General Motors

To really appreciate “too big to fail,” you must first and foremost understand that it is a political concept that springs from a sense of liberal privilege and entitlement. 

• One-Ship Ukraine Navy Defies Russia to the End (WSJ)
• Crimea-Induced Trading Surge Stokes Moscow Exchange Rally (BBG)
• Moscow says Ukraine stops Russian crews disembarking in Kiev (Reuters)
• New images show more than 100 objects that could be plane debris (Reuters)
• Anger of Flight 370 Families Explodes in Beijing (BBG)
• Murdoch Promotes Son Lachlan in Succession Plan for Empire (BBG)
• Facebook to buy virtual reality goggles maker for $2 billion (Reuters)
• Syrian Regime Exploits Rebel Despair (WSJ)
• King Digital IPO price may not bode well for stock (Reuters)
• Rothschild in Twitter Spat as Bakries Cut Ties With Miner (BBG)

• Putin Threatened With More Sanctions as Russia Out of G-8 (BBG)
• China Faces ‘Mini Crisis’ on Debt Defaults, Ex-PBOC Adviser Says (BBG)
• Don't laugh too hard: Obama to propose ending NSA bulk collection of phone records (Reuters)
• SEC Is Probing Dealings by Banks and Companies in Loan Securities (WSJ)
• Japan GPIF asset review not aimed at supporting domestic stocks (Reuters)
• Chinese families clash with police, slam Malaysia over lost plane (Reuters)
• Russian Capital Flight Surges in First Quarter, Fueled by Ukraine Crisis (WSJ)
• Democrats ditch Nate Silver after data whiz predicts dismal midterm outcome (DN)
• China’s Urbanization Loses Momentum as Growth Slows (BBG)

Let's examine what happened from the beginning.  An extreme right wing group, with US and NATO support (according to released internal transcripts), overthrew the legitimate Ukrainian government (illegally) via violent coup.  The fact that this group had western support is not important really, but should be noted.  So according to 'international law' - this 'country' is NOT Ukraine.  Ukraine cease to exist when this happened.  The new 'government' - not popularly elected, seized control by force.

• U.S. Small-Cap Rally Sends Valuation 26% Above 1990s  (BBG)
• Russian troops seize Ukraine marine base in Crimea (Reuters)
• Apple in Talks With Comcast About Streaming-TV Service (WSJ)
• Top J.P. Morgan Executive in China to Leave Bank (WSJ)
• Treasury's Lew to undergo treatment for enlarged prostate (Reuters)
• Billionaire Sought by U.S. Holds Key to Putin Gas Cash  (BBG)
• Israel closes embassies around the world as diplomats strike (Reuters)
• Herbalife to Nominate Three More Icahn Candidates to Board (BBG)
• Australian ship homes in on possible debris from Malaysia plane (Reuters)
• California DMV Investigating Potential Credit Card Breach (WSJ)

Not only is GM facing record high inventories of slow-to-sell cars and the recall of million sof its cars (and a sale halt), Reuters reports that the terrible ignition switch problem - that has caused 13 deaths - may have been known about (and not disclosed) prior to the bankruptcy (and subsequent taxpayer bailout). The Justic Department is investigating whether GM understated (or hid) the information from regulators and committed bankruptcy fraud.

• Australia says nothing spotted in search for plane (AP)
• Putin looks to Asia as West threatens to isolate Russia (Reuters)
• China Billionaire Builds Metals With Dreyfus, Glencore Hires (BBG)
• China Beige Book Says Economy Slowing (BBG)
• Caterpillar Said to Be Focus of Senate Overseas Tax Probe (BBG)
• US Cancels Summit With Divided Group of Gulf Nations (WSJ)
• Cyprus defense minister suffers aneurysm (AP)
• Abe to zero in on economy as tax hike looms (Nikkei)
• Europe strikes deal to complete banking union (Reuters)

• How Putin Parried Obama's Overtures on Crimea (WSJ)
• West Readies Tighter Sanctions After Russia Seals Crimea Claim (Bloomberg)
• Putin says U.S. guided by 'the rule of the gun' in foreign policy (Reuters)
• JPMorgan Said to Agree on Commodities Unit Sale to Mercuria (BBG)
• Short Sellers Target Chinese Developers as Rout Deepens (BBG)
• HFT finally under the spotlight: High-Speed Trading Firms Face New U.S. Scrutiny (WSJ)
• Chinese Dollar Bond Investors Demand Higher Yields After Default (BBG)
• According to Joe LaVorgna it's the snow's fault: Deutsche Bank Said to Plan Job Cuts at Investment Bank (BBG)
• Israeli airstrikes kill 1 Syrian soldier, wound 7 (AP)

• Lost Jet’s Path Seen as Altered via Computer (NYT)
• Fed Links Low Rates to “Persistent Headwinds” in Economy (Hilsenrath)
• Top German Court Clears Euro-Zone Bailout Fund (WSJ)
• U.S., EU set sanctions as Putin recognizes Crimea "sovereignty" (Reuters)
• Indian wealth effect: Sensex, Nifty hit life highs as domestic-focused firms rally (Reuters)
• China bond default has positive effect on local government groups (FT) - unless it's negative
• Russia tensions  risk higher gas prices (FT)
• China Home-Price Growth Slows in Big Cities on Tight Credit (BBG)
• ECB's Weidmann says German surpluses "here to stay" (Reuters)
• Microsoft Office for iPad (AAPL) to be introduced this month (The Verge)

General Motors is in trouble. On the heels of a 1.3 million car recall over fault ignition switches (that allegedly caused 12 deaths and could have been fixed with a $1 part), the bailed-out car maker has announced it will take a $300 million charge in Q1 to cover costs associated with this and 3 new recalls covering an additional 1.5 million cars. As Reuters reports, unsold vehicles will be placed on a stop-delivery until development of a solution has been completed. Why is this such a problem? Because GM's channel-stuffed dealer inventory is already at all-time record highs as the entire industry projected the sales to continue ad infinitum and inventory-to-sales surged to near-record highs.

• Ukraine anxiety triggers flight to safety, stocks tumble (Reuters)
• Woodrow Wilson’s Ukraine Failure Foreshadows West’s Dilemmas (BBG)
• Fortress Executives Join Peers Selling Stock After Rally (BBG)
• 303 Deaths Seen in G.M. Cars With Failed Air Bags (NYT)
• Putin Deports Executives for Speeding as Sanctions Loom (BBG)
• Russia blocks internet sites of Putin critics (Reuters)
• China Bond Risk Exceeds Ireland as Defaults Unavoidable (BBG)
• China H-Shares Post Biggest Weekly Drop Since October (BBG)
• Surge in Rail Shipments of Oil Sidetracks Other Industries (WSJ)
• Blackstone’s Home Buying Binge Ends as Prices Surge (BBG)

• China premier warns on economic slowdown as data fans stimulus talk (Reuters)
• Li says China defaults ‘unavoidable’ (FT)
• Russia Said to Ready for Iran-Style Sanctions in Worst Case (BBG)
• Rescue the tapes from the Bank of England’s dustbins  (FT)
• Obama Warns Putin of Cost to Russia for Annexing Ukraine (BBG)
• The TVIX is back: Credit Suisse VIX Note That Ran Amok in 2012 Back on Top (BBG)
• U.S. Risks National Blackout From Small-Scale Attack (WSJ)
• U.S. Investigators Suspect Missing Airplane Flew On for Hours (WSJ)
• Malaysia says no evidence missing plane flew hours after losing contact (Reuters)
• Missed Alarms and 40 Million Stolen Credit Card Numbers: How Target Blew It (BBG)
• Death Toll in NYC Building Blast Rises to Six; Search Continues (BBG)

The Fed and the other major central banks have been planting time bombs all over the global financial system for years, but especially since their post-crisis money printing spree incepted in the fall of 2008.  Now comes a new leader to the Eccles Building who is not only bubble-blind like her two predecessors, but is also apparently bubble-mute. Janet Yellen is pleased to speak of financial bubbles as a “misalignment of asset prices,” and professes not to espy any on the horizon. Actually, the Fed’s bubble blindness stems from even worse than servility. The problem is an irredeemably flawed monetary doctrine that tracks, targets and aims to goose Keynesian GDP flows using the crude tools of central banking. Not surprisingly, therefore, our monetary central planners are always, well, surprised, when financial fire storms break-out. Even now, after more than a half-dozen collapses since the Greenspan era of Bubble Finance incepted in 1987, they don’t recognize that it is they who are carrying what amounts to monetary gas cans.

• China worries chill markets, copper slumps (Reuters)
• Peak dot com dot two idiocy: Candy Crush Saga maker King seeks $7.56 bln valuation from IPO (BBG)
• Obama Meeting With Yatsenyuk Raises Stakes in Ukraine (BBG)
• Federal prosecutors open criminal probe of GM recall (Reuters)
• Pimco Cuts Government Debt on Outlook for Fed Buying (BBG)
• Missing Malaysian Jetliner Confuses World That’s Online 24/7 (BBG)
• Mortgage Giants Face Endgame (WSJ)
• Russia Calls U.S. Aid to Ukraine Illegal Amid Standoff (BBG)
• U.S. judge freezes assets of Mt. Gox bitcoin exchange boss (Reuters)
• Ousted Libyan PM flees country after tanker escapes rebel-held port (Reuters)
• Senate-CIA Dispute Erupts Into a Public Brawl (WSJ)

• Malaysia Says Stolen Passport User Had No Links to Terror Groups (BBG)
• Malaysia military tracked missing plane to west coast (Reuters)
• Freescale loss in Malaysia tragedy leads to travel policy questions (Reuters)
• Top German body calls for QE blitz to avert deflation trap in Europe (Telegraph)
• Firms Suffer 23% Drop in Asia Fees Amid Search for Cash (BBG)
• Putin Dismisses U.S. Proposal on Ukraine (WSJ)
• Lenovo says China strike an IBM matter, but it won't cut wages (Reuters)
• Congress to Investigate GM Recall (WSJ)
• New hedge funds face life or death battle for funding (FT)
• Muni Bond Costs Hit Investors in Wallet (WSJ)
• BOJ keeps stimulus in place, cuts view on exports in warning sign (Reuters)
• ECB Homes In on Risky Assets as Inspectors Fan Out Across Europe  (BBG)
• Snowden: "The Constitution was violated" (Reuters)