Monthly Archives: June 2010

Links 6/30/10

Taliban attack Nato base in Afghanistan BBC Analysis: Why Silicon Valley should fear ACTA ITNews Cheerio! Rolfe Winkler. Congrats! He is going to the Wall Street Journal. New Legislative Effort to get Bankruptcy Exemption….For Guns. MIke Konczal Rob Parenteau gets sectoral balances right Steve Waldman The High Budgetary Cost of Incarceration John Schmitt, Kris Warner, […]

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Time to Investigate Blankfein and Paulson (More AIG Shenanigans Edition)

The New York Times has unearthed a damning tidbit about the bailout of AIG: When the government began rescuing it from collapse in the fall of 2008 with what has become a $182 billion lifeline, A.I.G. was required to forfeit its right to sue several banks — including Goldman, Société Générale, Deutsche Bank and Merrill […]

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Bank Stress, ECB Liquidity Withdrawal Efforts, Deflation Fears Rattle Markets

We’ve warned for some time that the eurozone’s sure-to-fail muddle-through approach to its structural challenges was rattling investor confidence. Worse, its insistence on wearing an austerity hairshirt was not only committing Europe to deflation, but had high odds of sucking the global economy down along with it. Given how fragile the recovery is in advanced […]

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Banks Face $5 Trillion Rollover by 2012

This Sydney Morning Herald story (hat tip reader Gordon) highlights a Bank of England report that not only points out the magnitude of the financing needs of major banks over the next few years, a daunting $5 trillion, but also indicates that US and European bank refinancings are falling short of their rollover calendar. This […]

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Deutsche Bank, Commerzbank Rumored to Pass Meaningless Stress Test

So it looks to be semi-official. The “stress test” label, in Europe as in the US, signifies an exercise that is designed to produce attractive report cards, as opposed to provide a valid measure of the sturdiness of a bank’s balance sheet in difficult conditions. So what is the biggest concern investors and counterparties have […]

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Links 6/29/10

As world watches soccer’s Cup, Nike critic sees red Los Angeles Times Team’s Work Uses a Virus to Convert Methane to Ethylene New York Times (hat tip reader Crocodile Chuck) Newsflash : Airline food is inedible Gumbat Stew A Republican Party that Really, Really Doesn’t Want Any Black or Hispanic People Voting for It Ever […]

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Richard Smith: Did We Wind Up With Any Reform of the Shadow Banking System?

By Richard Smith, a London-based capital markets IT consultant In my last post, “Tracking the Rabbit through the Anaconda” , I mocked Geithner a bit and promised you all a spot of moaning about what’s missing from the financial reform bill. Well, the anaconda has now had the time it needed to produce its offering. […]

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Will the Push for Short Sales Lead to Deeper Principal Mods?

A reader with considerable experience in real estate who has asked to remain anonymous pointed to an article in Housing Wire describing some possible unintended consequences of the Administration’s push for more short sales: This past week, I received an email from one of my dearest friends that has really stuck with me. It illuminates […]

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Whitney, Ritholtz Issue Bearish Calls on Housing Market

While the headline focuses on her outlook for housing, Whitney is bearish across the board, seeing little reason to cheer on the employment and bank earnings fronts. She sees a 10% fall in housing prices in the next six months (!), which will hit bank earnings (Whitney has argued since at least early 2009 that […]

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Links 6/28/10

Dear readers, your blogger feels like death warmed over. Please bear with me if posts are light the next few days. Dolphins prefer high-energy fish BBC Neutrino experiments sow seeds of possible revolution Science News Heedlessly Hijacking Content David Carr, New York Times California welfare recipients withdrew $1.8 million at casino ATMs over eight months […]

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Parenteau: Marching to Austeria* and Other Neolib Fibs

By Rob Parenteau, CFA, sole proprietor of MacroStrategy Edge, editor of The Richebacher Letter, and a research associate of The Levy Economics Institute Richard Alford has correctly identified the need to address global imbalances – rather than simply slouch our way back to some milder version of status quo before the pre- Lehman meltdown arrangement, […]

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More on the Coming European Bank Stress Test Fiasco

We noted a bit more than a week ago that we expect the European banks stress tests to backfire. The US version was a successful con game because the officialdom provided adequate disclosure about the process and stayed firmly on message, the banks were allowed to “manufacture” as analyst Meredith Whitney put it, impressive earnings, […]

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Concerns About BP Relief Well Success Rise Along With Evidence of Chemical Damage, Spread of Oil

The Financial Times highlights a concern we had raised early on about the effort by BP to drill a relief well to stop the flow of oil into the Gulf. While many analysts have acted as if the BP forecast, that the well would be completed by August, there is no reason to assume the […]

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Corporate Default Expectations Rise, Emerging Market Spreads Widening

The bond markets are quicker-trigger to register concern about deteriorating fundamentals than the stock market, with risky credits the canaries in the coal mine. Bloomberg reports that spreads have widened in both leveraged loans and emerging market debt, but also notes some analysts see this rise as a blip rather than a trend. From Bloomberg: […]

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Links 6/27/10

Why kangaroos evolved small arms and long legs BBC WARNING: 3D Video Hazardous to Your Health Audioholics The 36 Hours That Shook Washington Frank Rich, New York Times Toronto in lockdown as G20 protesters clash with police Raw Story Prime property most at risk of slump, says Savills Telegraph Spain’s Debt Maturity Wave Hits Next […]

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