Moody’s review on banks more academic

Here is more color on the Moody’s announced review of the credit ratings of the large banks which for a few minutes resulted in S&P selling. We’ve since bounced back because the view of Moody’s is solely related to the reduced expectations for the same amount of government support for the banks going forward rather than any sudden change in company operating fundamentals. “Today’s rating actions reflect Moody’s view that, in light of developments on the Dodd-Frank Act that have occurred to date, the unusual levels of uplift incorporated into the ratings of BAC, C and WFC may no longer be appropriate.” They will review whether the banks ratings should “include only pre-crisis levels of government support.”

Category: MacroNotes

Virtual Casino: Robert Wilmers vs Jamie Dimon

I’ve been meaning to discuss this Joe Nocera piece, The Good Banker, which is my favorite thing he’s done since moving to the OpEd pages. “In the run-up to the financial crisis, the giant national banks — which he viewed as a distinct species from the typical American bank — had done things that deserved…Read More

Category: Bailouts, Corporate Management

Bianco: Time to Let Markets Adjust on Their Own


Time to Let Markets Adjust on Their Own, Stop Intervention: Jim Bianco
By Matt Nesto
Breakout June 1, 2011

Category: Federal Reserve, Video

Thursday Morning Reads

Here are the latest adds to my Instpaper: • Expect More ‘Unexpectedly’ Weak Economic Data (Barrons) • Big Banks Cash In on Commodities (WSJ) • Silver Bug Goes Viral With Marketing War (AdWeek) • China Lending-Binge Hangover Looms in 2013 (Bloomberg) • Rebuilding the wall of worry takes time (Market Watch) • For a Whistle-Blower,…Read More

Category: Financial Press

A Bear in the China Shop


A Bear in the China Shop
Daniel Gross
Daily Ticker, June 1 2011

Category: Economy, Video

ADP’s Job Data Reliability? Not Great . . .

> Yesterday’s selloff was triggered in part by a weak ADP report, and fears of a broader economic slowdown. Lets see if we can navigate the crosscurrents here to discern what, if anything, is happening. First off, the economy is slowing. At least, the 2nd derivative rate of growth is throttling back, from over 3%…Read More

Category: Cycles, Economy, Employment

The Fed put and its danger

Asian markets overnight took the economic slowdown, selloff cue from us and Europe continues its correction, further adjusting to the US selloff after markets there closed yesterday. Yesterday I mocked the discussion of QE3 as an unfortunate byproduct of the Fed put that has been so ingrained in market psychology over the past 15 year…Read More

Category: MacroNotes

Yastrow: “We Are on the Verge of a Great, Great Depression”

The news that frequent CNBC guest Peter Yastrow of Yastrow Origer (and formerly with DT Trading) told CNBC that “We’re on the verge of a great, great depression. The [Federal Reserve] knows it” is going viral today. But this is not news to anyone who has been paying attention. As I pointed out Tuesday, billion…Read More

Category: Think Tank

Most Photographed NYC Attraction? 5th Ave Apple Store

This is insane stuff: “Researcher Eric Fischer mapped and analyzed millions of photos on flicker that were taken throughout the city and looked at their geo-tagged information — such as time and date they were shot –to determine patterns of interest. Although the sleek glass exterior of the Fifth Avenue Apple store gets the most…Read More

Category: Analysts, Psychology, Travel, Web/Tech

The Influencing Machine: Brooke Gladstone on the Media

Fast Co Design: A Graphic Novel Unlocks How The Media Manipulates Facts

Category: Financial Press, Video