Frontrunning: March 9

Tyler Durden's picture
  • Jury to hear gripping opening of Rajaratnam trial (Reuters)
  • S.E.C. Chairwoman Under Fire Over Ethics Issues (NYT)
  • Remember this rumor? OPEC sees no need to meet, supply ample: delegate (Reuters)
  • Berkshire Takes $2.25 Billion in Dividends From Burlington (Bloomberg)... triple the
    railroad’s payout rate prior to the February 2010 acquisition. Better to milk company than to actually use cash to hire people.
  • China Growth Plans to Slow Commodities (FT)
  • Tchenguiz brothers arrested in Kaupthing raids (Telegraph, Bloomberg)
  • As Oil Muddies Outlook, Fed Policy Less Certain (Reuters)
  • Deja vu idiocy: Europe Blinks on Bank Test: Regulators Seen Easing 'Stress' Gauge, Undercutting Effort to Restore Confidence (WSJ)
  • S&P Warns on Asian Inflation (WSJ)
  • Americans Oppose Government Shutdown, Fault Cuts in Poll (Bloomberg)... You don't say
  • Why the Eurozone Will Survive (FT)
  • A New World Financial Order: Why is China Buying EU Sovereign Bonds? (Larry McDonald)
  • Quake Hits Japan, Shaking Tokyo Buildings; Tsunami Alert Issued (Bloomberg)
  • Sovereign wealth fund assets rise to $4,000bn (FT)
  • Hopes grow for US budget extension (FT)
  • And another shocker: Birinyi Buying as Biggest Bull Market Since '55 Hits Third Year (Bloomberg)
  • McCain's pet Democrat is peddling a free lunch with a free dessert (NRO)

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ivars's picture

My view, expressed in following simple February 6th DJIA and Oil charts for 2011-2012. USA will have to tighten soon, leading to second recession in q4 2011-q1 2012 and all 2012-2013. Except, oil will not go down, but up, because of continuing supply disruptions due to widening political instability in all ( except Norway) oil exporter countries. The inflation will be not there, so other commodities may well take a pause. But NOT oil. Recession in the USA starting in q1 2012 (and elsewhere) will only make a small dip in oil prices ( down to 2012 April Brent 135-150 USD/bbl).

Just two charts, clear picture. The punctuated supply disruption events multiplies by reduced investment in extraction capacity is responsible for swings in oil price. 

If there is correlation between DJIA change and GDP growth, the coming USA recession in q1 2012 and beyond will be minus 2%-4% quarter on quarter annually.

USD will stay strong, and military protection in general and especially of Oil resources will be bought in the USD. There will be no USD hyperinflation, thanks to Oil prices taking out energy of QE xxx and further fiscal deficits as they will only pay for Oil, not growth.

This is an endgame for monetary and fiscal easing.

As it does not have any argument left in it. Which it never had, but now everyone sees it.

Careless Whisper's picture

Connecticut Governor: A new car that costs more than $50,000 is a luxury. I'll tax it. Trading in a car. Tax that too. Getting a haircut. Taxed. Beer? more taxes. Gasoline? Exxon shouldn't have all the fun. Granny in a nursing home? You didn't pull the plug, so Taxed! Earning minimum wage? More taxes for you.

Here's a list of the CT governor's tax hikes:

ivars's picture

Just when the time is to start getting short, people here in many posts are getting hysterically nihilistic about events that should tell them endgame has started, also for stock market.

Which is one of signs that its true endgame. It starts when no one even in ZH anymore believes it will.

UninterestedObserver's picture

What a stupid fucking comment

dcb's picture

The endgame is when we get rid of the federal reserve. the hosing crisis was made worse by bernanke's liquidity which drove oil up to 147, that deepened the recession and made the housing crisis worse. then collapse. he thopught things would be contained f=because he didn't understand how his injections of liquidity would raise the price of oil and deepen the recession.

the scenario I have talked about since we started this mess would be this cycle would keep happening over and over again and each and every time this happened the bernake would add stimulus. It's why I go to sleep each and every day with a prayer he will slip and fall and hit his head, or have a car accident, or the american people will finially engage in revolt against this tyrant.

Careless Whisper's picture

Carl Icahn to his investors: Market heading lower and I don't want to take your stinkin' phone calls. Here's your money back.


Mr. Poon's picture

Short Bloomberg:

"Americans want to have cake and eat it too, poll shows."

Also, loved this quote from the article:

"We all know people who are in debt yet cannot for the life of them figure out where the money goes."

I dearly love the American electorate (no really, I do), but that pretty much describes them at this point.

buzzsaw99's picture

the sec is more rife with joos than the fed these days.

glenlloyd's picture

I think Larry McD may have made the same mistake about Chinese holdings of US debt as was done in the thread from yesterday...or so it appears. Looks like he compared pre and post revision levels perhaps.