Archive - Aug 31, 2009 - Story

Readers may have been curious what some of the things the OTS told Citadel to do, while it suspended the firm's application to dominate 97.5% of E-Trade's order flow. Well, one of them apparently was to stop the proposed 120 million share sale that Citadel was hoping to do and offload some of its toxic holdings in exchange for front-running a substantial portion of retail traffic flow.

June 2, Tim Geithner: "The Fed is absolutely not monetizing debt"

August 31, Bill Dudley: "I don't think [the Fed] is monetizing debt to any meaningful degree"

Nuf said.

"Both China and America are addressing bubbles by creating more bubbles and we're just taking advantage of that. So we can't lose." - Lou Jiwei, Head Of China Sovereign Wealth Fund

• Bernanke, Printing and Press LLC makes $14 billion profit on $X trillion in AUM: we have still not seen the investor letter (Reuters)
• Time to get tough with AIG (Reuters)
• Wall Street stealth lobby defends $35 billion derivatives haul (Bloomberg)
• The FDIC is so generous with our money - Raft of deals for failed banks puts U.S. on hook for billions (WSJ)

• Asian stocks decline on lower China earnings, strengthening yen.
• China's stock markets fell sharply as upcoming share offering spurred concerns over increased supply.
• Chinese govt to cut frequency of fuel price adjustments to support the economy.
• Democratic Party of Japan sweeps to power, ending LDP's half-century reign.
• Economists split over whether Fed's infusion of credit will spur inflation.
• Germany to offer businesses addln €10B in govt-backed loans to ease credit crunch.

POMO liquidity? Ending. Insider buying? Non-existent. Room for USD to fall? No. Bond outflows? Gone. Where are stocks headed as we enter the traditional season of gloom for equities? My guess isn't up.