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Frontrunning: January 24

Tyler Durden's picture

  • Irish meltdown (FT)
  • China GDP 'to slow this year' - Decreased rate due to measures to curb inflation, think tank says (China Daily)
  • Warning From S&P on Munis  (WSJ)
  • In Case of Tech Bubble, Do Not Break Glass (BusinessWeek)
  • Metals Traders Worth $3 Million at Wall Street Banks (Bloomberg) - guess where massive vol is going next
  • Inflation Fears Grow (WSJ)
  • Sarkozy: No Desire To Question Global Role Of US Dollar (Market News)
  • Special Report: Life in Europe's "squeezed middle" (Reuters)
  • Fed "expert network" Larry Meyer getting nervous, sees big pressure for rate hike: Fed Signals Seen Raising Treasury Yields 60 Basis Points in 2011 (Bloomberg)
  • Proposal On Greek Debt Buy Back Circulating In Europe (Market News)
  • Thank you yield curve, ZRIP and inflation: Treasury's toxic asset funds gain 27 percent (Reuters)
  • How like the stock market to sell off just as the news turns good. Will the Fed "let" the downturn continue? (Barrons)
  • Looks like that Goldman pitch was not quite so convincing: Groupon Not Committed to IPO as Deal Site Examines Options, CEO Mason Says (Bloomberg)
  • China and US: mapping out path ahead (China Daily)
  • State Bankruptcy Is a Bad Idea (WSJ)
  • Morgan Stanley Banker Ensnared in Galleon Case (WSJ)
  • SEC Recommends Common Fiduciary Standard for Brokers, Investment Advisers (Bloomberg), aka the "Steal from the poor and give to the rich" standard
  • The Nobelist speaketh: The Competition Myth (Krugman)

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Mon, 01/24/2011 - 09:13 | Link to Comment Cash_is_Trash
Cash_is_Trash's picture

Why is Kruggy relevant?

Mon, 01/24/2011 - 09:18 | Link to Comment LongSoupLine
LongSoupLine's picture

He's not, however it underscores the massive MSM propaganda gameplan being executed.

Mon, 01/24/2011 - 09:46 | Link to Comment Cash_is_Trash
Cash_is_Trash's picture

Mr. Housing Bubble, the article is pure trash and agree with the MSM gameplan. Allow me to point out the die-hard Keynesian at hand:

And if the president does propose a serious increase in spending on infrastructure and education, I’ll be pleased.

Spend more of what we don't have mortgaging our children's and grand children's future? Yes.

The financial crisis of 2008 was a teachable moment, an object lesson in what can go wrong if you trust a market economy to regulate itself.

How about don't mix corporate and state powers called fascism and bail them out when they fuck up.

But the ideology that brought economic disaster in 2008 is back on top — and seems likely to stay there until it brings disaster again.

You mean moral hazard Kruggy? Oh your cronies won't let that move anywhere in the Too-big-to-fail fiasco.

This guy's a real piece of shit.

Mon, 01/24/2011 - 11:38 | Link to Comment Strike Back
Strike Back's picture

You gotta admire the balls on this eunuch though.  Pretending like the free market "ideology" is back on top when Keyensianism rules the day and setting up the future crash to be the fault of the free market when the culprit will actually be massive market manipulation?  That's layer upon layer of bullshit this guy is trying to pull off, preemptively guiding the herd. 

Mon, 01/24/2011 - 10:02 | Link to Comment BRAVO 7
BRAVO 7's picture

here is a story that may have been overlooked:

Slush fund accounts of major US politicians identified and seized at Vatican Bank (Rome). Connection established with Daniel Dal Bosco RICO indictment, which cites Giancarlo Bruno, Silvio Berlusconi & Ban Ki Moon.

On Wednesday 5th January 2011, it emerged that US establishment-related slush fund accounts had been located in, and seized from, the Vatican Bank in Rome. The source of funds for these accounts in almost every instance was found to be the US Treasury.

Beneficiaries of the covert Vatican accounts include Barack Obama, Michelle Obama and each of the Obama children, Michelle Obama’s mother, all the Bushes and the Clintons, including Chelsea Clinton, Joe Biden, Timothy Geithner, Janet Napolitano, several US Senators, including Mitch McConnell, several US Congressmen including John Boehner, several US Military Chiefs of Staff, the US Provost Marshal, the US Judge Advocate General, the US Supreme Court Chief Justice, John Roberts, several US Judges, the Pope, and several cardinals.

Big money was found in each of the accounts. The longer the beneficiaries have been in office, the greater the account balances were found to be. They range from a few million USD to more than a billion USD in the case of John Roberts. The total number of slush fund accounts so far identified at the Vatican Bank is said to be between 600 and 700. This number is likely to grow as international élite corruption investigations spread worldwide.

The disclosures have split the Roman Catholic Legatus organisation down the middle. Elizabeth Windsor (Queen Elizabeth II of England) is in the know and is intimately involved in the swirling and fissiparous covert power plays.


Mon, 01/24/2011 - 09:16 | Link to Comment Oh regional Indian
Oh regional Indian's picture

Irish meltdown. Sounds like a chocolate economy to me. And if you think about it, it was (along with the rest of the Globalization wonders. Tasty in small, almost bitter doses, but too much? Too bad.

And then there is Snar-cozy. What a change from De Gaulle eh? Sort of telling.

A Frenchman brown-nosing the Americans.



Mon, 01/24/2011 - 09:17 | Link to Comment TheGreatPonzi
TheGreatPonzi's picture

Well, there seems to be a quite good consensus recognizing inflation in all the financial press now, and more surprisingly, among central bankers. Trichet just declared in the WSJ that inflation was a "serious concern, notably on commodities", and that "there could not be job growth with inflation".

They seem to be pretty squeezed: rate hikes would mean the Ponzi end six months later, while inflation would mean the Ponzi end two years later.

Another defeat for deflationists worldwide, though, who even after the 2008 bailouts and QE were claiming inflation was not going to happen.

Mon, 01/24/2011 - 09:39 | Link to Comment Salinger
Salinger's picture


Sour note at Hu fete Pianist's anti-US melody (at White House Performance)

WASHINGTON -- Chinese-born pianist Lang Lang gave a musical shout out to America-hating patriots in his homeland when he played at the White House state dinner last week. During his performance, Lang tinkled the ivories with the famous anti-American propaganda tune "My Motherland" -- the theme song from the Chinese-made Korean War movie "Battle on Shangangling Mountain....

...US soldiers, whom the Chinese refer to as "jackals." The song Lang played in front of Hu and President Obama includes the verse


 "When friends are here, there is fine wine/But if the jackal comes/What greets it is the hunting rifle." 

Mon, 01/24/2011 - 10:00 | Link to Comment Cash_is_Trash
Cash_is_Trash's picture

Barry doesn't have a spine

Mon, 01/24/2011 - 09:36 | Link to Comment Rodent Freikorps
Rodent Freikorps's picture

Does anyone trust the Chinese?

Mon, 01/24/2011 - 09:47 | Link to Comment TheGreatPonzi
TheGreatPonzi's picture

They are smart, and not all their economic growth is fake. There is genuine competence and technological development. Certain areas, such as Tianjin, are more futuristic than the center of Las Vegas.

The autocrat Communist party has taken steps to capitalism, but China will obviously never be free under a party which still calls itself "Communist", and is poisoned with Marxist theories.

I trust the people, I trust less their government. A coup in this country would be salutary.

Mon, 01/24/2011 - 09:38 | Link to Comment Cdad
Cdad's picture



1.  The broader equity market will drift this morning, directionless, on account of there is little news out there.  That said, this crap really matters, and by crap I mean all of this China crap that needs to be dealt with:

2.  Stocks priced for Dotcom, or priced for D. Tepper depending on how you feel about that guy, are ready to commence implosion.  As previously mentioned, stocks requiring a QAURTER CENTURY'S worth of earnings to justify TODAY'S PRICE are not a good idea.  You can not go long on a cloud when cloud is simply a server farm, and software is everywhere and practically free.  Neither is it a good idea to extract the vast majority of the company's worth through massively dilutive stock options...and then just GAAP those problematic numbers away.  [Next up on this one...TOO MANY BOLT ON ACQUISITIONS WITH LITTLE VALUE ADDED.]

3.  Regarding the world's largest bank in charge of silver manipulation, copper market cornering, and mortgage fraud [all], there are a couple interesting headlines out there to remind everyone that this bank should be sold short as part of each American's patriotic duty...if you ask me.  One is connected to the biggest insider trading case out there just now [with many more to come, I suspect], and another is about outsourcing nonprofit government work for the purpose of turning it for profit.  Great.  I sure am happy that all the Fast Moneygirls are so preoccupied with the CEOs good looks that they don't bother looking at the things this bank is doing.

4.  Well, well, well....hello Irish folk.  I see you are busy trying to help the Euroland GET REAL about its true value.  Thank you.  Just as soon as L. Blankfein and crew are done messing around with little Miss Euro, it will be time to short her.  Let's just observe for the morning, however, as those Goldman guys are so hot on her that I don't know what they are sniffing over there.

5.  Copper and Oil are priced for Dotcom [or priced for D. Tepper depending on how you feel about that guy].  When the broader market gives its signal--its "I'm dying man" signal--these would be very good places to play Whack-a-mole for the shorter term trade. 

6.  NBC has shed its first useless, self-involved idiot.  More to come.  Making book.  Let's get a throw-a-way pick out there for NEXT--Lawrence O'Donnell.

7.  Obama will continue to get excited about a speech that will call for massive new spending...which will render the speech meaningless ALL THINGS CONSIDERED.  Duh.  I should have been president.

8.  The government will continue to dump crap shares of this and that on the zombie equity market, and the zombie equity market will, strangely, not care.

9.  Banks will lead any market sell off...because the sector is lead by gigantic zombies.  Also duh.

10.  Gold will be a non factor today as it does some sort of mini-head-faker-rally-back thingy...which Cdad won't touch.

As usual, good luck trading this travesty of a market, and good luck to those wandering the wasteland that Ben Bernanke made.

Mon, 01/24/2011 - 09:58 | Link to Comment thepigman
Mon, 01/24/2011 - 09:44 | Link to Comment Snidley Whipsnae
Snidley Whipsnae's picture

Tyler... Why not include this one from Steve Keen?

"How I learnt to stop worrying and love The Bank

Posted on by Steve Keen ...also, comments on Keen's article posted by Mish here... The WEF has decided that what ails the world is a lack of the tune of another $100 TRILLION dollars worth. Hell, why stop at a mere 100 trillion dollars more? Why not just give everone in the world wheelbarrows full of dollars at ZIRP? Oh, wait...that has been attempted before...and it was a flocking disaster! Where are they finding these azz hats ?
Mon, 01/24/2011 - 09:51 | Link to Comment thepigman
Mon, 01/24/2011 - 09:52 | Link to Comment dojiman
dojiman's picture

The Morgue is not giving us much to trade on, cant even see the numbers to gauge how bad we are hurting their silver short...


JPMorgan, the second-biggest U.S. bank by assets, told its proprietary commodity traders in August their unit would be closed, a person briefed on the matter said at the time. The group consisted of fewer than 20 traders and reported to the head of commodities, Blythe Masters, 41. The New York-based company doesn’t split out its commodities revenueJennifer Zuccarelli, a spokeswoman, declined to comment.

Mon, 01/24/2011 - 09:57 | Link to Comment I Am The Unknow...
I Am The Unknown Comic's picture

Regarding Frontrunning today.....this just in from the category of "things that make me go 'WHAT?!?!?:'"

I know I'm old and not as wise as I should be for my age, but I really need somebody to 'splain to me how it is legal and/or possible for the US Treasury to sell 465.12 MILLION Warrants for Citibank common stock at $0.60 and $0.15 when the US Treasury has just relinquished all of their Citi (C) common stock holdings, and the share price is currently $4.87.  I am butt-freaking confused about this.  Any help understanding this would be most appreciated.   Any commentary about what this means would be a plus. 

Mon, 01/24/2011 - 11:15 | Link to Comment snowball777
snowball777's picture

They're covered warrants?

(implying the US Treadsuary expects to have to buy a shit-ton more Citi shares in the near future...good thing they gave Vikram a salary bump)

Mon, 01/24/2011 - 10:58 | Link to Comment spekulatn
spekulatn's picture

 "I don't have to show you  no stinkin badjiz."


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