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Egan Jones Downgrades Jefferies On Concerns About Sovereign Exposure Amounting To 77% Of Equity

Tyler Durden's picture




 

Because like with insolvent sovereigns and the law of communicating vessels, there rarely is just one cockroach.

From the note:

Jefferies Group Inc: EJR lowered BBB to BBB- (Neg.) (S&P: BBB)

 

Synopsis: Changed environment - the problems of MF have increased scrutiny of other medium-sized broker/dealers. We are concerned about the values included the $2.7B of " sovereign obligations " per page 24 of the Aug. 2011 10-Q representing 77% of shareholders equity. Although not as highly leveraged as MF Global's 40:1, we would prefer that JEF maintain a lower leverage than its 12.9:1. Note, the fiscal statements of JEF are skewed by the change in fiscal years. The financials are respectable especially given the tough operating environment. An item to watch is the $108M rise in interest expense (reflecting in part the $420M purchase of Pru Bache's Global Commodities Group) On the pos. side, JEF is a respectable competitor.

 

 

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Wed, 11/02/2011 - 21:50 | 1839574 Eireann go Brach
Eireann go Brach's picture

Another domino, eventually all dominos will fall and this time Ben you will not be able to save the world!

Wed, 11/02/2011 - 21:57 | 1839590 GrinandBearit
GrinandBearit's picture

We are almost at the end.  It's only a matter of time.  I have my popcorn and recliner all ready.

Wed, 11/02/2011 - 22:05 | 1839613 rocker
rocker's picture

So the HFT's are going to do what kind of manipulation now.  Up 300 or Down 300. 

 Anybody with knowledge knows the rallies in U.S. Equities are not real are already gone.  100% Cash.

  This make believe EW Wave Shit and Robo garbage trades are done.  Now What.

Will anybody finally admit;  We are Worse than Japan Now

Or will make believe land still live on. The CNBC frauds or the Bloomberg circus. 

Wed, 11/02/2011 - 23:32 | 1839805 fattail
fattail's picture

By 100% cash do you mean stacks of $100 bills in the wall safe behind the family portrait, or do you mean 100% cash - safely secured in a segregated account held by your broker???  If its the latter the 100% cash position you have may be closer to a 72.5% cash position.

Wed, 11/02/2011 - 23:52 | 1839837 flacon
flacon's picture

I think he means this.... CASH CASTLE!

 

 

ZIMBABWE CASH CASTLE

http://www.youtube.com/watch?v=L6yFnXAZgMA

 

ZIMBABWE CASH INVESTMENT PYRAMID

http://www.youtube.com/watch?v=CHjjUZugFCE

 

Wed, 11/02/2011 - 23:32 | 1839806 dasein211
dasein211's picture

Corzine was SENT into MF Global with the objective of collapsing it and rolling the remains into Goldman (presumably). And he was paid eight figures to do it, AND promised SEC TREAS after Geithner. If you had said six months ago that the largest FCM in the U.S. would be taken down, everyone would have laughed in your face, but here we sit. The only question is, who is next? How long will an FCM like ADM last before looking at Dodd-Frank and saying, "Screw this. We're selling our clearing operations and we'll just go back to straight-up product merchandizing." Why shouldn't they? If the FCM profit center is made impossible by the government and the corrupt regulatory bodies, why would they continue to operate an FCM? Why not sell to Goldman or one of the other megabank entites and then do their exchange-traded hedge business through them as a customer? When will the old Chicago boutique firms be similarly forced out, either through regulation that makes their business impossible, or through outright sabotage as with Corzine and MF? None of you FCMs are safe. THEY WILL COME AFTER YOU AT SOME POINT. You have been targeted for extermination. Either you wake up to this fact and expose these regulatory bodies, megabanks and the Federal Government and fight them, or you are going to end up like MF, being bought by Goldman or one of the other fascist government-connected megabanks for pennies on the dollar. You have been warned.

Thu, 11/03/2011 - 06:10 | 1840036 Stormdancer
Stormdancer's picture

Channeling Ann Barnhardt today are we?  Credit would be in order.  Integrity is really nice but absent that maybe a little shame?

pffft

 

Edit:  The "thumbs down" is definately very personally directed at the low-life messenger, not the message.  I happen to think Ann is wrong but I'd discuss that with her, not this poseur.

Thu, 11/03/2011 - 08:14 | 1840260 Yellowhoard
Yellowhoard's picture

Definative proof, or failure, of your hypothesis will come in the form of Corzine getting either a perp walk or the Sec. Treasury job.

Wed, 11/02/2011 - 23:40 | 1839821 natty light
natty light's picture

It is amazing how my silver has no volatility. Every time I weigh one of my JFK '64 halves, it always comes to .361 ozt.

Wed, 11/02/2011 - 22:00 | 1839599 rosex229
rosex229's picture

this really pinpoints how critical it was for this latest eu summit to produce something large and competent enough to float market confidence for a few months. the few days of market relief that were achieved didn't amount to nearly enough time to stabilize balance sheets and offload assets to increase capital ratios. the continued degredation in bond and equity markets will corroce the viability of a number of financial institutions, one day at a time, until a tipping point where bank lending freezes due to fears of interacting with a soon to fail bank. sound familiar...

Thu, 11/03/2011 - 00:33 | 1839894 PulauHantu29
PulauHantu29's picture

Don't be so downbeat. I  bet luxury sales will have another blockbuster Q to match an even higher Wall Street Bonus Christmas season.

After all, 'tis the Season!

 

Wed, 11/02/2011 - 21:50 | 1839575 Nolsgrad
Nolsgrad's picture

time to start tip toeing into financials?

Wed, 11/02/2011 - 22:02 | 1839608 fizz
fizz's picture

Dick Bove, is that you?

Wed, 11/02/2011 - 21:51 | 1839576 beaker
beaker's picture

When all the counter-parties are insuring each other, is that what you call a circle jerk?

Wed, 11/02/2011 - 23:46 | 1839832 CrazyCooter
CrazyCooter's picture

I am probably one of the least math-iest folks here, but I could venture the following formula.

 

(some really complicated shit goes here)

______________________________________

                           0

But, on the other hand, I have a decent working understanding of arithmetic, algebra, geometry, and calculus.

Regards,

Cooter

Thu, 11/03/2011 - 10:20 | 1841155 Ident 7777 economy
Ident 7777 economy's picture

 

 

Division by Zero, Coot?

 

Undefined ...

 

But then that is where we are (undefined land).

 

 

Thu, 11/03/2011 - 11:08 | 1841494 Flakmeister
Flakmeister's picture

Try L'Hopitals Rule.....

Wed, 11/02/2011 - 21:56 | 1839586 rubearish10
rubearish10's picture

I thought Mr B said today that the MF thing had no impact and was isolated? Ummm.

Wed, 11/02/2011 - 22:30 | 1839687 WestVillageIdiot
WestVillageIdiot's picture

"Subprime is contained."
-  Golem Bernanke 2007

Wed, 11/02/2011 - 22:36 | 1839704 Mactheknife
Mactheknife's picture

Busted. 3rd rule of fight club: You do not watch CNBC.

Thu, 11/03/2011 - 05:13 | 1840029 Ronaldo
Ronaldo's picture

There is a certain artistic and comedic value you can glean from it.

Thu, 11/03/2011 - 08:22 | 1840316 Yellowhoard
Yellowhoard's picture

CNBC is must viewing.

As a contrary indicator, you cannot find a more accurate barometer.

They exist solely to herd the masses to the other side of Goldman's positions.

 

Wed, 11/02/2011 - 21:57 | 1839588 ArkansasAngie
ArkansasAngie's picture

Collateral damage.  TBTF is offering up sacrificial shatheads.  Gotta keep them Central Banksters scared.

My money is in my pocket.  Do you know where your money is?

Wed, 11/02/2011 - 22:02 | 1839607 fnord88
fnord88's picture

It was all in Gold. Then I spent it all on coke and hookers. I swear. All of it.

Wed, 11/02/2011 - 22:35 | 1839700 DoChenRollingBearing
DoChenRollingBearing's picture

 

 

I am very sorry to hear that.

From,

Victim of a boating accident

Wed, 11/02/2011 - 23:06 | 1839767 ReallySparky
ReallySparky's picture

You must have been with Gorden. Happened to someone else I know.

Thu, 11/03/2011 - 06:18 | 1840052 HoofHearted
HoofHearted's picture

And fnord must have been with Charlie Sheen.

Unfortunately, I traded all mine for Pokemon and Beanie Babies. I mean you can't just print a...oh shit, I see my problem now.

Wed, 11/02/2011 - 23:11 | 1839768 ReallySparky
ReallySparky's picture

Dbl post.

Wed, 11/02/2011 - 21:59 | 1839589 HUGE_Gamma
HUGE_Gamma's picture

I find that hard to believe when every employee is a top 5 MBA with the FRM, CFA, CPA, CAIA and every Finra license 01-99. I rate them AAAA+^3

Wed, 11/02/2011 - 22:07 | 1839619 Flakmeister
Flakmeister's picture

I remember the FP division of a monoline going down in flames.... The hubris and self-delusion was palpable....

Wed, 11/02/2011 - 22:33 | 1839695 Mactheknife
Mactheknife's picture

>On the pos. side, JEF is a respectable competitor.

Pretty sure I heard that said about MF.

Wed, 11/02/2011 - 21:57 | 1839591 TheGoodDoctor
TheGoodDoctor's picture

I'm glad I bought some popcorn. Now whether it will last through the weekend is another thing entirely. :p

Wed, 11/02/2011 - 22:17 | 1839641 Schmuck Raker
Schmuck Raker's picture

I recommend popping a small bowlful now, and making it last through next week. Can as much as the stores will sell you. These are desperate times friend.

Wed, 11/02/2011 - 21:59 | 1839596 nmewn
nmewn's picture

More popcorn!!!

Wed, 11/02/2011 - 22:36 | 1839706 DoChenRollingBearing
DoChenRollingBearing's picture

+ 1

At this rate I am going to need a new machine to pop it, and will have to buy popcorn in BULK!

Wed, 11/02/2011 - 23:06 | 1839771 fuu
fuu's picture

Store it a 5 gal bucket with a gamma lid, mylar bag, and oxygen absorbers.

Wed, 11/02/2011 - 23:50 | 1839840 CrazyCooter
CrazyCooter's picture

Screw popcorn, I am loading up on rice ... my first 24 pounds of Japonica and Wehani are in the mail!

Regards,

Cooter

Thu, 11/03/2011 - 06:30 | 1840060 Raging Debate
Raging Debate's picture

Cooter, don't forget import commodities like coffee and sugar. Cooking oil substitutes like Crisco. I like to rotate powdered milk and eggs. I lean toward whatever will be least available in my region for luxury commodities. Have some stuff you enjoy eating and drinking. Lots of water filters. If you can generate your own power your really ahead of the game.

The idea is to maintain a quality of life and trade the rest. Oh yeah have Forex like Yuan. I view that as once in a lifetime trade. But I wouldnt hang onto it like Gold much past 2014.

Read up on criminals and how they behave at the ground level, particularly Russia 1998. Good luck and God bless all people of all nations. None of this has been easy and good things to come never are.

Fri, 11/04/2011 - 00:20 | 1844017 CrazyCooter
CrazyCooter's picture

Fuck living like a king amongst paupers in the most armed state in the union.

I plan to share/donate excess through local churches.

No lamp post for me ... I am in the fox hole with the people ...

Regards,

Cooter

Wed, 11/02/2011 - 22:02 | 1839600 caerus
caerus's picture

just short gmcr through the 9th..it's an easy trade...do it

Wed, 11/02/2011 - 22:20 | 1839652 WonderDawg
WonderDawg's picture

Care to elaborate, Caerus? I'm all ears, sitting with a little dry powder.

Wed, 11/02/2011 - 22:25 | 1839669 caerus
caerus's picture

i figure a quick dip to 40 at best...they delayed earnings till the ninth...thought i would be out of the position by now...

Wed, 11/02/2011 - 22:29 | 1839685 WonderDawg
WonderDawg's picture

Interesting. I'll check the puts, see how they look. You're expecting a miss on earnings, eh?

Wed, 11/02/2011 - 22:33 | 1839694 caerus
caerus's picture

they already missed...i didn't trust them before the delay...i don't trust them now

Wed, 11/02/2011 - 22:36 | 1839703 WonderDawg
WonderDawg's picture

Thanks for the heads up. Might place a bet tomorrow. If it pays off, I'll send you of bottle of single malt.

Wed, 11/02/2011 - 22:37 | 1839708 caerus
caerus's picture

good man...hope im not an idiot

Wed, 11/02/2011 - 22:39 | 1839712 WonderDawg
WonderDawg's picture

No sweat, I wouldn't blame you, I make my own decisions. I'm always open to some insight, and if it looks good to me, I pull the trigger. No guts, no glory, and no blame.

Wed, 11/02/2011 - 22:49 | 1839732 WonderDawg
WonderDawg's picture

Besides, how could I not trust a guy who goes by Caerus? I'm always seeking kairos myself.

Wed, 11/02/2011 - 22:57 | 1839747 caerus
caerus's picture

smart

Wed, 11/02/2011 - 23:10 | 1839772 HUGE_Gamma
HUGE_Gamma's picture

i think the stars are aligned to make the short of the century, rumor has it that Green Hill is sourcing "conflict beans" from the Congo with child labor. They set up a shell special purpose vechicle to funnel over cooked beans off the balance sheet into a swap arangement with McDonalds. They are over leveraged to hell with milk derivatives and the cardboard cups are cuts from unsubstainable Amazon Brazil wood. My target for this stock is $0.99

the preceeding text is not to be taken as investment advice or related to any actually registered security. all comments are fantasy and part of a delusional creative writing exercise. the author is not qualified to scan documents or authorize GL entries at any financial institution.

how is that for a buy signal! this stock is really going to 420

Wed, 11/02/2011 - 23:12 | 1839778 caerus
caerus's picture

that gap at 40 is a bitch...short that shit

Wed, 11/02/2011 - 23:27 | 1839780 HUGE_Gamma
HUGE_Gamma's picture

i would be a seller over 70

Wed, 11/02/2011 - 23:54 | 1839847 CrazyCooter
CrazyCooter's picture

I do NOT trade. In fact, I don't know shit about this whole parade.

With that said, my red neck read of this market is that its going to the shitter quickly and then to the moon. MF Global is about big boys getting big positions at discount prices. What better way to vaccuum up commodities than to blow up MF Global, give the poor bastard customers liquidation only options, and proceed to buy it all up at much less than par as everyone with positions in the market cut back risk.

Regards,

Cooter

Wed, 11/02/2011 - 22:00 | 1839604 Hephasteus
Hephasteus's picture

Top 10 reasons to buy gold and silver.

1. Fed prmary dealers are exploding.

2. You're not a fiat idiot.

3. You don't need 10 damn reasons.

Wed, 11/02/2011 - 22:33 | 1839696 WestVillageIdiot
WestVillageIdiot's picture

1.  It can't be printed into existence

Wed, 11/02/2011 - 22:52 | 1839738 seek
seek's picture

0) Zero counterparty risk.

Wed, 11/02/2011 - 23:59 | 1839852 CrazyCooter
CrazyCooter's picture

Actually (being pedantic here) gold can be "manufactured" just like diamonds are today. It just so happens that the energy inputs are way out of whack with profits if you pay for the energy inputs.

I don't have a source, I would have to really dig. If you happen to be a physics geek that chances by my comments, sources are appreciated because I am feeling lazy tonight. Also happy to be wrong if you got those sources too. :-)

Regards,

Cooter

Thu, 11/03/2011 - 08:11 | 1840252 GeezerGeek
GeezerGeek's picture

All it takes is a good fusion reactor. Put simply, fusion builds bigger atoms out of smaller ones; it's the opposite of fission, which is the splitting of atoms (as in the atom bombs dropped on Japan). The catch is, if anyone had a good fusion reactor then the world would be awash in cheap energy, and that would probably be very deflationary. Too bad no one has a good fusion reactor yet.

Fri, 11/04/2011 - 00:31 | 1844042 CrazyCooter
CrazyCooter's picture

Correct.

Iron is as high as you can go on the periodic table and produce energy through fusion. This is why stars ... well ... die ... if the process didn't reverse, the universe would be very different.

For those that didn't follow that, fusion past iron absorbs energy, it becomes a sink.So a mass that is sufficient for fusion produces energy until enough of its matter is iron or up and then it begins to lose energy.

Stars tend to settle down and collapse at this point. As gravity settled in and all this formerly "hot" mass closes in ... its like a teenage male on prom night ... and ... things get really wild in that moment ... and the star guts itself in a moment of ecstasy ... that is where gold comes from ...a heavy element that absorbs enormous energy when a start blows its wad ...

Keep that in mind the next time you hold a heavy coin. It is star cum plain and simple.

Save the thread the money shot jokes, they are not funny ...

Regards,

Cooter

Wed, 11/02/2011 - 22:54 | 1839742 Fred Hayek
Fred Hayek's picture

4. They had to invent the "RentenMark". Nobody's ever had to rename their gold and pretend it was something different.

Thu, 11/03/2011 - 00:00 | 1839855 CrazyCooter
CrazyCooter's picture

Oh, I get it. I am "renten" a place to live. So, that is like, "renten" your money?

Regards,

Cooter

Wed, 11/02/2011 - 23:30 | 1839788 HUGE_Gamma
HUGE_Gamma's picture

4. it can be worn around your neck to attract women

- you can't wear FRNs

Thu, 11/03/2011 - 00:10 | 1839867 PSEUDOLOGOI
PSEUDOLOGOI's picture

But but it's not backed by anything!! At least the dollar is backed by the gov

Wed, 11/02/2011 - 22:09 | 1839614 ziggy59
ziggy59's picture

i find it utterly mind warping fu$%ing amazing the very same recycled liars, crooks, war mongers and incompetent asswipes are still let alone free, have a VERY high paying  job, even more so amazing, a public microphone or media to voice their diatribe and more BS.

 

truly a Bizarro World the masses have been teleported to. What else is a possible answer?

Wed, 11/02/2011 - 22:09 | 1839621 disabledvet
disabledvet's picture

"ask me no questions and i'll tell ya' no lies" is a possible answer.

Wed, 11/02/2011 - 22:13 | 1839622 mynhair
mynhair's picture

Can we just be done with USA proxies?

Give ODummer the FFFFN he deserves, and be done with it.

Wed, 11/02/2011 - 22:13 | 1839630 lolmao500
lolmao500's picture

Protesters have just shutdown Oakland's port... one of the biggest in the US.

Cops are about to crack a lot of skulls.

http://www.livestream.com/globalrevolution

Very bullish...

Wed, 11/02/2011 - 23:08 | 1839775 fuu
fuu's picture

A car just ran over 3 protesters. Looked like one was covered in a blanket when they put the cart in the wagon.

Thu, 11/03/2011 - 00:10 | 1839869 azusgm
azusgm's picture

Where?

Thu, 11/03/2011 - 09:08 | 1840689 fuu
fuu's picture

Oakland. Saw it live on the ABC aerial feed.

Wed, 11/02/2011 - 22:17 | 1839632 mynhair
Wed, 11/02/2011 - 22:15 | 1839639 SpeakerFTD
SpeakerFTD's picture

 there rarely is just one cockroach

Since you guys beat up on Gartman gleefully, at least give him some credit for popularizing that phrase.   I know he didn't coin it, but I am guessing 95% of the WS street crowd first saw it in his letters.

Wed, 11/02/2011 - 22:20 | 1839650 mynhair
mynhair's picture

Corzine the Porcine?   Or did you you mean the SouthPark Cartman?

Wed, 11/02/2011 - 22:20 | 1839651 Tyler Durden
Tyler Durden's picture

Wrong

Wed, 11/02/2011 - 22:23 | 1839662 SpeakerFTD
SpeakerFTD's picture

Man, I thought I could get you guys to throw poor Dennis one little bone.    

 

Wed, 11/02/2011 - 22:33 | 1839692 HUGE_Gamma
HUGE_Gamma's picture

The "there rarely is just one cockroach" line comes from 16th century Parisian Brothels when French soldiers would walk into the room with the hooker and a cockroach ran under past out the door, the prostitute replied - "ohh don't worry they are all gone".. after the services were rendered and the soldier not seeing any more roaches, he believed the room was sanitary and clean. untill the next day he woke up with the syp.. Ahhh there never is just one roach!!

Wed, 11/02/2011 - 22:25 | 1839668 midgetrannyporn
midgetrannyporn's picture

My father would womanize, he would drink. He would make outrageous claims like he invented the question mark...

Wed, 11/02/2011 - 22:19 | 1839647 monopoly
monopoly's picture

I do agree we are getting closer, but not there yet.

Wed, 11/02/2011 - 22:26 | 1839671 mynhair
mynhair's picture

O great one, please tell us when.

If not now, when?

http://www.youtube.com/watch?v=uyjV0AfGRVo

Wed, 11/02/2011 - 22:35 | 1839701 Hansel
Hansel's picture

IMO, this is the game that never ends.  After 'the event' that everyone seems to think is coming, the next day people will still be looking to 'invest' and one-up the next guy.  This game only ends when you die.

Wed, 11/02/2011 - 22:58 | 1839750 seek
seek's picture

It will end, at least temporarily. I would define "the event" as one where there simply is no longer a market enabling investment in the standard way.

You can bet there will be a banker class hurriedly rushing to put together the next con, so in that context you're right, it never ends.

In the meantime between the event and the next con, non-stanandard investing will be around. Someone is always going to be willing to split the take from some black-market gasoline, coffee, or MJ in exchange for transportation. That will be the new investment.

Thu, 11/03/2011 - 06:44 | 1840064 Raging Debate
Raging Debate's picture

Yes, Seek those are called local warlords. Old Hopsi guard style.

Thu, 11/03/2011 - 05:47 | 1840041 Optimusprime
Optimusprime's picture

Life in the state of nature: "...a restless seeking of power after power that ceaseth only with death."

Wed, 11/02/2011 - 22:21 | 1839656 Schmuck Raker
Schmuck Raker's picture

Thanks TD.

I'm going to name my first two kids Egan Jones & Zero Hedge.

Wed, 11/02/2011 - 22:22 | 1839657 SpeakerFTD
SpeakerFTD's picture

More to the topic, JEF is not MF.  At least with respect to the possibility that sovereigns wiil sink them.    A) There is a big difference between 40:! and 13:1 leverage.   B)  Their CEO is not a  reckless, adrenaline-freak psychopath.     

 

 

Wed, 11/02/2011 - 22:29 | 1839682 midgetrannyporn
midgetrannyporn's picture

That's the scary part. That asset book isn't even very aggressive and yet look how many ways it could blow itself to shit.

Wed, 11/02/2011 - 22:29 | 1839686 mynhair
mynhair's picture

Corzine is a reckless, adrenaline freak psychopath?

Just thought he was a typical Liberal freak.

Dam.

Wed, 11/02/2011 - 22:27 | 1839674 Zero Bid
Zero Bid's picture

Forget MF, european bank leverage makes myron scholes et al @ LTCM look like amateurs

Wed, 11/02/2011 - 22:28 | 1839679 justtotaketheedgeoff
justtotaketheedgeoff's picture

Wells Fargo site is unavailable.  No biggie. Just sayin'

 

Wed, 11/02/2011 - 22:32 | 1839693 mynhair
mynhair's picture

ATM working here, an oddity.  It's been cashless for 2 weeks.

Wed, 11/02/2011 - 22:32 | 1839681 sitenine
sitenine's picture

Ratings, the most unappreciated yet most important rule of the game.  Or is it?  I vaguely remember a day when ratings mattered.  Maybe I'm wrong, but if the EFSF lends money solely to poor credit risks, why should we be so quick to rate the EFSF AAA?  Seems to me that guarantees trump ratings with spades.  Egan Jones know their shit, and this proves it.

http://www.reuters.com/article/2011/07/18/rating-bonds-eganjones-idUSN1E...

Still, one has to concede the power of sovereign guarantees.  This is what Greece has already lost by being part of the EURO FARCE.  I'm getting a little off topic there though, all I really wanted to say is that, "increased scrutiny of other medium-sized broker/dealers", is a REALLY big deal.

 

Wed, 11/02/2011 - 22:34 | 1839698 disabledvet
disabledvet's picture

credit ratings? pashaaaa. when will actual television ratings finally matter again? "Amish have beards shaved off"????? WTF?http://www.youtube.com/watch?feature=player_detailpage&v=NZR64EF3OpA

Wed, 11/02/2011 - 23:48 | 1839834 sitenine
sitenine's picture

Television ratings...

Yeah, I guess that says a lot too doesn't it?

I don't watch television, but recently a fried of mine wanted me to see a show called "Jersey Shore" to show me where we are on that very subject.  A show about getting drunk and having sex with strangers.  Wow.  I mean really, wow.  Society is sick beyond words.  Just, wow.

Wed, 11/02/2011 - 22:31 | 1839690 Lazlo Toth
Lazlo Toth's picture

Is there a coke and hookers ETF?

I mean, if that is where the money goes, shouldn't we invest?

Wed, 11/02/2011 - 22:38 | 1839707 mynhair
mynhair's picture

You want the Dem Party, but it isn't publicly traded.

Just bought and sold.  Ask George.

Wed, 11/02/2011 - 22:40 | 1839713 lolmao500
lolmao500's picture

http://www.haaretz.com/print-edition/news/israel-and-iran-are-fighting-a...

Israel and Iran are fighting a war of nerves

The speed of events on the Israel-Iran front is beginning to recall the eve of a war.

Israel conducts a rare ballistic missile test; the Israel Air Force reports a successful exercise in Sardinia, far from home; Iran's chief of staff says the "likelihood is low" of an Israeli attack, but threatens that his country would respond forcefully.

British sources tell The Guardian of preparations for an attack on Iran's nuclear sites coordinated with the United States; Britain's chief of staff makes a secret visit to Israel. The defense minister goes to London for talks; MKs from the extreme right demand that the former head of the Mossad be put on trial (! ) for daring to object to an Israeli attack. The speed of events on the Israel-Iran front is beginning to recall the eve of a war.

Wed, 11/02/2011 - 22:54 | 1839744 Tsar Pointless
Tsar Pointless's picture

To all of you advocating popcorn, I say with all due respect, I'd rather have the following whilst I watch the world blow to smithereens:

1) Lube

2) Poppers

3) Porn

4) Cheez-Its

5) Water

That's all.

Wed, 11/02/2011 - 23:38 | 1839817 bill1102inf
bill1102inf's picture

... and some pure cocaine.

Wed, 11/02/2011 - 22:58 | 1839751 prophet
prophet's picture

There is a laundry list of safety steps to take here.

Move your cash out of money market funds. 

Exit leveraged closed end fund participation.

... 

I think a financial market catastrophe pre-flight checklist would be useful to many people. 

  

Wed, 11/02/2011 - 23:11 | 1839776 justtotaketheedgeoff
justtotaketheedgeoff's picture

WFC back up.  Just a little downtime.  Guess I'm skittish.

Wed, 11/02/2011 - 23:31 | 1839803 dasein211
dasein211's picture

Corzine was SENT into MF Global with the objective of collapsing it and rolling the remains into Goldman (presumably). And he was paid eight figures to do it, AND promised SEC TREAS after Geithner. If you had said six months ago that the largest FCM in the U.S. would be taken down, everyone would have laughed in your face, but here we sit. The only question is, who is next? How long will an FCM like ADM last before looking at Dodd-Frank and saying, "Screw this. We're selling our clearing operations and we'll just go back to straight-up product merchandizing." Why shouldn't they? If the FCM profit center is made impossible by the government and the corrupt regulatory bodies, why would they continue to operate an FCM? Why not sell to Goldman or one of the other megabank entites and then do their exchange-traded hedge business through them as a customer? When will the old Chicago boutique firms be similarly forced out, either through regulation that makes their business impossible, or through outright sabotage as with Corzine and MF? None of you FCMs are safe. THEY WILL COME AFTER YOU AT SOME POINT. You have been targeted for extermination. Either you wake up to this fact and expose these regulatory bodies, megabanks and the Federal Government and fight them, or you are going to end up like MF, being bought by Goldman or one of the other fascist government-connected megabanks for pennies on the dollar. You have been warned.

Wed, 11/02/2011 - 23:50 | 1839843 wretch
wretch's picture

FCM as victim.  You guys are fucking hilarious.

Wed, 11/02/2011 - 23:34 | 1839809 caerus
caerus's picture

hey guys remember this ?

going to california

Wed, 11/02/2011 - 23:45 | 1839830 WonderDawg
WonderDawg's picture

Most excellent.

Thu, 11/03/2011 - 01:22 | 1839935 Lone Deranger
Lone Deranger's picture

Ah yes, some good memories.  Wasn't it required to listen with blonde lebanese or panama gold??  I can't seem to remember.

Wed, 11/02/2011 - 23:44 | 1839829 slewie the pi-rat
slewie the pi-rat's picture

do you know if your counterparties are solvent, tonight?

Thu, 11/03/2011 - 02:00 | 1839957 Coldfire
Coldfire's picture

As long as they play the Level III shell game adroitly, model their hedge fund portfolio unicornly and leave their customers' money the fuck alone, perennial wannabe Jefferies should be able to maintain their perennial wannabe status. But who knows for how long now that they've been targeted as an intermediary of concern by the Shadowy Figures Who Decide. It would be interesting to see who benefited CDS-wise from the MF bankruptcy. Is it beyond the realm of possibility that some competitor bought a truckload of CDS on EJR then took steps to torpedo the firm? Without a proper insurable interest, all the incentives are on the side of the devils. It's like something out of a Dickens nightmare.

Thu, 11/03/2011 - 06:51 | 1840069 Raging Debate
Raging Debate's picture

It's a colonization strategy. Dust off old books in best manners of loss mitigation for both sides.

Fri, 11/04/2011 - 05:05 | 1844223 Coldfire
Coldfire's picture

Correction: Is it beyond the realm of possibility that some competitor bought a truckload of CDS on JEF then took steps to torpedo the firm?

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