Remember the look on one's face when one hears there is no Santa Claus, or tooth fairy? That, more or less, is what the visage on everyone's favorite CNBC anchors Becky Quick, Joe Kernen and Andrew Ross Sorkin was, when Chris Whalen matter of fact (because it is a fact) let a rare glimpse of reality on the NBC Universal distraction and entertainment show, when he said "There is no Chinese Wall. Please. Come on. This is Wall Street." Awkward silence follows. And why not: if the banks officially call frontrunning an "Asymmetric Information Initiative" to mask the simple illegality from the idiot regulators, why not call a spade a spade, and expose one more aspect of the lies and crime that is shoved down investors' throats every single day.
Earlier today, the New York Fed was kind enough to voluntarily disclose the finacial holdings and assets of one former Goldman Sachs employee, and current FRBNY president Bill Dudley. Bill Dudley is also known as the gentleman to have received, when he was stil head of the PPT, aka the Fed's Open Markets Group, a waiver signed by one Tim Geithner on September 19, 2008, allowing him to keep not only his investment in AIG, which was "de minimis" at $1,200, but also in General Electric, which was not de minimis at $106,830. And while his modest holdings of AIG likely did not impact Dudley's protocol of bailing out the failed insurer, his interest in GE, and thus its then fully held subsidiary NBC Universal, parent of such comedy channels as CNBC, could potentially have been a source of conflict. Which is why the Fed has disclosed the full holdings of Dudley as of the 2008 year, in which we find that the bulk of Dudley's net worth was held by JPMorgan Chase Deferred Income Benefit Award (over $1MM) and JPM Chase Deferred Compensation ($500,001-$1,000,000). Was Mr. Dudley also completely conflict free vis-a-vis the bulk of his holdings, and their custodian, and did the New York's Fed largesse to bail out JPM among many others, have anything to do with this particular heretofore unknown detail? Of course not. After all, Jon Corzine is a free man. In other news, anyone who needs urgent access to the discount window or a $1 trillion overnight loan at 0.001% interest, should just call the Fed's 24/7 hotline: 877-52-FRBNY.
Japan Launches Campaign to Weaken Yen (WSJ)
ECB to protect Europe by buying bonds (Telegraph)
Silent Scream of Swiss Franc Shows Great Distortion Amid Great Moderation (Bloomberg)
Pressured by White House, Treasury Secretary Is Expected to Stay at Post (NYT)
The U.S. Economy Feels the Pull of Gravity (BusinessWeek)
ECB Sees Lenders Rush to HoardCash (FT)
Groupon’s Strikeouts Reveal an Unspoken Truth (BusinessWeek)
Americans' Spending Increases in July (Gallup)
Pentagon’s First Installment on Cutting Debt May Be $28 Billion (Bloomberg)
Did Reggie Middleton's BoomBustBlog Best Wall Street's Best of the Best In Guaging The True Value of Google? We Have To Think More Like An Entrepeneur & Less Like A Wall Street AnalystSubmitted by Reggie Middleton on 07/19/2011 15:57 -0400
OTM Google calls purchased a couple of weeks before earnings returned roughly 10-20x the original investment. How did practically the entire Sell Side of Wall Street miss this opportunity while we screamed on the undervaluation of Google since last quarter? Well, you just can't plan or measure the domination of mobile computing 3 months at a time (and of course, front running clients make for more profitable trades)!
As promised, I am presenting historical justification of the logic behind my call of absurdity in the drastic drop in share price after Google announces a redoubled effort in investment and marketing of its nascent businesses.
The market sold off today as earnings were more mixed than...
- Asia stocks rise for a third day as US growth report bolsters confidence.
- China believes its foreign trade will grow at a moderate pace next year.
- Crude oil rises a fifth day after US inventories drop, economy expands.
- Dubai may sell more assets as $20B in debt comes due in next year.
- Electronic shipments from Asia to US rose at 15% pace in Oct - less than half the Jan-June rate.
- Fed may need to trim $600B stimulus as economy grows, Plosser says.
In a sad twist of fate for Comcast, its recent business channel acquisition, which numerous independent reports have alleged has become nothing but a prattling brown-nosing drone for the administration, spewing forth an endless barrage of mindnumbing propaganda, is seeing an ever increasing plunge in its viewership (which arguably validates said independent reports) which in November dropped to 47 in the demo, a 36% slide from a year earlier. Nowhere is this more obvious than in what's left of the audience of the original CNBC icon: Maria Bartiromo. The once jet-setting, and now merely setting money honey, whose Closing Bell slot starts at 4PM, has stooped to having the dubious reputation of being in possession of the weakest 25-54 demo among all of CNBC's November viewership, at just 41K per Nielsen's, a massive 51% drop from November 2009, and a 11% drop from October, it seems CNBC's ever sparser viewers have decided that even icons have a useful shelf life. But that's ok: we are confident that once the next round of CNBC "business rationalizations" takes place shortly once the NBC Universal transaction formally closes, the $ Honey will be able to fall back on the proceeds from her latest bestseller: "The Weekend That Changed Wall Street: An Eyewitness Account", which since publication on September 7, has blitzed almost to top of the charts and currently languishes in the much coveted spot #10,655 of bestsellers.
As was mentioned briefly yesterday, and all Netflix longs had hoped it would be promptly dead and buried, Comcast has begun imposing a fee on Internet middleman Level 3 Communications Inc., one of the companies that Netflix Inc. has hired to deliver movies and TV shows to Web customers. Bloomberg adds: "Comcast, the largest U.S. cable TV company, has set up an Internet “toll booth,” charging Level 3 whenever customers request content, the Broomfield, Colorado-based company said in a statement yesterday." This could very well be the end to the Netflix business model which so far has had the benefit of near-free streaming content distribution. Of course, this move was inevitable as Netflix is rapidly stealing traditional cable subscribers from precisely the likes of Comcast, whose premium on demand services are unable to compete with the Netflix model (which is based more on marginal churn retention than anything, and as such has very little barriers to entry). Furthermore, traditional distributors of content are also starting to scratch their heads at the cost-benefit analysis of their Netflix relationship. As such, as more and more gates are imposed, and as the cash breakeven suddenly surges for Netflix, what will likely be impaired is not only the firm's cashflow (which as we described recently has been rapidly declining) but to its long-term growth prospects. In a word: nothing good.
Distrust In US Media Hits Record High, As CNBC (And Especially Mad Money) Viewership Drops To Multi-Year LowSubmitted by Tyler Durden on 09/29/2010 22:40 -0400
In today's "less than surprising data point" category, the clear winner is Gallup's analysis of people's ever increasing distrust in the mass media. From 46% in 1998, the percentage of people who indicate they have "not very much/none at all" trust in mass media has grown to a stunning 57% currently. This is an all time record, as the general public perception toward the MSM has flipped over the past decade. Is it becoming increasingly more difficult to lie to the average American? In this time of unprecedented economic upheaval, where the political regime depends on just how far any given administration's lies can penetrate amongst the broader population, this may well become the most critical factor in determining policy for the future. And with ever increasing alternatives of non-traditional media, could the legacy ad-supported media model, which by definition is one which espouses the status quo, be doomed precisely by the slow but steady education of the average American, who intuitively realizes that nearly every "fact" appearing in the media, especially that supported by any given political party, is a lie? Which brings us to CNBC. If the above study is indeed correct, one would correctly guess that the viewership of the station once known for fair and objective analysis and breaking news reporting, and has now devolved to nothing more than the butt of jokes on financial media propaganda, should have plunged, even as the market remains as volatile as ever, with the VIX currently trading at levels not seen since the March highs. As the chart below shows, using data compiled from Nielsen, focusing on the ad revenue-critical target demo, this is in fact the case.
- ADB raises Asia ex-Japan growth f'cast for this year to 8.2% vs. July view of 7.9%.
- ADB says Asia must refrain from tightening 'too quickly'.
- Asian stocks fall on European debt concerns, Metal prices drops.
- Fed weighs a more open-ended, smaller-scale bond purchase program.
- German consumer confidence f'casts 4.9 pts for Oct, a rise from rev 4.3 pts in Sept.
- AIG's Asian unit gauges demand for its Hong Kong listing; plans to raise $10-15B.
- China Airlines plead guilty to fixing prices on air-cargo shipments, pay $40M fine.
- Exelon Corp. to sell $900M of debt to fund its purchase of a Deere's wind-power unit.
- Asian stocks rise to five-month high on US capital goods.
- Brazil crops shrivel as Amazon dries up to lowest in 47 years.
- Europe’s central banks halt gold sales; run of large disposals ends.
- Euro trades close to 5-month high against dollar, buys $1.3469.
- Eurozone annual M3 money-supply growth grew at a 1.1% in August vs. 0.2% in July.
- German business confidence rose unexpectedly in September.
- Germany backs tough EU deficit rules.
- Gold may advance to record on weaker dollar; Silver climbs to 30-year high.
- Japan said to consider up to $55B extra stimulus as recovery slows.
- Asia currencies fall, led by Rupiah, on bets US rates to rise.
- China’s top leaders pledged to maintain a “moderately” loose monetary policy stance.
- European stock markets fell as the dollar jumped to a five week high against the euro.
- Nikkei hits 6-week high on weaker yen.
- Sales at US retailers probably rose as consumer spending fuelled economy.
- Treasury Dept to earn $146.5M from its auction of 12.7M Capital One Fincl warrants.
- Asian stocks rally most since May, led by Japanese exporters; Yen weakens.
- E-commerce sales grew 5% YoY on Cyber Monday—first Monday after Thanksgiving.
- Euro up to $1.5111 in European morning trade as investors await ECB meeting.
- Gold sets third straight record; Newmont Mining forecasts $1,350/oz in 2010.
- Hong Kong should tighten rules to control asset prices: IMF.
- Japan shares jump nearly 4 percent to five-week high on weakening yen.