David Roche, former Head Of Morgan Stanley Research And Global Strategy, and currently president of Independent Strategy shares perspectives that should be read closely by any bull who believes that there is anything else to this market rally than pure liquidity driven euphoria riding on the coattails of the Fed's Quantitative Easing program. Deconstructing one by one all the myths that make up the arsenal of every pundit who appears on CNBC to talk up their book, Roche concludes "Of course, the insider game between financial institutions and the central banks can go further
And just as Greece was about to launch its 10 year bond offering... Where is Papandreou to claim that Fitch was bought by all the accounts (who may or may not invest in the €5 billion issue) to make the price even better. Because the spread to Bunds just jumped by about 10 bps to 325 following the news.
If only there were more journalists like Dylan, the vast majority of America's population may well have been on its way to grasping the gravity and the real implications of our current unprecedented wealth transfer paradigm, which the President, despite increasing "political points" rhetoric and recent attempts, such as the Volcker Rule, to if not stop then at least delay (thank you teleprompters), has been instrumental in blessing. Between TARP, guarantees, direct cash investments, and the trillions in implicit benefits from the record steep yield curve, the only beneficiary from the existing financial environment is the banking system, period.
Well that 180 degree turn didn't take long. What do they want from Goldman Sachs? It reminds me of that scene in Goldfinger, when James Bond is on the laser table and he asks Goldfinger, "Do you want me to talk?" And Goldfinger shoots back, "No Mr
Meredith Whitney is much less sanguine than all the naysayers who believes that the Obama plan is just more hot air.To wit, the maven proposes a very dire scenario should the plan be consummated. This morning the Obama administration announced a proposal which could potentially change the entire face of the financial industry by limiting leverage, banning proprietary trading within banks, and breaking up concentrated market shares.
11:37 01/21 OBAMA PROPOSES WIDER LIMITS ON NON-DEPOSIT FUNDING SOURCES 11:37 01/21 OBAMA BAN WOULD PREVENT BANKS OWNING,INVEST IN HEDGE/EQ FNDS 11:37 01/21 OBAMA PROPOSING RULE LIMIT COMM BANKS FROM PROP TRADING 11:37 01/21 OBAMA:WANT BAN BANKS FROM OWN,INVST,SPONSR HF,PRIV EQTY FNDS 11:37 01/21 SR ADMIN OFFL: NOT PROPOSING RETURN OF GLASS-STEAGALL ACT 11:37 01/21 ADMIN OFFL: AUTH TO PREVENT RISKY BEHAVIOR ALREADY IN HSE BILL 11:37 01/21 ADMIN OFFL:INAPPROP BANKS PROFIT WHILE SUBSIDIZED BY TAX PAYER 11:37 01/21 SR ADMIN OFFL: PROPOSALS KEY TO DEALING W/TOO-BIG INSTITUTIONS 11:37 01/21 SR ADMIN OFFL: WANT CONGRESS TO ADD PROPOSALS TO REFORM PACKGE 11:37 01/21 SR ADMIN OFFL:BAN ON PROP TRADE ALSO APPLY TO BANK HOLDING COS 11:37 01/21 ADMIN OFFL:WANT REGULATORS TO BE REQUIRED TO STOP PROP TRADING 11:37 01/21 SR ADMIN OFFL: WANT TO PREVENT EXCESSVE CONCENTRATN IN FIN SYS 11:37 01/21 SR ADMIN OFFL: WANT BANKS TO FOCUS ON CORE BUSINESS, LESS RISK 11:37 01/21 SR ADMIN OFFL: WANT TO 'DISINCENTIVIZE' USE OF RISKY LEVERAGE 11:37 01/21 OBAMA:WANT BROADER LIMITS ON LIABILITY MKT SHARE EXCESSV GRWTH
11:37 01/21 OBAMA PROPOSES WIDER LIMITS ON NON-DEPOSIT FUNDING SOURCES 11:37 01/21 OBAMA BAN WOULD PREVENT BANKS OWNING,INVEST IN HEDGE/EQ FNDS 11:37 01/21 OBAMA PROPOSING RULE LIMIT COMM BANKS FROM PROP TRADING 11:37 01/21 OBAMA:WANT BAN BANKS FROM OWN,INVST,SPONSR HF,PRIV EQTY FNDS 11:37 01/21 SR ADMIN OFFL: NOT PROPOSING RETURN OF GLASS-STEAGALL ACT 11:37 01/21 ADMIN OFFL: AUTH TO PREVENT RISKY BEHAVIOR ALREADY IN HSE BILL 11:37 01/21 ADMIN OFFL:INAPPROP BANKS PROFIT WHILE SUBSIDIZED BY TAX PAYER 11:37 01/21 SR ADMIN OFFL: PROPOSALS KEY TO DEALING W/TOO-BIG INSTITUTIONS 11:37 01/21 SR ADMIN OFFL: WANT CONGRESS TO ADD PROPOSALS TO REFORM PACKGE 11:37 01/21 SR ADMIN OFFL:BAN ON PROP TRADE ALSO APPLY TO BANK HOLDING COS 11:37 01/21 ADMIN OFFL:WANT REGULATORS TO BE REQUIRED TO STOP PROP TRADING 11:37 01/21 SR ADMIN OFFL: WANT TO PREVENT EXCESSVE CONCENTRATN IN FIN SYS 11:37 01/21 SR ADMIN OFFL: WANT BANKS TO FOCUS ON CORE BUSINESS, LESS RISK 11:37 01/21 SR ADMIN OFFL: WANT TO 'DISINCENTIVIZE' USE OF RISKY LEVERAGE 11:37 01/21 OBAMA:WANT BROADER LIMITS ON LIABILITY MKT SHARE EXCESSV GRWTH
In one week, Tim Geithner will testify before Congress on his involvement in the AIG disclosuregate scandal, which, in late 2008 sought to prevent material information about AIG counterparty make-whole arrangements from seeing the light of day. Of course, in March of 2009, following political pressure, AIG and the FBRNY caved and disclosed that $27 billion in taxpayer capital had been used to yield to the bankers' every whim and to take them out at par, while their underlying AIG CDOs were priced 50% lower, if not more. Zero Hedge previously wondered when will Goldman be approached by the SEC with questions on whether or not they sold their direct AIG protection in the form of CDS to parties under a "big boy" letter, or did Goldman transact on a $2.5 billion notional position while in possession of material, non-public information .
Submitted by the ever-insightful Contrary Investor Of Mountains And Molehills… As we move into the new year and 2010 forecast after forecast hits the Street, invariably the “mountain of money on the sidelines” argument is being put forth by more than a good number of Street seers and pundits as a rationale for bullishness on financial assets, and equities specifically.
Here comes Spain: Spanish banks start to unload property portfolios ( WSJ ) Some brilliant insight: " Accumulating properties also stopped a sharp drop in prices, avoiding the painful write-downs banks are required to book when the value of their assets falls. " The FHA will not be reading this article How uou like your strong euro now Europe? After two years of crashing banking systems and economic recession, the euro zone enters 2010 with a full-blown debt crisis ( WSJ ) Treasuries set for worst year since 1978 as U.S.
Tuesday, February 23, 2010
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