Frontrunning: August 17

• SNB boosts steps to check franc’s rise (FT) but no peg
• The man who taught the Fed to sell Treasury puts: Markets Go From Nightmare to Bad Dream (Vincent Reinhart)
• What to make of the Franco-German Summit (FT)
• Gold Market Is a ‘Bubble Poised to Burst,’ Wells Fargo Says (Bloomberg)... but not before the bad mortgage bubble that is Wells Fargo bursts
• Putin sets sights on Eurasian economic union (FT)
• Fed’s Bullard Says New 2013 Rate Pledge Not a Signal for More Bond Buying (Bloomberg)
• Walmart warns on US weakness (FT)
• DeMark Says Stock Rally May Begin in Weeks, Buy Europe Banks (Bberg), or he could be just as wrong as last time (ZH)
• Margin Calls Push Stock Leverage Down Most in Year as S&P 500 Tumbles 12% (Bloomberg)
• Biden Visit to Seek a Window on Xi (WSJ)
• China to Allow ETF of Hong Kong Equities (Bloomberg)
• China Rail Investment Drops 26% on Crash (Bloomberg)
• Dell Sales Fall Short on Weak Spending (Bloomberg)
• Venezuela May Move Reserves From U.S. to ‘Allied’ Countries, Says Lawmaker (Bloomberg)

European economic update:

• Italy Current Account (mlns euro) for June -4242M. Previous -5094M
• Sweden Average House Prices (SEK) for July 2.034M.Previous 2.097M (revised from 2.086M)
• UK Claimant Count Rate for July 4.9% - higher than expected.Consensus 4.7%. Previous 4.8% (revised from 4.7%)
• UK Jobless Claims Change for July 37.1k - higher than expected.Consensus 20.0k. Previous 31.3k (revised from 24.5k)
• UK Average Weekly Earnings 3m for June 2.6% - higher than expected.Consensus 2.3%. Previous 2.3%
• UK Weekly Earnings exBonus 3m for June 2.2% - lower than expected.Consensus 2.3%. Previous 2.1%
• UK ILO Unemployment Rate (3mths) for June 7.9% - higher than expected.Consensus 7.7%. Previous 7.7%.

Comments

[hugovanderbubble]

Tyler,

For Zh

http://www.rankia.com/foros/bolsa/temas/899901-hipotesis-lehman-ii-banco-santander-2-69-euros-por-accion-bbva-30-pop-1-68

How can all Italian banks passed the Stress banks with Current Valuations...Magic...

France is Not AAA Rating Country 100% sure

Neither UK

[lizzy36]

Wells Fargo is the better bank. Why or what the means, no clue.

But the "better bank".

My guess is only if one uses Bank of America as the benchmark.

[Snidley Whipsnae]

Best looking horse in the glue factory...

[Careless Whisper]

They seem to have the best, most exclusive, money laundering department of any bank. Very good profit center.

http://www.bloomberg.com/news/2010-06-29/banks-financing-mexico-s-drug-c...

[Dick Darlington]

Here's an update on spanish hidden debt issues courtesy of El Pais:

http://www.elpais.com/articulo/english/Regions/unpaid/bills/reach/the/50-billion-euro/mark/elpepueng/20110814elpeng_5/Ten

[hugovanderbubble]

So Explain me hows possible that spanish banks quotes at 0.7x  PxBV with all those Hidden debt troubles.

[Silverhog]

Thank you Wells Fargo for warning the public about a Gold bubble. With such a scum bag outfit like you issuing a warning. I know I'm safe making another purchase. 

[Careless Whisper]

The Morning Careless Whisper Report

NY Supreme Court Judge Tells Druckman Lawyers And US Bank; You Will Pay For Tricks, Purjury, And Fraud In My Court

http://www.msnbc.msn.com/id/44150571/ns/business-real_estate/

Soros: Germany Must Take Care Of Europe, China The World

http://www.spiegel.de/international/europe/0,1518,780189,00.html

England One-Ups North Korea: Frat Boys Get 4 Years In Prison For Facebook Post

http://www.guardian.co.uk/uk/2011/aug/16/facebook-riot-calls-men-jailed

Black Op Fast And Furious Ties To 11 More Violent Crimes

http://www.latimes.com/news/nationworld/nation/la-na-atf-guns-20110817,0...

Feds Seize Money Coming IN To The Country

http://www.detnews.com/article/20110816/METRO/108160415/Feds-seize-more-...$100K-from-travelers-at-Detroit-Metro

US Military Super Computer Uses Chips Tied To China Military

http://www.washingtontimes.com/news/2011/aug/16/computer-labs-parts-rais...

[Snidley Whipsnae]

"Putin sets sights on Eurasian economic union"

This is the dreaded outcome for Anglo America... Research on a Eurasian bond was first completed by Halford Mackinder and published as the 'Heartland Theory' and in various other works by Mackinder... He was very influential and it is sometime suggested that Mackinders work led to both World Wars...for they were attempts to stop a Eurasian bond forming.

See Halford Mackinder wiki...

http://en.wikipedia.org/wiki/Halford_Mackinder

See Hearland Principle wiki...

 http://en.wikipedia.org/wiki/Heartland_Theory

in 1919, Mackinder summarised his theory as:

"Who rules East Europe commands the Heartland;

who rules the Heartland commands the World-Island;

who rules the World-Island controls the world."

[Jim B]

I started to read the Vincent Reinhart piece, but when he started the bit about us being on the brink of default a couple of weeks ago, I quit!  What an ill informed dunce! 

A far as Wells Fargo's concern about a gold bubble, and the US is not a fiat ponzi?

[Snidley Whipsnae]

Reinhart may be many things but 'dunce' is not among them...

[Cdad]

Funniest corporate news of the day about Abercrombie and Jersey Shore:

Abercrombie says a connection to The Situation goes against the "aspirational nature" of its brand and may be "distressing" to customers. The Ohio-based retailer says it has offered a "substantial payment" to Sorrentino and producers of the MTV show so he'll wear something else.

[Careless Whisper]

bwahahahaha. The Situation is the Carl Icahn of reality shows. 

[goldfish1]

Gold bubble? I know very few who have gold. Nah, methinks bloomberg is the mouthpiece of sauron.