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Frontrunning: August 17
- Pension funds pare stocks, ignoring economic rebound (Bloomberg) - so who actually benefited from this rally?
- U.S. pay czar says he can "claw back" exec compensation (Reuters)
- Citigroup may shift Phibro's Andrew Hall pay to stock from cash (Bloomberg)
- France seeking bank on guaranteed bonuses for G-20 (Bloomberg)
- The Lehman bankruptcy fee awards: and the winner is (WSJ)
- Joliet remembers the 1930's (Joliet Pub Lib, h/t CreditTrader)
- Roubini Project Syndicate Op-Ed: A phantom economic recovery (RGE)
- Lowe's net trails estimates as shoppers cut back on remodelling (Bloomberg)
- Ricardian equivalence (Cumberland advisors)
- The triumph of pessimism (Alhambra Investments)
- UBS tax crackdown widens to Hong Kong (WSJ)
- What will tightening look like? (Morgan Stanley)
- Sachs appeal (The New Republic)
- Stock market valuation (Angry bear blog)
»
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Buffett dumps energy and buys Pharma! Who Knew???
its not a bet if you know the outcome ( H1N1 pandemic being the result )
Yeah, and knowing when the Dem's would dump their public option on Health Care.
it changes nothing for the pharma. the price of medication stays the same as when you purchase it yourself. i don't have the time, but please google it; it has been all over the blogs, and net of lately. pharma even spent 150 mill on advertising for support of public option.
The Medical Care component of CPI (not seasonally adjusted):
http://data.bls.gov/PDQ/servlet/SurveyOutputServlet;jsessionid=a230b3e10cc117d6a5d5
Click on "More formatting options" to play with the output.
When I looked at YoY % price change going back to 1935 the result wasn't suprising. A grand total of 2 YoY price declines, in June and September of 1940. Since then its been on a rocketship.
Energy companies have no pricing power given the supply gluts...Healthcare being able to adjust prices higher in any eventuality seems about as sure a thing as you can get.
link broke, throwup a chart
This is my attempt to post ze chart...I can see it as I'm posting this guy, just copied and pasted it into the window. Ze main source: http://www.bls.gov/data/
Sigh...upon checking a massive fail in posting ze chart...it seems robotrader has a monopoly on posting the charts in comment windows.
Also, Government Care is history and therefore all Phama bets off the table!
Before there was TARP there was MEDICARE Part D.
Pharma will always win in WDC. Always.
Tyler D: Pension funds pare stocks, ignoring economic rebound (Bloomberg) - so who actually benefited from this rally?
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People who have been selling out at inflated prices, and who are positioning to keep selling as long as it lasts. Insiders who've been liquidating stock. Banks holding junky assets that're planning to sell to Timmy's TALF funds, leaving the investors and the US Government to lose money. Promoters rolling out IPO's. Companies issuing junky bonds to the public. REITs who've been raising equity.
The name of the game was and continues to be shifting assets held at dodgy valuations to investors that are not TBTF voluntarily with sweet seduction and banker-spin and involuntarily with Bernanke and Geithner's TALF funds and other dark arts.
"Joliet Remember the 1930's" is eerie and uncanny... and one of the best Frontrunning items I have seen on here... now I guess I know what archives CNBC searches to get their headlines.
brilliant
Allied Nevada Gold Corp. (ANV:US): Soros Fund Management LLC, run by billionaire George Soros, boosted its stake in the gold company to 2.34 million shares, according to a regulatory filing.
Interesting; Soros does not share the same confidence about the USD as do Chinese buyers of longterm US debt.
Allied Nevada is a good play in anyone's speculative gold equity port. Seeing Soros in it is a confidence booster, because of the unknown part the US regulators will play in their future.
CB: I never knew that Soro's had any previous confidence in the USD??
i know he was always bearish on USD, and normally i wouldn't post this; BUT, we know that Paulson liquidated most/all his holdings in BAC and loaded up some more Ashanti Gold shares. That to me screams that hedgies don't believe in the recovery ( they have finall got to their senses ) and some serious shit is almost imminent. Also Paulson made a genius call when he shorted MBS, CMBS and British banks, and we all know about Soros, so I'm inclined to take this as a significant indicator that the next leg down will come shortly.
Sachs Appeal, New Republic: But Geithner and Sachs had practical reasons for their lighter touch. "Lee's great strength is that he's exceptionally careful about thinking through implications of any particular choice," Geithner told me. "He's got a very good feel for markets and a sense of what practical considerations apply." The two men worried that nationalization would trigger an exodus of bank personnel. If that happened, it would leave the government with all the risks a bank was shouldering and all of its losses, but with no way to generate revenue--or, for that matter, to sell it back into private hands. These were the kinds of concerns that resonated at the March 15 meeting with Obama. "That was the moment it really hit a lot of people that, rather than Tim and Lee looking cautious, maybe they were thinking through the risks at a deeper level than other people were," says one administration official. (Sachs declined to comment for this piece.)
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Geithner's and Sach's arguments are patently ridiculous. The government would not have ANY losses if it put the big banks into receivership/bankruptcy and gave the banks to the creditors for their bonds. Let the creditors get exactly what they were entitled to in the event of a crisis, the bank, nothing more and nothing less.
How much does the Pay Czar get paid?
Re: Joliet remembers...
The Depression did not begin with the stock market crash.
An economic Depression, any economic Depression does not result from stocks declining. If anything, stocks decline (without massive manipulation) in reaction to a real or perceived economic decline.
The real cause of the Depression was, as it is today, the profligate use of CREDIT, abandonment of conservative borrowing and lending principles.
markets taking a dive
We just
good articles; recommended reading ..http://www..