Book Value

Tyler Durden's picture

Life Lessons To Derive From QE And Stress Tests





QE destroys societies, economies and financial systems, it doesn’t heal them. So maybe it’s a touch of genius that the great powers of global finance have first pushed Keynes into the academic world and then academics like Bernanke and Yellen into positions such as head of the Fed, making everyone blind to the fact that what they think is beneficial, including many who think they’re real smart, actually hurts them most. This whole thing is so broken and perverted it’s getting hard to understand why anybody would want to continue clinging on to it. But then, what does anybody know? 95%+ of people have been reduced to pawns in someone else’s game, and they have no idea whatsoever.

 
Tyler Durden's picture

On Traders' Minds This Morning





A summary of the key things on traders' minds this morning, as reported by Peter Garnry, head of equity strategy at Saxo Bank

 
Capitalist Exploits's picture

Value in France - Who Would have Thought?





We were surprised to find out about this deep value opportunity in France, bastion of European bureaucratic policies and socialism.

 
Tyler Durden's picture

Frontrunning: June 9





  • Attorneys Known for Large Civil Settlements Line Up to Sue GM Over Company's Handling of Defective Ignition Switches (WSJ)
  • Pakistani Taliban attack airport in Karachi, 27 dead (Reuters)
  • U.S. Official: Sgt. Bowe Bergdahl Has Declined to Speak to His Family (WSJ)
  • Ukraine Gas Talks Resume in Brussels to Avoid Cut-off This Week  (BBG)
  • China's Central Bank Flexes Muscle (WSJ)
  • China says Vietnam, Philippines' mingling on disputed isle a 'farce' (Reuters)
  • World Needs Record Saudi Oil Supply as OPEC Convenes (BBG)
  • Kraft Raises Prices on Maxwell House, Yuban U.S. Coffee Products (BBG)
  • United Continental: One Sick Bird (WSJ)
 
Tyler Durden's picture

The Top Three Questions Goldman Clients Ask





In this difficult market, and confusing - for traders, and everyone else - environment, what are the three main questions posed by Goldman's clients had? According to David Kostin, "Three questions dominated our investor dialogue this week given the lack of meaningful data releases.

  1. Interest rates: The recent decline in ten-year US Treasury yields to 2.6%, the forward path of interest rates, and implications for equity valuation;
  2. Capex: the outlook for corporate capital spending in 2014; and
  3. Rotation: The potential for the momentum drawdown of the past two months to reverse and vault high expected sales  growth companies back into a market leadership position.
 
Reggie Middleton's picture

So, It Seems Like That Andreesen Dude Might Actually Know What He's Talking About, But I'll Still Spill His Secrets





I got into a Twitter debate with Marc Andreesen of Netscape (the inventor of the commercial web browser) and Andreesen Horowitz (the VC fund that financed Facebook, Twitter, Skype & Zynga) fame.

He spit out what was mostly common sense, yet still flew in the face of what is taught in school, most text books and by most B school teachers. Here's how it went down...

 
Tyler Durden's picture

Nigeria Just Doubled The Size Of Its Economy With The Stroke Of A Pen





Over the weekend, Nigeria’s government made an accounting adjustment in how it calculates its GDP statistics. By changing the base-year in GDP calculations from 1990 to 2010, Nigeria increased the reported size of its economy by 89% over the weekend. So with a stroke of a pen, the West African nation leapfrogged South Africa to become the continent’s largest economy. And in doing so the country’s debt-to-GDP ratio fell below 20%. Of course, the US government does exactly the same thing… often conveniently leaving out huge portions of its total debt such as the non-marketable securities it owes to the Social Security trust funds. It’s all about maintaining a false sense of confidence at all costs, no matter what lies they have to fabricate, no matter what fraud they have to commit.

 

 
Asia Confidential's picture

One Emerging Market To Buy





South Korea stands out as a buying opportunity amid the indiscriminate emerging markets sell-off.

 
Tyler Durden's picture

Warren Buffett's Latest Letter To Investors





For those who follow folksy Uncle Warren, here is the breakdown of Berkshire's Q4 and full year results, as well as his latest letter to investors.

 
Tyler Durden's picture

Frontrunning: February 10





  • Yellen's first test (Reuters)
  • Let weak banks die, says eurozone super-regulator (FT)
  • Yellen, Carney Face Explaining Policy as Benchmarks Near (BBG)
  • Commerzbank Said Seeking Debt Buyers in $6.8 Billion Spain Exit (BBG)
  • Junk Yield Premiums Soar on China’s Looming First Default (BBG)
  • Millions Trapped in Health-Law Coverage Gap (WSJ)
  • Mandel Tops Best-Earning Hedge Funds for Clients in 2013 (BBG)
  • Swiss Brace for Sour EU Relations After Immigration Vote (BBG)
  • Detroit Bankruptcy Talks to Resume (WSJ)
 
Tyler Durden's picture

The Federal Reserve's Nuclear Option: A One-Way Street to Oblivion





The point isn't that "the Fed can't do that;" the point is that the Fed cannot create a bid in bidless markets that lasts beyond its own buying. The Fed can buy half the U.S. stock market, all the student loans, all the subprime auto loans, all the defaulted CRE and residential mortgages, and every other worthless asset in America. But that won't create a real bid for any of those assets, once they are revealed as worthless. The nuclear option won't fix anything, because it is fundamentally the wrong tool for the wrong job. Holders of disintegrating assets will be delighted to sell the assets to the Fed, of course, but that won't fix what's fundamentally broken in the American and global economies; it will simply allow the transfer of impaired assets from the financial sector and speculators to the Fed.

 
Tyler Durden's picture

Dead Mall Syndrome: The Self-Reinforcing Death Spiral of Retail





The decay of the "build it and they will come" model of commercial real estate is gathering speed for a simple systemic reason: the decline is self-reinforcing in several critical ways. Before we start the analysis, let's ask a basic question: How much of the stuff and services purchased at retail outlets, malls, strip malls, etc. is absolutely necessary and how much is excess consumption? Conventional "Growth by any means" Cargo Cultists such as Paul Krugman never ask this basic question, because the answer (very little is essential, most is excess consumption) undermines the entire narrative that all growth is good, even the most marginal, unsustainable, wasteful and fiscally imprudent. I've captured the essence of retail in America with this photo:

 
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