Archive - Feb 24, 2011 - Story

Markets sluggish this morning. Kansas City Fed president Thomas Hoenig, an outspoken critic of the Fed, warned yesterday that the central bank’s easy money policy may lead to another financial crisis through increased speculation. The comments came on the same day as the release of President Obama’s optimistic economic report to Congress, which plans on a doubling exports by 2014. Treasury Secretary Timothy Geithner also complimented the current recovery in a separate statement. Mortgage applications rose 13.2% last week after slipping 9.5% the week prior, the lowest since November 2008. Existing home sales grew in January by 2.7% MoM v -1.1%E. The unexpected increase occurred with the lowest median price in almost nine years as the number of foreclosures and short sales reached a twelve month high. Similarly, consensus estimates expect new home sales to decline 7.3% MoM. Look for that release later this morning as an additional metric for the slow recovery in housing.

• Gadhafi Flails as Libya Splinters (WSJ)
• As reported on Zero Hedge two days ago... Libya placed billions of dollars at U.S. banks (Reuters)
• Bullard Is ‘Bellwether’ as Fed Weighs Duration of Asset Buying (BusinessWeek)
• Is Stevie Cohen the Feds' Moby Dick? (Reuters)
• Those delusionary brits...Miles Says BOE Outlook Warrants ‘Very Gradual’ Rate Increase (BusinessWeek)
• Bonuses on Wall Street Declined 8% in 2010, N.Y.'s DiNapoli Says (Bloomberg) The average Wall Street employee took home a cash bonus of $128,530 in 2010
• Fleeing Egyptians Tell of Qaddafi's `Bloodbath' Across Libya (Bloomberg)
• Senator Wyden's Son Starts Hedge Fund After D.E. Shaw Internship (Bloomberg)
• Indian Rally Raises Pressure on Singh (FT)

There are many different kinds of revolution; some more effective than others. Telling the difference between a successful revolution and a failed revolution can be tricky. Often, on the surface, they look exactly the same. The secret is to set aside what we would “like” to see, and be brutally honest about what was actually accomplished in the course of the dissenting action. Has power been fully rescinded by the offending government or regime to the people, or, to yet another corrupt bureaucracy with a slightly different face? Have the puppet strings of corporate globalists been severed from your country, or do they remain strong as ever? Has ANY corrupt official actually been punished for the crimes that led to the insurgency in the first place, or, did they fly off scot-free to their million dollar villas in Ecuador, drinking mojitos in wicker recliners and watching the disaster they created unfold on CNN? Who ultimately benefited from the event?

Global stagflation has moved from knocking gently on the door to pounding with a battering ram. Brent touched just south of $120 overnight, the highest level since the summer of 2008, just before the global economy imploded, after reports circulated that the oil facilities of CNPC, the largest Chinese oil producer, were attacked in Libya. "News of the attack will heighten concerns among oil industry executives that the turmoil in Libya may lead to widespread sabotage of oil facilities and that it would take many months or even years to return the country to full production capacity even if a semblance of peace returns. In a speech earlier this week, Seif al-Islam Gaddafi, the son of Colonel Muammer Gaddafi, warned that in the event of a civil war, Libya’s oil wealth would be “burned”. In a terse announcement, CNPC said it was in the process of evacuating its 391 Chinese employees from the country and had already repatriated 24 of them. Contacted by phone, CNPC confirmed the attack but did not provide details, saying that it was still waiting for the latest news out of Libya." Unfortunately, as we first suggested three days ago, it is now only a matter of time before the Libyan madman decides to set his oilfields on fire in recreation of Saddam's parting gift to Kuwait, as retaliation against the world. In the meantime, US GDP has just lost another $300 billion in 12 hours, wiping out the gains all the gains in the last quarter.

RANsquawk European Morning Briefing - Stocks, Bonds, FX etc. – 24/02/11

RANsquawk European Morning Briefing - Stocks, Bonds, FX etc. – 2/22/11