- Banks Clueless on Foreclosure Mess Severity: Jonathan Weil (Bloomberg)
- New York Fed Faces `Inherent Conflict' in Mortgage Buybacks (Bloomberg) - as we speculated first, the FRBNY gets dragged into this as not pursuing action would be dereliction of fiduciary duties to taxpayers by Maiden Lane
- Geithner suggests major currencies "in alignment": report (Reuters)
- Geithner's Goal: Rebalanced World Economy (WSJ)
- Chinese growth slows to 9.6% (FT)
- On the "cash on the sidelines" BS and on Google's 2.4% effective tax rate (Bloomberg)
- Osborne vows not to backtrack on cuts (FT) as UK unveils dramatic austerity measures (FT)
- Greek, Portugal Bonds Lead Peripherals Lower After Spanish Sale (Bloomberg)
- We See Totally Surreal Markets (Bob Chapman, h/t John)
- The Fed itself says QE2 would have little/no effect (St Louis Fed) - then again this is not FRBNY, but the ultra hawkish St Louis Fed. Trench warfare within Fed is intensifying
- Dollar Slide Causes Fresh Scramble for Risk (FT)
- U.S. is currency war's "tomb maker": China economist (Reuters)
- This will make China happy: Germany Warns of Trade War Over Yuan (WSJ)
- The Next Bubble (NYT)
- Fed's Lacker Says Making Jobs an `Imperative' Risks Inflation (Bloomberg)
- The Fed seeks to boost jobs, but it could have bad side effects for consumers (Barrons)
- Yuan Bond Sales Climb to Record Led by Railways: China Credit (Business Week)
- China's Leaders Prepare to Meet as Elders Slam Censorship of Wen (Bloomberg)
- Spain's Santander Funds at Higher Rate to Inferior Banks (Bloomberg)
- LVMH Sales Rise 23% Confirming Luxury Recovery (WSJ)
Stay tuned, we might not need QE 2.0 after all...
Is market volatility forewarning doom? Read on...
Project Mayhem reviews the most important financial and geopolitical news of the past week and takes a look at the week ahead.
"We see the summer pause as natural and as unemployment rises, there’ll be more foreclosures and lower prices. The depression is only pausing to catch its breath." - Bob Chapman
Wexford Capital, a $6 billion hedge fund run by distressed investor Charles Davidson, went activist on Energy Partners Ltd, sending out one of the only activist letters we have seen in months. Wexford, which states it has a large position in EPL's common stock (although not as large as it did last time around, its holdings have dropped from 9.5% to 8.4%) as well as the 9.75% Senior Notes due 2014 and FRNs due 2013, has presented a list of demands.
We all know about West vs. East, 2-Pac vs. Notorious B.I.G., LA vs NY, etc... How does this express itself in the HF community where most managers are either grads of Steinberg-Dietrich Hall (that Huntsman hall phallic monstrosity will never take the place of the brick facade that Saul Steinberg's Reliance renovated with a whole pile of hard-earned, scandal-free dollars) or ex-Yale Lacrosse players, yet where on occasion you may find the odd Westsider... And they can be quite floral....