Daily Highlights: 11.5.09

Tyler Durden's picture

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HEHEHE's picture

I've taken my beating on shorting the Chinese.  I give up.  They win. 

Bearish Spirits's picture

Whew.  Thankfully we had the EUR magically strengthen overnight to keep the markets positive prior to the data this morning. 

Remember: Productivity is skewed by C4C.  Also, as more manufacturing jobs are cut with a shrinking force, productivity goes parabolic.  Capacity utilization continues to stay low.  No matter what Liesman says, this throws off warning signs.

The indices continue up after bad same-store sales reports from Kohl's and JCPenney's.  Uh huh.

reading's picture

parabolic seems to be an understatement...they will stop at nothing to continue to hold this thing up at all costs.

Anonymous's picture

Took my beatings with China. Their eCONomy has issue but the weak dollar, bank loaning stimulas, and belief that China will save the world are helping prop up their markets. Eventually, they will topple over but not before the market takes a few more dollars from the shorters. Wait until the market starts to go down and miss the first 10% move.

glenlloyd's picture

As a very good example of why bailouts don't work and how circumventing the system has negative consequences, witness GM now deciding not to sell Opel / Vauxhall. Had we not bailed out GM there would have been no question.

For all the new GSE's out there sucking at the govt. teet, likely in perpetuity, there are no consequences...no failure.

Anonymous's picture

"No question" at all - and now look at the wave's this crappy deal has caused. http://www.newsy.com/videos/gm_opts_to_keep_opel

Anonymous's picture

I'm assuming the chinese export curb on "critical" raw materials has to do with rare earths. I found this op-ed piece two months ago and believe it's an important read and very revelant now. BTW it was written in 2006.

http://www.gwmg.ca/pdf/REE_China_checkmate.pdf

The part I find most interesting is that China announced the restrictions on rare earth mineral exports only a few days before they announced there derivative default stance. And there are no derivatives on rare earths, it's a pure supply and demand scenario and china controls the supply. I bet Goldman would just love to take control of rare earth pricing through derivatives, however, I suspect China won't let that happen.