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Frontrunning: January 15

Tyler Durden's picture




 
  • As anticipated, China FX reserves surge to $2.4 trillion; no accompanying TSY purchasing (Bloomberg)
  • Steven Pearlstein: A transaction tax is the answer (WaPo)
  • Stiglitz: Why are we letting Wall Street off so easy? (Mother Jones)
  • JPMorgan beats profit, revenues miss; shares, futures fall on cautionary language from Dimon (WSJ)
  • Euro falls most in month against dollar on Greece; oil drops (Bloomberg)
  • The Greek CDS curve is now inverted (FTAlphaville)
  • Brooksley Born wants the public—and Wall Street—to understand unregulated derivatives’ role in the crisis (City Journal)
  • Separating investment banks will not make us safer (FT)
  • Little by little, even the pretense of change is dropped: goodbye to the Consumer Financial Protection Agency (Bloomberg)
  • Escalation: US may take formal measures against China over Google hacking (Bloomberg)
  • Strengthening U.S. recovery may intensify Fed debate on exit...They must be looking at a different U.S.(Bloomberg)
  • No credit bubble at all: China's round-the-clock auto factories still cannot meet demand (Bloomberg)
  • Rating agency complacency is back (Bloomberg)

 

 

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Fri, 01/15/2010 - 09:51 | 194770 jm
jm's picture

Greek CDS curve is now inverted

Assuming that is driven by matching maturities of debt and CDS, with different points on the curve having different default views. 

Seems like some buyers are wildly missing something.  Shouldn't Prob(default) be cumulative over the curve?

 

Fri, 01/15/2010 - 10:01 | 194773 Anonymous
Anonymous's picture

Mr. Pearlstein: All a transaction tax will accomplish is to unnecessarily pound the little guy trying to make an honest living in the markets. That person, and most discount brokers, will be forced into extinction which will leave a wake of unintended consequences, not the least of which will be higher unemployment and lost taxes to the governemnet in other areas that will far outdo any incoming revenue from the 'transaction tax' debacle.

Also, if there is one thing we say with any certainty now, it is that the Obama administration is run by lobbysists and influence peddlers. It won't hit the people you want at all because they make the rules. They'll legislate around it with a maze of rules no one understands but them, and wind up paying nothing after rebates and tax deductions. Wake up.

Fri, 01/15/2010 - 10:17 | 194783 MeTarzanUjane
MeTarzanUjane's picture

Hey Team,
Do me a favor. Can you include a 'On Tap' section in Frontrunning? Then list the titles of the posting that you expect to publish during the day under the 'On Tap' heading.

It would be a great way for reader to be able to save time tuning out the BS days on ZH which are becoming ever increasing.

TIA

Fri, 01/15/2010 - 10:50 | 194810 defender
defender's picture

Tarzan, if you look at most of the stories on this blog, you will find that they are from events, or publications, that have been released the same day as the post.  The lack of earth shattering news on the site is really a lack of earth shattering news being released in general.  This is to be expected during/just after the holidays.  Personally I am glad that things are finally starting to slow down.

I do think that a calender listing significant gov. releases/votes/events would be an excellent add though.  Something in the ballpark of the calendar that Project Mayhem releases each week.

Fri, 01/15/2010 - 17:51 | 195351 Anonymous
Anonymous's picture

Transaction Tax:

As a retail investor, my purchase of 100 shares at $9.99 trade requires a move of .20 cents to break even. If I buy a 1,000 share block, it usually sticks out or becomes difficult to fill.

On a $5 stock a move of .20 cents is 4%.

As I follow the ticker of sub $20 stocks, it is clear that this impediment is not subjected equally across the board as the number of 100 share transactions flow by at a continuous pace.

A transaction tax should seek to even the playing field in this regard.

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