Frontrunning: November 10

• SAC said to tell clients a review found no suspicious trading (Bloomberg)
• John Crudele destroys the fabricated data coming out of the BLS: real unemployment at 22% (Post)
• The Mishkin galatic stupidity trifecta:
  • After destroying Iceland, finance "guru" Fred Mishkin says asset bubbles are a good thing (FT) - Where does the Fed find these sociopaths?
  • And even more toxic filth out of the Iceland destructor: The Fed is Already Transparent (WSJ)
  • As a reminder, Fred Mishkin, was left the Fed in disgrace in 2008, has credibility boredring on negative infinity (Zero Hedge)
• Charlie Gasparino on mollusks and purported credibility: Goldman Sachs doing god's work (HuffPo)
• Hedge funds are ready for new boom in start-ups (Bloomberg)
• Russia central bank continues anti-ruble interventions (FT)
• Keynes, Friedman give way to the master of gloom (Bloomberg)
• Don't buy Treasuries says Willem Buiter: Fed to raise rates (Bloomberg) - sure...in 2049
• The country that is supposed to lead Europe out of the recession not doing too hot: German investor confidence drops on weaker outlook (Bloomberg)
• Talk about mismarking: even with the CDS market ripping tighter, MBIA reports over $700 million CDS loss in Q3 (Bloomberg)
• Barclays net drops 54% in impairment charges: not even getting Lehman assets for a penny can save the firm anymore (WSJ)
• Cause who needs loans when you have a bubble: AIG Consumer Lender group shuts down 25 branches, fires 300 people (Bloomberg)

Comments

[TraderMark]

Albert Edwards of SG calls for new lows in 2010

http://is.gd/4RKEg

Albert Edwards, an analyst at French bank Societe Generale who correctly predicted the Asian financial crisis, sees global equity markets at a new low and chances of another global recession in 2010.

"People should question the happy clappy nonsense from sellside analysts," London-based Edwards, a global strategist with SocGen's Corporate & Investment Banking group, told a media briefing. "We are not saying that people should not participate in the rallies -- that will get you fired as a fund manager -- but they should not become too convinced of the recovery," he said

He said while inflation was a concern, deflation was a bigger worry in the near term, at a time when western and Japanese governments were effectively insolvent. 

[Racer]

True unemployment more probably at 22.1% Now why doesn't that surprise me.

Fiddle, fiddle, tweak and spin.

How long will it be before the people get really fed up with all the lies and seeing the banksters get away with what they have done to the ordinary people and still get huge payouts?

[Veteran]

Sanders' Too Big to Exist petition.  Sign it and pass it along

http://sanders.senate.gov/petition/?uid=c53f1aca-5881-403e-928b-a25980cb4e0c

[Anonymous]

you right about the sociopath thing, downright gormless spectacles.

http://image.minyanville.com/assets/FCK/Image/mishkin%281%29.jpg

[Anonymous]

What a relief that SAC tells us that everything's on the up and up! Just like Iran and Madoff and the SEC, criminals always tell you when they're being bad...

[MinnesotaNice]

I and plenty of others think that Hayek is wrong. The U.S. won’t necessarily tip into socialism. It will eventually again embrace markets. Too bad we’ll all have to endure the long wait to find out if we’re right.  Amity Shlaes

I don't agree... the bailout bell has been run too loudly and for too long... and it simply cannot be unrung... we will never go back to free markets... as if they ever were free... they will always have the hand of the government to backstop them creating great distortion, corruption, and an implied socialism (or as Cheeky would say fascism).

[Anonymous]

good thing Zero has off shore servers

Justice Dept. Asked For News Site's Visitor Lists

http://www.cbsnews.com/blogs/2009/11/09/taking_liberties/entry5595506.sh...

[Steak]

Even in me redpill days, I almost threw up all over my economics textbook written by mishkin.  I think it was actually the first textbook I read that I could emphatically proclaim was total BS.  I ignored what the book said and practically dared the teacher to fail me for writing real-world answers to her questions.

Gag me with a freaking spoon...

http://www.bestwebbuys.com/The_Economics_of_Money_Banking_and_Financial_Markets-ISBN_9780321122353.html?isrc=b-search

[Edna R. Rider]

The performance of the dollar and that silly ETF UUP has to make the Fed proud today.  I thought it might actually go up.  But alas, no such thing.

[Screwball]

I was impressed the dollar was trending up, until exactly 9:30 when it changed directions and headed back down.  Market up, dollar down.  Wash, rinse, repeat.

[Racer]

Same as usual it seems, dollar down and market up

When it is just toooo easy it snaps back in your face, like the bears earlier on in the year... all you had to do was short every day and it was 'easy' money

But when you have all buyers and no sellers, or all sellers and no buyers, something has to give

[Ruth]

For the layperson, can I suggest the newest Warren Pollock video, channel subscription recommended:  http://www.youtube.com/watch?v=z-y-hehqSXo

And some reference: http://www.boston.com/bostonglobe/ideas/articles/2009/09/13/why_capitalism_fails/

this may be a repeat, but Warren is a great source.

[Anonymous]

Never sAy never, cap will preveil

[Racer]

Today's news not so hot from EU and US!

GMT                     Current  Expected   previous         

10:00EUR Euro-Zone ZEW Survey (Economic Sentiment) (NOV)     51.8    58.0        56.9 

10:00 EUR German ZEW Survey (Current Situation) (NOV)   -65.6                -70.0                -72.2        

10:00  EUR German ZEW Survey (Economic Sentiment) (NOV)         51.1                55.0                56.0

15:00   USD IBD/TIPP Economic Optimism (NOV)                                47.9                49.0                48.7          

[ghostfaceinvestah]

One big difference between the US and Japan - if we were Japan, Mishkin would have stuck a sword in his stomach by now.

[Anonymous]

Umm, Mr Mishkin's not very bright for someone with as many qualifications as he has...

DavidC