• Tim Knight from...
    10/21/2014 - 18:16
    Want to live near the 0.1% and their problems? May I present to you 258 Middlefield Road, Palo Alto, California, which is located within walking distance from my house and is a mere $1,800,000 (well...

Wells Fargo

Tyler Durden's picture

How America's Middle Class, And Future Pensioners, Bailed Out A Generation Of Overzealous Homebuyers





In the current Bernanke-Obama-Keynes toxic triangle (defined previously here) economy, blink too long and you will miss the latest bailout. While 4 years ago, it was America's M.A.D.-hostage taxpaying middle class that had no choice but to fund the trillions in direct Fed cash handouts and guarantees to bail out the banks, in the process saving and preserving the trillions in wealth for America's uber wealthy (the "1%") class, ever since then it has been the government's turn to rescue the country's lower and lower-middle classes (the "47%"), who, with no gun to their heads, decided to splurge during the height of the housing bubble (insurmountable mortgage payments and $0 down notwithstanding) and buy that aspirational McMansion that would make them so much more appealing in the eyes of the next door neighbor (who too could never afford their house in the first place). This has happened courtesy of a progressively more pervasive mortgage forgiveness plan, which has seen the total amount of debt funding a given home purchase shrink little by little each day. However, since there is no free lunch anywhere, certainly not when a bank's balance sheet is being impaired, like in 2008, someone is once again on the hook for this latest bailout. That someone, not surprisingly, is again America's middle class that lived within its means, that saved money while others splurged, and even put cash away for retirement, handing it over to various Pension investment vehicles.

 
Tyler Durden's picture

Prominent Hedge Fund Q3 Buys And Sells





This is what the most brand name US hedge funds bought and sold in the third quarter.

 
Tyler Durden's picture

Frontrunning: November 15





  • Wal-Mart misses topline expectations: Revenue $113.93bn, Exp $114.89bn, Sees full year EPS $4.88-$4.93, Exp. $4.94, Unveils new FCPA allegations; Stock down nearly 4%
  • China chooses conservative new leaders (FT)
  • Eurozone falls back into recession (FT)
  • Moody’s to Assess U.K.’s Aaa Rating in 2013 Amid Slowing Economy (Bloomberg)
  • Another bailout is imminent: FHA Nears Need for Taxpayer Funds (WSJ)
  • Hamas chief vows to keep up "resistance" after Jaabari killed (Reuters)
  • Obama calls for rich to pay more, keep middle-class cuts (Reuters)
  • Obama Undecided on FBI's Petraeus Probe (WSJ)
  • Battle lines drawn over “growth revenue” in fiscal cliff talks (Reuters)
  • Rajoy’s Path to Bailout Clears as EU Endorses Austerity (Bloomberg)
  • Zhou Seen Leaving PBOC as China Picks New Economic Chiefs (Bloomberg)
  • Russia warns of tough response to U.S. human rights bill (Reuters)
  • Japan Opposition Leader Ups Pressure on Central Bank (WSJ)
  • Zhou Seen Leaving PBOC as China Picks New Economic Chiefs (Bloomberg)
 
Tyler Durden's picture

Guest Post: Real Danger Of “Obamacare”: Insurance Company Takeover Of Health Care





Now that The Show is over, we are left with the equivalent of a Sunday morning hangover following a binge of promises and lies. After the Supreme Court upheld the PPACA, a spate of mergers rippled through the managed health care realm, to ostensibly cope with smaller profit margins and  ‘compliance costs.’  But really, it’s because each firm wants to corner as much as possible of the market, in as many states as it can, to garner more premiums and control more disbursements and prices at the upcoming insurance ‘exchanges.’ Meanwhile the more hospitals are viewed as profit centers, the more their Chairmen will cut costs to maximize returns, and not care quality. They will seeks ways to sell underperforming assets, programs or services and reduce the number of nonessential employees, burdening those that remain. And if insurance companies can manage doctors directly, they can control not just costs, but treatment – our treatment. It’s not an imaginary government takeover anyone should fear; but a very real, here-and-now insurance company takeover, to which no one in Washington is paying attention.

 
Tyler Durden's picture

Frontrunning: November 13





  • The Bild is now a source for EURUSD stop hunts: Germany eyes 'bundled' loan payment to Greece-paper (Reuters, Bloomberg)
  • Congress comes back Tuesday to confront “fiscal cliff.”  (Reuters)
  • Gen. John Allen ensnared in Petraeus scandal (Politico)
  • FBI Agent in Petraeus Case Under Scrutiny (WSJ)
  • Comcast's NBCUniversal unit lays off 500 employees (Reuters)
  • University Fees Stoke U.K. Inflation (WSJ)
  • Consumers Closing Wallets in Japan Add to Noda’s Woes (Bloomberg)
  • John McAfee Wanted for Murder... and explaining bathsalt anal suppositories (Gizmodo)
  • Europe Gives Greece 2 More Years to Reach Deficit Targets (Bloomberg)
  • Where Spain Is Worse Than Greece (WSJ)
  • Microsoft's Windows unit head, once a possible CEO, exits (Reuters)
  • Glitch stops NYSE trading in 216 companies (FT)
  • Large European Banks Stash Cash (WSJ)
  • The death of San Bernardino: How a vicious circle of self-interest sank California city (Reuters)
  • Apple stores most productive US shops (FT)
  • Treasuries See U.S. Falling Over Cliff as Yields Converge (Bloomberg)
  • Bra-Bodysuits Make H&M One Hit Wonder as Zara Prospers (Bloomberg)
 
drhousingbubble's picture

A modern day feudal system for real estate





There is an interesting dynamic unfolding in the housing market. Real estate agents in places like California are arguing that there is a lack of inventory and are also generally against the government unloading blocks of properties to big investors. Why? There has been bulk selling and buying to the investor class and a large amount of crowding out has occurred. This brings about an interesting set of problems for your average buyer in the current market. They are competing with swaths of big investors but also local flippers trying to make a quick buck once again courtesy of low interest rates and another mania in some markets. SoCal is now in a mania again as you will see with some of the patterns occurring. This is also happening in many other states as well. A new feudal system has emerged. The banks were bailed out by the Fed, were allowed to circumvent accounting standards, and now deep pocket investors in the financial class are buying up these places either to increase prices on flips or to hike up rents. In the end, if you want to compete in today’s market you need to bow down to the Fed, put on a football helmet and go head-to-head with big investors, flippers, suckers, and take on a massive mortgage.

 
Tyler Durden's picture

Frontrunning: October 26





  • Greece Faces Need for Additional Assistance: €30 billion (WSJ)
  • Greeks fail to agree on bailout terms (FT)
  • The report that got the NYT banned on the Chinese interweb: Billions in Hidden Riches for Family of Chinese Leader (NYT)
  • Bo Xilai: China parliament expels disgraced politician (BBC)
  • Japan Adds Stimulus Amid Threat of Bond-Sale Disruption... $9.4 billion (Bloomberg)
  • Hubbard Said to Prefer Treasury Chief to Fed If Romney Wins (Bloomberg)
  • 9 More Banks Subpoenaed Over Libor (WSJ)
  • Romney raises $112m in 17 days (FT)
  • Amid Cutbacks, Greek Doctors Offer Message to Poor: You Are Not Alone (NYT)... no, we are all broke
  • Muni Downgrades Top 2011 Total on Weak Economy: Moody’s (Bloomberg)
  • Ireland urges ECB to commit to bond-buying (FT)
  • Cameron and Clegg unite in EU demands (FT)
 
rcwhalen's picture

Citigroup Rises While Bank America Wallows





So now that Vikram Pandit has exited stage right from the CEO position at Citigroup, a number of people have asked me about the Zombie Dance Queen.  

 
Tyler Durden's picture

Guest Post: Before The Election Was Over, Wall Street Won





Before the campaign contributors lavished billions of dollars on their favorite candidate; and long after they toast their winner or drink to forget their loser, Wall Street was already primed to continue its reign over the economy. For, after three debates (well, four), when it comes to banking, finance, and the ongoing subsidization of Wall Street, both presidential candidates and their parties’ attitudes toward the banking sector is similar  – i.e. it must be preserved – as is – at all costs, rhetoric to the contrary, aside. Obama hasn’t brought ‘sweeping reform’ upon the Establishment Banks, nor does Romney need to exude deregulatory babble, because nothing structurally substantive has been done to harness the biggest banks of the financial sector, enabled, as they are, by entities from the SEC to the Fed to the Treasury Department to the White House.

 
Tyler Durden's picture

Frontrunning: October 23





  • Moody’s Cuts Ratings on Catalonia, Four Other Spanish Regions (Bloomberg)
  • And the market top: Billionaire Ross Interested in Buying Spanish Bank Assets (Bloomberg)
  • Japan Jojima denies govt seeks $250 bln BOJ asset buying boost (Reuters)
  • China hints at move to strengthen Communist rule (Reuters)... well everyone else is doing it
  • Euro-Area Bailout Fund Faces Challenge at EU’s Highest Court (Bloomberg)
  • Obama, Romney now tied in presidential race: Reuters/Ipsos poll (Reuters)
  • Former China Leader Jiang Resurfaces Before Political Transition (Bloomberg)
  • Some in Congress look to $55 billion fiscal cliff 'fallback' (Reuters)
  • CLOs stage comeback in US (FT)
  • TXU Teeters as Firms Reap $528 Million Fees (Bloomberg)
  • China’s Factories Losing Pricing Power in Earnings Threat (Bloomberg)
 
Tyler Durden's picture

Frontrunning: October 22





  • Dead Heat for Romney, Obama (WSJ)
  • The Cheerful Billionaire Who Thinks Obama's a Socialist (Businessweek)
  • "Get to work, Mr. Japanese Chairman": Japan Exports Tumble 10% as Maehara Presses BOJ to Ease (Bloomberg)
  • Chinese Investors Fear Chill in Canada (WSJ)
  • Rosneft Buys BP’s TNK-BP Stake for $26 Billion in Cash, Shares (Bloomberg)
  • Hong Kong Defends Its Currency Peg for First Time Since 2009 (Bloomberg)
  • Democrats threaten payroll tax cut consensus (FT)
  • Spain's Rajoy gets mixed message in regional votes (Reuters)
  • Merkel to warn UK on Europe budget veto (FT)
  • Netanyahu says doesn't know of any U.S.-Iran talks (Reuters)... neither does Iran, so near certainty
  • Der Kurrency Tsar: ECB’s Knot Backs Schaeuble Call for Stronger EU Budget Power (Bloomberg)
  • Fannie Mae Limiting Loans Helps JPMorgan Mortgage Profits (Bloomberg)
 
Tyler Durden's picture

Frontrunning: October 19





  • Debt Fuels a Dividend Boom - Firms Collect Payouts, and Investors Get Yield; 'Reminiscent of the Bubble Era' (WSJ)
  • Black Monday Echoes With Computers Failing to Restore Confidence (BBG)
  • Poll: Obama Leads in Wisconsin, Iowa (WSJ)
  • Gold Imports by India Seen Climbing First Time in Six Quarters (BBG)
  • Europe pushes ahead towards ECB bank supervision (Reuters)
  • ... And fails: Summit fails to agree timetable for aid to failing lenders (FT)
  • Toyota Prius Dominates California as State’s No. 1 Model (BBG)
  • Italy raises €18bn in huge bond sale (FT)
  • Diplomacy inbox fills up as U.N. awaits U.S. presidential vote (Reuters)
  • Goldman braced for more revelations (FT)
  • China power brokers agree preferred leadership team (Reuters)
  • EU, Japan Warn Against New US Swaps Rules (WSJ)
  • Why VaR is the most meaningless contraption ever: Morgan Stanley shows the ‘flaky’ side of model (FT)
  • Made in France Trumps Consumer Choice in Hollande Jobs Quest (BBG)
  • North Korea threatens South over propaganda balloons (Reuters)
 
Tyler Durden's picture

Frontrunning: October 18





  • Germany will pay Greek aid (Spiegel)
  • Spain Banks Face More Pain as Worst-Case Scenario Turns Real (Bloomberg)
  • China’s Growth Continues to Slow (WSJ)
  • Executives Lack Confidence in U.S. Competitiveness (WSJ)
  • Poor Market Conditions will See 180 Solar Manufacturers Fail by 2015 (OilPrice)
  • Wen upbeat on China’s economy (FT)
  • Gold remains popular, despite the doubts of economists (Economist)
  • Armstrong Stands to Lose $30 Million as Sponsors Flee (Bloomberg)
  • IMF urges aid for Italy, Spain but Rome baulking (Reuters)
  • EU Summit Highlights Financial Divide (WSJ)
  • FOMC Straying on Price Target, Former Fed Officials Say (Bloomberg)
  • Putin defiant over weapons sales (FT)
 
Tyler Durden's picture

Frontrunning: October 16





  • Hillary Clinton Accepts Blame for Benghazi (WSJ)
  • In Reversal, Cash Leaks Out of China (WSJ)
  • Spain Considers EU Credit Line (WSJ)
  • China criticizes new EU sanctions on Iran, calls for talks (Reuters)
  • Portugal sees third year of recession in 2013 budget (Reuters)
  • Greek PM says confident Athens will secure aid tranche (Reuters)
  • Fears over US mortgages dominance (FT)
  • Fed officials offer divergent views on inflation risks (Reuters)
  • China Credit Card Romney Assails Gives Way to Japan (Bloomberg)
  • Fed's Williams: Fed Actions Will Improve Growth (WSJ)
  • Rothschild Quits Bumi to Fight Bakries’ $1.2 Billion Offer (Bloomberg)
 
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