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AM Reading

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By Barry Ritholtz - June 30th, 2009, 5:45AM

These caught my eye this morning:

• Street to Log Best Quarter Since Crisis (WSJ)

• Bernanke’s ‘Green Shoots’ Take Over the Lexicon, If Not U.S. (Bloomberg)

• He’s Got Gamma (Barron’s)

• How a Loophole Benefits GE in Bank Rescue; Industrial Giant Becomes Top Recipient in Debt-Guarantee Program (Washington Post)

• What was a subprime loan modeled on?

• Inflation Fears Seem to Be, Well, Inflated (WSJ)

• U.K. First-Quarter GDP Drops 2.4%, Most Since 1958 (Bloomberg)

• Young Japanese Raise Their Voices Over Economy (NYT)

• Car-Sales Rebound Seen for June (WSJ)

Anything else worth reading catch your eye this morning ?

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13 Responses to “AM Reading”

  1. Bruce in Tn Says:
    June 30th, 2009 at 7:07 am

    http://www.ft.com/cms/s/0/1940d18e-64cf-11de-a13f-00144feabdc0.html

    Deficit forces California to issue IOUs

    My wife wants to know…if you are a business and are given one of these IOU’s….how do you pay your overhead?

    ….and I think a better title might be “California forces California to Issue IOU’s”

  2. Bruce in Tn Says:
    June 30th, 2009 at 7:15 am

    And one other thought…when I was growing up there was a Trix commercial, the tag line was ” Silly rabbit, Trix are for kids..”

    http://www.nytimes.com/2009/06/30/world/asia/30chinaoil.html

    As Iraq Stabilizes, China Eyes Its Oil Fields

    “HONG KONG — As the world’s second-largest and fastest-growing consumer of oil, China is showing increasing interest in oil fields in a country that has until very recently seemed to be firmly in the American sphere of influence for natural resources: Iraq.

    Chinese oil companies are expected to bid for the rights to develop Iraq’s oil fields in auctions that are set to start Tuesday, although Sinopec, the China National Petroleum Corporation and the China National Offshore Oil Corporation all declined to comment Monday about their bidding strategies.”

    ….”Silly debtor country, oil is for more economically well-run countries…”

  3. Mike in Nola Says:
    June 30th, 2009 at 7:38 am

    Typical surgeon, all bright and lucid at an unnaturally early hour.

    Maybe China will start having to deal with expropriations by dictators now that it is becoming an international power. OTOH, it is probably more like the US of 50 years ago which was didn’t hesitate to change overnments to protect its interests.

    Do ya think anyone but the computers will show up to trade today?

  4. SINGER Says:
    June 30th, 2009 at 7:48 am

    The Bank of International Settlements (BIS) Annual Report for 2009 was released yesterday.

    http://www.bis.org/publ/arpdf/ar2009e.htm

    See bottom of p. 118 re: “rescues”; Warning, the phrase “green shoots” was not used in this report…

  5. Mike in Nola Says:
    June 30th, 2009 at 7:57 am

    A to suggested reading, Japan seems to be suffering from Green-Shootitis also. The fundmentally long term bad news is ignored because of noise in consumer spending readings.

    http://www.bloomberg.com/apps/news?pid=20601101&sid=a90dAL94wEos

    The other day, headlines trumpeted Japan’s industial production rising more than it had in fifty years. The fine print happened to mention that it was still 30% below May 2008 and you later found out that these rises only brought factory utilization up to about 50%.

    Nevertheless, stocks continure to rise.

    On the home front, s Dennis being groomed to make Larry look intelligent?
    http://zerohedge.blogspot.com/2009/06/dennis-kneale-great-recession-is-over.html

  6. Steve Barry Says:
    June 30th, 2009 at 8:12 am

    Case Shiller is out this morning…I have never done this, but I will use the chart extrapolation I did to predict the 20 city composite…my projection is 138, plus or minus one. The trajectory is very steady and housing still must fall at least 20% more from current levels.

  7. Mike in Nola Says:
    June 30th, 2009 at 8:28 am

    Steve: There may be some noise in CS. E.G. ICSC same store sales were up. Not that I think it’s lasting.

    I have a Google News Alert set up for Hugh Hendry (also for Albert Edwards). He’s always good for an entertaining interview and some very deeply thought out financial insights. Can you imagine him on CNBC US? He’s not polite like a lot of people. Would chew up Dennis and Larry and spit them out.

    http://www.cnbc.com/id/31652780

  8. pjl Says:
    June 30th, 2009 at 8:46 am

    Solid run-down of the economic data ahead this week. Also makes a funny statement about the use of the phrase “green shoots.”

  9. Steve Barry Says:
    June 30th, 2009 at 9:13 am

    Case Shiller 20 city comp was 139.18…at top end of my margin of error…still on same trajectory.

  10. Mike in Nola Says:
    June 30th, 2009 at 9:15 am

    Steve: I bet it’s green shoots on CNBC.

  11. willid3 Says:
    June 30th, 2009 at 9:15 am

    wage deflation is here
    http://www.businessinsider.com/david-rosenberg-wage-deflation-is-here-2009-6

    not that i am not convinced its not always been here. its just more observable now. fits in with wage destruction and job destruction themes of the last decade or so

  12. Steve Barry Says:
    June 30th, 2009 at 9:39 am

    @Mike:

    yes, they did try to spin it positive. You can’t spin these really. In fact, if by some miracle, it actually veered up off its downward path, it would just be a delay of the inevitable, making it more painful in the future.

  13. Bruce N Tennessee Says:
    June 30th, 2009 at 9:52 am

    http://www.nytimes.com/2009/06/30/business/30auto.html?_r=1&ref=business

    G.M. Exits Venture With Toyota

    ““The product was never the point at this plant,” Mr. Womack said. “It was a way for Toyota to figure out how to apply its system in the United States and for G.M. to try to figure out how Toyota was doing the things it was doing.”

    ….I would say one company accomplished its goals, and one did not…..