Archives for June 2013

Another, more predictable BEN

Another, more predictable BEN By Paul Price Market Shadows’ Virtual Put Selling Portfolio sold another put today. We sold one put contract of the Franklin Resources (BEN) Jan. 2014 $150 strike put for $19.40 per share.                        After pulling back more than $32 per share over the past […]

Supreme Court Strikes Down DOMA

Visualizing The State-By-State Implications Of The DOMA Decision Courtesy of Zero Hedge The Supreme Court struck down the 1996 Defense of Marriage Act (as we noted here), leaving states to decide on the legality of same-sex marriage. As the infographic below from Bloomberg shows, laws ban same-sex-marriage in 35 states, with five of those allowing civil union or […]

Boston Fed Research Paper: The Key Variable for Monetary Policy Is . . .

Courtesy of Larry Doyle. Are we supposed to really think that Ben Bernanke believes our economy — and especially our employment situation — is markedly improving? If we were to gather our news from USA Today or similar outlets, I guess we could just think just that. Let’s dig a little deeper. What are many […]

House Financial Services Convenes Today on Too Big to Fail

Courtesy of Pam Martens. The U.S. House of Representatives’ Financial Services Committee will convene at 10 a.m. this morning to hear new warnings about the growing dangers posed by the too big to fail Wall Street banks.  On deck to testify are: Thomas Hoenig, Vice Chairman of the Federal Deposit Insurance Corporation (FDIC); Richard W. […]

Italy Faces Huge Losses on Derivatives Restructured in Eurozone Crisis

Courtesy of Mish. The Financial Times notes that Italy faces billions in losses on Derivatives Restructured in Eurozone Crisis. Italy risks potential losses of billions of euros on derivatives contracts it restructured at the height of the eurozone crisis, according to a confidential report by the Rome Treasury that sheds more light on the financial […]

Housing Inflation Ain’t Recovery

Courtesy of Lee Adler of the Wall Street Examiner Let’s call a spade a spade, please. What we have here is housing “inflation,” hardly housing “recovery.” Housing prices are rising 10-15% per year, but nobody in the media is calling it what it is. There’s a wall of silence. We have narrowed the definition of […]

Yields Creep Up in Spain, Italy, France (Actual and Also Relative to Germany)

Courtesy of Mish. Curve Watchers Anonymous has its eye on global interest rates that are heading North practically everywhere. Spain 10-Year Bond Yields After hitting a low of just above 4% earlier this year, the yield is now back above 5%. Italy 10-Year Bond Yields After falling as low as 4.68% today, the yield close […]

The Daily Show Does the US Ratings Agencies

The Daily Show Does the US Ratings Agencies Courtesy of Jesse's Cafe Americain The Daily Show does the ratings agencies, CNBC, and the opera buffo of the financial markets. The credibility trap doesn't explain everything, but it does cover quite a bit. "It is difficult to get a man to understand something when his salary depends upon his not understanding it." Upton Sinclair […]

China Acts to Calm Markets; Stock Market Rebounds From 6% Plunge After Central Bank Pledges More Liquidity; Wet Nurse Action

Courtesy of Mish. In the past few week, China intraday lending rates as measured by SHIBOR got as high as 25% (See China Cash Crunch: 1-Day Interest Rate Spikes to Record High 25%). With rates spiking, global stock markets plunged. On Monday China insisted banks had significant liquidity sending a message that banks need to […]

Bill Gross On The Fog That’s Yet To Lift… Or Doctor Populist And Mister P&L

Courtesy of ZeroHedge. View original post here. Submitted by Tyler Durden. Bill Gross, of PIMCO and serious bond duration pain, finally comes clean: the man who has been criticizing the Fed for years for one after another misguided policy (all of which ultimately culminate with the New York Fed's markets desk going "wave it in" […]

Perfecting The Surveillance Society – One Payment At A Time

Perfecting The Surveillance Society – One Payment At A Time Courtesy of Wolf Richter   www.testosteronepit.com   www.amazon.com/author/wolfrichter Governments and corporations, even that genius app developer in Russia, have one thing in common: they want to know everything. Data is power. And money. As the Snowden debacle has shown, they’re getting there. Technologies for gathering information, then hording […]

Canadian National Railway Co: Fundamental Stock Research Analysis

Courtesy of www.fastgraphs.com. Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed.  Because at the end of the day, if you are an investor, you are buying the business.  The FAST Graphs™ presented with this article will focus first on the business behind the stock.  […]

Aaron’s Inc: Fundamental Stock Research Analysis

Courtesy of www.fastgraphs.com. Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed.  Because at the end of the day, if you are an investor, you are buying the business.  The FAST Graphs™ presented with this article will focus first on the business behind the stock.  […]

Yields Creep Up in Spain, Italy, France (Actual and Relative to Germany)

Courtesy of Mish. Curve Watchers Anonymous has its eye on global interest rates that are heading North practically everywhere. Spain 10-Year Bond Yields After hitting a low of just above 4% earlier this year, the yield is now back above 5%. Italy 10-Year Bond Yields After falling as low as 4.68% today, the yield close […]

Ben Bernanke Starts a Bond Panic; Fed Pals Step In to Soothe Nerves

Courtesy of Pam Martens. James Bullard, President of the St. Louis Fed The frightening “L” word is now making the rounds on Wall Street, resurrecting fears of the early days of the 2008 financial crisis. According to Wall Street veterans, liquidity has dried up in finding buyers for what hedge funds are desperate to sell: […]

Parking in Chicago: Two Minutes for Two Bits

Courtesy of Larry Doyle. Do you ever get to the point when you think your life is one large windshield and every bird in the world has taken a liking to you? Let’s take a break from trying to decipher the nuances and obfuscations in all too many statements emanating from the Federal Reserve system […]

Deflation By Any Other Name Would Smell As Foul

Courtesy of The Automatic Earth Russell Lee Family Car February 1939 "White migrant and wife repairing clutch in their car near Harlingen, Texas" Over the past two weeks or so, we've been seeing a very clear portrait of how sick our economies are. Not that you would know it from reading the press. The term […]

Immigration Bill Incentivizes Employers To Fire Americans and Hire Amnestied Immigrants; Immigration and Obamacare’s Employer Mandate

Courtesy of Mish. Obamacare is bad enough in and of itself. An immigration bill in the Senate is about to compound the problem. Brietbart reports Senate Bill Incentivizes Employers To Fire Americans and Hire Amnestied Immigrants. Under the Gang of 8’s backroom immigration deal with Senators Schumer, Corker and Hoeven, formerly illegal immigrants who are […]

The Nightmare Scenario

Courtesy of John Rubino. It’s safe to say that as this is written at noon EST on Monday the 24th, every economic policymaker in this hemisphere (and a lot of sleepless folks elsewhere) are staring at screens and wondering if this is it. They’ve been playing with fire for such a long time, trying to […]

10-Year Treasury Yield Up 100 Basis Points Since May; What’s That Mean for Mortgage Rates and Housing Affordability?

Courtesy of Mish. Curve Watchers Anonymous note the yield on the 10-year treasury note hit as high as 2.657% today, up a whopping 104 basis points since the early May low in yield of 1.614%. $TNX: 10-Year Treasury Yield The 10-year yield has been falling since the open today, but the overall rise since May […]

The Banker Who Was God

The Banker Who Was God From this week’s Market Shadows Newsletter, The Banker Who Was God (6-23-13). American writer and cartoonist James Thurber wrote, “The Owl Who Was God” in 1940, long before the Chairman of the Federal Reserve would become the de facto ruler of the world’s financial system. It begins as a typical fable […]

Bank Transfers and Services Suspended in China: ATMs, POS Machines, Online Banking Paralyzed 50 Minutes

Courtesy of Mish. Several readers sent a link to an article regarding online bank outages and suspended services in China. The translation show below is very choppy. If a reader has a better translation or a different source I will post it. Please consider Bank of China, Bank of suspension of transfers morning counters were […]

Mid Year Digest

James Howard Kunstler's Mid Year Digest  Wondering why the money world got its knickers in a twist last week? The answer is simple: the global economy is breaking apart and its constituent major players are doing face-plants on the downhill slope of a no-longer-cheap-oil way of life.  Let’s look at them case by case.      […]

Bifurcation Nation

Courtesy of Charles Hugh-Smith of Of Two Minds Many observers focus on the economic causes of the widening wealth inequality, but the divide appears to be both cultural and financial. To say there are haves and have-nots and two major political camps does not distinguish this era from any other. But despite this surface similarity to […]