Viacom

Why There Is So Much Pro-War Reporting

In the last 48 hours, everyone's beloved stock - AAPL - has lost around $35 billion in market capitalization. That is larger than the entire market capitalization of these large-cap companies...

It is clear now that we must have been wrong about the economy. No more proof is needed than the fact the Dow has gone up 1,500 points. Everyone knows the stock market reflects the true health of the nation – multi-millionaire Jim Cramer and his millionaire CNBC talking head cohorts tell us so. Ignore the fact that the bottom 80% only own 5% of the financial assets in this country and are not benefitted by the stock market in any way. It is time to open your eyes and arise from your stupor. Observe what is happening around you. Look closely. Does the storyline match what you see in your ever day reality? It is them versus us. Whether you call them the invisible government, ruling class, financial overlords, oligarchs, the powers that be, ruling elite, or owners; there are powerful wealthy men who call the shots in this global criminal enterprise. No amount of propaganda can cover up the physical, economic, social, and psychological descent afflicting our world. There’s a bad moon rising and trouble is on the way.

• Wal-Mart's Sales Problem—And America's (WSJ)
• Investors fret that Italy may undermine ECB backstop (Reuters)
• Monti Government Mulls Delaying Monte Paschi Bailout (BBG)
• Norway Faces Liquidity Shock in Record Redemption (BBG)
• ECB's Praet Says Accommodative Policy Could Lose Effectiveness (BBG)
• EU Chiefs Tell Italy There’s No Alternative to Austerity (BBG)
• New Spate of Acrimony in congress As Cuts Loom (WSJ)
• BOE's Tucker hints at radical growth moves (FT)
• Kuroda Seen Getting DPJ Vote for BOJ, Iwata May Be Opposed (BBG)
• Russian Banks Look to Yuan Bond Market (WSJ)
• Dagong warns about rising debt (China Daily)
• Italy Election Impasse Negative for Credit Rating, Moody’s Says (BBG)

• Markets Go Dark Ahead of Storm (WSJ, RTRS, BBG, FT)
• MF Global Problems Started Years Ago (WSJ)
• Major Greek daily reprints Swiss accounts list, editor who published list to go on trial for violating data privacy laws (RTRS)
• Coming soon to a USA near you: Hong Kong government imposes a property tax on overseas buyers (Bloomberg)
• The pain in Spain is endless: Spain’s Pain Seen Intensifying as Slump Deepens Plight (BBG)
• Las Vegas Sands Discusses Possible Settlement With Justice Department (WSJ)
• Why Does the SEC Protect Banks’ Dirty Secrets? (BBG)
• Honda slashes forecast on China territorial spat (AFP)
• UBS shares jump on expected radical overhaul (Reuters) ...so if UBS cuts 150% of workforce, shares will hit +?
• CEOs Seeking Global Range Tilts Market to 8,000-Mile Jets (Bloomberg)

• Greece Faces Need for Additional Assistance: €30 billion (WSJ)
• Greeks fail to agree on bailout terms (FT)
• The report that got the NYT banned on the Chinese interweb: Billions in Hidden Riches for Family of Chinese Leader (NYT)
• Bo Xilai: China parliament expels disgraced politician (BBC)
• Japan Adds Stimulus Amid Threat of Bond-Sale Disruption... $9.4 billion (Bloomberg)
• Hubbard Said to Prefer Treasury Chief to Fed If Romney Wins (Bloomberg)
• 9 More Banks Subpoenaed Over Libor (WSJ)
• Romney raises $112m in 17 days (FT)
• Amid Cutbacks, Greek Doctors Offer Message to Poor: You Are Not Alone (NYT)... no, we are all broke
• Muni Downgrades Top 2011 Total on Weak Economy: Moody’s (Bloomberg)
• Ireland urges ECB to commit to bond-buying (FT)
• Cameron and Clegg unite in EU demands (FT)

Emotion, while an important element in man’s array of mental tools, can unfortunately triumph over reason in crucial matters. In the context of simple economic reasoning, today’s intellectual establishment often disregards common sense in favor of emotional-tinged policy proposals that rely on feelings of jealously, envy, and blind patriotism for validation rather than logical deduction.  “Eat the rich” schemes such as progressive taxation and income redistribution are used by leftists who style themselves as champions of the poor.  Plucking on the emotional strings of envy makes it easier to arouse widespread support for economic intervention via the state. Printed money is not the same as accumulated savings which would otherwise fund sustainable lines of investment. The truth is that capital is always scarce; there is never enough of it. Krugman and Stiglitz believe, as most do, that Americans should be born with the opportunity to succeed. What they fail to see (or refuse to acknowledge) is that the free market provides the best opportunities for someone to make a decent living by providing goods and services.

• Merkel Prepares to Strike Back Against Hollande (Spiegel)
• China to subsidise vehicle buyers in rural areas (Reuters) - what could possibly go wrong
• Bankia’s Writedowns Cast Doubts on Spain’s Bank Estimates (Bloomberg) - unpossible, they never lie
• Shares in Spain's Bankia plunge on bailout plan (AP) - oh so that's what happens when a bank is bailed out.
• SNB’s Jordan Says Capital Controls Among Possible Moves (Bloomberg)
• Greeks Furious Over Harsh Words from IMF and Germany (Spiegel)
• Tehran defiant on nuclear programme (FT)
• Finally they are getting it: Greece needs to go to the brink (Breaking Views) - of course, Citi said it a week ago, but it is the MSM...
• OTC derivatives frontloading raises stability concerns (IFRE)
• Wall Street Titans Outearned by Media Czars (Bloomberg)

• More HFT Posturing: SEC Probes Rapid Trading (WSJ)
• Fed’s Bullard Says Monetary Policy May Be at Turning Point (Bloomberg)
• Hilsenrath: Fed Hosts Global Gathering on Easy Money (WSJ)
• Dublin ‘hopeful’ ECB will approve bond deal (FT)
• EU Proposes a Beefed-Up Permanent Bailout Fund (WSJ)
• Portugal Town Halls Face Default Amid $12 Billion Debt (Bloomberg)
• Hidden Fund Fees Means U.K. Investors Pay Double US Rates (Bloomberg)
• Europe Weighs Trade Probes Amid Beijing Threats (WSJ)
• Bank of Japan Stimulus Row Fueled by Kono’s Nomination (Bloomberg)

• Brazil declares new ‘currency war’ (FT)
• Postal Cuts Are Dead Letter in Congress (WSJ)
• China state banks to boost selected property loans (Reuters)
• ECB Says Overnight Deposits Surge to Record (Bloomberg)
• Van Rompuy confirmed for 2nd term as EU Council president (Reuters) - you mean dictator
• BOJ Shirakawa: Japan consumer prices to gradually rise (Reuters)
• IMF Says Threat of Sharp Global Slowdown Eased (Reuters)
• Eurozone delays half of Greece’s funds (FT)
• BOJ Openings Can Shape Monetary Policy (Bloomberg)

It appears that slowly but surely the NDAA equivalent for the less than compliant on air mainstream media is picking up steam. First it was Napolitano's Freedom Watch getting cancelled by Fox (ostensibly for his endorsement of Ron Paul but who knows) some days ago, and now Politico reports that that political uber-lampoon Stephen Colbert has been also temporarily "suspended". From Politico: "The late-night comedy program hosted by Stephen Colbert will suspend production for at least two days this week, POLITICO has confirmed. The Colbert Report, the home of relentless parodying of super PACs and the campaign finance system, will not air original episodes on Wednesday or Thursday. "Due to unforeseen circumstances, the show will air repeat episodes on Wednesday, February 15 and Thursday, February 16,” Comedy Central Senior VP for Communications Steve Albani told POLITICO. Albani would not comment on the specific reasons for the suspension. It is expected that the suspension of original production will not be indefinite, and that the show will return soon." We can only hope that the ringing endorsement of freedom of speech by CC owner Viacom was not a major reason of the "uncommented" reasons for the suspension. Or lack thereof as the case may be in the US these days.

• To Reassure Markets, Europe Needs Bigger Bailout Fund, Says Geithner (WSJ)
• European Central Bank acts to prop up debt of Italy, Spain (WaPo)
• ECB bond intervention set to spur debate (FT)
• Debt Issuers Brace for Impact from Downgrade (Reuters)
• G-7 Seeks to Calm Investor Fear After World Stock Selloff(Bloomberg)
• S&P Affirming U.S. Short-Term Debt Ratings May Keep Money Markets in Check (Bloomberg)
• New Rules in Game of Sovereign Debt Risk (FT)
• Japan Would Sell Yen to Dissuade Speculators (Bloomberg)
• China Sells Japan Medium-, Long-Term Debt 1st Time in 9 Months (Business Week)

While stocks seemed in a world of their own today relative to Treasuries, FX carry, PMs, oil, and even the USD, they managed to make solid gains amid above average volume following a series of dismal macro prints this morning. Credit outperformed but we outline why the velocity of moves may slow a little here.

The market slid today as Cisco spooked investors with a bad Q as they are still struggling to come up with a hit after the Thong Song, the G20 meetings proved to be less positive than a Helen Thomas pregnancy test, and macro news was more non-existent than dark matter (for now), as...

• Irish borrowing costs hit high, EU says has tools to act (Reuters)
• Obama Presses Hu on Yuan as Trade Imbalances Divide G-20 (Bloomberg)
• Irish bank chief eyes foreign buyers  (FT),
  which means after Greece and Portugal, the PBoC will soon add Ireland
  to its European holdings, and further reduce the Fed's European sphere
  of influence
• Geithner Moves to Soothe G20 Currency Tensions (Reuters)
• G-20 Nears Pact but Tensions Still Fester (WSJ)
• Asia's Central Banks Face a Policy Dilemma (BusinessWeek)
• Makeovers on Hold as Consumer Caution Validates Bernanke (Bloomberg)
• "Jersey Shore" lifts Viacom profit (Reuters)
• Why the Fed's QEII Will Not Work (RCM)