Frontrunning: October 19

• CFTC approves new caps on speculators (FT)
• Europe Banks Vow $1 Trillion Shrinkage as Recapitalization Looms (Bloomberg)
• Banks’ Files Are Seized (WSJ)
• Major China Stimulus Is Not Needed as Growth Is ‘Sound,’ PBOC Adviser Says (Bloomberg)
• UK recovery off-track, says King (FT)
• Yen Erases Gain as Nikkei Says Japan to ‘Form Team’ on Currency (Bloomberg)
• Fed’s Plosser: No worries on inflation in short term (Reuters)
• French warning to euro summit (FT)
• Ireland May Seek to Transfer Allied Irish Rescue Cost to EU (Bloomberg)
• S&P downgrades 24 Italian banks, financial firms (Reuters)
• South Korea and Japan Bolster Credit-Swap Line as Europe Turmoil Deepens (Bloomberg)

Comments

[wang (not verified)]

The tube-launched Switchblade drone is less than 24 inches long and weighs about six pounds.  It’s a ‘flying shotgun, with a range of 20km flying at 500'  the operator has control of how far away from the target it goes off.  An Army fact sheet said the drone could be used against snipers, insurgents placing roadside bombs and those hiding on ridge lines, under rock overhangs and or in shallow caves.

http://www.businessweek.com/news/2011-10-19/u-s-deploys-kamikaze-drones-...

[Al Gorerhythm]

WTF?

[Irish66]

Banks files seized....hilarious

[Finance Addict]

For 20 points--

Which of the following is likely to turn up actual evidence?

a) From March 2011: "US regulators subpoena banks on Libor investigation"

b) From Today: "EU regulators raid banks on Euribor investigation"

[Crash N. Burn]

“Asset sales are impractical in the current environment,” said Simon Maughan, head of sales and distribution at MF Global UK Ltd. in London. “Every bank is selling, and no bank is buying. It just won’t work. Beyond that, the magnitude of the cuts the banks are talking about is nowhere near the likely required amount of deleveraging. They need to reduce hundreds of billions more to adjust to the new world order. There has to be a recapitalization.”

Fed’s Plosser: No worries on inflation in short term

No shit, deflation then hyperinflation as per Mike Maloney:

http://worldwideponzicollapse.blogspot.com/2011/10/mike-maloney-lectures...

[msmith]

Its likely that we may see a bit more of the risk on rally before any significant retracement in the short term for the SPX, EURUSD, and CL.  http://bit.ly/oGjpqN

[spanish inquisition]

Ireland is looking to get back in the game after watching Greece position itself to start lopping off over 50% of its debt. I guess the memory of British rule is still with them as they basically bent over on day one and said "Be gentle, M'lord" for the price of a happy meal.

[dida]

I hope that the situation in Greece will be better now, when the country received out help. Asigurare de sanatate