Fluff Piece

"These Young Bankers Are Trying To Save The World"

Who says the only thing bankers are good at is relying on (then blaming) S&P and Moody's research reports to justify their investments in worthless toxic subprime, then levering up beyond all known limits and putting on unbelievably risky trades in hopes of striking it rich or blowing up and getting bailed out by taxpayers. According to Bloomberg "these young bankers are trying to save the world."

"Margin Call" - The Trailer

Wall Street 2 was an epic disappointment, and massive failure due to a totally mangled mishmash of a script (and how could it not be after some rather prominent, literally, bloggers were asked to provide screenplay input) for a movie that was supposed to encapsulate the Great Financial Crash of 2008 (we won't even bring up that straight to premium Lifetime fluff piece by a liberal name-dropping OpEd columnist). Yet where the sequel to the quintessential Wall Street (hence the name) movie failed, a new one may take its place: Margin Call. We have not seen the advance screening yet, but it really can not be worse than the "other" GFC movie - at least here they can afford Bloomberg terminals.

FMX Connect Debunks The Reverse Psychology In Goldman's "Buy Gold" Recommendation

Late last week, Zero Hedge pointed out that Goldman Sachs had come out with yet another flip flop piece on gold, having recommended that clients should go long, then short, then long again, pretty much depending on which way the wind blows. We have long been skeptical of Goldman calls on anything, let alone gold, as the firm, just like JPMorgan is very much fundamentally conflicted any time it has a bullish "recommendation" on any precious metal due to the very intimate influence gold and other commodities have on Fed presidents' perception of inflation (and the last thing one would want is for Bernanke's deflation scare tactics to be doubted by more than just Dallas Fed's Fisher, who despite lofty rhetoric has yet to back his words with even one abstaining vote). That said, our skepticism about Goldman's sudden shift in bias has been validated by FMX Connect, which has conducted a forensic analysis of just what Goldman is seeking to achieve with its most recent recommendation. We continue to be far more bullish on any price appreciation prospects for gold, when Goldman (not to mention that other clown on TV), are bearish on gold, than the inverse.

Got Crazy Python Skillz? Want To Manipulate Markets? Then This Job Is For You

Computer hackers running US market structure? Check please. Or else, you can watch CNBC's fluff piece on how HFT is a little bad, but not all that bad. P.S. can CNBC disclose who provided the funding for its little forray into HFT coverage (which is just 1.5 years too late). "Python developer needed for math/trading applications and research at leading HFT firm. This company is a top-tier electronic, algorithmic trading firm, located in Chicago, IL. This firm is one of the most advanced high frequency electronic trading firms in the world and uses python throughout the company, as well as other languages. This firm has a culture that rewards creativity and hard work."

Europe May Be Insolvent But It Sure Is Guzzling Electricity

An interesting chart depicting European monthly yoy change in electricity consumption comes to you via Goldman. Now that Europe's true fiscal problems are being exposed, look for such datapoints, which Goldman is of course using as a pitch to just how great Europe's condition is (for a real indication how "good" things are, check the EUR Libor, or the TED spread posted earlier, but let's not forget Jim O'Neill fluff piece about How Good The World Is, issued about 50 S&P handles higher - tells you all you need to know about bias), another, and more objective way to read the data, is to expect European electric output to decline materially. What that may mean for nattie and spent uranium rods, one can decide on their own.

Guest Post: A World Without Banks

Imagine a world without bankers. That thought either rattles you to the core of your being, or it brings on the kind of ecstasy heretofore only available in a Southeast Asian massage parlor. If you are a Congressman, addicted to the effluent from the wallets of your owners on Wall Street and their lobbyists in Washington, if you are a real estate developer who believes no amount of office space and no amount of luxury condominiums is too much, or if you summer in the Hamptons and Nantucket, then you are clearly in the first camp. If you are a typical ZH’er, spending your weekends at the range with your Beretta or sharpening the tines on your pitchfork, then welcome to SE Asia and the world of your wildest fantasy.

Merrill Vs (Ex-)Merrill: Rosenberg Takes On David Bianco's Unending Bullish Misperception Misconceptions

The focus of Rosie's morning note has to do with debunking the latest misconception pushed by Barron's, which in all honesty is merely paraphrasing one of Rosie's own successors at Merrill Lynch - David Bianco, whose most recent fluff piece "Harvesting the Truth" (presented below) was an insult to thinking homo sapiens worldwide. The particular item that Rosie has beef with is the Bianco allegation that the consumer is not really 70% of US GDP. Here is Rosie's rebuttal.

Econophile's picture

Foreign Policy magazine has just come out with its list, “The FP Top 100 Global Thinkers." They rate the intellectual giants, the Big Thinkers, the Big Brains of our current world. It is the most pompous fluff piece that I have seen in, well, quite a while. It just brims with a lack of intellectual rigor, reason, and good scholarship. It is a kind of Parade magazine feel-good fluff that we see in many of these types of lists. And it is grist for my vitriolic mill. You will be sadly disappointed.

Goldman Believes Two-Thirds Of Financial Losses Realized, Completely Ignores Derivatives And FAS 166/167

"Bad loans = big losses" Golaman's most recent quantification of bank losses begins objectively enough, yet promptly devolves into yet another cheer fest for the financial system. GS promptly rehashes its estimate of "only" $2.1-2.6 trillion in bank losses, slighty adjusting the composition of loans it believes will go bad, while completely ignoring the onboarding of off-balance sheet liabilities (FAS 166-167) as well as any and all potential losses in the derivative realm, where Goldman itself is on the hook for tens of trillions in gross notional. The only thing missing from this fluff piece is a Conviction Buy rating on Goldman itself (but the Conviction Buy on toxic credit card and real estate debt laden BAC, JPM and COF is certainly present).

Levitt, Advisor To Goldman And Getco, Voices For HFT

Arthur Levitt, former chairman of the SEC, writes an Op-Ed in the WSJ on HFT, titled "Don't set speed limits on trading" providing the usual justification for the phenomenon, claiming it "contributes significantly to market liquidity, a critical measure of market health and something all investors value." What ensues is a less than objective defense, with no disclosure of his existing substantial conflicts of interest.