Nortel

Frontrunning: September 2

  • Donald Trump Revised Immigration Speech After Mexican Leader’s Tweet (WSJ)
  • Hillary Clinton Raised $143 Million in August for Democrats and Her Campaign (NYT)
  • Putin says he doesn't know who hacked U.S. Democratic Party (Reuters)
  • Samsung issues recall for Galaxy Note 7 after battery fires (Reuters)
  • Putin Joins "OPEC Headline" Fray, Pushes For Oil Production Freeze, Iran Exemption (ZH)

Frontrunning: May 6

  • Trump, under pressure to unite Republicans, sharpens attack on Clinton (Reuters)
  • Trump's Campaign Upends the Science of Presidential Transition (BBG)
  • Trump says Britain would be better off outside EU (Reuters)
  • Goldman Said to Extend Fixed-Income Job Cuts to 10% of Staff (BBG)
  • Apple's Tim Cook to visit China for government meetings (Reuters)
  • China regulator studying impact of overseas-listed firms relisting in China (Reuters)

Frontrunning: December 31

  • Oil ends 2015 in downbeat mood; hangover to be long, painful (Reuters)
  • Recession, retrenchment, revolution? Impact of low crude prices on oil powers (Guardian)
  • Midwest Flooding Might Make the Oil Glut Worse (BBG)
  • From Oil Glut to Shortage? Some Say It Could Happen (WSJ)
  • Ten Years After Blowup, Amaranth Investors Waiting to Get Money Back (WSJ)
  • China Fires a Warning Shot at Yuan Speculators With Bank Bans (BBG)

Take Cover - Wall Street Is Breaking Out The Bubblies

This charmed circle includes Google, Amazon, Baidu, Facebook, Saleforce.com, Netflix, Pandora, Tesla, LinkedIn, ServiceNow, Splunk, Workday, Ylep, Priceline, QLIK Technologies and Yandex. Taken altogether, their market cap clocked in at $1.3 trillion on Friday. That compares to just $21 billion of LTM net income for the entire index combined. The talking heads, of course, would urge not to be troubled. After all, what’s a 61X trailing PE among today’s leading tech growth companies?

The Prison State Of America

Prisons employ and exploit the ideal worker. Prisoners do not receive benefits or pensions. They are not paid overtime. They are forbidden to organize and strike. They must show up on time. They are not paid for sick days or granted vacations. They cannot formally complain about working conditions or safety hazards. If they are disobedient, or attempt to protest their pitiful wages, they lose their jobs and can be sent to isolation cells. The roughly 1 million prisoners who work for corporations and government industries in the American prison system are models for what the corporate state expects us all to become. And corporations have no intention of permitting prison reforms that would reduce the size of their bonded workforce. In fact, they are seeking to replicate these conditions throughout the society.

Frontrunning: September 23

  • U.S., backed by Arabs, launches first strikes on fighters in Syria (Reuters, BBG)
  • But not all all back: Turkey Bars Kurds From Entering Syria to Fight Islamic State (BBG)
  • Dollar Weakens on Airstrikes; Europe Stocks Drop (BBG)
  • Ready for Rate Riot? Emerging Markets Set to Follow Fed (BBG)
  • White House fence jumper had ammunition, machete in car, prosecutors say (WaPo)
  • El-Erian "would have done things differently" (Reuters)
  • Eurozone business growth slows in September, PMI survey finds (BBC)
  • Shrinking Bond Desks Taken by Journeymen as Masters Fade (BBG)
  • Manufacturing Rebound Relieves Growth Concerns in China (BBG)
  • Former Trader Quits Playboy Club to Open Own Restaurant (BBG)

Frontrunning: August 26

  • That will teach the UAE who's boss: U.S. Won’t Consult Syria on Militant Strikes: White House (BBG)
  • Putin Set to Meet Poroshenko as Ukraine Tensions Escalate (BBG)... but the de-escalation algo?
  • Tim Hortons’ Canadian Fans Squeamish of American Hookup (BBG)
  • Israeli air strikes target more Gaza high-rises (Reuters)
  • How Steve Ballmer Became a Rookie Basketball Mogul (WSJ)
  • Buffett to Help Finance Burger King Tax-Saving Deal (BBG)
  • U.S. Factories Keep Losing Ground to Global Rivals (WSJ)
  • Boehner, Camp Profit From Corporate Bid to Avoid U.S. Tax (BBG)
  • Experimental U.S. hypersonic weapon destroyed seconds after launch (Reuters)
  • The Neo-Neocons (WSJ)

Frontrunning: August 13

  • U.S. Regulator Subpoenas Banks Over Long Warehouse Queues (BBG)
  • Apple Said to Prepare Holiday Refresh of IPhones to IPads (BBG)
  • Fed's Yellen Says Stance on Banks Hardened (WSJ)
  • Mexico opens up its energy sector (FT)
  • Spin: Greek GDP marks gradual deceleration of recession (FT) ... spin aside, it dropped 4.6%, and in reality, probably over 10%
  • Made-in-Canada Solution For BlackBerry Avoids Nortel Fate (BBG)
  • America's Farm-Labor Pool Is Graying (WSJ)
  • Video of 'lame' cattle stirs new concern over growth drugs (Reuters)
  • Paulson Bid for Steinway Trumps Kohlberg Offer (WSJ)
  • Egyptian government yet to decide on pro-Mursi vigils (Reuters)

Guest Post: Bankruptcy Litigation Does Not Generate New Wealth

As municipal bankruptcies become the New Normal, it's worth noting that litigation does not generate more wealth to distribute, it simply burns existing wealth, leaving less to distribute. Yes, this is stating the obvious, but what's obvious is precisely what's ignored when fantasy attempts to trump reality. Every constituency in every municipal bankruptcy believes they're the most deserving, and they believe that litigation will reveal the obvious truth of their claim. Unfortunately for those counting on the Grand Federal Bailout, the queue at the Federal bailout window is already long: $100+ billion bailout of FHA, which issued hundreds of billions of dollars of mortgages to unqualified buyers; $100+ billion in uncollectible student loans owned or guaranteed by Federal agencies, and of course the $1+ trillion annual deficits needed just to fill the massive feeding troughs of the Status Quo.

From 9/11 To PRISMgate - How The Carlyle Group LBO'd The World's Secrets

The short but profitable tale of how 483,000 private individual have "top secret" access to the nation's most non-public information begins in 2001. "After 9/11, intelligence budgets were increased, new people needed to be hired, it was a lot easier to go to the private sector and get people off the shelf," and sure enough firms like Booz Allen Hamilton - still two-thirds owned by the deeply-tied-to-international-governments investment firm The Carlyle Group - took full advantage of Congress' desire to shrink federal agencies and their budgets by enabling outside consultants (already primed with their $4,000 cost 'security clearances') to fulfill the needs of an ever-more-encroaching-on-privacy administration.

Meet Dylan The Day-Trader, Or When Fundamentals No Longer Matter

Only 25, self-described 'risk-taker' Dylan Collins plays the markets with a pot of more than $1 million - $100,000 of his own money earned from trading over the past two years, the rest provided by his bosses and partners at AMR Capital Trading. As The Washington Post reports, Dylan exclaims, "trading is fun; for me this is the dream job;" but as they note, for most of us, day trading conjures up the image from the dot-com era of some dude in his pajamas with a two-day growth of beard logged on to a Charles Schwab account buying Nortel Networks and Pets.com on margin. But have no fear for - New York-based AMR, a division of G-2 Trading, is a lot more disciplined and sophisticated than that - specializing in “momentum trading,” riding hot stocks up and cold stocks down, taking advantage of the irrational herd behavior that characterizes financial markets. “I understand the idea that maybe you’d want to do something more meaningful, but I don’t think I need to worry about that at my age,” Dylan explains as he exploits momentary mispricings and sudden spikes in volume. The thing about this kind of trading is that you don’t have to know very much about the companies whose shares you are buying or selling.  “So much of trading is just about intuition,” he adds brushing off how quickly knife-catching turns to blood (as the BTFD strategy backfired on Sino-Forest and Digital Domain). History repeating or Darwinian justice?

Frontrunning: May 2

  • The number of bond funds that own stocks has surged to its highest point in at least 18 years (WSJ)
  • Clubby London Trading Scene Fostered Libor Rate-Fixing Scandal (WSJ)
  • Cheap money bankrolls Wall Street's bet on housing (Reuters)
  • Bank of Japan reveals concerns over easing policy (FT)
  • iPads and low-end rivals propel higher tablet shipments  (Reuters)
  • China Cyberspies Outwit U.S. Stealing Military Secrets (BBG)
  • Draghi Fuels Bets on Rate Cut With Risk of Limited Impact (BBG)
  • China guides renminbi to fresh high against US dollar (FT)
  • Japan is preparing to start up a massive nuclear-fuel reprocessing plant (WSJ)
  • Apple’s Ive Seen Risking iOS 7 Delay on Software Overhaul (BBG)
  • UBS faces calls for break-up at investor meeting (Reuters)