screaming higher last week on GM's bankruptcy. Question is which sector will taxpayers own next, and what loans will be taken out at par compliments of J6P.

Developing story, out of BNO

Paris, FRANCE (BNO NEWS) -- Air France regrets to confirm the disappearance of flight AF 447 flying from Rio de Janeiro to Paris-Charles de Gaulle, scheduled to arrive at 11:10am local time today, as announced to the press by Air France CEO, Pierre-Henri Gourgeon.

The Airbus A330-200, registration F-GZCP, left Rio on 31 May at 7:03pm local time (12:03am in Paris).