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Frontrunning: January 12
- Bankruptcy would be good for America (FT)
- Not sure infinity plus one is a number, but as if we needed more reasons to boot Mary Schapiro out immediately: SEC order helps maintain AIG bailout mystery (Reuters)
- Hussman: Green shoots, weak roots (Hussman Funds)
- 100% Agreement with this statement: "Every year around this time, market strategists break out their crystal
balls and economists dust off their models (which amount to the same
thing) and try to predict the course of the markets and economies for
the next year. Why they persist in this activity when everyone knows it
is a waste of time is a mystery. Equally mystifying is why the rest of
us waste our time reading their prognostications. Predicting the future
is impossible and there isn’t nearly as much upside to it as one might
think." (Alhambra Investments) - The Fed will now be frontrunning Goldman Sachs for a change: Obama plans to raise $120 billion from banking fees (Bloomberg)
- Is China really growing that fast? (IBD)
- More ambiguity out of China: world's biggest bubble raises deposit reserve ratio to cool economy (Bloomberg)
- Dow to hit 15,000 by 2011. Why? "Because a smoking hot market topping 15,000 would guarantee Obama a
second term, add to his Congressional majority, and open a whole new
front in America's polarized cultural wars, with enormous market,
financial and economic as well as political consequences." (MarketWatch) - Even in a recovery, some US jobs aren't coming back (WSJ)
- Hedge fund lending is back, and helping Tennenbaum Capital make some profits until their other holdings drag everything down shortly (Bloomberg)
- Federal Reserve earned $45 billion in 2009, in biggest bear market rally since Great Depression (WaPo, h/t Malcolm)
- Hedging America (The New Republic)
- Goldman Sachs still shines for MBAs who ignore "hype" (Bloomberg)
- Barclays favors selling Nakheel bonds after 75% surge (Bloomberg)
- "Enron-esque characeteristics" hiding an even more explosive credit growth in China (Immobilienblasen)
»
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this mornings moral hazard circle jerk brought to you by bill miller......."amzn great investment", "market is not expensive" and "tarp was fantastic".
If I may...
Bankruptcy would be good for America
I'm sure it would - in the same way my Drill SGT used to tell me the shit he used to make me do would "build character". Actually, almost all of it did just that.
Hussman: Green shoots, weak roots
Read this yesterday - all sorts of awesome.
Obama plans to raise $120 billion from banking fees
He'll get about 10% of that, if he's lucky, and we (as in, not banks) will end up paying for it anyway in the form of increased fees, decreased benefits, yadda yadda yadda. Way to go, Barry. That'll show 'em!
Dow to hit 15,000 by 2011.
Related, DXY to hit 0.01 at the same time, because that's pretty mcuh the only way the DJIA gets a 50% (or so) bump from here. Don't know how that jives with praise and benefits for Barry, but whatever.
Even in a recovery, some US jobs aren't coming back
Next scoop from the WSJ: Water is wet.
Apologies for the snark this morning, folks. As the previously mentioned DS used to tell us (usually at 05:30 on a day he was going to beat the ever-loving shiite out of us), "Have a Happy Army Day!"
really excellent alhambra piece...the bit about cnbc is pertinent to the debate responding to td's "minsky moment" post yesterday
On one of the business shows an "expert" stated that high levels of complacency are not a problem because with volatility so cheap, anyone who wants can easily hedge.
Does this clown think hedges exist in a vacuum? Have we learned nothing about passing the buck of risk?
You know that something is wrong with predictions when monkey is the best fund manager out there: http://www.dailymail.co.uk/news/worldnews/article-1242575/Lusha-monkey-o...
Austrian government seek full ownership of central bank
The Austrian government is to go for a 100% ownership of the National Central Bank OeNB, reports Der Standard. Currently the state owns 70%, while 30% remains in private banks. The Austrian finance minister Josef Proell said that in today’s finance world it was unacceptable that banks have shares in their supervisor. Proell estimates that he needs €50m for the bargain. Earlier attempts to fully nationalise the OeNB failed amid resistance of the banks to sell their shares. This time banks signalled to be ready to negotiate.
Austrian government seek full ownership of central bank
The Austrian government is to go for a 100% ownership of the National Central Bank OeNB, reports Der Standard. Currently the state owns 70%, while 30% remains in private banks. The Austrian finance minister Josef Proell said that in today’s finance world it was unacceptable that banks have shares in their supervisor. Proell estimates that he needs €50m for the bargain. Earlier attempts to fully nationalise the OeNB failed amid resistance of the banks to sell their shares. This time banks signalled to be ready to negotiate.
http://www.eurointelligence.com/article.581+M559c703735d.0.html
Funny idea.
From Fox News: Federal Reserve Makes Record $46.1 Billion Profit http://www.foxnews.com/politics/2010/01/12/federal-reserve-makes-record-...
Absolutely stunned at the AIG/Shapiro news.
This needs to be blown wide open big time.
No Warren Commission and magic bullet.
Surprise, surprise... somebody nails the futures, bids up the T-bonds a day before the 10-year auction and 2 days before the 30 year...
Obama plans to raise $120 billion from banking fees
Uh, so the US taxpayer pays to bail out the banks, then gets paid back by a special levy, which the US taxpayer will pay in the form of increased fees (one way or another)?
Why, it's almost as if that Obama guy has no idea how an economy works!
"The Fed will now be frontrunning Goldman Sachs for a change: Obama plans to raise $120 billion from banking fees"
This is nothing more than an indirect tax on the American people. Obama knows any tax implemented on the banks will be then forced upon the American people with higher fees and new fees. Obama and his minions don;t care.....as long as the tax comes from the banks and not the administration....they could care less how the leaching of America takes place. He promised to taxes on the middle class and will say.....its the banks doing it...not me....I swear!
The cover-up going on with AIG between Treasury, the Fed, and the SEC is nothing short of appalling. I would gather if the evidence were made public in real-time, there would be indictments and eventual jail time for more than a few public servants... even those from a prior administration.
If the desire is to conceal information from the public, knowing that massive taxpayer dollars are involved, we should just clean house and start over from the top. Unfortunately, it appears that a "cover-up" culture has developed so deep within the walls of the Obama Administration, we would need to start with the Chief of Staff and work our way down.
Who in their right minds would vote for these people in 2012, let alone 2010?
Brilliantly said Assetman.
The good news is that the public is on this and it seems to me that we could be at a tipping point......just gotta see how it plays out from here and what other events creep up over the horizon that could offer a deflection...and, those events will occur as we can safely surmise.
I'm still in that camp that something(s) is going to happen and we will hear the old "...the economy was recovering fantastically until ______________ happened and wrecked everything......"
I'm not financial expert, but "profits" are what are left over after you deduct "expenses", right?
http://www.nytimes.com/aponline/2010/01/12/us/politics/AP-US-Fed-Profits...
SO, why is our media so eager to report the FED "profited" by 45 billion in 2009? Can someone please explain?
I posted a link to this story from Fox News. The headline is misleading as it doesn't tell people the important part: those "profits" will turn to losses when the Fed is forced to sell the mortgage securities it bought.
From the article: "The Fed faces a risk, however. The Fed could lose money if the central bank had to sell those securities [$1.25 trillion in mortgage securities from Fannie Mae and Freddie Mac] and their prices were to fall. The Fed might need to sell the securities to sop up some of the unprecedented amount of money pumped into the economy during the crisis."
It is all just a scam, but the Fed will try to inspire "confidence" in the public by telling them they made a record profit for the Treasury through their heroic response to the economic crisis.