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Weekend Reading
- All you ever wanted to know about Paolo Pellegrini, and didn't realize you should ask (Bloomberg)
- Nakagawa, Japan's former finance minister, who resigned after drunk incident at G7, found dead (FT)
- Simon Johnson: A short question for senior officials of the New York Fed (Baseline Scenario, h/t Pete)
- Is the mortgage REIT IPO/follow on bubble finally over? (Bloomberg)
- Roubini says stocks have risen "too much, too soon, too fast" (Bloomberg and RGE)
- Stiglitz deflation threat pushes Fed to stay at zero (Bloomberg)
- From Black Scholes to Black Holes (Dharma Joint)
- UK must not let zombie banks drain the economy (Telegraph)
- Problems await Obama after Chicago loss, as fallout tarnishes healthcare initiative; luckily expect far less TV appearances (FT)
- As previously discussed on Zero Hedge, U.S. job losses may be even larger, model breaks down (Bloomberg)
- Ministers hit back at bankers over regulation (FT)
- The jobs news gets worse (NYT, h/t Orange Yoda)
- TARP anniversary: by the numbers (HuffPo)
- Rolling stone reports that naked short selling killed Bear Stearns and Lehman Brothers (DeepCapture, h/t Lauren)
- Stanford seeks to unload $1 billion in hard-to-sell assets (WSJ)
- Wall Street faces day of reckoning over Bear Stearns (Telegraph)
- Rep. Alan Grayson may just fuck your shit up (Rude Pundit)
- Robert Reich: The truth about jobs that no one wants to tell you (HuffPo)
»
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here is the text of Roubini's latest post (no subscription required), which sort of, kind of suggests a "V" shaped recovery unless we have a "U" shaped recovery.
http://74.125.93.132/search?q=cache:biIl7cKqT1IJ:www.rgemonitor.com/roub...
Roubini from the Bloomberg article Oct. 4:
Roubini from his own blog Oct. 2:
I think he's lost his mojo ever since his brilliant market call back on March 14
Reflections on the latest dead cat bounce or bear market sucker’s rallyhttp://74.125.93.132/search?q=cache:H58_eTfL4hMJ:www.rgemonitor.com/roub...
Did Nakagawa die in Chiasso?
Perhaps over Chiasso...
Sleeping Pills.....hahahahaha
Off topic, but pretty sad. 8 US soldiers KIA in Afghanistan.
http://www.telegraph.co.uk/news/worldnews/asia/afghanistan/6259283/Afghanistan-Eight-US-soldiers-killed-as-Taliban-storm-outpost.html
Its the top story on all the MSM websites. The soldiers were at a isolated outpost when militants surrounded them.
Bring the troops home.
Troops and the $$$.
World Bank and IMF join global attack on the dollar
http://www.infowars.com/world-bank-and-imf-join-global-attack-on-the-dollar/
This CNBC clip should be required screaning in econ101, not because it's CNBC, but because of the guest speaker in the clip.
DO NOT TRUST ROUBINI...He takes instruction from Soro's and Summers! nuff said.
Yes, he's become like CNBC, suborned and irrelevent.
To go with BS and LEH, this guy pounds the table (understatement) that WM was taken down via a -gasp!- conspiracy including naked short selling:
The Biggest Banking Heist in World History: Washington Mutualhttp://www.marketoracle.co.uk/Article13894.html
Loved the Pellegrini story.
No silver longs - I don't play silver in the futures market - only buy physical. I do play with Gold futures, which I am long up the wazoo. Nice post BTW.
I guess the question becomes, why Paulson choose not to let him manage a macro fund?
How much data could he dig through before a Oil/Yuan trade? I don't know, he may want to stick with zip code database integration.
"naked short selling killed Bear Stearns and Lehman Brothers"
I agree that the activity referred to was completely illegal but to insinuate that that's what caused the firms' demise is total baloney. They were already worth big fat zero due to the crapola "assets" on their books. When will people understand this? It's kinda like saying (in the near future) that the dollar collapsed due to shorting by speculators, when in fact it would just be a recognition of the true worthless nature of the currency.
just finished "House of Cards" re the Bear failure. An outstanding read with great insights and takeaways that, in my view, support the theories (tagged "controversial" by those who fear the truth coming out) advanced here and elsewhere about the financial oligarchy running this country.
agree with gg that it wasn't the short selling that killed 'em, it was their shitty balance sheets, short term financing approach, risk mgmt. failure, leverage, etc. They would have been dead eventually. The irony is that one could substitute several current bank names for bear stearns in terms of what the status is right now. this story is not even close to over.
Exactly, except now the remaining players are pretty much all TBTF, and joined to the Fed at the hip. The Fed is them, they are the Fed and the currency is now shouldering the load of all the failures. I don't think there will be any more recognized/recognizable "failures" per se - just one big final currency fail.
you are likely correct in your forecast. I just keep wishing that someone would come out (ala volcker) and just say that we have to reduce the size of the TBTFs, increase capital requirements, reduce leverage, return to the days of Glass Steagall, and develop a plan to unwind the shit assets over a defined period of time, take the losses, blah, blah, blah, and just stop the phucking lying and coverups.
DH - That process would require that those who subscribe to what I refer to as "the window dressing world" admit that they have failed. These folks would rather destroy all than admit to a failure or a mistake. Too many secrets must become no more secrets.
i hear you. maybe it's me, but I have always recognized that I've made mistakes and when it happens, hey, fess up, admit the mistake, apologize, learn from it, and try to avoid repeating the mistake again. that's what we teach our kids, that's what my parents taught me.....
i guess there are too many insecure people in TPTB structure with low self esteem.
I think you miss an important point.
The people who fear exposure are those who are currently in very powerful/corrupted positions.
admitting so called "mistakes" (which are really fraud ona scale unimaginable) to the masses to the point where the mainstream "gets it" would be tantamount to suicide.
the real tragedy is that there doesn't seem to be enough americans who care or think they can do anything about it & so let these parasites get away with it.
Anon. We get it. We are just reminiscing on a rainy fall Sunday afternoon.
hahahahaha. Classic GG
Paulson killed Bear and Lehman!!! They were all short, but these two were not bailout!
Alan Grayson is fast becoming my personal hero.
I will support donation to buy him a decent hairball piece!..His recent urination on both parties is risky and the digging has begun to unearth some nefaric shagging scandal at a nursing home in Fla...lol
Here's Grayson with the kind of serious political discourse (whether from the left or the right) that has this country in such great shape:
http://www.youtube.com/watch?v=cexmPkkDKdg&feature=related
Serious as a polonium enema...
Which is incidentally what he will receive if he ever ends up sick. Grayson 2012.
HAHAHAHAHAHA
Here is another gem for the weekend!
http://news.yahoo.com/s/nm/20091004/bs_nm/us_imf_usa_bair
"Too big to fail doctrine must end". Oh Sheila.
Sheila Sheila Sheila.
If she starts to make too much noise, they'll just replace her with something else, unless, of course, it's all choreographed in advance.
choreographed? you're not refering to "Dancing Bair" are you?
Sleeping Pills.....
In case you didn't read Michael Lewis's latest in Vanity Fair:
The Man Who Crashed the Worldhttp://www.vanityfair.com/politics/features/2009/08/aig200908
Great weekend reading.
Leo: I don't need anthor reason to go completely Ape shit this weekend. I just spewed my lunch on count of Sunday NYTrash!
Still haven't recovered from losing one of your favorite DJ's Sqworl?
Excuse moi, but what favorite DJ???
Just read VF Good billions After Bad..what's next?
AM wasn't it if I recall?
Remember, AIG was & is simply a means to convey arbitrage. There is the whole business of business underneath that particular rock. Sorry. Feel any better?
Good recall, but I thought you were layne?
AIG is a Condum through which Banksters shag us!!!
I just returned from phamacy, the woman in front of me is married to a russian doctor and drives a MB and lives in a $2M home down the street. She is on Medicare...America, what a great country!
I was/am. All my best friends little brothers grew up to be the Layne's and Kurt's of the world. Love to put that kind of power to it. Regardless, my life work is far better represented by Miles. Thanks for the pick up.
AIG as a shagged condom discovered in a parking garage stairwell. I like it. Repersents both parties to a T.
Got it...;-)
ZH alumni...
The condum was found in Geithners office..in his chair...lol
Indeed. The parking garage stairwell. Sad thought that. A Robert, Jamie, Hank, Lloyd, Tim & Larry club sandwich.
Weekend TV....
http://www.youtube.com/watch?v=yqJbjLIzykU
Interesting how they did not cover the Economy???
No doubt
The bigger crime is that Goldman et al were made whole by the taxpayer, instead of being forced to deal with the risks they took.
These guys don't know what shame or honor is - their preposterous claim that they had to pay their employees bonuses to avoid losing them to their competitors is laughable considering their massive failure, but hey, if you know the government (aka taxpayer) is going to bail you out because you are too big, why not go for the whole enchilada?
they are the poster boys for the entitlement generation..
I guess there still isn't enough pain being felt among the general populace to really do something about this farce.
Unless the US acts to clean up its own house, and fast, it is doomed to implosion as it becomes increasingly reliant on the rest of the world, the same one whose trust they have allowed the parasites of Wall St to betray.
LBJ started the Great Society, which was effectively the beginning of the welfare state in America. Now, forty-five years later, we have Goldman Sachs and welfare for the elite society. Notice the G and the S. Coincidence? I think not. Wait until the Conspiratacci's get a hold of this! And don't even get me started on Geithner and Summers (tongue firmly in cheek).
Rosie calls BLS Birth & Death modeling Alice in Wonderland and the BLS & WFC agreed with him. ROFLMAO!
Grayson Grayson Grayson Grayson Grayson Grayson
If I say his name enough times can he become Dictator?
Liars, lie
"...The key email, as detailed in prosecution filings, was sent on April 22, 2007 by Tannin to the personal email account of Cioffi's wife, thereby circumventing Bear Stearns' email logs. In it, Tannin allegedly admitted that the "sub-prime market looks pretty damn ugly" and that he believed that the funds should either be closed or "get very, very aggressive".
"If we believe the [CDO (collateralised debt obligation) report is] anywhere close to accurate I think we should close the funds now.... if it's correct then the entire sub-prime market is toast. If AAA bonds are systematically downgraded then there is simply no way for us to make money – ever."
He went on to claim that the funds were in "bad bad shape" and openly asked who within the bank they should talk to about the situation.
According to court documents, three days after the mail was sent the two men hosted an investors conference call when Tannin said they were "very comfortable with exactly where we are," adding that "there's no basis for thinking this is one big disaster..."
Sounds disturbling too familiar.
read House of Cards for more details......it's better when Cioffi knows about pending withdrawal requests yet seems to conveniently forget that when talking to his repo lenders...... I wonder if JPM is just going to settle or fight this along?
Cioffi & Tannin are not the droids you're looking for either.
By Henny Sender and Saskia Scholtes in New York
Published: October 4 2009 22:30 | Last updated: October 4 2009 22:30
Goldman Sachs stands to receive a payment of $1bn – while US taxpayers would lose $2.3bn – if embattled commercial lender CIT files for Chapter 11 bankruptcy protection, people familiar with the matter said.
The payment stems from the structure of a $3bn rescue finance package that Goldman extended to CIT on June 6 2008, about five months before the Treasury bought $2.3bn in CIT preferred shares to prop it up at the height of the crisis. The potential loss for taxpayers would be the biggest to crystalise so far from the government’s capital injection plan for banks.
The agreement with Goldman states that if CIT defaults or goes bankrupt, it “would be required to pay a make-whole amount” that totals $1bn, the people familiar with the matter said.While Goldman is entitled to demand the full amount, it is likely to agree to postpone payment on a part of that sum, these people added. A CIT filing last week said that it was in negotiations with Goldman “ concerning an amendment to this facility”.
Goldman said: “This would not be a windfall payment. The make-whole payment is simply the present value of the spread to be earned over the life of the facility.”
CIT declined to comment. In an effort to prevent bankruptcy, it is working on a debt exchange offer that would virtually wipe out equity holders. In the event of bankruptcy, Goldman would reap more than $1bn because it also holds credit insurance that would be paid off.
Goldman said: “The credit default swaps Goldman Sachs purchased to prudently manage the risk associated with the CIT financing are not a directional ‘bet’ on CIT, but were bought to protect against the possibility of a precipitous decline in the value of the collateral.
Does anybody know who the counterparty was???? and please don't tell me it was the government!
The more I think about it the more I think that the naked short sellers (if they in fact killed LEH) should be awarded the Medal of Freedom.
Why? Because given what happened with AIG, C, BAC/MER, etc., if LEH had not blown up in a flash, the Geithner/Paulson/Bernanke Unholy Trinity would have bailed them out with taxpayer money, putting additional burdens on people yet to be born.
As it was, the blow-up happened so quickly that nothing could be done. In a sense, that was the day capitalism died for all time in America, the last time a firm was required to pay for its own mistakes.
"As it was, the blow-up happened so quickly that nothing could be done."
precisely...which was exactly the point.
the question you should ask yourself is WHO benefited from Lehman & Bear going down.
and whether them going down or not created the damage in the first place or whether the rot was already in the system and needed to be dealt with...somehow.
we think whoever THEY are don't deserve a medal but a flag -- to replace the false one they flew last fall.
What if it was GS- and JPM-associated people that took them down? What if the Trinity you mention were never going to bail out LEH? Free market capitalism died long before that day. And it's not the Government who has been picking and choosing winners in the banking arena.