Archive - Jan 7, 2010 - Story

It is pretty clear that officials and the likes of Tim Geithner were directly involved in editing documents that would eventually become public disclosures by AIG in the form of SEC filings.  To the extent these filings were knowing material omissions or misstatements of fact Tim, along with executives at AIG, should be heading to jail, right?  Well, not necessarily.  As we wrote two months ago, there is at least one little hitch that permits firms to cook the books and skate off after the fact.

RANsquawk 7th January US Morning Briefing - Stocks, Bonds, FX etc.

In a pathological example of nearly clinical hypocrisy, PIMCO's Bill Gross yesterday dedicated 4 meandering essay pages full of polemical ramblings to the characterization of America's sad political and financial hybrid reality. Yet the billionaire's saddest message is precisely the self-deluded aggrandizement that Gross decries yet willfully takes advantage of every single day. Because after bemoaning the fate of America's broken political system, and ridiculing the Federal Reserve's kleptocratic-friendly ways, it is precisely people like the PIMCO chairman that are most guilty of taking advantage of every single loophole presented to them, even as they criticize just this activity. This, beyond all the petty trivialities that Gross discusses, is precisely what is most wrong with America - at this point everyone, and especially Mr. Gross, knows too well that the wealth transfer from the middle class to the elite 1% of society will not end until such time as America itself defaults. Yet having the very people that benefit the most from this, write non-apologetic letters in which they criticize the very system that lets them walk home every day with an extra zero in their bank account simply due to their special connections within this very broken system, is beyond reproach.

• Asian stocks rise, led by carmakers, banks; Copper gains, bond risk falls.
• Australian retail sales rose 1.8% in November - the most in eight months.
• China’s central bank said it will target “moderate” loan growth in 2010.
• Dollar near 3-week low on signs global rebound gaining momentum.
• Oil pulls back below $83 in Asia after cold weather sparks 20 percent rally since December.
• Spot iron ore delivered to China rose to the highest in more than a year amid “panic buying” by steel mills.

RANsquawk 7th January Morning Briefing - Stocks, Bonds, FX etc.