With the shadow (or blue) market for Argentina Pesos already devalued by an incredible 50%, it is little surprise that the population is bidding for any store of value. Demand for luxury cars is soaring (BMW sales up 30% in the last 20 months) and Bitcoin activity is often discussed as the population transfer increasingly worthless Pesos into a fungible “currency” or domestic CPI protection; but it is USD that are the most-cherished [...]
Porter Stansberry: Gold and Real Estate Are My Hedges for the Fiscal Cliff
Source: Karen Roche of The Gold Report (12/12/12)
With nary a glimmer of hope that economic sense will supplant political expedience, Stansberry & Associates Investment Research Founder Porter Stansberry expects rampant inflation to roar in once the cost of capital rises. How is he preparing himself? Stansberry tells The Gold Report he continues to buy and hold gold, [...]
Millions of Americans are saving billions of dollars in monthly mortgage payments, thanks to record-low interest rates.
The refinance market is booming, now at 78 percent of residential mortgage activity, according to the latest read from the Mortgage Bankers Association.
Make no mistake, however, the big banks are reaping great rewards as well.
“Mortgage origination profitability is off the charts,” says Paul Miller, head of financial research at FBR. “Refis are surging, and [...]
by Tyler Durden
While stocks, gold, and the dollar are generally in sync, Treasuries appear modestly more bearish now (for stocks) but it is the high-yield bond ETFs that is making a few people nervous as they plunge on heavy volume (and well below their intrinsic value). Obviously no-one really knows what i going on at JPM, but fort some more color we note that IG9 10Y is trading wider once again offered at [...]
~FDIC Letterhead~ May 23, 2015 Dear Banker,
1. Effectively immediately, we have increased the FDIC deposit insurance for any US bank that engages in ANY trading of derivatives or underwriting securities or other investment banking activities by threefold. This 3X fee increase goes into effect immediately. It applies regardless whether these trades are hedges for proprietary trades or are made on behalf of clients.
2. Effective in 90 days, we are LOWERING [...]
A rise in prescription drug abuse involving Xanax and similar anti-anxiety pills in recent years has prompted some doctors in the U.S. to rethink the frequency with which they dole out the prescription.
Between 2004 and 2009, New York City emergency room visits involving Xanax and other anti-anxiety prescription drugs known as benzodiazepines increased more than 50 percent. That’s up from 38 out of 100,000 New Yorkers in 2004 to [...]
The disclosure by once future Treasury Secretary and current JP Morgan CEO Jamie Dimon of a sudden and previously undisclosed $2 billion dollar derivative loss should be a wake up call. It unwittingly reveals much about the present state of finance:
• The inherent tension between traders using leveraged risk with Other People’s Money in the pursuit of enormous bonuses is still weighed heavily towards excess risk taking;
• There is no bank in [...]
There are a lot of moving parts in the Dismal take of Dimon’s demise. The starting point is that Bruno Iksil in the JPMorgan CIO Office, under the premise of hedging the bank’s credit portfolio’s tail risk had placed various tranche trades (levered credit positions with various risk profiles) in the only liquid tranche market that still exists – CDX Series 9 (an ‘orrible portfolio of credits with an initial [...]
Click Here To View The Original Article On Seeking Alpha…
Details Of The $291 Trillion In Derivatives To Which American Taxpayers Are Exposed
April 17, 2012 |
The entire US GDP is less than $15 trillion each year. The gross notional amount of derivatives issued in the USA is more than $291 trillion. Does that sound like a lot? Apologists for derivatives dealers don’t like it when we talk about derivatives in terms [...]
From Peter Tchir of TF Market Advisors
Volatility Is Back
Volatility is back. The S&P moved more than 1% on 4 of the 5 days, had the biggest down day of the year, and even the least volatile day was a 0.7% move.
Back on April 5th, we saw a warning sign in the credit markets that the bid/offer spread for European CDX indices was widening. This has extended into investment grade indices in [...]
European equity prices fell for the third day in a row and pulled back near six week lows, breaking below the 50DMA for the first time since it crossed above on 1/16. Today’s drop was the largest in three weeks as Italian banks were halted (and Spanish banks sold hard), plunging their most in over three months and back at levels not seen since mid January. Most Italian banks are down 9-11% in [...]
Whether it was the truthiness of Willem Buiter’s comments this morning, the sad reality of Spanish housing, or more likely the ugly fact that LTRO3 is not coming (as money-good assets evaporate), today was broadly the worst day of the year for European sovereigns. Spanish 10Y spreads jumped their most since the first day of the year, Italian yields broke back above 5% (and spreads broke back over 300bps), and Belgium, [...]
A New York charity worker who was nearly killed when two teenage boys threw a shopping cart from the fourth floor of a shopping mall said she wishes her attackers well.
Marion Hedges was buying Halloween candy for underprivileged children in her neighbourhood when she became victim to the dangerous prank which left her blind in one eye and with permanent nerve damage that affects her walking.
But the 47-year-old, who works [...]
From Peter Tchir of TF Market Advisors
A Complex Simplification Of The CDS Market (pdf)
CDS is once again (still) in the spotlight. We have moved on from debating whether or not a Credit Event has occurred in the Hellenic Republic, to concerns about whether the CDS market will settle without a problem. There is a lot of talk about “net” and “gross” notionals and counterparty risk.
What I will attempt to do here, [...]
by Charles Hugh Smith from Of Two Minds
I Was Wrong About Everything
I was wrong: doing more of the same has solved all our problems.
Time for a mea maxima culpa: I’ve been wrong about everything: the stock market, the economy, globalization, energy, everything. Heck, I’ve even been wrong about the American diet and poor fitness; it’s now clear that ice cream sundaes are health food that have been shown to extend life dramatically. [...]
From Zero Hedge:
Almost six months ago, we discussed the dramatic shifts that were about to occur (and indeed did occur) the last time the New York Fed tried to unwind the toxic AIG sludge that is more prosaically known as Maiden Lane II.
At the time, the failure of a previous auction as dealers were unwilling to take up even modest sizes of the morose mortgage portfolio was the green light [...]
I’m sure some, or many of you have read or are aware of James Rickards’ Currency Wars. A recent interview with him can be heard here. I am pretty much in agreement that QE3 is on the way. It may be announced as soon as January or perhaps more likely February. Rickards says to key in on the euro-USD cross-rates, looking at below 1.30, perhaps with 1.27-1.28 as the trigger. As [...]
Everyone still dazed and confused by today’s market rout will be delighted to know that Goldman is none the wiser… Or rather, Goldman knows precisely the reason why the market tumbled.
From Goldman Sachs
Another down day for stocks. Why? EURUSD down. Why? Gold down. Why? Momentum and technicals – and neither the FED or ECB is ramping up the printing presses any time soon. Unfortunately this is as good as the explanation gets today. Lower [...]
From Lance Roberts oF StreetTalkAdvisors
STA Risk Ratio Turns Up – We’ve Seen This Before
The market rallied this past week, albeit in a very volatile manner, to end the week on a positive note as the hopes of a final resolution to the Euro crisis has been reached. In reality, today’s announcement of the EU treaty is only the first step and there are many legal challenges that will still have [...]
Either: Basis Unwinds or the BSC trade?
[A Basis trade - as we have discussed here - is an arbitrage strategy that looks to profit/earn carry from the difference between CDS and Bond market pricing of credit risk. Typically it is created by buying bonds and simultaneously buying CDS protection (a hedge) to lock in a perceived valuation difference]
Is this the basis unwind we predicted after the October 27th summit where banks [...]
With gold and silver and mining shares rallying strongly, today King World News interviewed one of the top strategists in the world, Robin Griffiths of Cazenove out of London. Cazenove Capital is the appointed stockbroker to Her Majesty The Queen. When asked about the recent strength in gold Griffiths responded, “The ‘Indian Festival of Lights’ and wedding season have contributed to this rally in gold. The other issue right now is the referendum [...]
A little over a month ago, Zero Hedge Started An Avalanche in the financial sector, and an unprecedented defense thereof by the “independent” financial media and conflicted sell side, by being simply the messenger in pointing out that the gross exposure of one Morgan Stanley to the French banking sector Is $39 Billion. The firestorm of protests, which naturally focused on the messenger, and not the message, attempted to refute the [...]
With gold trading $20 higher and silver up almost $2, today King World News interviewed Greg Weldon, Head of Weldon Financial. Weldon has a global following of some of the wealthiest investors in the world including individuals, institutions and financial firms. Last time we spoke with Weldon he mentioned that looking at the money supply, the lowest target for gold doesn’t come into play until we see at least [...]
We often discuss how credit markets have provided useful insights (and potential pre-emptive indications) with regard to risk appetite and whether ES should rip and today’s incredible rally in HYG (the high yield credit bond ETF) is one to be aware (beware) of. The rumble of liquidity-driven hedging being unwound was very loud indeed and as spreads reach significant levels on a medium-term basis and HYG recovers its major [...]
by Reggie Middleton
Don’t belive me, let’s look at history…
So, as I was saying…
Check this out, from “On Morgan Stanley’s Latest Quarterly Earnings – More Than Meets the Eye???” Monday, 24 May 2010:
Those who don’t subscribe should reference my warnings of the concentration and reliance on FICC revenues (foreign exchange, currencies, and fixed income trading). Morgan Stanley’s exposure to this as well as what I [...]
“Its latest round of troubles began on Friday morning before the markets opened at 9:30 a.m. Zero Hedge, a well-read and controversial financial blog, linked to a Bloomberg News article that noted Morgan’s credit-default swap spreads had been widening. The Zero Hedge post also directed readers to a previous Zero Hedge article that pegged Morgan Stanley’s net exposure to French banks at $39 billion, about [...]
The S&P cash made new lows for the year as we aggressively probed lower into the close and penetrated Doug Kass’s bottom from Aug 9th with cash and futures closing below 1100 back to 13 month lows, with the pain spreading wide following rumors of hedge fund blow ups. Financials led the dance and just could not get a break all day despite [...]
Earlier today some blog pulled up some factual data that suggested that Morgan Stanley had $39 billion in total exposure against French banks at the end of 2010, up $30 billion from the year prior, and enough to wipe out its entire market cap and then some should French banks be pulled under. Sure enough, the stock tanked even though as CNBC pointed out [...]