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Frontrunning: October 2

Tyler Durden's picture





 
  • Everyone buying HFT platforms: chip sales rise 5% in August (WSJ)
  • Geithner says "Strong dollar is very important" to US (Bloomberg) too bad he is lying
  • IMF chief renews call for currency reform (FT)
  • Glorious is fifth flop in Hong Kong IPO "Massacre" (Bloomberg)
  • Banks with 20% unpaid loans at 18 year high amid recovery doubt (Bloomberg)
  • Wall Street wizardry reworks mortgages (WSJ, h/t Geoffrey)
  • For sale, cheap: "Old GM" peddles a bankrupt empire's remains (WSJ)
  • Fund managers bracing for a sell off (Business Week)
  • Cuomo got campaign cash from pension-probe figure, returned it (Bloomberg)
  • Investors in treasuries, dollars defy common sense (Bloomberg)
  • Simon Johnson: Seduced by a model (NYT, h/t Paul)
  • It was Ken Lewis who tried to bully Uncle Sam (Fox Business)
  • Krugman: Mission not accomplished (NYT), um, Paul, didn't you state the recession was over?
 


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Fri, 10/02/2009 - 09:20 | Link to Comment sondog
sondog's picture

"Everyone buying HFT platforms: chip sales rise 5% in August (WSJ)"

 

LOL. I love how you Tylers don't take yourselves too seriously. Makes you that much harder to pick apart by the media somehow.

 

You must be having an effect. In addition to the media attention to your little 'ol site, there certainly seems to be more demand for answers and prosecutions. The BAC/SEC issue, audit the fed, the Lehman twist just uncovered. People are starting to fight back in their various corners. Directly or indirectly, I'm sure you're helping.

Fri, 10/02/2009 - 09:23 | Link to Comment Mos
Mos's picture

From the Bloomberg article on banks with 20% delinquent loans:

"The bank with the highest level of non-current loans, 49 percent, is Community Bank of Lemont in Lemont, Illinois, a town of about 13,000 people 30 miles southwest of Chicago. "

49%? Can't imagine why they would be having problems, majority of their loans are still good.

Fri, 10/02/2009 - 09:27 | Link to Comment Anonymous
Fri, 10/02/2009 - 09:32 | Link to Comment bonddude
bonddude's picture

Even if it were true that there is the vaunted "$3.5 Trillion on the sidelines" I bet those balances are overly concentrated in the accounts of high net worth individuals who do not feel compelled to be in the market to survive. Generally, retirement accounts of working stiffs are fully invested already in stocks and bonds. As for taxable money, is it really coming back to the madness

when credit is being chopped by banks (probably up to $3 trillion by now) and U6 in the 20s.

GS bought the recovery number. My bet is they sell the news stocks, gold, oil.

Is Bill Gross right again? You've got to be early to beat with that much investable money.

Fri, 10/02/2009 - 09:32 | Link to Comment MinnesotaNice
MinnesotaNice's picture

The best line I have heard thusfar is from John Hussman "I'm extremely concerned we've put a Band-Aid over an infection," and that is exactly what we have done... we have hidden the problem with a band-aid... but when the drainage and odor starts seeping out from underneath that band-aid watch-out... systemic infection here we come.

Fri, 10/02/2009 - 09:37 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

LOL

I can't wait until the system starts amputating parts of it's own body in a desperate attempt to live another day.

Fri, 10/02/2009 - 09:46 | Link to Comment MinnesotaNice
MinnesotaNice's picture

lol... great extension of my thoughts... I have a few ideas of what should be amputated first... I'll give you a hint "squidectomy"   :-)

Fri, 10/02/2009 - 09:44 | Link to Comment Dixie Normous
Dixie Normous's picture

Thank God then, that there is no such thing as "odor-vision," especially when watching CNBS.

Fri, 10/02/2009 - 09:47 | Link to Comment MinnesotaNice
MinnesotaNice's picture

lmao... maybe we could create some 'scratch and sniff' stickers...

Fri, 10/02/2009 - 11:22 | Link to Comment Divided States ...
Divided States of America's picture

Think its the fifth time we have stuck a band-aid on there and the fifth one is basically holding all four of the previous ones by a needle thread...of course the infection is still spreading but you cant see it spread because each subsequent band-aid is much larger in size than the last one.

Fri, 10/02/2009 - 09:35 | Link to Comment I need more cowbell
I need more cowbell's picture

I think this may be the most interesting day this year, watching the powers that be defend the markets ( or not ). Pull up a chair, get your popcorn, and enjoy the show.

Fri, 10/02/2009 - 10:16 | Link to Comment MinnesotaNice
MinnesotaNice's picture

Oh come on now... the Federal Reserve trading desk is working overtime today... but they will have to really push it into high gear now because factory orders unexpectedly fell 0.8% in August... no coffee breaks today :-)

Fri, 10/02/2009 - 09:35 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Don't forget folks, it's that favorite time of the week.

Bank failure Friday!

Fri, 10/02/2009 - 09:49 | Link to Comment Gilgamesh
Gilgamesh's picture

Too Small To Fail regional CRE-ladden banks are about to turn green on this morning's good news.

 

Thank

God

It's

Failure-Free FDIC Friday

Fri, 10/02/2009 - 10:40 | Link to Comment Miles Kendig
Miles Kendig's picture

What is today's line on numbers and the over/under on totals?

Fri, 10/02/2009 - 11:14 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Since the world now knows they're broke and no new money coming in for 3 months, I suspect they'll keep bank failures at zero for a week or two to keep up the appearances (read illusion) they aren't desperate.

Fri, 10/02/2009 - 09:39 | Link to Comment I need more cowbell
I need more cowbell's picture

October, horrible news heading into the weekend, markets overbought ( hugely ). Damn, honey, I think we rented this movie before.

Sucks getting old.

Fri, 10/02/2009 - 09:45 | Link to Comment Gilgamesh
Gilgamesh's picture

I Know What You Did Last Quarter

Fri, 10/02/2009 - 10:39 | Link to Comment Anonymous
Fri, 10/02/2009 - 11:25 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

It's so transparent. Need a last minute stock market ramp to counter the terrible BLS employment numbers? Dump the dollar to jack the market.

"More power Scotty. I need more power."

"Captain, I'm giving you everything she's got. I can't hold her together much longer."

"Scotty, if we don't go faster, there'll be nothing left to hold together."

"Aye aye, Captain, I'll do my best."

Sourced quotations? Damn near every single original Star Trek episode. :>)

Fri, 10/02/2009 - 09:47 | Link to Comment cocoablini
cocoablini's picture

Geithner is lying..of course. Just look how the dollar was fast out of the gates and got clubbed like a baby seal. AND I love how marketwatch writes a story on gold moving back up and the dollar sagging BEFORE it actaully happened!

Fri, 10/02/2009 - 09:53 | Link to Comment Divided States ...
Divided States of America's picture

Yup, baby seal is the right word. Then promptly skinned alive and left for dead.

Fri, 10/02/2009 - 10:29 | Link to Comment pigpen
pigpen's picture

Bye bye dollar - the politically most expedient way to create wealth with the least obvious consequences suffered by the brainwashed masses (only 10% or less have passports) is to keep devaluing the dollar.

Joe Six Pack and company will look at what little is left in 401k's and nominally it will be higher.

Thank goodness they don't understand the difference between nominal and real RETURNS.

If they did, the US would make Bosnia seem like a church picnic.

Cheers,

Pigpen

Fri, 10/02/2009 - 11:29 | Link to Comment Assetman
Assetman's picture
  • Geithner says "Strong dollar is very important" to US (Bloomberg) too bad he is lying
  • It would be strongly appropriate if an undersecretary slipped up behind Timmy and tacked "Kick Me, I'm Lying" on the back of his suit jacket. 

    It would make anything Timmy says that much more humorous-- and provide the government an "out" for future lawsuits.

     

    Fri, 10/02/2009 - 09:49 | Link to Comment Divided States ...
    Divided States of America's picture

    Someone is holding the markets up at the expense of the dollar...looks like no matter what, the dollar gets killed....good eco data, dollar whacked...bad eco data, dollar smoked.

    Fri, 10/02/2009 - 09:55 | Link to Comment chinaguy
    chinaguy's picture

    Any idea why NGAS is getting killed today & UNG is up?

    Fri, 10/02/2009 - 10:18 | Link to Comment cocoablini
    cocoablini's picture

    UNG doesn't track very well. It also has very limited shares-they are not allowed to float anymore. So there is a premium on UNG ETF shares. The USG wants to limit ETFs in commodities. ETFS like USO cause huge disruptions in the market because of the rolling contracts

    Fri, 10/02/2009 - 10:28 | Link to Comment chinaguy
    chinaguy's picture

    Many thanks!

    Fri, 10/02/2009 - 10:19 | Link to Comment Gilgamesh
    Gilgamesh's picture

    UNG is lifting the suspension of creating new shares.

    Fri, 10/02/2009 - 10:02 | Link to Comment ratava
    ratava's picture

    I feel sorry for Americans, may your experience be a lesson for us all. Now go hang 'em.

    Fri, 10/02/2009 - 10:07 | Link to Comment TwoJacks
    TwoJacks's picture

    Why do any and all Treas Sec ever bother saying that a strong dollar is in the U.S.'s best interest.  I don't understand why then even waste their breath with the statement. Simply amazing

    Fri, 10/02/2009 - 10:15 | Link to Comment Cognitive Dissonance
    Cognitive Dissonance's picture

    The psychology of habitual lying is very interesting. In a nut shell, even thou everyone knows you've been lying all along, you must continue to lie in order to prove your sincerity and truthfulness. Or at least trustworthiness

    Yup, I know. I just described insanity.

    Fri, 10/02/2009 - 10:14 | Link to Comment mdtrader
    mdtrader's picture

    At some point this buy stocks on dollar weakness to trade is going to collapse. There is little logic to it.

    Fri, 10/02/2009 - 10:17 | Link to Comment bruce wayne
    bruce wayne's picture

    Just like Wednesday...

    Fri, 10/02/2009 - 10:25 | Link to Comment mdtrader
    mdtrader's picture

    About 50% of earnings come from overseas, and the bulk those come from Europe. If they push on the euro then that will eventually weaken the economies there. So that isn't good. Further, the 50% coming domestically will be subjected to a higher crude prices ect, which is a direct tax on consumer spending. Manufacturers will face higher cost without being able to pass prices on. How is any of this bullish for stocks? Not too mention the fact that once people see the strong euro is hurting the economies there, what will be the market reaction? Will they be buyers of the euro or sellers I wonder!

    Fri, 10/02/2009 - 10:38 | Link to Comment …unexpectedly…
    …unexpectedly…'s picture

    "How is any of this bullish for stocks?"  It's not, relativly speaking.  Just make sure you take off the rose glasses and divide the equity index by the price of gold, or 1/USD, whichever floats your reality trip.

    Fri, 10/02/2009 - 10:48 | Link to Comment mdtrader
    mdtrader's picture

    I guess. I'm just not sure how devaluing your currency works, when you have an economy that is 70% consumer spending, and that consumer is highly dependant on the car and oil. I hazard a guess that wasn't the case in the 30's.

    Almost 1 for 1 SPX and Gold now!

     

    Fri, 10/02/2009 - 10:26 | Link to Comment Screwball
    Screwball's picture

    Just buy REIT's, their screaming.

    Fri, 10/02/2009 - 10:39 | Link to Comment …unexpectedly…
    …unexpectedly…'s picture

    Few!  We are positive, again.  That was a close one.  Thanks, Ben.

    Fri, 10/02/2009 - 11:08 | Link to Comment Anonymous
    Fri, 10/02/2009 - 11:13 | Link to Comment Divided States ...
    Divided States of America's picture

    Like how OIL is now back at the lows of the day but the equity markets hanging tough. Speculators just making it tough for anybody to truly invest nowadays...OIL market is like the poker table, GOLD market is like russian roulette, and the STOCK MARKET is like the slots where the sheeple play and hope to strike it rich.

    Fri, 10/02/2009 - 12:00 | Link to Comment …unexpectedly…
    …unexpectedly…'s picture

    All right, everyone back on the Zions Bank train, again!  Nobody better prepared to ride out a storm than Mormon and Texan bankers on the Fed's tit. 

    Six months of Church mandated Nitro-Food packs?  Check. 

    Oil, gas, and wind turbines?  Check. 

    Most independent Federal Reserve Bank in the U.S?  Check. 

    ZION target $22.00?  Check. 

    Think of it as an ETF for the Flyover States, with a not-so-well hedged California/Nevada kicker.

    Fri, 10/02/2009 - 14:28 | Link to Comment MyKillK
    MyKillK's picture

    Where is the FDIC????? 28 banks with 20%+ defaulting loans and they haven't been closed? 

    Fri, 10/02/2009 - 15:02 | Link to Comment tradeking13
    tradeking13's picture

    Bloomberg -- U.S. SEC Likely to Act on Dark Pools, Nasdaq CEO Greifeld Says

    http://www.bloomberg.com/apps/news?pid=20601087&sid=a3lhBsxz8E_w

    Sat, 10/03/2009 - 11:48 | Link to Comment Hephasteus
    Hephasteus's picture

    Are these really IPO's or are they stock dumps. There's NO way so many IPO's would get pummelled the day after they are offered. There has to be something else going on. Central Banks covering huge amounts of the IPO's and then dumping the next day?

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