Frontrunning: January 13 (Goldman Sachs Edition)

  • Must read: Bring back Glass-Steagall - Banks that behave like hedge funds (and "trade ahead" of their clients) don't deserve guarantees (WSJ)
  • And speaking of Goldman hypocricy - The subsidy that won't die (Slate)
  • Friedman: Is China the next Enron? (WSJ)
  • Bernanke challenged on rates role in bust (WSJ)
  • German economy shrinks 5% in 2009, more than expected (Bloomberg)
  • Moody's says Greece, Portugal may face "slow death" (Bloomberg)

Frontrunning: December 23

  • In Former Soviet Republics, Dollar trades you on black market [gallup]
  • Congress: sucks; Obama: starting to suck; Economy: sucks; Life: sucks.  (Thank god we have experts to tell us these things) [gallup]
  • BankAmerrilwide starts Dollar General coverage with a "Buy." (Target price under a dollar?) [dow jones]
  • Blackberry outtage slows U.S. messaging to crawl (Inlaws celebrate renewed interest in pre-christmas stories by young guests) [reuters]
  • Bernanke enjoys 3-1 "in favor" ratio in Senate.  (Senate also enjoys 3-1 "in favor" ratio in Senate) [bloomberg]

Norway Central Bank Hikes Rates By 0.25% To 1.75%, Gives Clueless Bernanke A Hint

While Bernanke is preparing to hit the TV circuit (after hiring Obama's exhausted teleprompter team) to cash in on his Time Warner accolade, even as he is set to do nothing at all about the liquidity bubble forming in every aspect of the economy, the much more logical and efficient country of Norway is doing the right thing, and in making sure its economy does not overheat, has raised interest rates by 0.25% to 1.75%. The target rate: 1.25%-2.25%. In other news: Goldman Sachs is not moving to Oslo.

Sorry, The Upper Class Will Not Pull The US Economy Out Of The Depression

Several months ago Zero Hedge did an exhaustive study of relative contributions to GDP by consumer class decile: the conclusion was that even though it accounts for a mere 10% of US population, the ultra rich are responsible for over 40% of consumption in the US (yes David Bianco, that ever critical 70% of GDP, get over it). Of course, they end up being taxed for the privilege of consuming so much, but that's irrelevant for this post. What is, however, is a recent GALLUP poll which proves that Rosenberg's theme of "new normal frugality" is now entrenched in the consumer's psyche, and not just among the lower- and middle-classed, but, most surprisingly, in the higher income brackets as well. In November the richest Americans reported a 14% drop in average daily discretionary spending to $117. This is a far cry, and 30% off, from the peak of $185/day report in April of 2008. It also represents a disappointing downward inflection from October 2009, when hopes prevailed that upper income spending would once again take off courtesy of 33 Liberty.

Frontrunning: October 14

  • JPMorgan reports better than expected results, loan losses increase (AP)
  • Japan bond optimism at 8-month high as growth prospects before second largest economy wane (Bloomberg)
  • China to curb steel production to reduce oversupply (Bloomberg, h/t deadhead)
  • Geithner aides reaped millions working for banks (Bloomberg, h/t donald)
  • Don't reinflate the old bubbles (WaPo)
  • Dollar slumps to 14 month low (Reuters)


  • Developing: UBS to produce 4,450 names as part of settlement
  • UK Government swaps rise after Cameron warns of default risk (Bloomberg)
  • Warren Buffett: The Greenback Effect (NYT)
  • Scholes, Merton call for better bank-asset data (Bloomberg)
  • What drives market prices? The valuation vs momentum dichotomy (Value Expectations)
  • California to get $1.5 billion loan from JP Morgan (LA Times), China to provide equity tranche to complete LBO

Frontrunning: August 6

  • Liquidity deluge - markets higher after UK recession shockingly discovered to be deeper than expected; BOE pumps another $84 billion (Bloomberg)
  • Judge won't approve Bank of America, SEC settlement (Reuters)
  • Chrysler May Replace 300C Engineering With Joint Fiat Platform (Bloomberg)
  • Senate to vote today on cash for clunkers (Reuters)
  • AIG breakup is fee bonanza (WSJ)

Frontrunning: July 22

  • Gallup Poll: More disapprove than approve of Obama's healthcare policy (Gallup)
  • PIMCO and Centerbridge charging 13% for the privilege of bleeding CIT dry, before handing off charred remains to GE Capital (Bloomberg)
  • The GE - CIT Connection becomes obvious (Bloomberg)
  • CIT troubles raise Fed supervision questions (Reuters)
  • CNBC parent GE to exit TLGP taxpayer backstop program (AP)
  • Goldman Sachs lack of love puts profits at risk (Bloomberg)

Frontrunning: July 2

  • There goes the upside case: 467k job cuts on 363k expected, 9.5% unemployment, 14.7 million officially unemployed (BLS, AP)
  • And not just the US - Unemployment up to 9.5% in Eurozone as well (BBC)
  • In the same time over in La-La land... (FT)
  • Band Aid feature of the day: Europe to give $1.7 billion to Latvia (NYT)
  • Exelon raises hostile bid for NRG to $7.5 billion (Reuters)