Frontrunning: June 3

• As reported yesterday, the ECB liquidity crunch gets even worse: banks's overnight deposits with ECB increased to new record (Bloomberg)
• BP may sell Pruhoe Bay stake as spill costs mount (Bloomberg)
• Greek transport, media in 24 hour strike against austerity plan (Bloomberg)
• Aboard Marmara, skirmish turns deadly (WSJ)
• Confirming the Omen of May's flash crash (Minyanville)
• Jamie Gorelick to head BP legal team (Main Justice, h/t Josh)
• UK hits JPM with record GBP33.3 million fine (Telegraph)
• America can't afford not to drill in Gulf (Washington Times)
• Bridgewater's Ray Dalio - set aside fears of inflation, for now (Barron's)
• Rising minimum wage, rising teen unemployment (RCM)
• Nike mocks butt-toning shoes that drive market share loss (Bloomberg)

Comments

[Joe Shmoe]

There was a post yesterday (I think) that LIBOR isn't worth following right now.  What else can I track?  Any suggestions?

Also, has the VIX been discredited too?  I see articles that talk about how it's important when it crosses 40... but I remember it breaking 80 during 2008.

[snowball777]

• Confirming the Omen of May's flash crash (Minyanville)

Translation: this shit be crazy

• Jamie Gorelick to head BP legal team

Ah, Jamie, always handy whenever someone claims that only men are disingenuous opportunistic scumbags.

• UK hits JPM with record GBP33.3 million fine

But what will that run them in a 'real currency'? (GBPUSD...1.4641 and dropping)

[TBT or not TBT]

The Mistress of Disaster:

- set up the "wall" between FBI and CIA that stopped discovery of the 9-11 plot

- was involved in the Fannie/Freddie mess as a director of one of those(don't recall)

- now involved in a third mega disaster on the side of the nominal bad guys

[Marley]

J.P. Morgan hit with GBP 33.2 million fine for money laundering?  Boy that's like fining us morts 33.2 cents for murder.

[jkruffin]

Bloomberg today:  Banking Crisis is Back

did it ever go anywhere?  LOL   how easily people forget trouble bubbles about to burst when they trade on HOPE

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aBG71WMVDAV4

[SGTbull07]

Jamie Gorelick earned her illuminati stripes on the 9/11 Commission covering up for the establishment, she'll be a perfect fit for BP.  How many times can a person sell one soul?

[Mr Lennon Hendrix]

The Bildeberg meeting started today in Spain.  Speaking of "The Beast", check out Baphomet, I mean facebook!

"Zuckerberg takes off hoodie. Inside the lining is an Illuminati kind of insignia with Open Sharing motto. Now I'm freaked out,"

http://www.dailyfinance.com/story/media/facebook-ceo-mark-zuckerberg-den...

[Seal]

from The (Mis)behavior of Markets – A Fractal View of Risk, Ruin and Reward, Benoit Mandlebrot A fractalist’s view of markets Rule I – Markets are risky. Extreme swings are the norm in financial markets – not aberrations that can be ignored. Rule II Trouble runs in streaks. Market turbulence tends to cluster. Rule III Markets have a personality. This internal market behavior is remarkably durable. Rule IV Markets mislead. Patterns are the Fool’s Gold of financial markets. Rule V – Market time is relative. This trading time speeds up the clock in periods of high volatility, and slows it down in periods of stability. As will be seen, the standard theories of finance assume the easier, milder form of randomness. Overwhelming evidence shows markets are far wilder, and scarier than that. pg 23 The bear market of 1973-74 wiped 43 percent off stock values… pg 76 …people rising and falling, climbing by talent or luck and falling by alcoholism, tuberculosis, or other forms of unfitness. pg 154 Continuity is a fundamental assumption of conventional finance. pg 237 Human Nature yearns to see order and hierarchy in the world. It will invent it if it cannot find it. pg 189 AND Further thoughts inside and outside the bun A. .Perhaps you remember that the Government had evolved various plans for preventing further profiteering in necessities. ..Well, the philanthropic coffee shorts appeared before the Price fixing committee of the War Industries Board and made a patriotic appeal to that body to protect the American breakfaster. ...They fixed on a maximum price for raw coffee and also fixed a time limit for closing out all existing contracts.... [The American public was later forced to pay very high prices for coffee as the low fixed limit price severely cut later supplies] Reminiscences of a Stock Operator, Edwin Lefevre, Wiley Press, pg 192 B. "By virtue of the authority vested in me by Section 5 (b) of the Act of October 6, 1917, as amended by Section 2 of the Act of March 9, 1933 ..., in which Congress declared that a serious emergency exists, I as President, do declare that the national emergency still exists; that the continued private hoarding of gold and silver by subjects of the United States poses a grave threat to the peace, equal justice, and well-being of the United States; and that appropriate measures must be taken immediately to protect the interests of our people." Franklin Roosevelt - March 9, 1933 C. .Things got worse and worse. Finally there came the awful day of reckoning for the bulls and the optimists and the wishful thinkers and those vast hordes that, dreading the pain of a small loss at the beginning were now about to suffer total amputation . without anesthetics. A day I shall never forget, October 24th, 1907..No money anywhere, and you can’t liquidate stocks because there is nobody to buy them. ... Lefevre op. cit., Pg 114 D. .The stock market had been closed from the 31st July to the middle of December of 1914.. Lefevre op. cit.