Roberm73

Petroleum Inventories: Crude -3.7M barrels vs. consensus of +2M. Gasoline +2.3M vs. +2M. Distillate +2.9M vs. +1.5M. Aug. crude futures, strangely, move lower, but are still +1.8% to $71.15.

Maybe no more news out of Nigirea is the blame. Who knows, the Price is still high vs Demand.

Crude retakes $70 in stride, now +2.7% to $70.50, answering this question. So here's the new question: What comes first, $60 or $80?

$60 then $100

Despite being one of the recession's few success stories, Netflix (NFLX) CEO Reed Hastings thinks his core business of mailing DVDs is doomed. He hopes to transition NFLX into growth areas like online video, but concedes the reinvention is fraught with risk: "Almost no companies succeed at what we're doing."

Heck then what does that make blockbuster? A Dead man walking

eBay's (EBAY) turnaround strategy is causing a corporate identity crisis; the e-commerce giant is struggling to find a balance between being an online auction site and a bargain basement offering fixed-price goods in bulk.

Ebay lost its way a long time ago. It needs to go back to its roots and bring sellers back. This should be the gold time for ebay. Signs of how bad management screwed up.

UAW = U Are Whole

I am sure the UAW will drive a tough bargin with the new owners. Oh wait...

Retail investors betting on a rise in oil prices via ETFs are paying a steep price for going long too early. The cost of rolling positions forward in a contango market is wiping out any gains they are likely to make - even if prices eventually rally.

I am not sure the summary is correct, it is retail investors not ETF holders that are getting punished.

Treasury sells (.pdf) $14B in 30-year bonds in a messy auction at a high yield of 4.288% (vs. expected 4.19% - 57.15% of bids were at the high). Bid to cover ratio: 2.14. Primary dealers took $8.8B; indirect bidders took $4.61B. 30-year Tsys fall off a cliff, now -1.66% to 120-10.

Talk about a rock and a hard place. Let rates go up and bad things happen to economy. Have the Fed Buy the long treasury and risk the whole government.

Reports of Bank of America (BAC) needing an additional $34B may not be as frightening as initially assumed, CNBC's Steve Liesman says. According to a report in the NY Times, the $34B cushion required is well below the $45B the bank has already received from the gov't, and "the bank will now start looking at ways of repaying the $11B difference over time." BAC, which was down more than 11%, is now +2.5% premarket.

I got say, no understanding of why its price is increasing. Either they need more capital from the government which is bad or they do the conversion which is dillutiling the current shareholders. Maybe I missed this in my finance 101 class how it is a good thing.

China Infrastructure Smallcaps Worth a Long Look

I am a big fan of CGYV, but it seems to be stuck even with the good news it keeps reporting. Any idea why it is not getting better play?

Three great reads for lunchtime: 1) The IMF and the panic of 2008 2) The trouble with the 'millionaire tax' 3) Led astray by libertarianism

I am pretty sure most libertarian would say we don't need the Fed. Duh. Not what the fed polices are.

"Leaked" stress test results show 16 of the nation's top 19 banks are already technically insolvent - any two of which could take down the FDIC. Update: Treasury says it doesn't even have the results yet, which Karl Denninger calls a lie. Zero Hedge, and others, question the veracity of the leak and its source's agenda.

Most of the stuff is based on a weiss report and already public information. Mostly hype and little facts. Also the DHS claim is wrong since the time stamp is about 24 hours after the NYT broke the story.

Treasury Directs GM to Get Ready for Bankruptcy

So we now start at Lehman II. A chapter 11 of GM will likely set off unexpected problems. Just off the top of my head, would the Pensions problem, the heathcare problems (legacy benefits), the Bond holders who will fit tooth and nail to not take loses. The damage outside GM will terrible as well, Parts Suppliers who can get paid in the BK will go down, the many who loses there jobs will act a muiltipler of job loses across america not just Detriot. Top this with the rage already in play and you are set for massive riots of out of work people who feel the bankers got a better deal.
Just to think that this is the best of the solutions on the table.

Market Death Spiral Continues

It is clear Obama needs some new advisors. Who ever is written his budget and fiscal policy is an idiot. When Hope dies the market will crash.

AIG: Countdown to Annihilation

doomisnigh.blogspot.co...
If you not read the time story about AIG If the first paragraph to be down right scary.

"Management at AIG has calculated exactly how much money the Treasury and Fed will have access to after all of the TARP, financial stimulus, and mortgage bailout projects have been funded. The insurance company then plans to ask for whatever is left to fund its deficits so that it can stay in business, effectively making the federal government insolvent. "

Eight Reasons Bank of America Is Going to $20

BAC has huge problems with MER acquistion. The are going be losing money for sometime. $20 this year, I doubt. Also I would not underestimate a electronic bank run on C or BAC causing some major heartburn to the shareholders. If you want gamble buy the preferreds. At least you are getting a high rate of return and might survie more diliution if the the government steps in.