Seeking Alpha

moneymcbags'  Instablog

moneymcbags
Send Message
Money McBags is the preeminent financial humorist and money maker in the world. While known for his ability to find and invest in undervalued equities, Mr. McBags is also a world class dick joke teller, an aficionado of lovely ladies, and avid reader of books without pictures in them. With... More
My blog:
When Genius Prevailed
  • 5/17/10 Midafternoon Report: The Euro is falling! The Euro is falling! 0 comments
    May 17, 2010 5:23 PM | about stocks: KITD, LOW

    The market was somehow flat today after spending most of  the day down again as the perilousness of Europe's debt situation continues to worry investors like laryngitis worries Pavarotti or like coming in to contact with Paris Hilton worries osmophobes.  Not only is Europe raining ash on the market's parade (both literally and figuratively, though to be fair, the market's parade today was in honor of Norwegian Constitution Day (better known as pedophilia Christmas for the tradtion of children's parades), which ranks somewhere between the invention of nose hair clippers and the launch of the Edsel in the pantheon of modern events, so not a big deal) but US macro news was mildly disappointing as well.  The NY Fed released their monthly manufacturing report and the gauge of general business conditions fell to empty.  The business index dropped from 31 to 19 and analysts had guessed it would be 30.  As always, Money McBags has no idea what the difference between 31 and 19 is (other than maybe a few kids and a meth problem), but he knows that they're both legal.  The new order index also tried to make this a Blue Monday by falling from 29 to 14 as inventories have been restocked (or un-destocked, whatever).  One positive aspect of the report though was that employment strengthened as payrolls grew the fastest they have in six years as NY manufacturing plants try to keep up with demand for tools and building materials to help batten down foreclosed on houses.  In other US macro news, home builders' sentiment hit a 2.5 year high as apparently delusion has finally creeped in to lift their spirits.  The index rose to a whopping 22 while analysts guessed it would be 20, so the difference is a rounding error or a stutter.  The bigger issue is that 50 or greater means more people are optimistic, so with the index only at 22, people are just slightly less negative, like a guy who breaks up with Amy Winehouse to date Mayim Bialik.

    Internationally, the Euro continues to sink today as if it were a Brazilian Real in 1999 or had just hired Ted McGinley to star in its new TV drama (tentatively to be called The Big Crash Theory).   The ECB was out buying 16.5B of sovereign debt and in order to try to show they aren't just printing Euros, they will be taking in 16.5B of deposits from banks and paying out interest.  Wow.  So the banks get some free money while the ECB gets worthless bonds and has to pay interest on the money they didn't "print."  Seems a bit odd but then again, so does Rene Zellweger's face and that's never seemed to hinder her.  Also, bank lending in Europe is taking a significant hit as the rates banks charge each other for loans in dollars rose to a nine month high.  The Libor-OIS spread (which isn't nearly as interesting as the rumored Rachel Uchitel Playboy spread) increased to 24 basis points, the most since August, thus signaling that banks in Europe are as interested in lending as the FED is interested in transparency or as Ellen Degeneres is interested in penis.

    In stock news, GM posted their first profit as apparently people can now only afford shitty cars.  GM earned $865MM and proved that all you need to do to succeed in business is suck badly at your job, lose a ton of money, and then get bailed out by good old Uncle Sam and his magic printing press.  Money McBags only laments that he missed that class during his business school days.  Not only did GM post a profit....READ MORE...ANALYSIS OF KITD's Q....

    Disclosure: Long KITD
    Stocks: KITD, LOW
Back To moneymcbags' Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

Latest Comments


Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.