My reads to start the week off:

• Freddie Mac Bets Against American Homeowners (ProPublica)
• Money From MF Global Feared Gone (WSJ)
• 9.8 Million Shadow Inventory Says Housing Market is a Long Way From the Bottom (Naked Capitalism)
• Flurry of Subpoenas Raises Force-Placed Stakes (American Banker) see also Wall Street Wants Rebound, Needs Shakeup (Bloomberg)
• Funding the Academic War on Financial Reform (New Deal 2.0)
• U.S. Debt Gets Recalibrated (WSJ) see also Persistently Low Rates Carry Risk of Negative Side Effect (WSJ)
• Revisiting A Gold Bet (Research Puzzle)
• Greek Debt Talks Resume in Athens as Policy Makers Squabble Over Haircut (Bloomberg) see also Should emerging market equities trade at a premium? (Reuters)
• Comparing Obama and Reagan’s economic records (Washington Post) see also Obama Recovery is No ’Morning in America’ Yet (Bloomberg)
• Apple Fuels Hiring Amid Bubble 2.0 Concern (Bloomberg)

What are you reading?


U.S. Banks Tally Their Exposure to Europe’s Debt Maelstrom

Source: DealBook

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.

18 Responses to “10 Monday AM Reads”

  1. swag says:

    Blogger isolates the date of Ice Cube’s “Good Day” through research and the process of elimination –

  2. Marcus says:

    Looks like Morgan Stanley got it right. Stay away.

    MS also broke out its insurance cost, about 1% a year. That takes away a lot of profit. Eurodebt looks like a lot of risk for little return.

  3. hammerandtong2001 says:

    MF Global: $1.2 Billion in client finds “vaporized”?

    I didn’t know that money could vaporize. Did you?

    No mention of criminal investigations, of course. Nothing at all.


  4. Moe says:

    If we have a financial system wherein billions can “vaporize” – sounds to me that we have a “faulty’ sytem – that needs immediate fixing. (I’ll go crawl back under my rock now…)

  5. Robespierre says:

    Funny how this “news” shows up a little after this other one:
    “When Google, Apple, Adobe, and others made agreements not to hire each other’s employees, the Department of Justice filed and settled an antitrust lawsuit, ending the anti-competitive practice in 2010. But those who were harmed by the collusion are still waiting for resolution in an ongoing class action suit. Now heavily-redacted court documents from the civil case have revealed email evidence of the collusion between Apple, Adobe, and Pixar.”

    Funny those corporate titans seem to be all against free market and behave more like say a union?

  6. Moe says:

    I would love to see a BR write-up on the rise of the “economist” as expert…on just about everything.

    I just recently unwrapped my latest National Geographic to read an article about the “EFFICIENCY OF BIG CITIES” highlighted throughout by snippets from Milton Glaser extolling the virtue of slums and barrios as “a lively and efficient” means of human habitiats. I tossed it in the garbage.

  7. Moe says:

    my apologies to Milton Glaser (I’m a graphic designer)…it was Harvard economist Edward Glaeser mentioendin the Geo article…

  8. Darkness says:

    Didn’t we learn during the meltdown that hedging doesn’t matter if your counterparties can’t pay because they are in the same straights you are? Am I missing something here? (Well, other than that nothing got fixed so wall street returned to the same bs as before. What lower middle class homedebtors are they going to blame the next crisis on?)

  9. herewegoagain says:

    Comparing the Reagan and Obama economic record?

    Reagan became President at the end of a long secular bear market, and his “success” had more to do with economic cycles than anything emanating from his rather limited intellect.

    We’re now in the frustrating process of markets reverting to the mean, and it’s silly to expect that Obama will magically transform the basic cyclical dynamics of global economies.

  10. farmera1 says:

    Blame it on the Greek workers, along with the Italian workers, along with the Spanish workers. Take your pick.

    So we might be finding out soon if all the hedges are worth anything. My bet is not much. Too many hedges (nearly $600 trillion) written by too many people (aka corporations) with no reserves and no possible way of paying them off. Haven’t we heard this song before?????? So will the FED/TREASURY bail out these Corporations/people/banks/victims again??????Some how it will be done.

    I say this time it all the Greek workers fault. If they weren’t so greedy/lazy none of this would have happened. So can we blame it on the Greek workers???? I think it has already been done.

  11. rd says:

    Who are the counterparties for the $45 B in hedging by the five big banks on the PIIGS bonds? I trust that it is not the US taxpayer a la AIG.

    The article about the closing gap on developed vs. developing world equity premiums is interesting in light of all the headlines listed above the story. Traditionally, developed world equities could claim systems of property rights, transparency, and regulation that was generally unavailable in the devloping world. However, the story headlines are making it clear that this edge the developed world has is rapidly disappearing, so it makes sense that the valuation gap would be closing.

    On MF Global, cash in segregated accounts can’t “vaporize.” It must be actively re-recorded into a different account internally inside the company. The Feds have four choices:

    1. Prosecute the minions who made the decisions to do these money moves against the directives of senior management;

    2. Prosecute the senior executives under SarbOx for not having adequate internal controls to prevent minions from illegally transferring the funds;

    3. Proesecute the senior executives for directing their minions to make the illegal transfers; or

    4. Continue the current path of declaring that legal requirements and proceedings are only in place to protect TBTF banks and wealthy individuals, similar to Third World countries.

  12. Jojo says:

    NY Times
    January 28, 2012
    Old Techies Never Die; They Just Can’t Get Hired as an Industry Moves On

    Silicon Valley may be booming again, but times are still tough for the 200 out-of-work professionals who crowd into Sunnyvale’s City Hall every Thursday morning.

    Most of them hold advanced degrees in engineering and have more than a decade of experience in the technology sector. They fill all of the seats in the City Council chamber and spill out into the aisles.

    They are members of Pro Match, a government-financed support group and “interactive career resource center” for educated older workers who have suddenly, and usually involuntarily, found themselves on the job market. Most have been out of work for months.


  13. Joe Friday says:

    Obama Recovery is No ’Morning in America’ Yet (Bloomberg)

    The Reagan “Recovery” was no “Morning in America”.

    The Standard of Living of the overwhelming majority of Americans went dramatically BACKWARDS during Reagan’s two terms.

  14. Gator81 says:

    It’s time to whitewash another pending home sales report – Joe Manausa

  15. VennData says:

    “…Newt Gingrich is reeling from being subjected to one of the most expensive and sustained negative ad bombardments in recent US political history…”

    Oh, that Liberal Media!

  16. Robespierre says:

    “Money From MF Global Feared Gone”

    Demonstrating what the %99 knows and what Jesse so eloquently tells it:

    “The theft of customer funds was bad enough, but the manner in which the exchange, the regulators, the court, the Congress and the Obama Administration have dealt with the aftermath of this is truly despicable.

    If I have ever seen the opportunity for those in the government to take a heroic stand in defense of the people against the predations of powerful financial interests this was it. And so whatever they say from this point is at best a shallow mockery, with the ring of untruth, and the hollowness of hypocrisy. And this is why the American people turn away from their corporate-branded presidential candidates with righteous disgust and revulsion.

    They must have no sense of justice, or of proportion, or history, and apparently they have no shame.”

    So Barry if you want a reason (one of many) as to why retail does not return to the markets there is one of the reasons.

  17. pintelho says:

    question on the infograph…what are the hedges and who is underwriting them? Cuz if its anything like LEH exposure with hedges…we all know how well that turned out.

  18. pintelho says:

    question on the infograph…what are the hedges and who is underwriting them? Cuz if its anything like LEH exposure with hedges…we all know how well that turned out.