Let's Short Some Dollars

Same short different day. Cross asset alpha is back to SPARC acceptable levels.

The $500/Email Bankruptcy Bonanza, Or Does Capstone Heart Flight Club

Bankruptcy advisors are increasingly having to defend the exorbitant fees (expenses, not so much - see below) that they are charging from their zombied clients, which in the absence of traditional banker products has become one of the primary sources of revenue for whatever is left of the financial advisory industry. A wonderful case in point is today's defense by Evercore of the ridiculous fees they collected for quote-unquote advising on the most predetermined and advice-remote transaction in the history of bankruptcy, i.e. the nationalization of General Motors via the stalking horse legitimization mechanism.

Latest DTCC CDS Update (Week Of July 31)

Due to popular demand, Zero Hedge is happy to bring back the weekly DTCC CDS gross/net open interest recap. The primary reason we dropped coverage of CDS data over the past month was/is our belief that both fundamental and technical analysis, in the face of a rapturous market is pointless, and the only thing that matters is the ticking sovereign debt timebomb, as indicated by various Federal Reserve disclosures such as the H.4.1, H.3, and Z.1. If you don't believe me, please call any fundamental analyst at either a sell or a buy side firm at 4:00:01 pm. Nine out of ten times you will get voicemail (which, all else equal, is better than a vibrating dildo). Nonetheless, for the sake of completeness, it is useful to see what this formerly very useful data point from the world of CDS indicates: so here is what the latest out of 55 Water street says.

Mid Day Musings

  • What is good for the US apparently doesn't work for the UK: PIMCO refuses to buy BOE's gilts (Bloomberg)
  • And speaking of PIMCO, the "frequent flier miles accumulation facilitating" bond manager will not be in the PPIP: hopefully due to pressing conflicts of interest arising from participation in every other single alphabet soup ever created. (Bloomberg)
  • One man's personal account of the UBS tax follies (Bruce Krasting)
  • Chinese rioting subdued for now (Bloomberg)
  • And Chinese full scale intervention has resulted in a 48% jump in car sales. Oh yeah, and new loans have jumped five times since June. Can the world ever operate anymore witout a credit bubble somewhere? (Bloomberg)

My Immoral Beluved (Sic)

Some afternoon levity: now that Madoff is set to spend the remainder of his life behind bars, the public's attention is shifting to whatever other scandal will fill the pages of the yellow press. And as this summer has progressed very slowly, with the SEC cowering in its cave, afraid to do anything about the unprecedented market manipulation evident to anyone but the market regulator, the general public likely will have to make do with the tryst of Gov. Mark Sanford and his Argentinian beau as the topic de jour.

VWAP Close

SPARC computers are taking the SPARC bus to the SPARC hangout in the Hamptons after another job well done.