GE Capital

Frontrunning: April 1

  • Saudi Arabia Will Only Freeze Oil Production If Iran Joins (BBG)
  • Japanese gloom ensures slow start to quarter for world stocks (Reuters)
  • Saudi Arabia Plans $2 Trillion Megafund for Post-Oil Era (BBG)
  • Prices Sag in Warning to ECB Even as Manufacturing Picks Up (BBG)
  • China factories scent hint of spring, Europe still chilly (Reuters)
  • Theranos Devices Often Failed Accuracy Requirements (WSJ)

Frontrunning: March 31

  • Roller-coaster first quarter ends with shares, dollar under pressure (Reuters)
  • Oil prices slide as U.S. crude stocks hit record (Reuters)
  • GE Files to End Fed Oversight After Shrinking GE Capital (WSJ)
  • FDA Eases Rules for Abortion Pill, Making Access Simpler (BBG)
  • Kremlin denies report of Russia-U.S. deal on Assad's future (Reuters)
  • Thirst for Gasoline Fuels Oil Rally (WSJ)
  • Landlords in last-minute rush to beat stamp duty rises (BBG)

GE To Cut 6,500 European Jobs

Earlier today GE announced plans to cut 6,500 jobs in Europe over the next two years, including 765 in France, a spokesman for the company in France said on Wednesday. The spokesman added that GE was sticking to its pledge to create 1,000 net jobs in France in the next three years as part of its recent acquisition of Alstom's energy business. So definitely firing 6,500, but tentatively promising to add 1,000.

How We Got Here: The Fed Warned Itself In 1979, Then Spent Four Decades Intentionally Avoiding The Topic

At least parts of the Fed all the way back in 1979 appreciated how Greenspan and Bernanke’s “global savings glut” was a joke. Rather than follow that inquiry to a useful line of policy, monetary officials instead just let it all go into the ether of, from their view, trivial history. But the true disaster lies not just in that intentional ignorance but rather how orthodox economists and policymakers were acutely aware there was “something” amiss about money especially by the 1990’s. Because these dots to connect were so close together the only reasonable conclusion for this discrepancy is ideology alone. Economists were so bent upon creating monetary “rules” by which to control the economy that they refused recognition of something so immense because it would disqualify their very effort.

Frontrunning: September 2

  • Markets on edge as policymakers flex muscles (Reuters)
  • European shares recover from rough ride (Reuters)
  • For Stock Markets, the Moment When Humans Matter (WSJ)
  • Puerto Rico's PREPA, bondholders have framework for deal (Reuters)
  • Hundreds of migrants protest at Budapest station, want to go to Germany (Reuters)
  • New Whale Seen Moving Tokyo Markets (BBG)

American Malls In Meltdown - The Economic Recovery Is Complete & Utter Fraud

What happens when we roll back into the next official recession, unemployment soars, and consumers really stop spending? What is revealed when you look under the hood of this economic recovery is that it is a complete and utter fraud. The recovery is nothing but smoke and mirrors, buoyed by subprime auto debt, really subprime student loan debt, corporate stock buybacks, and Fed financed bubbles in stocks, real estate, and bonds. The four retailers listed below are nothing but zombies, kept alive by the Fed’s ZIRP and QE, as they stumble towards their ultimate deaths. The coming recession will be the knife through their skulls, putting them out of their misery.

Goldman Is Officially A Bank: Bailed Out Hedge Fund Will Allow Muppets To Give Their Savings To Lloyd Blankfein

The last time former Goldman employee and then Treasury Secretary Hank Paulson bailed out the hedge fund known as Goldman Sachs, and its closest peers (but not its biggest fixed income competitor Lehman Brothers of course), even the traditionally confused American public pushed back on the structure of the bailout which converted the Goldman holding company into an FDIC-insured company, which led many to ask: just where are Goldman's deposits? The answer, of course, was nowhere, so perhaps in anticipation of the logical pushback against its second, upcoming bailout which would see the taxpayer-backed depositor insurance company once again provide trillions in cash to banks as well as the glorified hedge funds such as Goldman, the firm moments ago decided to do something it has never done before: become an actual bank with checking accounts and such.

Frontrunning: June 11

  • Pope urges Putin to make 'sincere, great effort' for Ukraine peace (Reuters)
  • Merkel Tells Tsipras It’s Time to Back Talk With Policy Action (BBG)
  • 'Greek tragedy' needs happy ending now: EU's Moscovici (Reuters)
  • Vulture Funds Circle Greece Targeting Europe’s Best Trading Bet (BBG)
  • Germany against third aid program for Greece under any circumstances, says daily (Reuters)
  • Biggest OPEC Members Pump Record Oil With Rally in Jeopardy (BBG)
  • Greek ruling reversing pension cuts will cost state 1 to 1.5 bln euros (Kathimerini)
  • China’s Former Security Chief Zhou Yongkang Sentenced to Life in Prison (WSJ)
  • MSCI backs itself into corner on China share inclusion (Reuters)

Frontrunning: June 8

  • White House denies Obama said strong dollar a problem (Reuters)
  • Lira Falls to Record Amid Stock Rout as AK Party Loses Majority (BBG)
  • Bond-Market Game of Chicken With Fed Is Riskier Than Ever (BBG)
  • Xetra Dax enters correction territory (FT)
  • China trade shrinks amid slowing demand (FT)
  • Greek government eyes compromise with lenders, rules out snap polls (Reuters)
  • If You Think Greece’s Crisis Will End Soon, Think Again (BBG)
  • China growth data ‘overstated’ due to data error (FT)
  • Calpers to Cut External Money Managers by Half (WSJ)

David Einhorn Is "Adding More Shorts", Has A Question For Mario Draghi

"At the bottom of the cycle, firms cut labor faster than output. The higher productivity led to improving margins, earnings and stock prices. Now labor is being added faster than output, and with large companies like McDonalds, Walmart and Target announcing pay increases, unit labor costs are likely to increase further. All told, there is a good chance earnings will actually shrink this year. We think the market is too high if earnings have, in fact, peaked for the cycle, and we have reduced our net exposure by adding more shorts."

- David Einhorn