Archive - Aug 10, 2009 - Story

A major segment of the credit market - secured loans - still has to show the kind of comparable primary issuance pick up that has been witnessed in equities and riskier high-yield debt. Primary loan volumes are still running at half of the comparable 2008 period, particularly in the middle-market.

"The games are over and as people around the country are uniting, the likes of which this country has not seen in 200 years, I can assure you change is indeed coming. It is time to demand accountability from those running your funds. This has gone on far too long and is totally out of control."

The author of “Market Profile” Peter Steidlmayer has offered us one invaluable insight into how markets
behave and it borders on genius. Unfortunately, he has so many other insights that very few folks can find
the needle in the haystack that he called “false auctions.”

With normalized cover page headlines like these:

• Robust S&P 500 EPS growth expected for 2010 and 2011
• S&P 500 EPS recovery to outpace the US GDP recovery
• Financials to contribute to EPS growth in 2010 and 2011
• Normalized S&P 500 EPS is above our 2009E and 2010E EPS
• Our normalized EPS supports a strategically bullish stance

is there any wonder how happy Bernstein and Rosenberg must have been to go to work every day?

The Congressional Budget Office released its preliminary July 2009 budget numbers - the budget deficit is now expected to be $181 billion, an 80% increase compared to the July 2008 deficit of $101 billion.

In a sign of HFT's encroaching dominance in the market, and the changing equity market liquidity provisioning landscape, Dutch specialist firm Van Der Moolen earlier filed for protection from creditors, the European equivalent of a chapter 11 filing. As expected, the monopoly of the "very few" is starting to eat the peripheral players.

• Today's CRE green shoot - Maguire properties warns of loan defaults, prepares to hand over 7 buildings with over $1 billion in associated debt to creditors (WSJ)
• Poorer consumers are worst affected as banks make $38 billion in overdraft fees (FT)
• Effort to rein in pay on Wall Street hits "guaranteed bonuses" hurdle (NYT)
• Aluminum joins oil in speculator ranks - price rises despite falling demand (FT)
• GDP RIP (NYT)

• One million flee as typhoon hits China's eastern coast.
• Asian stock markets rose Monday after a better-than-expected US jobs report.
• Australia's central bank signaled it will start raising interest rates.
• Economy isn't strong enough to support a long-running stock, bond recovery: cons. view.
• China accuses Rio Tinto of deceit; says Co's actions led to $102B in overcharges.
• China home prices rise in July for 2nd month; up 1 percent amid stimulus spending.