Helping to make your Mondays a little bit brighter: 10 Links:

Waves of euphoria engulf Wall Street (Irish Times)

Fed Won’t Raise Rate Till 2011, Pimco’s McCulley Says (Bloomberg)

Exit the Car Czar (New York Mag)

Greenspan: ‘We’ve already seen the bottom’ (ABC) This should scare you, given the maestro’s forecasting track record.

Rescues Unlimited: Government as Wall Street’s Enabler (Sunday NYT)

“Liar Loans” – RIP – October 1, 2009 (Mortgaged Future)

U.S. Recession Worst Since Great Depression, Revised Data Show (Bloomberg) File this under Duh!

Washington Post: The Death of Journalism (Gawker Edition)

Health Bill Clears Hurdle and Hints at Consensus (NYT)

How Long Did It Take for the World to Identify Google as an AltaVista Killer (Technologizer)

Its August — better get the last of your summer plans in order !

Category: Financial Press

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

44 Responses to “Monday: 10 Links”

  1. Transor Z says:

    Oh, how I wish that lead photo of Rattner with his hands on the table was in response to a SWAT team leader’s command, seconds before the cuffs go on. Ah well. . .

  2. ironman says:

    Here’s a bonus link: August and the U.S. Stock Market

  3. The Wash Post article about the future of journalism is very interesting. First Amendment law and evolving business models will be very important as the Info Age enters the next inning …

  4. Bruce N Tennessee says:

    Well, Sunday, the BIG Picture bloggers turned out to hear how Uncle was going to run health care…

    …tsk, tsk, tsk…the old guy is doing the best he can…Isn’t this the same state that booed Santa Claus?

    http://www.foxnews.com/video2/video08.html?maven_referralObject=7752706&maven_referralPlaylistId=&sRevUrl=http://www.foxnews.com/

  5. Jdamon33 says:

    Here is a link I am quite interested in

    http://www.thestreet.com/_yahoo/story/10561760/1/cit-bondholders-get-sweeter-offer.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA

    I have been asking around, but does anyone know what happens to bondholders who DON’T tender their bonds? Are they just paid out at par or can the company decide to pay them significantly less than they are due?

    My friend actually has a different August bond than those that were tendered. If the Company did not file for bankrputcy prior to this date, would the Company be obligated to pay him in full?

    I appreciate the feedback. I asked the Yahoo board for CIT and they were perplexed.

  6. call me ahab says:

    Hoffman-

    just got done reading the same article-

    I don’t feel sorry for newspapers- by the time the newspaper is on your doorstep- it’s old news- additionally- it’s not an interactive media-

    my guess is that newspapers won’t survive- however- there will always be journalists- because we have a free society- and people will always be ferreting out the truth- whether they are paid to do so- or if it is in their interests to do so

  7. AmenRa says:

    OT: I’ve noticed over the past week that there’s a sell off during the last half hour. Are the large players trying to catch the smaller players? The smaller players caught on to it and incorporated it into their trading. Are they trying to be the only ones in the market?

  8. JohnDoe says:

    Some very interesting reads today. Thanks BR.

    @ ironman’s link… I stopped reading it as soon as I saw that one of their reasons for the Aug. 09 forecast was, “The S&P 500′s average daily closing value of 1281.47 for the month of August 2008.”

  9. Mortimus says:

    How about this?
    http://www.calculatedriskblog.com/2009/08/us-raids-colonial-bank-office.html

    Still waiting for my ‘most favoritest’ business channel to let me know though

  10. Pat G. says:

    Articles:

    #1: S&P made 1000, the Nasdaq 2000. Let’s party!! Haven’t we been here before?
    #2: That’s my prediction too. And that’s only because they’ll HAVE TO in order to fight raging inflation.
    #3: Car Czar? Who needs one? We have the C4C program. 15 million units here we come.
    #4: Hasn’t he already been discredited enough? Who cares what Greenspan thinks?
    #5: Nice plug for your book!
    #6: Get real. If there is a way to circumvent the law it will be discovered then exploited.
    #7: “Duh” is right.
    #8: Try not to read anything from the Washington Post.
    #9: Goodie!! More money about to magically materialize from thin air to pay for this $1T+ program.
    #10: Google. Smoogle. I find Yahoo to be a better search engine because it’s easier to use.

    I posted this link before but I’m going to re-post it in case anyone missed it. Our government at work:

    http://www.bloomberg.com/apps/news?pid=20601103&sid=aucooSmI6UQQ&refer=us

  11. willid3 says:

    jdamon, as you asking what happens if CIT goes bankrupt before they tender their bonds? well, as unsecured creditors they will get a hair cut. bondholders are basically the credit card company for business. they are in line ahead of stock holders though if that makes you feel better
    will newspaper journalists survive? sure. its the paper that will change. to be a content provider not a publisher in the old way (with paper).
    after all, it costs a lot more to print (paper/ink/labor etc) a paper, than to publish on the WEB.

    and most of the old media companies (radio/TV/cable/newpaper) are having trouble converting to a new
    business model. they have so much sunk costs in their original production service they can’t get out of it.
    and the new one is much cheaper, since you can reuse the media 1000s of times.

  12. jeg3 says:

    “Helping to make your Mondays a little bit brighter:”
    Unless it’s Thursday and you name is Liddy:
    http://bigdumbchimp.blogspot.com/2009/07/g-gordon-liddy-wont-sit-down-for-weeks.html#links

    G. Gordon Liddy needs an icepack
    http://bigdumbchimp.blogspot.com/2009/07/g-gordon-liddy-needs-icepack.html#links

    Happy American Birthday Mr. Prez

  13. ironman says:

    Some very interesting reads today. Thanks BR.

    @ ironman’s link… I stopped reading it as soon as I saw that one of their reasons for the Aug. 09 forecast was, “The S&P 500’s average daily closing value of 1281.47 for the month of August 2008.”

    @JohnDoe: Sorry to disappoint you, but then I suspect from your comment that you’re not the target audience for the data. As a base reference point, it’s an essential element within the math for anticipating the future level of stock prices, which we provide for the benefit of those seeking to duplicate the results.

    Hope this clarifies things!

  14. emmanuel117 says:

    Congrats to ben22 for his SPX 1000 call (which shall now enter the history books next to the Leftback Bottom). Any takers for the Last Top?

  15. DaveInDenver says:

    The stock market is teetering:

    http://truthingold.blogspot.com/

  16. Mike in Nola says:

    jdamon:

    It is complicated by the fact that CIT was a factoring agent for a lot of small businesses. The businesses thought they were borrowing money from CIT, but were actually selling it their recievables in return for some upfront cash plus other payments. They are now ordinary creditors also. Whoever bailed CIT out got a security interest in a lot of those. No idea how it plays out.

  17. wunsacon says:

    1000?? Holy s***.

    (I think I speak for most of us here when I say that..)

  18. Mike in Nola says:

    A post from Michael Pettis:

    http://mpettis.com/2009/08/more-debate-about-the-validity-of-economic-data

    I thought it had interesting parallels to here. Chinese government announced a big rise in wages. Average worker jokes about how he just got a raise. Seems that the Chinese government is playing the same game with nmbers as here. I haven’t gotten to read all todays posts on TBP, but I noticed on cnbc.com while out that the big increase in construction spending here was fueled by the governement.

  19. (NaturalNews) If you are among those calorie-conscious consumers who opt for diet sodas or other diet products, you may actually ruin your health and become fat, according to several new studies.

    A Purdue University study published 10 February 2008 in the journal Behavioral Neuroscience reported that rats on diets containing the artificial sweetener saccharin gained more weight than rats given sugary food, casting doubt on the benefits of low-calorie sweeteners.

    During an interview, ABC News’ medical contributor Dr. Marie Savard stated that “there is something about diet foods that changes your metabolic limit, your brain chemistry.” Savard said another recent study, which included more than 18,000 people, found healthy adults who consumed one diet drink a day could increase their risk of health problems and metabolic disorders by a whooping 30 to 40 percent.

    The Purdue study showed there is a direct connection between the taste of food and calorie consumption. The rats whose diets contained artificial sweeteners appeared to overeat and become fat more quickly.
    http://www.naturalnews.com/022785_food_sugar_sweeteners.html

  20. Jdamon33 says:

    OK, I’ll try to summarize the CIT issue again. I am not familiar with how bonds are paid back (i.e. principal repayment), but in this situation CIT had a tender offer. The offer, from their accounts, succeeded. However, they only had a 65% participation rate. Do the other 35% of bondholders who did not tender their shares receive 100 cents (or par value) back on the 17th (assuming no bankruptcy) or do can the Company pay them something lower or even default if they want to?

    That is really what I’m trying to find out. Thanks!!!

  21. super_trooper says:

    @Bruce N Tennessee
    Looks like the left overs of the birther movement. That map the lady is showing is a big fat joke and a left over from the early 90s. We all know that the best health care systems in the US are run by the Government. I’ld love the same health insurance as the old man.
    The old man barely knows which party he belongs to.

  22. I-Man says:

    @ jdamon:

    Do you have the cusip handy? I might be able to gather some specifics on the tender offer if you do.

  23. call me ahab says:

    MEH-

    I with you Mark- I read something similar a few months ago-

    in the end people need calories- you can eat all the rice cakes and diet sodas you want- but the result wll be starvation-

    I tell anyone who will listen to stay away from anything that says “diet” or “light” or “low fat” unless it is naturally low fat- such as an apple-

    a side story- I accidently bought some low fat sour cream a few months back- when I ate it I knew something wasn’t right- so went and got the container- and there it was- “low fat” or “light”- don’t remember which- and tasted nothing like sour cream with many ingredients that I didn’t recognize-

    a container of sour cream should have basically one ingredient- cream- right?

    and when you buy something that is fat reduced, low fat, diet- it has been further processed and further away from its original form-

    stay away people

  24. wunsacon says:

    Thanks for sharing that, MEH. We should make everyone aware of it.

  25. super_trooper says:

    @Bruce N Tennessee
    I personally prefer Representative Lloyd Doggett of Texas’ town hall meeting
    http://thecaucus.blogs.nytimes.com/2009/08/03/doggett-shouted-down-over-health-care-plan/
    Apparently it’s the rebirth of the “tea party movement” which was organized by FreedomWorks.

    I think you should have to provide a birth certificate in order to attend a town hall meeting.

  26. Jdamon33 says:

    I-Man,

    yes symbol/cusip is CIT.GAR 12557WTA9 . thanks a ton!

  27. Jdamon33 says:

    I-Man,

    Actually, the above cusip wasn’t tendered, but it is the other August 17th floating rate (not the fixed rate that my friend owns) that was tendered. Here is that symbol/cusip:

    CIT.US 12557WNL1

    I appreciate it!

  28. super_trooper says:

    @Mark E Hoffer,
    Let me be the first to say, welcome to 2009. It’s been long known that artificial sweetners fcuk with your brain, and many would probably would not have been FDA approved if they would have followed rigorous testing. I couldn’t keeo myself from laughing when I say the author
    “Andreas Moritz is a medical intuitive; a practitioner of Ayurveda, iridology, shiatsu, and vibrational medicine; a writer; and an artist.”

    English please! WTF is a practitioner of vibrational medicine?

  29. emmanuel117 says:

    http://en.wikipedia.org/wiki/Saccharin

    Coal tar derivatives…

  30. I-Man says:

    @ Jdamon:

    No dice… I couldnt find any specifics regarding what happens to the folks that ignore the tender offer from my source…

    You might try asking the guy in the press release directly.

    CIT MEDIA RELATIONS:
    C. Curtis Ritter
    Vice President
    Director of External Communications & Media Relations
    212-461-7711
    Curt.Ritter@cit.com
    or
    CIT INVESTOR RELATIONS:
    Ken Brause
    Executive Vice President
    212-771-9650
    ken.brause@cit.com

    from:
    http://www.cit.com/media-room/press-releases/index.htm?iframeurl=http%3a%2f%2fwww.businesswire.com%2fnews%2fcit%2f20090803005808%2fen

    Sorry I couldnt be of help-
    -I

  31. Wes Schott says:

    coal tar – known carcinogen, now, i am no chemist, but this does not sound too good –

    Saccharin has the chemical formula C7H5NO3S and it can be produced in various ways.[7] The original route starts with toluene, but yields from this starting point are low. In 1950, an improved synthesis was developed at the Maumee Chemical Company of Toledo, Ohio. In this synthesis, anthranilic acid successively reacts with nitrous acid, sulfur dioxide, chlorine, and then ammonia to yield saccharin. Another route begins with o-chlorotoluene.[8]

    jeeez

  32. emmanuel117 says:

    @jdamon:

    http://www.creditslips.org/creditslips/2009/07/cits-holdout-problem.html

    An interesting link I got from the Naked Capitalism blog. Caution: it’s a little dated since CIT has upped the tender offer a bit.

  33. cwf says:

    Another piece of news making the rounds today is that the ratings agencies are downgrading a couple divisions of AIG along with threatening to downgrade the ratings of a few countries in Eastern Europe………………Can anyone please explain to me why these ratings agencies carry any clout with investors anymore? Am I wrong to think the ratings agencies over the last 2 years have similarities to a meteorologist who predicts blizzard like conditions for every day over the course of the year, but instead, each and every day of that year was perfectly sunny with a temp of 105 degrees………..However, after such an abysmal track-record, people still tune into him/her to see what the forecast will be for tomorrow. At what point does an expert like this lose all credibility?

    I’m not saying that the present ratings downgrades aren’t warranted, but rather I’m asking why we are still listening to the ratings agencies that partially got us into this whole mess. Why are they even in business anymore? Why haven’t regulators shut them down or at least completely overhauled them?

  34. “…On Wednesday the Treasury’s five-year auction yield was 2.69% with 21.15% allotted at the high and bid to cover was 1.92 to 1. The average of the past ten auctions has been 2.20%. Indirect, central bank participation was 35.7% versus an average of 36.8%. Overall that was weak demand. Do not forget the Treasury has to raise $2 trillion by 9/30/09.

    Unadjusted labor Department jobless claims are up 35%.

    The Treasury’s borrowing need have been exploding and the auctions are getting progressively weaker. This presents a serious problem for the dollar. Once 78 on the USDX is broken the index should freefall. We expect the government will staunchly defend 78, but will lose the battle probably in October or at least by the end of the year…”
    http://theinternationalforecaster.com/
    ~~
    http://www.youtube.com/watch?v=pnQXLEtD5Do

  35. alfred e says:

    @MEH: You are soooo incredibly good. Where do you find the time and energy?

  36. Onlooker from Troy says:

    Pretty funny bit from Minyanville:

    Who’s to Blame for Your Unemployment? Your Professors!

  37. I don’t feel sorry for newspapers- by the time the newspaper is on your doorstep- it’s old news- additionally- it’s not an interactive media-

    I always wondered how magazines survived so long in the face of newspapers and even the advent of television. That is when I realized they were providing information content that people sought and appreciated. For that they were willing to pay a premium. As long as newspapers focus on providing information and not yesterday’s news they should be able to compete. If they can draw the eyeballs they can draw the advertisers. I don’t know if they have the vision to do it.

  38. DL says:

    Mark E Hoffer @ 4:28

    According to the following, saccharin was effective to stimulate insulin release from isolated rat pancreatic islets, but aspartame was not:

    http://www.diabetesscience.net/showabstract.php?pmid=9884024&redirect=yes&terms=aspartame+and+insulin+release

    I’m going to stick with my aspartame-laced sodas.

  39. thetanman says:

    Aspirin was first produced from coal tar. I thought this was weird until I started working at a carbon coke plant. Every day after work I’d get home and notice that my tongue was a little numb. I wondered why until I remembered that aspirin can be made from coal tar and that other molecules with aromatic hydrocarbons may have an analgesic effect. In my case it was the benzene (to make benzocaine), toluene and xylene (to make xylacaine) that was in the air at the plant. So if you have a headache and are out of aspirin, just quaff some BTX oil. Your headache may go away but the upset stomach and diarrhea would be world class. Another thing is that BTX oil smells like hot pancake syrup, but if inhaled too much will actually give you a monster headache. I soon learned when that sweet smell was detected to get the hell away.

  40. DL says:

    tanman,

    You sure?

    I always thought it was first obtained from the bark of the willow tree:

    http://en.wikipedia.org/wiki/Salicylic_acid

  41. the bark of the willow tree

    as DL puts fwd:, no f doubt about it.

    The Great many ‘miracle cures’, extant, are lifted, wholesale, from the oft-derided, by ‘Westerners’, Medicine-Men/’Witch-Doctors’ of yore..