• Tim Knight from...
    09/16/2014 - 21:37
    What if it had gone differently? What if, six years ago, in the throes of the financial crisis, the political leaders in D.C. had decided that enough was enough, and they were going to seize the...
  • williambanzai7
    09/16/2014 - 12:16
    I have tons of good stuff to post, but this morning I'm feeling something like this...

New York Stock Exchange

Tyler Durden's picture

How To Lose $172,222 Per Second For 45 Minutes





This is probably the most painful bug report I’ve ever read, describing in glorious technicolor the steps leading to Knight Capital’s $460m trading loss due to a software bug that struck late last year, effectively bankrupting the company. The tale has all the hallmarks of technical debt in a huge, unmaintained, bit-rotten codebase (the bug itself due to code that hadn’t been used for almost 9 years), and a really poor, undisciplined dev-ops story.

 
Tyler Durden's picture

Chart Of The Day: Average New York Banker Makes 5.2 More Than Average Non-Banker





Behold the Wealth Effect: according to the NY State comptroller, the average NYC banker made $360,700 in 2012. This is 5.2 more than the average non-financial job in the city (i.e., all other jobs).

 
Tyler Durden's picture

Frontrunning: October 22





  • Despite budget win, Obama has weak hand with Congress (Reuters)
  • Carney Brings In McKinsey for Bank of England Strategy Rethink (BBG)
  • Bill Gates Buys Stake in Spanish Construction Company FCC (WSJ)
  • Jerusalem Mayor Barkat Seeks New Term in Race Arabs Sitting Out (BBG)
  • J.P. Morgan Aimed to Limit Damage (WSJ)
  • EU Lawmakers Reject Draghi Call for Bank Bondholder Clemency (BBG)
  • Wall Street Profits May Halve in Second Half (WSJ)
  • Petrobras-led group wins Brazil oil auction with minimum bid (Reuters)
  • Apple to Refresh IPads Amid Challenges for Tablet Share (BBG)
  • Italy plans to offer guarantees on govt bond derivatives (Reuters)
  • Berkshire Beats Apple as Favorite Stock of Tiger 21 Group (BBG)
 
Tyler Durden's picture

Frontrunning: October 17





  • Congress Vote Ends Impasse to Be Revisited in January (BBG); Congress Passes Debt, Budget Deal (WSJ)
  • House GOP extracts no concessions (Politico)
  • Washington becomes the biggest risk to the U.S. economy (Reuters)
  • Debt Deal Seen Boosting U.S. Consumers as Holidays Approach (BBG) - only thing missing: disposable income
  • Federal Employees Head Back to Work (WSJ)
  • Regulator Suggested Shift for Dimon at J.P. Morgan Unit (WSJ)
  • Twitter hires Google ad exec ahead of IPO (CNET)
  • Teens can now post publicly, but posts are friends-only by default (WaPo)
  • Germany Moves to Finalize Coalition Deal (WSJ)
  • Draghi Turns Judge on EU Banks as ECB Studies Accounts (BBG)
  • UK nuclear deal with China a ‘new dawn’ (FT)
 
Tyler Durden's picture

Frontrunning: October 2





  • U.S. Government Shut Down With No Quick Resolution Seen (BBG)
  • 12 House Republicans now say they’d back a ‘clean’ CR (WaPo)
  • Republicans’ 2014 Senate Edge Muddied by Shutdown Message (BBG)
  • Obama Shortens Asia Trip Due to Government Shutdown (WSJ)
  • Fed Said to Review Commodities at Goldman, Morgan Stanley (BBG)
  • Foreign Firms Tap U.S. Gas Bonanza (WSJ)
  • Behind Standoff, a Broken Process in Need of a Broker (WSJ)
  • Japan Awaits Abe’s Third Arrow as Companies Urged to Invest (BBG)
  • Microsoft investors push for chairman Gates to step down (Reuters)
 
Tyler Durden's picture

JCPennyless Announces $9.65/Share Public Offering Price





It's official: the absolute wreck of a soon to be insolvent retailer that is JCPennyless, has just announced the pricing of its 84 million shares (thank you Goldman Sachs), and the price is $9.65. Putting this into context, this offering price is 25% below the $12.90 price at which Bill Ackman dumped his entire stake a month ago to even more clueless "investors", and about 26% below the $13/share price at which Vornado sold its entire stake last Friday. Existing shareholders: congratulations, you just got diluted by 44% (with the full overallotment), but at least you get to enjoy your misery for a few more months as the melting icecube of a company does what it does best: continues melting.

 
Tyler Durden's picture

So Many Lies, So Little Time: JCP Sells 84 Million Shares Via Goldman Sachs Hours After Telling CNBC It Won't Sell Equity





Remember when one after another JCPenney executive lined up earlier today, mostly using that damage control TV outlet known as CNBC, to promise that JCP does not, repeat not, need emergency public equity funding? Guess what: they were lying. Just out from Bloomberg:

J. C. PENNEY ANNOUNCES PROPOSED PUBLIC OFFERING OF COMMON STOC
J. C. PENNEY COMMENCED PUBLIC OFFERING OF 84 MILLION SHARES

And the punchline:

  • JC PENNEY TO OFFER SHARES VIA GOLDMAN SACHS

Yep: the same firm that just killed JCP two days ago, is now diluting the stock some more.

 
Tyler Durden's picture

140 Years Ago Today, The Great Panic Of 1873 Led To The First Market Closure





With enough real and electronic ink spilled over the past two weeks to describe every nuance of the Lehman crisis (as if anyone can ever forget those vivid days) that nearly 3 months worth of Treasury issuance could be monetized, we decided to go further back, some 140 years back in fact, to this day in 1873 which just happens to be day the first Great market Panic gripped the US, and resulted in the first ever shutdown of the New York Stock Exchange. Granted, these days the NYSE or N-ICE as it is currently known, and the NASDARK shut down on a daily basis courtesy of a billion collocated vacuum tubes and the rigged casino formerly known as the stock market, on a virtually daily basis. But back then, when the general population was still largely clueless just how broken and corrupt the ideal of market efficiency would become when commingled with political and corporate interests, it was quite a shock.

 
Tyler Durden's picture

Frontrunning: September 20





  • JPMorgan Guilty Admission a Win for SEC’s Policy Shift (BBG)
  • Pricing Glitch Afflicts Rollout of Online Health Exchanges (WSJ)
  • This will end well: Japan LDP Considers Draft Bill to Put Government in Control of Fukushima Cleanup (WSJ)
  • How a German tech giant trims its U.S. tax bill (Reuters)
  • Despite Merkel's Popularity, Angst Creeps In (WSJ)
  • Hank Paulson warns of regulatory conflict (FT)
  • Rajan Surprises With India Rate Rise to Quell Inflation (BBG)
  • Apple Begins Selling New iPhones (WSJ)
  • Pope Says Church Should Stop Obsessing Over Gays, Abortion (BBG)
 
Tyler Durden's picture

Frontrunning: August 29





  • UN Insecptors to leave Syria early, by Saturday morning (Reuters)
  • Yellen Plays Down Chances of Getting Fed Job (WSJ)
  • JPMorgan Bribe Probe Said to Expand in Asia as Spreadsheet Is Found (BBG)
  • No Section 8 for you: Wall Street’s Rental Bet Brings Quandary Housing Poor (BBG)
  • Euro zone, IMF to press Greece for foreign agency to sell assets (Reuters)
  • Brothels in Nevada Suffer as Web Disrupts Oldest Trade (BBG)
  • U.S., U.K. Face Delays in Push to Strike Syria (WSJ); U.S., U.K. Pressure for Action on Syria Hits UN Hurdle (BBG)
  • Renault Operating Chief Carlos Tavares Steps Down (WSJ)
  • Vodafone in talks with Verizon to sell out of U.S. venture (Reuters)
  • Dollar Seen Casting Off Euro Shackles as Fed Tapers (BBG)
 
Pivotfarm's picture

New York, Miami and New Orleans to Flood





A study carried out recently by Nature Climate Change took a look at and analyzed past and present floods in the world and was able to predict the future floods that will take place concerning 136 cities.

 
Tyler Durden's picture

Frontrunning: August 26





  • Bankers Brace for Fed Wind-Down (WSJ)
  • A Veteran Saudi Power Player Works To Build Support to Topple Assad (WSJ)
  • Gunmen shoot at weapons experts' vehicle in Damascus: U.N (Reuters) - as long as it's not drones
  • ECB Council Members Split in Jackson Hole Over Rate Cuts (BBG)
  • Fed Officials Rebuff Coordination Calls as QE Taper Looms (BBG)
  • As Egyptians Ignore Curfew, Talk of a U.S.-Brotherhood Conspiracy (NYT)
  • Pipeline-Capacity Squeeze Reroutes Crude Oil (WSJ)
  • Lawmakers Probe Willful Abuses of Power by NSA Analysts (BBG)
  • Indictments Expected in Alleged Trading Code Theft (WSJ)
  • India’s ONGC takes Africa gasfield stake (FT)
  • Capital Flight Drains Reserves as Rupee, Rupiah Fall (BBG)
  • Banks scale back rates business (FT)
 
Tyler Durden's picture

Deutsche Bank Hopes "Not All Margin Calls Come At Once In Case Of A Sell-Off"





A recent survey of asset managers globally, managing USD 27.4 trillion between them, found that 78% of defined-benefit plans would need annual returns of at least 5% per year to meet their commitments, while 19% required more than 8%, "a target of 5% per year can be reached but only by using leverage, shorting, and derivavtives." And sure enough, as Deutsche Bank (DB) reports, in short, investors have rarely been more levered than today! According to DB, a MoM change in NYSE margin debt >10% has to be taken as a critical warning signal as there are astonishing similarities in the sequence of events among all crises. As the S&P 500 just hit a new all-time high, investors might want to ask themselves when it is a good time to become more cautious – yesterday, in our view. Simply put, the higher margin debt levels rise, the more fragile the underlying basis on which prices trade; with even a less severe sell-off in equities capable of triggering a collapse.

 
Tyler Durden's picture

Stock Market Bubbles And Record Margin Debt: A (Repeating) History Of Ignoring All Warnings





It is well-known that as part of the S&P500's ascent to new records, investor margin debt has also surged to all time highs, surpassing for the past three months previous records set during both prior, the dot com and the housing, stock market bubbles. And as more attention has shifted to the topic of speculator leverage once more, inquiries into the correlation between bets upon bets and stock performance are popping up once more, in this case in a study by Deutsche Bank titled "Red Flag! - The curious case of NYSE margin debt." Of particular note here is a historical comparison of margin-debt warnings that have recurred throughout history but especially just before major stock bubble crashes, such as in the period 1999/2000, 2007/2008 and of course today, which have time and again been ignored. Here is what was said then, what is being said now, and what is ignored always.

 
Tyler Durden's picture

Guest Post: Trying To Stay Sane In An Insane World - Part 2





This insane world was created through decades of bad decisions, believing in false prophets, choosing current consumption over sustainable long-term savings based growth, electing corruptible men who promised voters entitlements that were mathematically impossible to deliver, the disintegration of a sense of civic and community obligation and a gradual degradation of the national intelligence and character. There is a common denominator in all the bubbles created over the last century – Wall Street bankers and their puppets at the Federal Reserve. Fractional reserve banking, control of a fiat currency by a privately owned central bank, and an economy dependent upon ever increasing levels of debt are nothing more than ingredients of a Ponzi scheme that will ultimately implode and destroy the worldwide financial system. Since 1913 we have been enduring the largest fraud and embezzlement scheme in world history, but the law of diminishing returns is revealing the plot and illuminating the culprits. Bernanke and his cronies have proven themselves to be highly educated one trick pony protectors of the status quo. Bernanke will eventually roll craps. When he does, the collapse will be epic and 2008 will seem like a walk in the park.

 
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