Archive - Sep 1, 2009 - Story

If you needed confirmation of just how spectacularly overvalued CIT stock is, look no further - the company issued an 8-K stating that even though it was supposed to sell its common stock under an indenture to satisfy an interest payment, it was unable to do so in a Commercially Reasonable Efforts mechanism. In other words - there was absolutely no institutional interest for CIT's stock at current levels, or any discounts from current levels, thereby confirming that CIT is essentially a zombie name traded daily by a bunch of speculative computers.

• Is the next shoe in Europe dropping behind the scenes? European countries voluntarily increase IMF funding (Berninger, h/t Dave)
• Next industry in line for bailouts: Commercial jet market still awaits recovery, EADS chief says (Bloomberg, h/t Jake)
• 10 year Eurozone jobless high: 9.5% (BBC)
• What banks are really doing with foreclosures (Diana Olick)
• The coming deposit insurance bailout (WSJ)

• Asian shares were mixed Tuesday, with Shanghai's 0.3% gain supporting some markets.
• Australia's performance of manufacturing index rose 7.2% to 51.7 in August.
• Brazil’s top sugar region may miss output forecast: reports.
• China’s manufacturing expanded at the fastest pace in 16 months in Aug. with record lending.
• Consumer prices in the euro zone fell 0.2% in August from a year earlier.
• Eurpoean and US share prices are under pressure today.
• German retail sales rose 0.7% in July after tumbling in the preceding two months.