Frontrunning: October 28

• K1 hedge fund snared in probe as Barclays, JPMorgan face losses (Bloomberg)
• 48596th time's the charm- after all it's only some paper and ink...GMAC may receive third bailout package from US government (Bloomberg)
• Real homes of genius: Culver City and the housing Stockholm Syndrome. Approximately 5 percent of current home price is related to government bailouts (Dr. Housing Bubble)
• Last benefits of stimulus felt as durable goods rise 1%, 0.9% ex transportation (AP, Census Bureau)
• "Jobs created or saved" is White House fantasy (Bloomberg)
• More OutrAIGe (The Nation)
• Apollo shares plunge as SEC starts accounting inquiry (Bloomberg)
• The future of hedge funds (MarketWatch)
• Housing slump hits California timber industry like a buzz saw (LA Times)
• Michael Wolff- Is Obama a Sleaze (Newser, h/t M.S.)
• TomTom chief says prices of navigation equipment to drop more, shares fall (Bloomberg)
• Jones Apparel cuts into the bone as revenue drops 11% and misses expectations, as earnings climb 11%- no accounting/inventory shenanigans to see here (MarketWatch)

Comments

[anynonmous]

Dean Baker's blog (Beat the Press)

If an $8 Trillion Housing Bubble Collapsed and Wrecked the Economy, Would the Media Notice?

[Bob]

From the ObamaSleaze article:

"But 26 fundraisers later he’s undoubtedly transformed himself into a true crony of the liberal rich. At this rate, he’ll do nearly a 140 in his first term; and he’ll have to double that to match George Bush’s take.

I wonder if you can actually recover from this? If it doesn’t necessarily make you into a desperate man and a profound cynic? At some level, you must either accept the fact that you’re dirty, or, in the interest of denial, come to believe that these guys are really your brothers.

You lose your sense of pride and sense of self when you beg people for money. Not just because they want something and will surely get something for what they give you. But because you have to convince yourself that that’s not the case.

Still, you’re not a whore. Worse: You actually fall in love with these men."

Very insightful summary of BarryO. 

[etrader]

Goldman doing the usual change when they get wind of numbers?....

Now saying 2.7 on GDP

[bruce wayne]

The real question is how big is the downward revision next month...

[Anonymous]

"European and U.S. authorities are examining whether K1, which manages funds of hedge funds, deceived the banks when borrowing money to ratchet up the size of its investments,"

Should read:

European and U.S. authorities are examining whether all TARP RECIPIENTS, deceived Taxpayers when borrowing money to ratchet up the size of their speculative investments in the stock and bond markets.

[Anonymous]

"Housing slump hits California timber industry like a buzz saw"

What housing slump. I thought we were recovering.

[Anonymous]

Anyone think they're setting it up to be surprised to the upside on the GPD number tomorrow? If they say 2.7% and the original number was 3.2%, and they come out and say we printed 4%, the DOW's going back over 10K quicker than you can blink.

I for one wouldn't be surprised.

[docj]

Welcome to "The List", Ms. Baum.

Love,

The Chicago Mob