Remember the run wheat had last year? (and what it's doing to food prices now) Now we are getting a repeat in corn. Limit up, limit up, limit up. Aren't bubbles fun. Nice job Ben.
PPI up 1.4% last month. Don’t annualize that number, it’s not pretty. You think the consumer has it bad now? Wait until those prices get passed through to them. This gets uglier by the day.
FedEx has bad guidance – shocker. They are a bell-wheather, when things aren't getting shipped...
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Seriously, this situation is f'ed up. This is as big a cluster f knock on the system as you can find. The chairman of the banking committee - are you kidding me?! This WSJ editorial sheds more light on the picture. Nice system we got here. Disgusting.
http://tinyurl.com/3p2jel
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I was gonna tell you which numbers to read, but just read all 12. Florida is to the rest of the states what subprime was to all mortgages - just the beginning.
http://tinyurl.com/5amhxu
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Here's the deal gang. Ben recently said it was time to fight inflation. If his next move is to cut rates again, that will PROVE how bad things are behind the scenes. He did the bail-out-the-buddies game, and now interest rates are moving up on their own. If he tries to buck that trend with the amount of damage he has done to his $800B balance sheet already - well there is your $200 oil. Aren't bubbles fun. Nice job Ben.
On that note - From the Telegraph: Morgan Stanley warns of 'catastrophic event' as ECB fights Federal Reserve
http://tinyurl.com/3jovcj
As if that wasn't enough - RBS should be big enough to be worthy of your attention: "Crash Alert".
http://tinyurl.com/5qckkp
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What goes up, must come.....
From an NY Times article:
Only a year ago, Wall Street reveled in an era of superlatives: record deals, record profit, record pay. But a mere 12 months later, nearly half of the profits that major banks reaped during that age of riches have vanished.
The numbers are staggering. Between early 2004 and mid-2007, a period of unprecedented wealth on Wall Street, seven of the nation’s largest financial companies earned a combined $254 billion in profits.
But since last July, those same banks — Bank of America, Citigroup, JPMorgan Chase, Lehman Brothers, Merrill Lynch, Goldman Sachs and Morgan Stanley — have written down the value of the assets they hold by $107.2 billion, gutting their earnings and share prices.
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Back to the whole "Friends of Angelo" fiasco from above - Is it any wonder CONgress votes the way it does? Flat out illegal. The poster-boy and first person that should end up in jail when all this is done is Angelo Mozillo. Bribery by any other name...
http://tinyurl.com/5e755g
Arresting the jerks is the right choice – but no, we continue to let them make the rules of our country instead.
Standing Rules of the Senate - RULE XXXV - GIFTS
1. (a)(1) No Member, officer, or employee of the Senate shall knowingly accept a gift except as provided in this rule.
(b)(1) For the purpose of this rule, the term "gift" means any gratuity, favor, discount, entertainment, hospitality, loan, forbearance, or other item having monetary value.
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As for the housing bailout that Dodd (Friend of Angelo) and friends are trying like all get-up to push through, this is what the SC rep had to say:
Sen. Jim DeMint, R-S.C., signaled he might try to block the
measure, saying, through a spokesman:
"The housing bill has a
multibillion-dollar taxpayer bailout for a company that reportedly
gave preferential loans to members of Congress. This is exactly the
type of thing Americans are sick of."
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Probably should move this right to the top, but I don't expect we can stop it due to the massive corruptness of this country.
http://tinyurl.com/6exjbq
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Just click on the chart (although there is a short explanation below it) – that is a disturbing trend the Fed is setting up.
http://tinyurl.com/5umcfo
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There aren’t enough "Bunny Ranch" stories in the Replay (formerly known as the Update)...
http://tinyurl.com/6f7xh7
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When the media gets blamed for being too gloomy, they should read this. I’ll believe the media is being too gloomy (and it’s time to go long) when I see Erin Burnett all-out balling on the air.
http://tinyurl.com/6nlg28
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Investors Business Daily goes for the Democratic jugular as well – strong words in this one.
http://tinyurl.com/46gcmg
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Non Required:
Hope this is an aberration and not some sort of beginning of a trend in this country.
Two garden hoses and six outhouses for 350+ people.
http://tinyurl.com/62ded4
Gas hoarding in their apartment turns out badly...
http://tinyurl.com/594ewk
Why housing is nowhere near bottom. Rates are starting their upward climb. Mortgage rates are higher than they were before the rate cuts began – good job Ben, AS IF you didn’t see this coming when you bailed out your buddies. Jack a$$.
http://tinyurl.com/59o78n
What this chart tells me is that those on the left side have a long way to go...
http://tinyurl.com/5jmflq
More power? That’ll turn out well...
http://tinyurl.com/693so6
These were the "smartest guys in the room" over the past few years – constantly being praised for having hedged away all fuel costs. That appears to be done. Imagine how bad it must be for the not-as-smart guys...
Southwest Airlines Co., the biggest discount carrier, must keep increasing fares "gradually and continuously" as jet-fuel prices surge, Chief Executive Officer Gary Kelly said.
The U.S. airline industry is struggling with a "terrible" operating environment as fuel stays near $4 a gallon, Kelly said today at a Merrill Lynch & Co. conference in New York.
"We're going to have to move fares along gradually and continuously to be able to overcome these dramatically high fuel costs," Kelly said.
An 82 percent surge in jet fuel in the past year is forcing Dallas-based Southwest to juggle its low-fare business model with the need to charge more to recoup its costs. Kelly said that after taking no first-quarter price increases, Southwest has adopted three this quarter.
On the heels of that Continental cuts 15 cities and lays off 3000 more people. Don’t for a second believe the unemployment numbers.
From Todd. Long one, but the lack of accountability is nicely summed up by:
"Today, the Bakers owe $30,000 on credit cards and $105,000 on a home worth only $63,000. They blame themselves but also say lenders share responsibility for 'making it so easy' to borrow."
Regardless, the money is gone, the credit is being removed from the system, and that’s the oxygen this system runs on.
http://tinyurl.com/59ff2u
Actual LEH NPA’s since there was a bad link in the last Replay
http://tinyurl.com/5p86eq
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