Archives for July 2012

Fannie Freddie Cramdowns and the Obama-Geithner Blame DeMarco Shell Game

Courtesy of Lee Adler of the Wall Street Examiner The independent federal agency that administers Fannie Mae and Freddie Mac said once again on Tuesday that it would not let the mortgage finance companies offer debt forgiveness to homeowners, rejecting the entreaties of congressional Democrats and the Obama administration. The Federal Housing Finance Agency said […]

Auto Financing: You Don't Need Decent Credit

“As long as the music is playing, get up and dance…" Recall: "Under Chuck Prince, [Sandy] Weill’s short-lived successor, Citigroup dove headfirst into subprime mortgages and played all kinds of games with its balance sheet. The only thing Prince will ever be remembered for is his pathetic utterance in defense of his bank’s insane risk-taking: […]

Auto Financing: You Don’t Need Decent Credit

“As long as the music is playing, get up and dance…" Recall: "Under Chuck Prince, [Sandy] Weill’s short-lived successor, Citigroup dove headfirst into subprime mortgages and played all kinds of games with its balance sheet. The only thing Prince will ever be remembered for is his pathetic utterance in defense of his bank’s insane risk-taking: […]

Facebook — Bots Once Again Appear

  Facebook's datacenter photo, credit: Robert Scoble at Flickr   Facebook — Bots Once Again Appear Courtesy of Karl Denninger This has come up before, but the charge just got much more serious. Any business that advertises on Facebook wants eyes looking at its ads and then fingers clicking on them. Facebook gets paid based on how many clicks […]

CLASS WAR FOR IDIOTS: LIBERTARIANISM = ASSHOLISM

Courtesy of Richard Metzger at Dangerous Minds     The term “Libertarian” has long been synonymous with “Asshole” in my estimation, and I think it’s safe to say that Jacobin magazine editor Connor Kilpatrick probably feels the same way. Today is the centenary anniversary of the birth of Libertarian icon, economist Milton Friedlman, so what better day for the […]

The High End Is Done (COH)

More thoughts from Karl Denninger, The Market Ticker: The High End Is Done (COH) The crooners have all said that "high end is immune" to the economic mess. Today, they're wrong. Coach Inc. (COH), the largest U.S. luxury handbag maker, tumbled as much as 17 percent in early trading after reporting fiscal fourth-quarter revenue that trailed […]

JC Penny — Short To Zero?

Karl Denninger of Market Ticker is contemplating: JC Penny — Short To Zero? Hmmm…. The company is claiming that it will be basically eliminating the traditional "checkout stand" model, using RFID tags and more of a "self-checkout" model.  Will it work?  One wonders.  Part of the drive to make this change is labor cost, but […]

US budget deal avoids pre-election showdown

US budget deal avoids pre-election showdown (via AFP) Republican and Democratic leaders in Congress announced a deal Tuesday to keep funding the US government through next March, avoiding a potential partisan shutdown fight ahead of November's election. Harry Reid, the Senate's Democratic majority leader, said the deal on the so-called continuing resolution…

LIBOR, Lies and Derivatives

LIBOR, Lies and Derivatives Courtesy of The Automatic Earth   Three weeks, ago, I wrote LIBOR was a criminal conspiracy from the start. An avalanche of articles have been written on LIBOR since, and I think an update is in order, which also gives me a chance to delve a little further into the bold statement in […]

More on Draghi’s “The ECB is All In” Bluff

More on Draghi’s “The ECB is All In” Bluff Courtesy of Yves Smith of Naked Capitalism The more news comes out, the more it looks like Mario Draghi’s pledge that the ECB would do all it would take to save the Euro was a bluff. The best guess is that he hopes to appease the market […]

We’ve Always Been At War With Eastasia

Courtesy of George Washington In George Orwell’s novel 1984,  the country of Oceania has been in a war against Eurasia for years. Oceania suddenly switches sides, naming Eastasia as its enemy and making its mortal enemy, Eurasia, its new ally. The government uses propaganda to convince people that, “We’ve always been at war with Eastasia”.  The […]

ESM Banking License? Not Happening as Merkel Allies Harden Opposition

Courtesy of Mish. So far it’s been nothing but hot air and no action from ECB president Mario Draghi after he pledged to do whatever it takes to save the euro. One of the highly-touted ideas as of late has been a ESM banking license. However, the idea is not really new, and has been […]

Charting Europe's Broken Transmission Channels

Courtesy of ZeroHedge. View original post here. Submitted by Tyler Durden. The catalyst for the major turnaround in markets last week was comments from ECB President Draghi that he was prepared to do whatever it takes to preserve the Euro and ensure monetary policy transmission. While this is nothing more than stating his mandate (and […]

Charting Europe’s Broken Transmission Channels

Courtesy of ZeroHedge. View original post here. Submitted by Tyler Durden. The catalyst for the major turnaround in markets last week was comments from ECB President Draghi that he was prepared to do whatever it takes to preserve the Euro and ensure monetary policy transmission. While this is nothing more than stating his mandate (and […]

This Is What 670 Million People Without Power Look Like: Pictures From Blacked Out India

Courtesy of ZeroHedge. View original post here. Submitted by Tyler Durden. First thing today we reported that India just suffered what may have been the biggest blackout in history, after half of the country's population of 1.2 billion, or just under 700 million was without power, as the electric grid of more than a dozen […]

GM’s Channel Stuffing Goes to Germany: Is Europe’s Largest Economy a Fraud?

Courtesy of ZeroHedge. View original post here. Submitted by Tyler Durden. We have long argued that auto manufacturers have been channel-stuffing (and subprime-lending) themselves back into a disaster and as such class-action lawsuits have begun. Recently we also pointed out the epidemic of dealer-inventory-stuffing in China (and again this morning the Chinese luxury car market's […]

100,000 Workers in Spain Will Not be Paid Because Regional Government of Catalona is Broke

Courtesy of Mish. The crisis in Spanish regional governments continues to escalate. El Pais reports Catalona Will Not Pay Hospitals or Private Centers and 100,000 workers are affected. This month, the Government of Catalona cannot tackle  payments owed to hospitals, schools, residences, social organizations, and children in care centers and workshops. These are the services […]

Barofsky Book: Goldman Sachs and Morgan Stanley Would Have Failed Next

Courtesy of Pam Martens. Bailout by Neil Barofsky They’re everywhere – on 60 Minutes, peeping out of the display window at Barnes and Noble, going out on internet news feeds.  I’m talking about insiders who want to fill in the cracks and voids of Wall Street’s criminal wealth transfer system that has had an iron grip around […]

Recent Gold Hype Sounds Like Grade-School Chant; Five Non-Hype Reasons to Own Gold

Courtesy of Mish. Reader David emailed a link to GATA, SHAKA ZULU, And The Coming Gold/Silver STORM! with a note “please see fit to write about this!!!” The article is by Bill Murphy, the Gold Anti-Trust Action Committee (GATA) chairman. Here are the key snips. To get right to the point, three quality sources told […]

Shades of 2006: That's What Australia Housing Bubble Looks Like From US Perspective

Courtesy of Mish. The Australia housing market did not bust when it should of and the delay is going to be painful. The bigger the bubble, the bigger the crash, and the Australia bubble is bigger than we saw in the US. On a timeline basis, Australia is about where the US was in 2006, […]

Shades of 2006: That’s What Australia Housing Bubble Looks Like From US Perspective

Courtesy of Mish. The Australia housing market did not bust when it should of and the delay is going to be painful. The bigger the bubble, the bigger the crash, and the Australia bubble is bigger than we saw in the US. On a timeline basis, Australia is about where the US was in 2006, […]

QE3, ECB or Bust

Courtesy of David Brown, Sabrient Systems and Gradient Analytics Well, perhaps not literally, but it is high time that the Central Banks started following up on their statements with action. How many times have we heard “We will do whatever it takes to…” or “We have a number of choices to make regarding getting the […]

Salutes to the Homeys

James Howard Kunstler presents a list of his favorite financial blogs.  Salutes to the Homeys      Blogger Pater Tenebrarum of ACTING MAN put it nicely today: Since Mario Draghi "bought" European bankers and politicos a summer vacation by promising to pull out all the stops to save the Euro, this blog will take a break (not a […]

Mike “Mish” Shedlock Answers: Is Global Trade About to Collapse; And Where are Oil Prices Headed?

Courtesy of ZeroHedge. View original post here. Submitted by Tyler Durden. From James Stafford of OilPrice.com Is Global Trade About To Collapse? Where are Oil Prices Headed? A chat with Mike Shedlock As markets continue to yo-yo and commentators deliver mixed forecasts, investors are faced with some tough decisions and have a number of important […]