Archive - 2009 - Story

$180 Million, yes, not Billion, Million, was Reverse Repoed (in a 3 day operation) by the FRBNY in its first executed Temporary Open Market Operation Test as part of the liquidity soak up process. The collateral was "Treasury", not CMBS, not stocks of bankrupt companies, but the safest of the safe securities. And even so Primary Dealers could barely part with just under $200 million. So let's do the math: excess liquidity of about $1 Trillion, and a reverse repo of $180 Million: that's just over 5000 TOMOs to go. Don't say the Federal Reserve has no sense of humor.

RANsquawk 3rd December US Morning Briefing - Stocks, Bonds, FX etc.

From the Non-manufacturing ISM survey responses: "No one trusts that the recovery is real. Seems everything and everyone is in a holding pattern." Amen to that. In other news, the Services ISM comes at 48.7, well below October's level of 50.6, and far below consensus of 51.6. Double dip - here we come.

Watch it live without newly Comcastic interruption here: http://banking.senate.gov/public/index.cfm?FuseAction=Hearings.LiveStream

When Goldman releases a public powerpoint defending its compensation practices and its soon to be disclosed multi-million dollar bonuses, you know that the firm is expecting a firestorm once the proxy is released and leaks about what top traders receive come out.

"You want to do something about jobs? Well, considering a different Fed Chairman might be a good place to start. Nothing would more clearly display the inability of our leaders to deal with the disastrous state of our economy than easily reconfirming Ben Bernanke for another round at the Fed on the same day that they hold a "job summit" in a harebrained attempt to try to figure out how to create jobs in this country." - Dylan Ratigan

Deutsche Bank presents its four 2010 scenarios together with a plethora of data to keep even the most detail oriented among you busy for hours.

• The Wall Street Journal: The country needs a new Fed Chief (WSJ)
• Steve Rattner reminds people he still exists: Bernanke deserves our thanks (WaPo)
• Roubini on lessons from Dubai: Don't assume government backing for state owned businesses (Forbes)
• Must read: Fudging losses is easy when the FDIC does it, too "The surest way for the FDIC to
  regain its credibility is by replenishing its fund’s balance
  sheet with fresh capital raised from the banking industry, and
  by demonstrating that its financial reports can be trusted
  again. Until then, its reputation as a captive regulator
  incapable of managing its own finances will remain intact." (Bloomberg)
• Goldman takes offense on pay (WSJ)
• Goldman's 2011 forecast would be an absolute disaster for Democrats (Reuters)
• Pensions eliminating stocks add $40 billion to corporate bonds (Bloomberg)

RANsquawk 3rd December Morning Briefing - Stocks, Bonds, FX etc.

• Asian stocks rally most since May, led by Japanese exporters; Yen weakens.
• E-commerce sales grew 5% YoY on Cyber Monday—first Monday after Thanksgiving.
• Euro up to $1.5111 in European morning trade as investors await ECB meeting.
• Gold sets third straight record; Newmont Mining forecasts $1,350/oz in 2010.
• Hong Kong should tighten rules to control asset prices: IMF.
• Japan shares jump nearly 4 percent to five-week high on weakening yen.

RANsquawk 3rd December Morning Briefing - Stocks, Bonds, FX etc.

Gold is now the primary beneficiary of any and all dollar weakness (much more so than stocks or any other asset class) and any and all incremental excess liquidity. We hope members of Senate who read this post present the charts below and ask the Fed Chairman at what point will his debasement of America end.

Matt Taibbi gives an in-depth presentation unmasking the Wall Street crony advisors that whisper in the President's ear daily, the political push-pull that ended up gifting Tim Geithner his current job, as well as an analysis of the brains behind it all- former Goldmanite, Robert Rubin.

Tomorrow's Bernanke reconfirmation hearing just got more interesting, courtesy of Vermont Senator Bernie Sanders who has stated he will put a "hold" on the Bernanke confirmation process, meaning the Senate will need to amass 60 votes in order to override and proceed with the confirmation process. Yet as the NYT notes: "though the Senate has been paralyzed by similar blocking tactics on countless other issues, Mr. Bernanke probably has enough support in both parties to clear the 60-vote hurdle." It is time to call your Senators and remind them that at best only 21% of Americans favor Bernanke's reappointment.

In addition to paying back its $45 billion portion of TARP, the Bank, in what will be Ken Lewis' last act, will also raise incremental capital. $18.8 billion of new "common equivalent securities" to be issued, or the equivalent of 1.2 billion shares. And even as the firm is set to payout humongous bonuses ala Goldman, the firm will not touch its $44.5 billion in TLGP backed issues.