Frontrunning: October 30

• Expect major dark pool, ECN, ATS backlash: NYSE Euronext net profit down 28% in Q3 (AP)
• Fed supervision backlash picks up as regional Fed directors threaten with MAD: Per Lyle Gramley: "If Congress interferes with the Fed’s ability to do what
  has to be done, it could have major negative effects on the
  economy through its impact on inflation. The threat to central bank autonomy looks to be the worst that I can recall in my lifetime." (Bloomberg)
• Eurozone jobless at 9.7%, highest since 1999 (BBC)
• Deflation in Europe: Euro consumer prices still down (AP)
• Deflation in Japan: 2.3% drop in Japan CPI (Forbes)
• Bankers expect rising bonus pay, courtesy of massive government subsidies, to break record in global poll (Bloomberg)
• Floyd Norris: To rein in pay, rein in Wall Street (NYT)
• The great depression and the great recession: more alike than you think (Forbes)
• Goldman, CIT reach deal to keep smaller credit facility open in case of bankruptcy (Bloomberg, Reuters) as bankruptcy now inevitable (Bloomberg)
• Deep flaws in stimulus package report: the tale of 30,000 missing jobs (24/7 Wall Street)
• The Pay Czar is unconstitutional (WSJ)
• Subsidies in France: Sarkozy may extend "grand loan" over two years, advisor says (Bloomberg)
• JPMorgan raised internal fears about Galleon as far back as 2001 (FT)
• Chinese gambling fever let loose as it shuts down new ChiNext exchange (MarketWatch)
• Municipal bond yields rise as week's sales reach six month high (Bloomberg)
• Fedspeak: roadmap for the exit (Morgan Stanley)

Comments

[hp12c]

everything deflating, except bankers bonus pay...What's wrong with this picture?

[Steak]

Don't forget the price of anything you buy with debt (ed, med, haus, kar)...the price of all those things are increasing as well.

And gas.

Let them eat off the dollar menu!

[Anonymous]

All profits are deflating except the banks profits
Greenspan economics again!

[Anonymous]

From the Bloomberg poll article:

“I don’t think it’s the government’s place to interfere or set limits or regulations on executive pay,” said Chris Gurkovic, chief market strategist at Deltatide Capital in Jersey City, New Jersey. “If someone is going to take the risk they should be compensated for it.”

How can people still be saying this sort of thing and not get lynched? How can Bloomberg quote this without at least a hint of how preposterous it is?

[rekfhardy]

On Lyle Gramley's comment, keep in mind he was a longstanding Director of Indy Mac Bank...Part of the problem, not the solution?

[brown_hornet]

“I don’t think it’s the government’s place to interfere or set limits or regulations on executive pay,” said Chris Gurkovic, chief market strategist at Deltatide Capital in Jersey City, New Jersey. “If someone is going to take the risk they should be compensated for it.”

And they should be allowed to go BK.

[Gordon_Gekko]

"The structure is and was carefully constructed by its founders" - Kansas City Fed President Thomas Hoening

http://www.bloomberg.com/apps/news?pid=20601087&sid=aIww4fZIKpRM

Yeah, no shit...TO LOOT AND PILLAGE THE PUBLIC.

[Steak]

Its funny (in that wanna cry type way) that in these Fed officials' intellectual framework a middle class wage hike would be more inflationary than printing a few trillion dollars.

[Ned Zeppelin]

I have an inordinate fondness for attempting to distill things down to simple rules or guidelines. What I "distilled" this week:

1. The TBTF legislation is remarkable out-of-nowhere-who-asked-for-this evidence of the ongoing coup d'etat.  No sense hovering in the gray areas if you can operate in the open with the stroke of a pen, especially when you control the author. It legalizes stealing on a grand and permanent scale. It is madness, pure and simple. It is the end of the road of this saga.

2.  Equal madness: after a disastrous decade, or more, giving the Federal Reserve vastly augmented regulator rights.  The Fed must be audited and, on the issue of whether or not it can be "politically isolated" in order to properly function, such parameters are not possible in the real world and thus the Fed and all of its operations must come under the purview of Congress immediately. My only choice other than having congressmen running it is to tolerate further usurpation of power by the banking elites. No, thanks.

3.  There is a profitable Goldman trade, to wit: everything they say is a lie. If they say it is daylight outside at noon, you must exit the building to check. Think through the consequences of what they say, and trade the opposite. Goldman gets all such "secret" govt info in advance of its release.

4.  It is all about the dollar, the Federal Reserve's tick-bloated balance sheet and printing presses, and Treasury debt.  There is a back up plan for the end of QE, and the Perma-TARP legislation is no doubt part of it.  Print money to pump into banks directly  - then they can buy Treasuries. Healthcare and Carbon Trade Bills are red herrings for distraction purposes. Nothing dramatic will happen in the equity markets for the foreseeable future.  The DOW, SPX, take your pick are indices providing a daily measure of the status of the coup d'etat, nothing more.  The dips are programmed, the rallies engineered, and the banks profit handsomely by them. There is no safe short position until further notice. And the longs will be taken at some point in the future, but until then have no choice but to cling to their positions.  There will be no down, until suddenly, without warning and triggered by an exogenous event, there is.

Think X's song: "See How We Are." This is what we are, who we are, and where we are headed. Have no doubt.

[spekulatn]

5. Sting said the world is a mess and BHO has been sent down from "G**" to save us all.

http://www.breitbart.com/article.php?id=D9BKU4HG0&show_article=1

"Better...better get a bucket"

"MARK IT ZERO, DUDE"

[glenlloyd]

Threat to central bank autonomy? I got your threat right here, repeal the Federal Reserve Act, that'll take the hot air out of your bubble(s).