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Frontrunning: January 19

Tyler Durden's picture

  • Define irony: Goldman among four underwriters picked to manage AIG share sale (Reuters)
  • Prop trading is baaaack: Volcker Rule Should Require Sign-Off by Bank CEOs, Panel Says (Bloomberg)
  • Wells Fargo Misses Profit Estimates as Mortgage Banking Weakens (Bloomberg)
  • Asia to See Soaring Prices in 2011 (Reuters)
  • Chinese Premier stresses stabilizing food prices, housing market in 1st quarter (Xinhua)
  • China and U.S. Set to Square Off (WSJ)
  • China Needs Urgent Guidance on Euro Debt Risk, Yu Yongding Says (Bloomberg)
  • Gerova Hires Investigator in Bid to Refute Critical Report (NYT)... stock plunges again (report posted here first)
  • José Sócrates reportedly begged for help last week as Portugal became the latest eurozone country tipped for a bailout (Guardian)
  • European banks face tougher stress tests (Irish Times)
  • Germany Won't Fancy the Pain Game (WSJ)
  • Ireland Wields Stick to Wound Bank Bondholders (Bloomberg)
  • Geithner Says China Gets ‘Unfair’ Advantage From Weak Yuan (BusinessWeek)
  • Weber Emerges as Banker to Beat at ECB as EU Distributes Jobs (Bloomberg)
  • King Called to Task on Inflation as Price Fears Fill Lawmakers' Mailbags (Bloomberg)



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Wed, 01/19/2011 - 09:15 | Link to Comment boooyaaaah
boooyaaaah's picture


from 4.41

Wed, 01/19/2011 - 09:20 | Link to Comment A Man without Q...
A Man without Qualities's picture

I can see this on Kitco, but think this might be a data error, not seeing anything similar in the futures...

Wed, 01/19/2011 - 09:29 | Link to Comment M.B. Drapier
M.B. Drapier's picture

Oh, has anyone mentioned the WhistleblowerIRL saga? Ireland, problems with liquidity ratios, Unicredit ... Austria?

Wed, 01/19/2011 - 09:34 | Link to Comment Djirk
Djirk's picture

Dear Timmy: You can complain about the exchange rate, but the millions and millions of hungry workers and entreprenuers is the unfair advantage China has.....good luck with that interest rate thing you have going with Bennie

Wed, 01/19/2011 - 09:39 | Link to Comment boooyaaaah
boooyaaaah's picture

Chinese GIFT

Hide Chinese practice of tributes as trade regulation and authority
In China, the tribute system began from ancient China period to provide both an administrative means to control their interests, as well as a means of providing exclusive trading priorities to those who paid tribute from foreign regions. It was an integral part of the Confucian philosophy and was seen by the Chinese as equivalent to the familial relation of younger sons looking after older parents by devoting part of their wealth, assets, or goods to that purpose. Political marriages also existed between the Chinese empire and tribute states, such as Songtsen Gampo and Wencheng (Gyasa).
China often received tribute from the states under the influence of Confucian civilization and gave them Chinese products and recognition of their authority and sovereignty in return. There were several tribute states to the Chinese-established empires throughout ancient history, including neighboring countries such as Japan, Korea, Vietnam, Cambodia, Borneo, Indonesia, South Asia and Central Asia.[1] This tributary system and relationship are well known as Jimi (??) or Cefeng (??), or Chaogong (??). In Japanese, the tributary system and relationship is referred to as Shinkou (??), Sakuhou (??) and Choukou (??).
According to the Chinese Book of Han, the various tribes of Japan (constituting the nation of Wa) had already entered into tributary relationships with China by the first century.[2] However, Japan ceased to present tribute to China and left the tributary system during the Heian period without damaging economic ties. Although Japan eventually returned to the tributary system during the Muromachi period, it did not recommence presenting tribute.[3][4]
According to the Korean historical document Samguk Sagi (????, ????), Goguryeo sent a diplomatic representative to the Han Dynasty in 32 AD, and the Emperor Guangwu of Han granted the official rank of Goguryeo. [5] The tributary relationship between Korea and China was established during the Three Kingdoms of Korea.[6][7] This continued until China's defeat in the Sino-Japanese War of 1894-1895.[6][8][9]
There is a clear differentiation between the term "tribute" and "gift." The former, known as gong, has important connotations. The Chinese emperors made sure that the gifts they paid to other states were known as mere gifts, not tributes. Even at times when a Chinese dynasty had to bribe nomads from raiding their border such as in the Han Dynasty and the Song Dynasty, the emperors gave "gifts" to the Xiongnu and the Khitan. The only time when a dynasty paid formal tribute to another was during the southern Song dynasty, where tribute was given to the Jin Dynasty for peace. The Jin Dynasty also saw itself as the legitimate holder of the "Mandate of Heaven".

Wed, 01/19/2011 - 09:40 | Link to Comment King_of_simpletons
King_of_simpletons's picture

PLAN B for when China dumps US debt.

Wed, 01/19/2011 - 09:51 | Link to Comment smeagol
smeagol's picture

Anyone watching a 1min silver chart from US open? some crazy stuff going on, I been watching this chart daily for 3 years and I never seen anything like this, we're getting recular 40c drops and bounces in a matter of seconds presenting some excellent scalping opportunities. 4 now since US open (we had 2 yesterday at same time)

Wed, 01/19/2011 - 10:07 | Link to Comment aerojet
aerojet's picture

HFT robots got dizzy?

Wed, 01/19/2011 - 09:50 | Link to Comment primefool
primefool's picture

Ben already owns more Treasuries than the Chinese. As they will no doubt "dump" their Treasuries, Ben will buy them all - at an appropriate markdown of course, moreover the Dollar will decline in the process - overall a fairly severe haircut will be applied to the Chinese sales. Tim is of course much happier Ben owning his Treasuries- because quite simply they are zero interest rate securities. Tim pays coupons to Ben, Ben the returns these "profits" back to Tim each year. So - once the Chinese are out we can set rates wherever we want and govt will hve zero cost financing in any amount needed for as long as needed.

Wed, 01/19/2011 - 09:51 | Link to Comment Oh regional Indian
Oh regional Indian's picture

Yu Yongding needs guidance on Eurodebt Risk? You Ding-a-ling!

How very Chinese of them. They have their finger in every EU debt hole/trap and they need guidance?

Stranger and stranger. Timmay, China's lap-dog, makes another show of snapping at their heels?

I guess Charlie Brown summed it up nicely.

Good Grief!


Wed, 01/19/2011 - 09:55 | Link to Comment primefool
primefool's picture

Yes - it will be important for Ben to buy up most of the Chinese Treasuries Before Ben starts hiking rates. Then all will be well. The govt wont care what rates are - because they will be getting most of their interest payments back from the Fed . Cool.

Wed, 01/19/2011 - 10:08 | Link to Comment Cdad
Cdad's picture




1.  Goldman Sachs will again be the most hated institution in the world today, releasing news about the millions of dollars they have made making invisible products that no one but oligarchs care the shares fall because trading sucks...duh!  Who would trade this market?

2.  Banks shares all over the market will hiss and leak and sink...because they are not priced to represent any sort of value because their earnings are fictional and entirely the result of reducing loan loss reserves...which will need to be built back up in coming quarters as the depth and pervasiveness of their fraudclosure crimes are revealed.  Ergo, the financial sector has been used to advance the S&P and criminal syndicate Wall Street Bankers are done with bank shares for now. 

3.  Shares in $9-$11 burrito makers will continue their implosion as criminal syndicate Wall Street analysts fail in their bid to win government funding for said burritos as an alternative energy source...and besides, the shares of the former parent of the burrito maker are cheap by comparison, and folk will swap into food Inflation approaches Profit Margin carrying a knife.

4.  Food Inflation, hearing Marc Faber's voice this morning on the Blow Horn [CNBC], will continue to cause riots, mayhem, government coups, and death.  The folks at the Fed will, apparently, simply take more valium, depressing the "I don't care about anything" button in their heads, and maintain forward progress on the biggest financial crime the world has ever known, printing dollars and giving them to the likes of Goldman Sachs.  Go figure?

5.  Little Miss Euro, now the highest paid pregnant call girl in the world, will discover that she can, in fact, drink mojitos through a beer bong.  And somewhere between now and 1.37 per, the USD stud man will burst out of the room that L. Blankfein and company have been holding him in and have his way with anything alive.

6.  Trades that the criminal syndicate known as Wall Street are engaged in, aka lemming trades or crowded lemming trades, will act a little funny today.  You will see little mini intraday plunging activity, which will magically recover due to the miracle of the these issues prepare to plunge off of cliffs as soon as little Miss Euro next grabs the rail to heave out those Euro dollars...which will then signal the end of things.

7.   The world's largest bank in charge of silver manipulation and mortgage fraud will pull back today, paying Cdad's bills.

8.  European drug companies that suck at getting their new drug ideas approved will pull back today paying Cdad's bills.

9.  Housing will suck in every way that a sector can suck.  It will suck in price action, in future hope, at dancing, at freakin' everything because that group of sad sacks is still neck deep in a depression...and should probably be taking Fed drugs that depress the "I don't care about anything" button in its head.

10.  We will know it is all done when little Miss Euro gets on the roller coaster ride at L. Blankfein Wildest Dreams Park [oil futures], where the lights are on courtesy of Ben Bernanke.

PREPARE FOR THE END OF THE DUMBEST EQUITY MARKET RALLY IN THE HISTORY OF THE WORLD as all of this goes on right as criminal syndicate options junkies are getting their fixes! 

Once equity positions have been liquidated, trade your dollars for lumber and build your house high in the Banana Republic Tree...because that is what you are now...a Bernanke Banana....and the currency you have been using all your life will soon be worthless.  Ben Bernanke went to Princeton and yet he needs me to tell him these things.

Wed, 01/19/2011 - 10:11 | Link to Comment John Law Lives
John Law Lives's picture

The unrest in Tunisa is sending shock waves throughout the Middle East:

Do NOT follow this link or you will be banned from the site!