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Jefferies Releases Yet Another Set Of Numbers On Its European Exposure That Differ From 24 Hours Ago

Tyler Durden's picture


Jefferies is out with its third consecutive promise it has done nothing wrong, issuing a press release in which it says "Jefferies has no meaningful credit risk in respect of the sovereign debt of these nations, and an insignificant risk related to interest rate movements" and hopes to slay the dragon of doubt once and for all. Furthermore as CEO Dick Handler adds, "Later today, after the markets are closed in Europe and we have completed our inventory control accounting, we will post on our web-site our day-end, CUSIP-level holdings in the securities of these countries. We care for our clients, shareholders, bondholders and employees and want to allay any concern that may have arisen. As was the case yesterday, the facts about our sovereign debt exposure and other matters are straightforward and easily understood. We encourage all market participants and interested parties to review our public filings that contain extensive disclosure of the nature, extent and financing of our assets. Our firm stands on a solid foundation of over $8.5 billion of long-term capital and we look forward to continued success." We congratulate this espousal of transparency and clairty. We are also 100% certain that Jefferies will be so kind to disclose not only the Cusips but the maturities and tenors of all synthetic products. It will of course also publicly highlight the dates of all transactions: the last thing the public will want to think is that Jefferies took advantage of the grace period of the past 2 days to neutralize its cash book sufficiently. Because one can't help but be curious what the reason for the material difference between the numbers posted as of yesterday and those posted today is, or rather, when the offsetting buys and sells took place.

From today's press release:

Positions stated in USD MM’s
      Long     Short     Net Cash     Futures     Net Total
Italy     2,086     (2,011)     75     (100)     (25)
Spain     191     (209)     (18)     -     (18)
Ireland     110     (80)     30     -     30
Portugal     20     (16)     4     -     4
Greece     -     -     -     -     -
Total     2,407     (2,316)     91     (100)     (9)


And from yesterday:

It should be noted that, as of today’s opening of business, Jefferies’
net exposure to the sovereign debt of the nations of Portugal, Italy,
Ireland, Greece, and Spain consisted of the following (rounded to the
nearest million):

  • Portugal $5 million
  • Ireland $28 million
  • Italy$104 million
  • Greece $3 million
  • Spain<$178 million>

for "combined net short exposure of approximately $38 million"



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Fri, 11/04/2011 - 14:19 | 1846085 Earl of Chiswick
Earl of Chiswick's picture

Friday Night in the South of France probably best not to do a TV spot whilst having enjoyed a few glasses of wine, or maybe they always giggle and talk funny when doing a live report:

Fri, 11/04/2011 - 14:36 | 1846163 Deadpool
Deadpool's picture

Whaaaaaaaaaaaat a coincidence!

Hey, this is great! Imagine the odds of this happening.

Do you know the park in NYC that the Wall Street protesters are occupying?

It's Zuccotti Park.

Did you know this park is not owned by the city of New York?

It is owned by Brookfield Properties.

Who was just hired by Brookfield Properties as an attorney?

Vice President Joe Biden's son.

Who sits on the board of Brookfield Properties?

Mayor Bloomberg's live in girlfriend.

Now, guess what company just received some of the last of the Obama Stimulus $$$$$$$.

Thaaaaaaaaaaaat's right, Brookfield Properties.

Isn't life great in America!


Now, guess what, on a completely unrelated note, Wisconsin is shaping up to be the swing state in the 2012 presidential elections. Not Florida. Not Ohio. But Wisconsin.

Now, guess who owns the company that will be tabulating the electronic votes in Wisconsin.

Thaaaaaaaaaaaat's right, the biggest contributor to Obama, the puppeteer George Soros. Whaaaaaaaaaaaat a coincidence!

Now remember what Stalin said. "He who votes does not have the power. He who counts the votes has the power". 


Fri, 11/04/2011 - 15:01 | 1846245 redpill
redpill's picture

I'm always careful when I'm online.  Like I always say, the net can be gross!

Fri, 11/04/2011 - 15:12 | 1846275 Richard Chesler
Richard Chesler's picture

Dick Handler.

There goes that keyboard...


Fri, 11/04/2011 - 18:03 | 1846732 AldousHuxley
AldousHuxley's picture

Jefferies NOT too big to fail. Next primary dealer to be cross out.


Bank of Nova Scotia, New York Agency
BMO Capital Markets Corp.
BNP Paribas Securities Corp. (FRENCH SHIT)
Barclays Capital Inc. (British SHIT)
Cantor Fitzgerald & Co.
Citigroup Global Markets Inc. (SHIT)
Credit Suisse Securities (USA) LLC
Daiwa Capital Markets America Inc.
Deutsche Bank Securities Inc. (German SHIT)
Goldman, Sachs & Co. (SMART SHIT)
HSBC Securities (USA) Inc. (Hong Kong SHIT)
Jefferies & Company, Inc. (NEXT SHIT)
J.P. Morgan Securities LLC (ROCKEFELLER SHIT)
Merrill Lynch, Pierce, Fenner & Smith Incorporated (BANK OF AMERICAN SHIT)
Mizuho Securities USA Inc.
Morgan Stanley & Co. LLC
Nomura Securities International, Inc. (LOST DECADE SHIT)
RBC Capital Markets, LLC
RBS Securities Inc.
SG Americas Securities, LLC
UBS Securities LLC. (Swiss BS SHIT)

MF Global (New Jersey SHIT)

Bear Sterans (JP MORGAN SHIT now) 

Lehman Bros (Repo 105 SHIT)

Countrywide (BANK OF AMERICA SHIT now)


Fri, 11/04/2011 - 18:24 | 1846803 Demologos
Demologos's picture

A lot of these are Inter-Alpha SHIT.

Fri, 11/04/2011 - 18:38 | 1846831 mtomato2
mtomato2's picture

I know. I was wondering how he even made it out of high school alive with that name.

It happens. We have a bridge here in GA named after Dick Hunter.

Fri, 11/04/2011 - 20:01 | 1847071 i-dog
i-dog's picture

Bwawney Fwank was in GA?

Fri, 11/04/2011 - 14:36 | 1846164 Smithovsky
Smithovsky's picture

gross will soon be net - they're shooting themselves in the foot with this

Fri, 11/04/2011 - 14:49 | 1846215 wisefool
wisefool's picture

Awesome stuff. I am too poor to watch CNBC anymore but I get bloomberg over the internets, and once perday they wheel out a george will wannabe  dinosaur who flirts with the girls and has recently been saying that the Cain sexual harrassment stuff is more powerful than the buffet rule for romney.

Thank you zero hedge.

Fri, 11/04/2011 - 19:18 | 1846947 Buck Johnson
Buck Johnson's picture

Something isn't right about Jeffries, the lady or gentleman does protest too much.  Three times in a week to squelch rumors that it's heavily invested in European debt. 

Fri, 08/03/2012 - 13:43 | 2676307 kall
kall's picture

Let's hope that these moves won't have a significant negative impact on the local economy. As a small entrepreneur I am struggling to survive and I am thankful that I can rely on Bradley S Cohen's advice to keep my business back on track.

Fri, 11/04/2011 - 14:20 | 1846088 navy62802
navy62802's picture

Death throws.

Fri, 11/04/2011 - 14:36 | 1846165 knukles
knukles's picture

Not so fast, not so fast...
Understanding Wall Street's (add in commerical side of the banking ledger, too, make No Mistake About That... and this is from Personal Experience) Highly Touted Risk Managemant Capabilities necessitates a thorough underatanding of Wall Street's accounting, records keeping and analytical systems. 
If you really don't fucking know what you own, you can say that it's under control.  Of what and by whom is all together a different discussion, but it's all under control.

Understand?  Like Netting.
No Martha, not hair netting.  Go back to your Betas and Gammas, darling. 

This is honestly business as normal.
Lemme gve you an idea. 
Just as the only time the recovering alcoholic doesn't want to talk about himself is during his 4th and 5th steps, the only time a brokerage firm understands what the fuck it has on it's books is when it comes to dressing them up at quarter's and year's ends.
Period, EOC. 

Fri, 11/04/2011 - 14:22 | 1846094 Amused2Death
Amused2Death's picture

Jefferies goes KABOOM over the weekend? 

Fri, 11/04/2011 - 14:33 | 1846126 bdc63
bdc63's picture

yesterday I would have said yes, but I'm not so sure anymore.  if you're guilty you usually just dismiss things out of hand and call the accusations "ridiculous" ... you don't show numbers.

we'll see soon enough I guess.

Fri, 11/04/2011 - 14:33 | 1846151 Amused2Death
Amused2Death's picture

They're feeling some pinch, likely from clients liquidating accounts, this is not a press release intended for the public...

Fri, 11/04/2011 - 14:45 | 1846202 Irish66
Irish66's picture

BAC just keeps drifting lower

Fri, 11/04/2011 - 15:09 | 1846266 The4thStooge
The4thStooge's picture

Time to smoke a Jefferies?

Fri, 11/04/2011 - 15:15 | 1846280 Irish66
Irish66's picture

music too

Fri, 11/04/2011 - 15:21 | 1846293 Mohan
Mohan's picture

Yesterday CNN Reported tht hedge fund clients of JEF were fleeing.

Fri, 11/04/2011 - 18:10 | 1846758 AldousHuxley
AldousHuxley's picture

Few more Lehmans before QE3.... just in time for reelection.


all part of the plan folks.


BTW, isn't Jefferies walmart of dealers?





Fri, 11/04/2011 - 14:48 | 1846211 CPL
CPL's picture

Well they certainly can't let it die while the market's running.

Fri, 11/04/2011 - 14:22 | 1846095 Hephasteus
Hephasteus's picture

Life's a glitch and then you die.

Fri, 11/04/2011 - 14:22 | 1846099 NOTW777
NOTW777's picture

JEF would like to express its appreciation to the obama business channel for "restoring investor confidence"

as the guy said the disclosure is absolutely extraordinary

Fri, 11/04/2011 - 14:23 | 1846100 SheepDog-One
SheepDog-One's picture

Jeffries just sitting tite, waiting till Monday when Jamie Dimon will discover JPM is holding all the money to make Jeffries whole again. 

Nothing to see here, +1% on DOW no doubt over the next 1/12 hours.

Fri, 11/04/2011 - 14:23 | 1846109 Divided States ...
Divided States of America's picture

The CEO has definitely been handling too much dicks the past week.

Fri, 11/04/2011 - 14:37 | 1846169 ebworthen
ebworthen's picture

Yup, and they need the weekend to get the database hamsters at the FED to wheel some binary funny money over to Jamie at 0.01% on Ben's "special ink" ledger (i.e. - invisible).

Fri, 11/04/2011 - 14:23 | 1846103 unununium
unununium's picture

Jeffries is setting a high standard for transparency here.


Fri, 11/04/2011 - 14:30 | 1846139 bdc63
bdc63's picture

I wouldn't hold my breath for that one ...

Fri, 11/04/2011 - 14:28 | 1846106 ToNYC
ToNYC's picture

It's not the current perception of the facts that ever matter; it what you are holding when the FBI show up that makes it real. FBI timeline only works one way and dissemblage is their encouragement. Capitalism works like a MF (LAMF), just ride the tiger, don't become one.

Fri, 11/04/2011 - 14:24 | 1846113 Bumblebee Tuna
Bumblebee Tuna's picture

Just a little more schadenFRAUDe never hurt anybody, did it?  Oh, except the taxpayers.

Fri, 11/04/2011 - 14:26 | 1846116 Todd Horlbeck
Todd Horlbeck's picture

link to follow

Fri, 11/04/2011 - 14:25 | 1846118 IrritableBowels
IrritableBowels's picture

Fuck. Just went all in FAZ for the weekend.

Fri, 11/04/2011 - 20:48 | 1847203 olo - that's th...
olo - that&#039;s the bird's picture

You're supposed to short FAZ, genius.

Fri, 11/04/2011 - 14:26 | 1846121 NOTW777
NOTW777's picture

there might be an investigation starting .... in a week or so

Fri, 11/04/2011 - 14:26 | 1846123 MonsterZero
MonsterZero's picture

It should be noted that, as of today’s opening of business, Jefferies’ net exposure to the sovereign debt of the nations of Portugal, Italy, Ireland, Greece, and Spain consisted of the following (rounded to the nearest million):

In response to inquiries, Jefferies is disclosing its position as of a few minutes ago in the sovereign risk of the nations of Portugal, Italy, Ireland,

Sorry but they appear pretty clear on the timeframe to me.

Fri, 11/04/2011 - 14:27 | 1846125 tony bonn
tony bonn's picture

if dick handler's lips are moving he's it mf global after glow...the kind you get when you are fucked in the ass without the benefit of lubricants...

Fri, 11/04/2011 - 14:28 | 1846128 LongSoupLine
LongSoupLine's picture

LOL...leave it up to ZH to expose all these high end Wall Street bakeries for what they really are...manure factories.

Fri, 11/04/2011 - 14:29 | 1846129 ebworthen
ebworthen's picture

I'm getting that "Bear Stearns, MF, Leahman, Enron" tingly feeling all over my body.

Fri, 11/04/2011 - 14:36 | 1846161 Irish66
Irish66's picture

there is something going on

Fri, 11/04/2011 - 15:37 | 1846336 Bumblebee Tuna
Bumblebee Tuna's picture

Massive fraud and theft that will soon be covered up & forgotten about due to a war with Iran?

Sat, 11/05/2011 - 00:37 | 1847841 UP Forester
UP Forester's picture

Sorta like the $2.3T announced missing from the Pentagram on 9/10/01?

Fri, 11/04/2011 - 14:32 | 1846140 Dr. Engali
Dr. Engali's picture

 "Our firm stands on a solid foundation of over $8.5 billion of long-term capital and we look forward to continued success."

Wow I heard the same thing at Wachovia.  The Friday before they went under. We came in Monday morning only to hear that Citi was buying us for a buck a share.

Fri, 11/04/2011 - 14:53 | 1846223 Beam Me Up Scotty
Beam Me Up Scotty's picture

That'll make my OTM puts ITM puts!!  :) 

Fri, 11/04/2011 - 14:31 | 1846143 silber2012
Fri, 11/04/2011 - 14:31 | 1846144 Amused2Death
Amused2Death's picture

But but but...Meredith Whitney says nothing to see here!


Fri, 11/04/2011 - 14:32 | 1846149 NotApplicable
NotApplicable's picture

Oh, well that settles it, then...

Fri, 11/04/2011 - 14:32 | 1846150 Dr. Engali
Dr. Engali's picture

Hey many shares did you sell?

Fri, 11/04/2011 - 14:33 | 1846154 Eireann go Brach
Eireann go Brach's picture

CEO "Dick Handler".....hahahahahahahahah he deserves to be ridiculed!

Fri, 11/04/2011 - 14:35 | 1846159 caerus
caerus's picture

dick handler wouldn't jerk us wait...

Fri, 11/04/2011 - 14:41 | 1846186 clawfoot tub
clawfoot tub's picture

Boxing with the stars:

Dick Handler


Dick Trickle

Fri, 11/04/2011 - 14:37 | 1846167 optionsoptions
optionsoptions's picture

Another sensational (wrong) article by ZH blown out of the water!!! Jeez you guys are making Dick Fuld look good!

Fri, 11/04/2011 - 14:39 | 1846177 Quadlet
Quadlet's picture

By short, they mean useless CDS?

Fri, 11/04/2011 - 14:39 | 1846179 Dr. Engali
Dr. Engali's picture

Oops. Jamie says that the MF funds at the Morgue are not the missing funds.

Fri, 11/04/2011 - 14:41 | 1846184 azzhatter
azzhatter's picture

Now senile old uncle Warren discovered he has some of Jeffries money in his account at Wells Fargo. Couldn't remember where he got it. Corzine is on hold

Fri, 11/04/2011 - 14:43 | 1846191 azzhatter
azzhatter's picture

I just realized the dudes name is Dick handler?? Would have love to been in his high school

Fri, 11/04/2011 - 14:46 | 1846197 JenkinsLane
JenkinsLane's picture

Anyone else think of Leslie Nielsen standing in front of the exploding fireworks factory in The Naked Gun telling the crowd, "There's nothing to see here..."

Fri, 11/04/2011 - 15:26 | 1846315 SheepDog-One
SheepDog-One's picture

Yep, every day for the last 3 years.

Fri, 11/04/2011 - 14:45 | 1846203 Turkey
Turkey's picture

Company: MF Global Holdings Ltd.

Ticker: MF


Common Stock : 55277J108

Venue: USDC - New York (Southern)

Class Period: May 20, 2011, through Oct 28, 2011

Filing Date: Nov 03, 2011

Lead Plaintiff Deadline: Jan 03, 2012

Law Firm issuing press release: Block & Leviton

Allegations: The complaint alleges that MF Global Holdings Ltd. ("MF Global" or the "Company") through its most senior officers and directors made certain materially false and misleading statements regarding the Company's internal financial controls and liquidity levels. The positive statements about MF Global were allegedly knowingly false and misleading when made because: (1) the Company was suffering from serious liquidity pressures based on its exposure to the European debt crisis; (2) the Company's internal controls were highly deficient and were unable to clearly segregate clients' funds; and (3) MF Global's senior management failed to disclose that the Company's true risk profile would inevitably lead to a credit rating downgrade.

Fri, 11/04/2011 - 14:46 | 1846205 YesWeKahn
YesWeKahn's picture

Was it so much fun shorting itself?

Fri, 11/04/2011 - 14:47 | 1846208 Smiddywesson
Smiddywesson's picture

It doesn't matter what the truth is regarding their exposure, when people are afraid and someone shouts "fire" the stampede doesn't need any further confirmation. 

This was one of the points in the book, House of Cards.  Bear Stearns actual liquidity status was irrelevant, the rumors created the rush for the door, thereby confirming the rumor.

Fri, 11/04/2011 - 14:50 | 1846219 no life
no life's picture

He was jacking off when he should've been conducting prudent risk management..

Fri, 11/04/2011 - 15:22 | 1846225 JohnG
JohnG's picture




Our Dick who art at Jefferies,

Handler be thy name.

Our hour has come, let us not be done,

As PIGS bonds begin to squeeze us.

And give us this day our daily press release,

As we obfuscate all wrongdoing.

And bring us not under investigation,

But deliver us from our scrutinizers.

For hidden are the dates, the ledgerdemain, and the CUSIP's,

Forever and ever.






(It just works in so many ways....)

Fri, 11/04/2011 - 16:27 | 1846442 kaiserhoff
kaiserhoff's picture

I think you have a bright future here at AAAAAAAAAAAAAAAAAA Auto parts;)

Sat, 11/05/2011 - 02:47 | 1847998 jeff montanye
jeff montanye's picture

i'm liking that "ledgerdemain".  

Fri, 11/04/2011 - 14:56 | 1846229 dereksatkinson
dereksatkinson's picture

You know...  Exposure does change day to day. 3-5% changes day to day wouldn't be a big deal for most entities this size and we aren't even close to seeing that here.  Where is the problem?


Fri, 11/04/2011 - 15:00 | 1846242 MonsterZero
MonsterZero's picture

Slow news day for Tyler I think. Jefferies has been very clear on when those numbers were taken. The last release said that's the exposure in the last few minutes.

Same bullshit news titles I expect from FOX trying to stoke fear in the sheeple.

in at 11.54

Mon, 11/07/2011 - 10:30 | 1852843 MonsterZero
MonsterZero's picture

Thanks for the money Tyler.

Fri, 11/04/2011 - 14:55 | 1846232 High Plains Drifter
High Plains Drifter's picture

everybody relax   they are just a tad net long on european finanicals with hedges..........everybody relax....... nothing to see here. move along......

Fri, 11/04/2011 - 14:59 | 1846239 Mister Ponzi
Mister Ponzi's picture

Wait a second... I thought the exposure is due to market making inventory. Isn't it, then, quite natural that the figures change from day to day???

Fri, 11/04/2011 - 15:04 | 1846248 sullymandias
sullymandias's picture

Corzine - isn't that the dispersent they used in the Gulf oil spill to make it not look so bad?

Fri, 11/04/2011 - 15:04 | 1846251 Taterboy
Taterboy's picture

"The lady doth protest too much, methinks."-Shakespeare

Fri, 11/04/2011 - 15:05 | 1846257 ziggy59
ziggy59's picture

24 hours with copy/paste/ edit and miracles happen!

Fri, 11/04/2011 - 15:08 | 1846265 Irish66
Irish66's picture

Somebody spill the beans on what the rumor is for tonight or this weekend??

Fri, 11/04/2011 - 15:17 | 1846287 tmosley
tmosley's picture

China is going to save them all again.  The full plan, which has been approved by all involved European parties, is explained here:

Fri, 11/04/2011 - 15:10 | 1846270 economists_do_i...
economists_do_it_with_models's picture

Heard this line of BS before...

National City: We have *tons* of Tier-1 capital.  5 minutes later their CEO was seen skydiving with a golden parachute. F*** these liars.  If they say everything is OK, then you can GUARANTEE it's *NOT*.

MF -- steak dinner 1 day -- out of business the next.

How these guys avoid going to jail for FRAUD is just...beyond me.

Then there is that infamous 'We admit no wrongdoing + slap on the wrist' crap.

On a side note, aren't we overdue for another Chinese company with 80% profit margins, but no real customers to go to $0

Fri, 11/04/2011 - 15:11 | 1846274 Hephasteus
Hephasteus's picture

This story need some good theme music.

Fri, 11/04/2011 - 15:17 | 1846285 Blano
Blano's picture

But do they care enough to comingle customer funds?  That's all that should matter.

Fri, 11/04/2011 - 15:18 | 1846289 Chappy
Chappy's picture

Just opened (5) 5$ NOV puts on JEF. Money waste or windfall!

Fri, 11/04/2011 - 19:52 | 1847052 CharlieSDT
CharlieSDT's picture

I bought some at 10, sounds like a fun roll of the dice.

Fri, 11/04/2011 - 15:20 | 1846292 lizzy36
lizzy36's picture

I have a silly question, if one is NET SHORT, why not just be short.

Why have all those long positions offset with short postions. Depending on leverage, isn't one just merely losing money on the margin necessary to offset the various positions?

Fri, 11/04/2011 - 15:45 | 1846361 kaiserhoff
kaiserhoff's picture

Good question, Lizzy.  I do this with options, so I'll give you a quick take.

I might be long 10 puts on Groupon, and own 8 calls, so I'm net short 2.  Why?

My net bias is downside, but the market is so volatile the damn thing could go either way.  This actually reduces risk if it's done right.  Most complex strategies are there to capture interest rate differentials (probably what Jeffries is doing) or take advantage of mispriced volatility.  Hope that helps.

Fri, 11/04/2011 - 20:37 | 1847169 ZeroPower
ZeroPower's picture


Those exposures you see listed are from the firm's daily market making activities. JEF might not be trying to be long or short anything at any given time, but as any MMs duty, they have to quote a bid.offer for every security they trade. Inevitably, at end of day, a dealer ends up with excess inventory on his books. The futures are there to hedge part of this exposure, as are CDS indices (MAIN, XOver, etc) but they are never a 1:1 perfect hedge.

Hence all market makers, despite their primary mandate being to not have any directional exposure, always end up with some sort of (minimal, if hedged correctly) prop exposure.

Fri, 11/04/2011 - 15:21 | 1846294 RobotTrader
RobotTrader's picture

They keep throwing bad news at the market and it simply won't crack.

Fri, 11/04/2011 - 15:29 | 1846323 SheepDog-One
SheepDog-One's picture

Come on, even you can do better than that, retard.

Fri, 11/04/2011 - 15:38 | 1846344 RobotTrader
RobotTrader's picture

We are in the worst economy in decades

Unemployment at 9%+ for 3 years running

European banks blowing up everywhere

Brokerage houses like MF imploding

Everyone is scared stiff

Yet consumer names like SBUX, NUS, PNRA, CMG, ULTA, etc. are at world record highs.


Fri, 11/04/2011 - 15:47 | 1846365 tmosley
tmosley's picture

I see some new names have replaced your stinkers.

Fri, 11/04/2011 - 16:32 | 1846516 ToddGak
ToddGak's picture

WTF?  Well, let's see...

1) Measured against a real asset like gold, rather than dollars which have been diluted, those highs don't look nearly so high.

2) Those who are still employed, continue to fund their 401K's, and that money has to go somewhere.

3) Algos are mainly doing the buying and selling, so they provide a floor to the market; undoubtedly they are set to place buy orders when prices drop to a certain level.

Probably there are more explanations, those are just the first ones off the top of my head.

Fri, 11/04/2011 - 15:24 | 1846305 johnj8027
johnj8027's picture

People are starting to wake up and realize that the Central Banks are going to implode the financial system with an ultimate burst of the credit bubble. You owe to it yourself to get educated on how to survive the upcoming economic collapse:

Fri, 11/04/2011 - 16:02 | 1846406 kaiserhoff
kaiserhoff's picture

So this is a fucking hedge? By Dick Handler, no less. Perfect for a friday, Tyler, congrats.


1. Pair trading is NOT A HEDGE.

2. Some half assed correlation your quant came up with is NOT A HEDGE.

3. Buying all your insurance on Spain and ignoring the rest of your book is NOT A HEDGE.

I'm not even sure this shit can be hedged anymore.  Any bond Dudes have a take on that?

Fri, 11/04/2011 - 16:06 | 1846423 midgetrannyporn
midgetrannyporn's picture

As was the case yesterday, the facts about our sovereign debt exposure and other matters are straightforward and easily understood...

Straightforward. Enron was fond of that word too.

Fri, 11/04/2011 - 16:06 | 1846424 Comrade de Chaos
Comrade de Chaos's picture

'Our firm stands on a solid foundation of over $8.5 billion.'


Wonder what percentage is it out of the PIGS debt bet, that they took. 5%? 1%? 0.1%?


a hahaha.


And what % out of 8.5% are 'accidently' misplaced client's  money? 5%, 10%, 25% ?

Fri, 11/04/2011 - 16:16 | 1846465 rhinotrader
rhinotrader's picture

ZH is the worst site in the world to come to if you trade for a living. You guys are irresponsible with your reports. JEF came out and are disclosing everything!! Stock buried shorts today. I think this system is screwed but you guys yell "FIRE" everyday! I don't know when a story of yours has any teeth in it anymore.

Fri, 11/04/2011 - 18:08 | 1846750 Reese Bobby
Reese Bobby's picture

I think ZH points out the conditions for a wildfire but ZH doesn't light them.  However, ZH "is the worst site in the world to come to if you trade for a living" and are inclined to whine about your own mistakes.

Finally, net exposures don't mean much unless you know how you they are created; e.g. you might want to brush up on repo advance rates and terms.  I'm just saying...



Fri, 11/04/2011 - 18:16 | 1846774 Demologos
Demologos's picture

CEO Dick Handler?  Who is the CFO, Rosie Palms?

Fri, 11/04/2011 - 18:56 | 1846872 virgilcaine
virgilcaine's picture

Like  a dying fish in the water.. sharks are attracted  to the noise and smell blood.  cue Jaws music..

Fri, 11/04/2011 - 20:21 | 1847122 steve from virginia
steve from virginia's picture

"Every banker knows that if he has to prove that he is worthy of credit, however good may be his arguments, in fact his credit is gone ..."

Walter Bagehot 'Lombard Street' (1873)

Fri, 11/04/2011 - 20:37 | 1847172 olo - that's th...
olo - that&#039;s the bird's picture

bullshit. He knows he needs to do everything he can to prevent a bear raid. People get nervous and scared shitless cause your all high on coke acting purely on impulse.

Fri, 11/04/2011 - 20:32 | 1847158 olo - that's th...
olo - that&#039;s the bird's picture

Investment of the lifetime . The moment i heard about it i knew it was free money. Too bad i couldn't capitalize on it. Most are slimeballs but some are honest. They so not leverage or make directional bets. But please keep the fear mongering going.

Sat, 11/05/2011 - 09:16 | 1848249 Coldfire
Coldfire's picture

Ponzi structures like "investment bank" Jefferies are inherently unstable, erected as they are on the shifting sands of confidence. As an offshoot of the Federal Reserve, JEF has all of its weaknesses but lacks the one thing that will insulate it when - as now - push comes to shove: a printing press. You've got to be certain that JEF's fate is being decided behind the scenes this weekend by its alpha primary dealer competitors. One would have thought that 20 is a crowd.

Sat, 11/05/2011 - 13:53 | 1848814 Dr. Nancy
Dr. Nancy's picture

All that's happening is predictable, as there are 7 stages that every major economy goes through. Those who know how it works profit & massive wealth is transferred to them. Several months ago I learned this information from a millionaire whose site I found & am sharing it with everyone I know.

His free video

"How To Create Incredible Wealth in Today's Economic Crisis"

is at:

Hope this info helps everyone as much as it has me.

Dr. Nancy

Do NOT follow this link or you will be banned from the site!