Climate to Warm Beyond Levels Seen for 11,300 Years
Investors Seek Ways to Profit From Global Warming
Investing in climate change used to mean putting money into efforts to stop global warming. Morgan Stanley (MS), Goldman Sachs (GS), and other firms took stakes in wind farms and tidal-energy projects, and set up carbon-trading desks. The appeal of cleantech has dimmed as efforts to curb greenhouse gas emissions have faltered: Venture capital and private equity [...]
Next Big Bailout – 5 Big Banks Threaten Chain Reaction says IMF – WealthCycles
Is the global economy on the cusp of another super-bank meltdown that would pull the world down in a domino-chain crash similar to—or worse than—2008? According to the International Monetary Fund, not only does the risk exist, it could be triggered by the collapse of the same genus of exotic derivatives that took us down last time.
“Even though American stocks have doubled in price in the last three years, investors and traders large and small keep giving the market the cold shoulder.” – Nathaniel Popper, NY Times, May 6, 2012
TOP STORIES 2012: Trading Volume Continues to Fall; No End In Sight
Traders Magazine Online News, January 2, 2013
The dramatic drop in the trading volume of U.S. stocks continued to be one of the biggest stories of [...]
Extraordinary Popular Delusions And The ‘Madness’ Of Bond And Gold Markets
Whether its new-fangled Japanese stocks, hi-tech internet company valuations, multi-colored flowers, or mansions made affordable by criminally lax lending standards, Grant Williams notes that a bubble is a bubble is a bubble; and citing Stein’s Law: “If something cannot go on forever; it will stop.” In this excellent summary of all things currently (and historically) bubblicious – whether greed-driven or fear-driven – [...]
London Gold Market Report
from Adrian Ash
Fri 5 Oct, 07:10 EST
Dollar Gold “Decidedly Bullish”, Targets $2400 by Mid-2013 as Indian Demand Turns Higher
WHOLESALE U.S. Dollar gold prices slipped 0.4% from new 11-month highs in London trade Friday morning, dipping beneath $1790 per ounce as European stock markets crept higher.
Wholesale silver bullion prices eased back below $35.00 per ounce – but also held 1.1% up for the week – as commodities held [...]
Jim Willie’s latest Hat Trick Letter, ‘Firestorms & Currency Twisters‘ is a MUST READ!!
Willie states that Morgan Stanley faces IMMINENT FAILURE & RUIN, that The older employees are selling all of their stock, and that Many workers are making contingency plans for their next positions in another firm.
He states that JP Morgan will devour the carcass, and that The Morgue may be preparing to execute the 1st ever private stock account vaporization/ rehypothecation.
Jim Willie CB – Firestorms & Currency Twisters
MORGAN STANLEY IMPLOSION
The insider conversation, often called chatter when it become deafening in tone, is that Morgan Stanley faces imminent failure and ruin. Almost two weeks ago, the Jackass provided a tip to Bill Murphy of GATA to post on his popular LeMetropole Cafe that Morgan Stanley fund managers and high ranking employees were preparing for the firm’s implosion. A subscriber to the [...]
HONG KONG: Investment banks and brokerages across Asia have launched a sweeping round of job cuts as Europe’s debt crisis and China’s economic slowdown bite into the region’s financial activity.
Speaking to bankers and other industry sources, Reuters was able to confirm at least 50 people were let go in the past three weeks, a cull that includes senior expatriates as well as junior bankers. The cuts mainly target the equities business, with [...]
May 22, 2012
Editor’s note: Keep in mind that, according to Obama, Jamie Dimon is “one of the smartest bankers we got.”
One thing seems clear about JPMorgan Chase’s $2 billion loss. It’s no longer $2 billion. It’s likely much higher.
The number being bandied about now is closer to a range of $6 billion to $7 billion, according to several people working on trading desks that specialize in the derivatives JPMorgan Chase (JPM, [...]
A secretive JPM Trader in London, alternatively known as ‘the London Whale’ or ‘Voldemort,’ is distorting the credit derivatives markets with massive positions, and a willingness to move them advantageously in the markets. It is a classic case of gambling with other people’s money, in this case the excess capital provided by the Fed and the Treasury.
I am sure they are all legitimate hedging positions as Blythe Masters just asserted [...]
The Hellenic Republic Greek CDS Auction has ended, pricing at 21.5%, just slightly less compared to the Initial Market Midpoint of 21.75 of par. As explained back in January 2009, those who had bought the Cheapest to Deliver Greek bonds trading in the teens coming into the auction, made a quick buck, as these will be taken out at a nice premium to purchase price. For those who bought at par, we can only hope they [...]
Bailing out Wall Street back then was a necessary evil, as AIG’s bailout revealed in dramatic fashion. It gave the public its first look at companies that had become “too big to fail,” financial institutions that were too entangled with each other to be allowed to collapse lest they drag the rest of the global financial system and global economy down with them.
In the Great Recession that followed, 14 million people [...]
by Sam Ro
In this morning’s Cashin’s Comments, UBS’s Art Cashin addresses what worries traders these days.
A Greek default has been on everyone’s minds lately. But the traders Cashin has talked to think that it’s just the tip of the iceberg.
The bigger fear is what happens in the credit default swap (CDS) markets. No one knows how big it is, who the counterparties are, and, worst of all, whether the CDS contracts will actually trigger [...]
The CDS index market remains one of the most liquid sources of hedges and positioning available (despite occasional waxing and waning in volumes) and is often used by us as indications of relative flows and sophisticated investor risk appetite. However, as Kamakura Corporation has so diligently quantified, the broad CDS market (specifically including single-names) remains massively concentrated. This concentration, evidenced by the Honolulu-based credit guru’s findings that three institutions: JPMorgan Chase, Bank of [...]
by Charles Hugh Smith from Of Two Minds
A Useful Fiction: Everybody Loves A Melt-Up Stock Market
A sudden sharp decline in stocks may not thrill retail investors, but it would be catnip for big trading desks that used the melt-up rally to get short.
One of the more useful Wall Street fictions is the naive notion that big players and small-fry equity owners alike love low-volatility “melt-up” markets that slowly creep higher on [...]
First of all, I don’t pretend to know all the details.
But this is what I believe is the issue:
In the U.S., hypothecation is legal (ick!) but limited. Canada likely also has limitations and tighter controls on client’s assets.
However, the U.K. doesn’t have limits on hypothecation and re-hypothecation. All of a client’s assets can be hypothecated. And if that’s deposited elsewhere as collateral, it can be re-hypothecated. Like someone said, that’s like fractional reserve [...]
Of course, there is no evidence of them selling protection on one another in a quid-pro-quo sense (a la Greece), but it seems the creation of carry out of thin air remains alive and well and given that every credit in the world is significantly wider no than it was on average through the first half of the year, we hesitate to guess at the MtM losses their trading desks [...]
As rumors and chatter circulate across trading desks, European equity and credit markets are starting to lose their giddiness. European sovereigns are leaking back wider and financials starting to underperform and it is being noted that, as reported by The Hill, that conservatives say they will try to block the IMF from bailing out Italy and Spain. Pointing to the huge bill this could leave at US taxpayer’s feet, [...]
Shares of Jefferies and Fortress crater on fears of MF Global contagion.
NEW YORK (CNNMoney) — MF Global is no Lehman Brothers. It doesn’t have the size or the tentacles to put the entire global system at risk.
Still, MF Global’s Chapter 11 filing is spreading contagion to other financial firms around Wall Street, helping crater the stocks of companies with big trading desks like Jefferies and Fortress Investment Group.
MF Global’s fall from [...]
From 5 minute Forecast
“The announcement in Brussels poses more questions than answers, so it’s puzzling to see stocks soaring on this announcement,” says Strategic Short Report’s Dan Amoss, studiously avoiding any analogies to Ms. Lohan’s photo shoot.
“For one thing, the 50% haircut on Greek debt is closer to 30%, because it excludes debt held by the European Central Bank and the loans the EFSF (the eurozone bailout fund) has made [...]
By Jonathan Burton, MarketWatch
SAN FRANCISCO (MarketWatch) — Hey, Young Turks on trading desks, up-and-coming money managers and Wall Street stock jockeys: You want the truth about the global markets today?
Listen to Jeremy Grantham, chairman of Boston-based investment manager GMO LLC: You can’t handle the truth.
“This is no market for young men,” Grantham said. “At least us old men remember what a real bear market is [...]
The forecast for the summer driving season: Hit the road early. Not to beat the traffic, but to beat the higher gas prices expected in mid-July.
Goldman Sachs’ crystal ball is proclaiming that oil will soon soar to $135 a barrel, and likely have service stations jacking up fuel prices to $5 a gallon in New York just like the summer of 2008 that preceded the [...]
This means we may get the first post September 11 bank holiday as early as tonight. If so, keep an eye on the USDJPY. “Some foreign financial institutions are calling for Japan’s stock market to halt trading, while the Tokyo Stock Exchange and Japanese financial regulators are planning to keep markets open, news agency Nikkei reported. The news agency said officials from more than [...]
By CHARLES HUGH SMITH
As prices for commodities such as cotton, sugar and grains skyrocket, many financial commentators have been pointing the finger at Federal Reserve Chairman Ben Bernanke’s “easy money” policies of zero interest rates (ZIRP) and quantitative easing (QE2) as a major cause.
The Fed intended these two policies to lower long-term interest rates and to nudge investors into riskier assets, thus stimulating growth. At [...]
1. Go to a fancy college, do well in math, CS and stats, and study those brain teasers that trading desks love to give applicants. If you didnâ€™t go to a fancy college, work yours and your parents connections to try and secure a position. Absent connections, leverage your alumni network. Do whatever you need to do to get an interview.
2. Trade a little on your [...]
By John R. Taylor, Jr.
Chief Investment Officer
The market outlooks we are receiving for this next year are as diverse as we have ever seen. Our most
conservative and highly qualified mainline economist is forecasting US growth at 5% for the second half
of next year, lining up with most of the major bank economics departments. Talk to the analysts on the
trading desks and you hear a very different tune. The financial markets [...]
Sergey Aleynikov, a computer programmer, is accused of stealing Goldman Sachâ€™s computer code when he left the company in July 2009.Â His trial is about to begin.Â See “What We Are Not Supposed To Know“.Â The problem with the trial is neither the defendant nor what he did or did not do.Â The problem is what he allegedly stole.Â Many market observers are tuned [...]
Time: 10:15 a.m.
From: Ben Bernanke
To: JPM, Deutche Bank and GS
Re: Equity Markets
Copy To: Tomothy Geithner, Barack Obama
Ladies and gentlement. If you haven’t noticed, the equity markets are poised to sell off today. As I write this, the general markets are down just under 1%. As we agreed on previously, we can not afford to have any significant corrections as we must maintain the illusion that the economy is vibrant and [...]