Frontrunning: October 7

Tyler Durden's picture
  • It’s Too Hard to Know Who Is Too Big to Fail (Bloomberg)
  • China Currency Bill Passes US Senate Test (FT)
  • China Labor Costs Push Jobs Back to US (FT)... one week behind Zero Hedge
  • Credit Swaps on Chinese Debt Surge on Slowdown Fears (FT)... three weeks behind Zero Hedge
  • America’s Six Key Lessons for a ‘Euro Tarp’ (FT)
  • EU Pressured for Bank Rescue Plan Before G-20 (Bloomberg)
  • Whitehall Fears New Bail-out for RBS (FT)
  • Bank of Japan Keeps Policy on Hold (Reuters)
  • Euro-Indebted Emerging Currencies Have Further to Fall on Growth (Bloomberg)
  • Moody’s Lowers Its Senior Debt, Deposit Ratings for Nine Portugal Banks (Bloomberg)

European Economic Highlights:

  • Switzerland Unemployment Rate for Sept 2.8%. Previous 3.0%.
  • France Budget Balance -€102.8bn. Previous –€86.6bn m/m.
  • France Trade Balance -€5bn. Previous –€6.5bn.
  • Norway Manufacturing Output 1.9% - higher than expected. Consensus -1.0%. Previous -5.0% y/y.
  • UK PPI 0.3% m/m 3.8% y/y – higher than expected. Consensus 0.1% m/m 3.7% y/y. Previous 0.2% m/m 3.6% y/y.
  • Germany Industrial Production -1.0% m/m 7.7% y/y – higher than expected. Consensus -2.0% m/m 6.4% y/y. Previous 3.9% m/m 10.1% y/y.

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GeneMarchbanks's picture

'It’s Too Hard to Know Who Is Too Big to Fail (Bloomberg)'


Right. It's too hard to know so let's stick with the Status Quo. Brilliant.

Tyler Durden's picture

Read the article... Not what you expect.

Mercury's picture

The government could reduce the considerable ambiguity (outlined in the article) about what they would/would not let fail (and under what conditions if they instead addressed the "Too Big" part.)

Three years down the road and banks/shadow banks are bigger, more systemically critical and cancer-ridden than ever.

Obviously size isn't the only critical risk factor but the greater the size of any one institution the greater the systemic risk.  Limiting size is the easiest and most technically elegant way to reduce systemic risk...and it looks like we're going to be beat over the head by events with this lesson yet again.

slewie the pi-rat's picture

i punched it up and saw: "Last month U.S. banking regulators approved new rules that would treat all bank-holding companies with more than $50 billion of assets as systemically important financial institutions, based on average total assets for their previous four quarters.

since US banking regulators = the FED, this seems to be a way for the banksters to define the "system" of their corpo-fascist money machines and to protect (?) the "investors" (themselves?) from any losses due to zombie-like insolvency

Let Them Fail!!!  the "capital" isn't real if it can only "survive" via continued Treasury ponzi.  we need to re-define public v. private b/c the People are getting ass-raped by the fraudsters operating in the "grey areas" such as fannie & freddie, and now the FDIC has been turned over to the FED and its minions to protect such things as bond and common-stock values from stepping blythely into their own now-empty elevator shafts, b/c they pulled the wealth outa america and now hold it offshore, so we should protect their "investors"?  riiiiiiight!

the thing about "insurance" is that one generally needs tp PAY FOR IT, but with the damned goobermint signing the "full faith & credit" of the citizenry over to their corpo-fascist "contributors", it's free to the fraudsters who can continue to pass profits to the buffetts and the macks and the uber-elites, while back-stopping their losses with OUR future and allowing these CRIMINAL CORPORATIONS to pay small "fines" (%-wise) and just keep rolling, playing the 99% inflation game and forming larger and larger corporate "combines" to avoid taxes and call the shots on the lives of those who serve in OUR military

now that we have a "blue-ribbon committee" to pass the death sentence and enforce it on american citizens via a clown in the W.H., i think we have all the "reasons" we need to put an end to this lawlessness, criminality, and psychopathy which results directly from the "free speech" accorded to non-human, non-citizen "fictions" and allows them to BUY and pay for the political systems, the very polity,  of the USA. 

and yes, that is very hypocritical of me and other americans.  as long as the juggernaut was aligned w/ our needs and chewing up the lives of others, wtf, why not?  but now that it is destrying america, and us, the monster has turned against its masters and we are truly in for the fight of our lives, b/c those who control and weild this power in our names will probably not lay it down peacefully, due to silver-tongued slewie talking them out of it!


snowball777's picture

"The odds that Congress would pass TARP II look slim, as long as Republicans control the House of Representatives."

If and when rubber meets road the rhetoric will be a memory and the formerly righteous will fall in line as their paymasters demand. Just like the "debt ceiling" air for weeks followed by capitulation to the (financial) powers that be. Anyone who thinks they'd let someone with a checkbook suffer a fate as indignant as failure is a rube, if only because they know that the entire powder keg of derivatives can be triggered by any one of a thousand matches now.


westboundnup's picture

China Currency Bill Passes US Senate Test

Dingy!  Dingy! Dingy!

firstdivision's picture

LOL!  Futures really haven't moved much from to all the downgrades.  Looks like the short squeeze is still in effect.  Gotta goose these markets, OPEX is coming up.  I'm pretty sure the banks sold a lot of puts to people.  I'm glad that I'm still drunk from last night.  Makes this even more hilarious.

Yousif's picture
FTSE index extends gains as BoE launches QE2

"LONDON, Oct 6 (Reuters) - Britain's FTSE 100 share index extended gains on Thursday, boosted by news that the Bank of England monetary policy committee voted for a second round of 'quantitative easing' by buying 75 billion pounds ($116 billion) of assets to keep the sluggish economic recovery going."

"sluggish recovery".  I have no idea what planet they're reporting from.

snowball777's picture

“I don’t want a situation where we’re just passing laws that are symbolic knowing that they’re probably not going to be upheld by the World Trade Organisation, for example, and then suddenly US companies are subject to a whole bunch of sanctions.”

I don't want to upset my campaign contributors just to make an attempt to level the playing field for the American worker.

spanish inquisition's picture

The biggest problem with Chinese currency floating peg is that it is interfering with the FEDs flat out $ devaluation plan. Is there a provision to lock up Ben in it?

Besides how does this plan address the biggest overt manipulater we have seen in years, they aren't even trying to hide it. The Swiss!

snowball777's picture

The article said it would apply to all foreign countries, not just China, but who knows how flexible "currency devaluation estimates" can be when push comes to shove.

Hard1's picture

C'mon Tyler, you used to give us market insight 2-6 months in advance of what is really going on, now it's only 2-3 weeks  ;P

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