gatekeeper

Banks are pressing for a key accounting change, saying they could help the Fed's exit strategy if they don't have to record reverse repurchase agreements on balance sheets when they act as middlemen.

"Reverse repurchase" agreement ..... What a great term for describing just how our financial system is so short on direction.

A lawyer for employees of AIG's (AIG -1.3%) Financial Products unit - the CDS-selling division that was the source of the company's meltdown - threatens "instant litigation" and mass departures in March if promised bonuses aren't paid.

Threatens mass departures if promised bonuses aren't paid? Don't let the doors hit all of you on the way out. Then welcome your egotistical selves to the ranks of unemployed.

US Airways (LCC +2.3%) delays delivery of 54 Airbus jets until at least 2013, a move the company says will boost its available cash by about $150M this year and $450M by the end of 2010. Boeing (BA) -1.4%.

Any idea what kind of $$ penalties USAir has to pay Boeing in order to delay delivery in order to "boost cash by about $150M"?

Bubble watch, aluminum edition: The metal has rallied 32% this year, and Barclays Capital forecasts a 29% increase in its surplus next year. How can the price keep rising when warehouses hold enough aluminum to make 69,000 Boeing 747s?

With aluminum production being so energy intense, one might check the going cost/kwh when the inventories were produced versus current market pricing. That, along with other variables, might help shed light on the anomaly. Also, one year ago aluminum spot was ~US$.80/lb, it dipped to under US$.60/lb and since has recovered to around US$.90/lb. In this context, it's not really a big rally.
Source: www.kitcometals.com/ch...

Too many turkeys: In a market where one-fifth of the product is consumed on a single day, turkey producers must use guesswork - and this year it's a bit off, with a surplus driving down bird prices.

Here's hoping many of those surplus turkeys reach shelters and food banks across America. they're sorely needed.

UBS (UBS) notifies U.S. clients by registered mail that their account details may be handed over to authorities. Lawyers say the move may itself be a breach of Swiss securities law, because authorities could use the paper trail to trace customers.

Wow, what an easy way to jam up a few people up that you don't like. I can envision someone printing UBS on envelopes and sending blank pieces of paper via registered mail to ... people. Recipients to IRS, two months later: "But, but, I tell you I don't have a Swiss bank account!! Why do you keep insisting that I do?"

Surprise! No bank failures Friday night. Tally for the year holds at 98.

A government holiday weekend. Everyone left early.

Having closed the sale of its assets to GM and its lenders, auto parts maker Delphi (DPHIQ.PK) emerges from bankruptcy after four years with four of 44 plants left and just 14,000 of its more than 50,000 workers: a regrettably bumpy ride, according to former CEO Steve Miller, who - after reducing his salary to $1 - faced picket signs saying "Miller isn't worth a buck."

Delphi worldwide (other than the pieces going to GM) is now in private-equity hands. It'll be interesting to see if Delphi manages to stay in one piece or if it gets chopped up.

I'm betting the former, since Delphi will be controlled by a group of over 50 banks and hedge funds, all led by Elliott Management and Silver Point Capital. This will be a great case study for what happens when many owners end up holding a post-BK piece, as opposed to being owned by one or two private equity firms.

Closing Update for Friday, Sept. 18: Bull Run Hangs On, Barely

I wonder how much time the sideliners have left to get involved and make some money in equities markets before the next downward business cycle swing ... which will have little or nothing to do with the business cycle out of which we're now crawling.

I hope a long time, of course, but I'm just curious how long they'll sit it out.

All that cash on the sidelines is due to come into the market, right? Birinyi Associates says the biggest influx comes at the peak. "It's somewhat of a reverse indicator ... You do want money going in, but you don't want this tremendous shift."

The comparison of cash inflows to equities between now and the 1980's, etc., does not take into account 401k, IRA and similar programs which currently create a running flow of dollars into equities and which hardly existed back then.

Will Lear Declare Bankruptcy?

My Toyota Camry was built in Georgetown, Kentucky, USA.
______________________...
RE-
> I will support Lea and the american auto industry. Next time when I
> buy a new car, It will be an american made car. Before, I always
> drive Toyota brand car.

'Too Big To Fail'? Wait - What About Anti-Trust?

This has been on my mind for awhile. I too feel our anti-trust laws should be updated to include "too big to fail" companies and enterprises. As with Standard Oil, we should be able to break up a TBTF company up into smaller, individual but still publicly-held companies.

Markets are taking a bounce into the close, still underwater but well above lows.

Amazing - actually going into the weekend on an uptick. Scary.

Line U-6: A Sell Signal for Bulls and Bears

BigJake, try this out for some basic instruction on short selling.
en.wikipedia.org/wiki/...

On Jan 06 02:27 PM BigJake wrote:

> This may be a investor newbie question, but how does one "short"
> the market? I own stocks and mutual funds. How is it possible to
> profit from the market going down? If someone has a link to point
> me to so I can self educate I'd really appreciate it.

Line U-6: A Sell Signal for Bulls and Bears

So the "marginally attached" number is 12.5% for this report vs. the official 6.7% rate.

Can you add a little more background to show the spread relationship between these two numbers in previous employment situation reports? To point it out one time without any context can be misleading.