Winston Smith of Oceania's Comments Winston Smith of Oceania's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.comuser/256362/comments U.S. bank stocks face above-average risks, Citigroup says, recommending investors "remain very selective" and focus on banks "that have strong capital positions, while avoiding banks with the combination of relatively high commercial real estate exposure and questionable capital strength." Citi's choice banks: BBT, FITB, BAC, STI. Duds: ZION, RF, KEY. http://seekingalpha.com/news/market_currents/post/37494?source=feed#comment-786172 786172 Wed, 02 Dec 2009 09:07:01 -0500 Call Buying Surged Before 3Com Takeover Announced http://seekingalpha.com/article/172993-call-buying-surged-before-3com-takeover-announced?source=feed#comment-756935 756935 Thu, 12 Nov 2009 09:30:55 -0500 Wall Street Breakfast: Must-Know News http://seekingalpha.com/article/164819-wall-street-breakfast-must-know-news?source=feed#comment-703463 703463 Mon, 05 Oct 2009 08:51:25 -0400 Talent shift: Could a high-IQ exodus from finance lead to stronger productivity growth and a more robust economy? http://seekingalpha.com/news/market_currents/post/32745?source=feed#comment-682602 682602 Fri, 18 Sep 2009 12:13:15 -0400 Talent shift: Could a high-IQ exodus from finance lead to stronger productivity growth and a more robust economy? http://seekingalpha.com/news/market_currents/post/32745?source=feed#comment-682552 682552 Fri, 18 Sep 2009 11:44:47 -0400 Wall Street Breakfast: Must-Know News http://seekingalpha.com/article/162211-wall-street-breakfast-must-know-news?source=feed#comment-682483 682483 Fri, 18 Sep 2009 10:58:33 -0400 Hedge fund manager Nick Bullman says stocks may be 20% overpriced and calls the rally a "dash for trash," saying he's gone short on the S&P 500 and financials via ETFs, and bought gold. http://seekingalpha.com/news/market_currents/post/31048?source=feed#comment-639899 639899 Fri, 21 Aug 2009 12:15:03 -0400 Wall Street Breakfast: Must-Know News http://seekingalpha.com/article/157242-wall-street-breakfast-must-know-news?source=feed#comment-637776 637776 Thu, 20 Aug 2009 09:16:37 -0400 Socialism's F http://seekingalpha.com/instablog/360030-scroogemcduck/17912-socialism-s-f?source=feed#comment-633658 633658
I was talking to a friend of mine's little girl, and she said she wanted to be President some day. Both of her parents, liberal Democrats, were standing there, so I asked her, 'If you were President what would be the first thing you would do?'

She replied, 'I'd give food and houses to all the homeless people.'

'Wow - what a worthy goal.' I told her, 'You don't have to wait until you're President to do that. You can come over to my house and mow, pull weeds, and sweep my yard, and I'll pay you $50. Then I'll take you over to the grocery store where the homeless guy hangs out, and you can give him the $50 to use towards food or a new house.'

She thought that over for a few seconds 'cause she's only six. And while her Mom glared at me, she looked me straight in the eye and asked, 'Why doesn't the homeless guy come over and do the work, and you can just pay him the $50?'

And I said, 'Welcome to the Republican Party.'

Her folks still aren't talking to me.]]> Mon, 17 Aug 2009 16:07:49 -0400
I was talking to a friend of mine's little girl, and she said she wanted to be President some day. Both of her parents, liberal Democrats, were standing there, so I asked her, 'If you were President what would be the first thing you would do?'

She replied, 'I'd give food and houses to all the homeless people.'

'Wow - what a worthy goal.' I told her, 'You don't have to wait until you're President to do that. You can come over to my house and mow, pull weeds, and sweep my yard, and I'll pay you $50. Then I'll take you over to the grocery store where the homeless guy hangs out, and you can give him the $50 to use towards food or a new house.'

She thought that over for a few seconds 'cause she's only six. And while her Mom glared at me, she looked me straight in the eye and asked, 'Why doesn't the homeless guy come over and do the work, and you can just pay him the $50?'

And I said, 'Welcome to the Republican Party.'

Her folks still aren't talking to me.]]> 10 Highest Paid CEOs for 2008: Unbelievable http://seekingalpha.com/article/135302-10-highest-paid-ceos-for-2008-unbelievable?source=feed#comment-630303 630303 Fri, 14 Aug 2009 16:06:48 -0400 Meanwhile, Clusterstock collects the reviews of Geithner's reported closed-door cursefest. http://seekingalpha.com/news/market_currents/post/29745?source=feed#comment-615014 615014 Tue, 04 Aug 2009 14:13:23 -0400 Top banking regulators will testify in Congress against Obama's financial reforms, with FDIC's Bair saying she can't "see merit or wisdom in consolidating federal supervision." The public criticism is in spite of strongly-worded warnings from Geithner. http://seekingalpha.com/news/market_currents/post/29670?source=feed#comment-614371 614371 Tue, 04 Aug 2009 09:40:21 -0400 Tuesday Outlook: Commodities, Global Markets http://seekingalpha.com/article/150319-tuesday-outlook-commodities-global-markets?source=feed#comment-614285 614285
Wall Street profits from trades with Fed By Henny Sender in New York

Published: August 2 2009 23:04
Wall Street banks are reaping outsized profits by trading with the Federal Reserve, raising questions about whether the central bank is driving hard enough bargains in its dealings with private sector counterparties, officials and industry executives say.


The Fed has emerged as one of Wall Street’s biggest customers during the financial crisis, buying massive amounts of securities to help stabilise the markets. In some cases, such as the market for mortgage-backed securities, the Fed buys more bonds than any other party.
However, the Fed is not a typical market player. In the interests of transparency, it often announces its intention to buy particular securities in advance. A former Fed official said this strategy enables banks to sell these securities to the Fed at an inflated price.

The resulting profits represent a relatively hidden form of support for banks, and Wall Street has geared up to take advantage. Barclays, for example, e-mails clients with news on the Fed’s balance sheet, detailing the share of the market in particular securities held by the Fed.

“You can make big money trading with the government,” said an executive at one leading investment management firm. “The government is a huge buyer and seller and Wall Street has all the pricing power.”

A former official of the US Treasury and the Fed said the situation had reached the point that “everyone games them. Their transparency hurts them. Everyone picks their pocket.”

The central bank’s approach to securities purchases was defended by William Dudley, president of the New York Fed, which is responsible for market operations. “We believe that opting for transparency is a greater good,” he said. “If we didn’t have transparency, we’d be criticised on other grounds.”

However, another official familiar with the matter said the central bank “has heard that dealers load up on securities to sell to the Fed. There is concern, but policy goals override other considerations.”

Barney Frank, chairman of the House financial services committee, said the potential profiteering may be part of the price for stabilising the financial system.

“You can’t rescue the credit system without benefiting some of the people in it.” Still, Mr Frank said Congress would be watching. “We don’t want the Fed to drive the hardest possible bargain, but we don’t want them to get ripped off.”

The growing Fed activity has coincided with a general widening of market spreads – the difference between bid and offer prices – as the number of market participants declines. Wider spreads enable banks, in their capacity as market-makers, to make more profit.

Larry Fink, chief executive of money manager BlackRock, has described Wall Street’s trading profits as “luxurious”, reflecting the banks’ ability to take advantage of diminished competition.

“Bid-offer spreads have remained unusually wide, notwithstanding the normalisation of financial markets,” said Mohamed El-Erian, chief executive of fund manager Pimco in Newport Beach, California.

Spreads narrowed dramatically during the years of the credit bubble.

Brad Hintz, an analyst at AllianceBernstein, said he doubted that spreads would ever return to those levels, a development that could be pleasing to the Fed.

“They want to help Wall Street make money,” he said.]]> Tue, 04 Aug 2009 09:01:59 -0400
Wall Street profits from trades with Fed By Henny Sender in New York

Published: August 2 2009 23:04
Wall Street banks are reaping outsized profits by trading with the Federal Reserve, raising questions about whether the central bank is driving hard enough bargains in its dealings with private sector counterparties, officials and industry executives say.


The Fed has emerged as one of Wall Street’s biggest customers during the financial crisis, buying massive amounts of securities to help stabilise the markets. In some cases, such as the market for mortgage-backed securities, the Fed buys more bonds than any other party.
However, the Fed is not a typical market player. In the interests of transparency, it often announces its intention to buy particular securities in advance. A former Fed official said this strategy enables banks to sell these securities to the Fed at an inflated price.

The resulting profits represent a relatively hidden form of support for banks, and Wall Street has geared up to take advantage. Barclays, for example, e-mails clients with news on the Fed’s balance sheet, detailing the share of the market in particular securities held by the Fed.

“You can make big money trading with the government,” said an executive at one leading investment management firm. “The government is a huge buyer and seller and Wall Street has all the pricing power.”

A former official of the US Treasury and the Fed said the situation had reached the point that “everyone games them. Their transparency hurts them. Everyone picks their pocket.”

The central bank’s approach to securities purchases was defended by William Dudley, president of the New York Fed, which is responsible for market operations. “We believe that opting for transparency is a greater good,” he said. “If we didn’t have transparency, we’d be criticised on other grounds.”

However, another official familiar with the matter said the central bank “has heard that dealers load up on securities to sell to the Fed. There is concern, but policy goals override other considerations.”

Barney Frank, chairman of the House financial services committee, said the potential profiteering may be part of the price for stabilising the financial system.

“You can’t rescue the credit system without benefiting some of the people in it.” Still, Mr Frank said Congress would be watching. “We don’t want the Fed to drive the hardest possible bargain, but we don’t want them to get ripped off.”

The growing Fed activity has coincided with a general widening of market spreads – the difference between bid and offer prices – as the number of market participants declines. Wider spreads enable banks, in their capacity as market-makers, to make more profit.

Larry Fink, chief executive of money manager BlackRock, has described Wall Street’s trading profits as “luxurious”, reflecting the banks’ ability to take advantage of diminished competition.

“Bid-offer spreads have remained unusually wide, notwithstanding the normalisation of financial markets,” said Mohamed El-Erian, chief executive of fund manager Pimco in Newport Beach, California.

Spreads narrowed dramatically during the years of the credit bubble.

Brad Hintz, an analyst at AllianceBernstein, said he doubted that spreads would ever return to those levels, a development that could be pleasing to the Fed.

“They want to help Wall Street make money,” he said.]]> Jamie Dimon, commenting on JPMorgan's (JPM -1.6%) exposure to CIT Group (CIT -69.2%) on this morning's earnings call (full transcript here, later): "We have exposure to CIT, secured and unsecured, but I’m telling you, the primary and direct effect on the P&L would be not material to us." http://seekingalpha.com/news/market_currents/post/28124?source=feed#comment-590561 590561 Thu, 16 Jul 2009 11:47:11 -0400 Nonfarm payroll data at 8:30, one day early, because markets are closed tomorrow for the July 4 weekend. Consensus is for about 365,000 job cuts, after May's 345,000. Unemployment seen climbing to 9.6% from 9.4% - a 26-year high. Futures just ahead of the numbers: S&P -0.6% to 913.50. 30-year Tsy flat. Euro -0.7%. Crude -1.7%. http://seekingalpha.com/news/market_currents/post/27161?source=feed#comment-571263 571263 Thu, 02 Jul 2009 09:04:29 -0400 Mark Sunshine to Peter Schiff: "Peter, do you really not trust the data that the government publishes? Do you think that Treasury, the Fed and the BEA are like the Iranian election commission?"Schiff: "I think government data is compiled to create a false sense of prosperity so that politicians can claim credit for growth that is not real and be more easily reelected." http://seekingalpha.com/news/market_currents/post/26246?source=feed#comment-552407 552407 Thu, 18 Jun 2009 14:23:15 -0400 Now that 10 banks have been approved to repay TARP, what's going to happen with the stock warrants the Treasury owns? Pricing the warrants is tricky and given the government's tendency to let banks underpay, the most likely losers are the taxpayers. http://seekingalpha.com/news/market_currents/post/25693?source=feed#comment-539397 539397 Tue, 09 Jun 2009 16:44:06 -0400 Thursday Outlook: Commodities, Global Markets http://seekingalpha.com/article/141204-thursday-outlook-commodities-global-markets?source=feed#comment-532231 532231 Thu, 04 Jun 2009 15:20:00 -0400 The end of used cars? From Obama's GM bankruptcy speech yesterday: "And that's why I'm calling on Congress to pass fleet modernization legislation that can provide a credit to consumers who turn in old cars and purchase cleaner, more fuel-efficient cars." http://seekingalpha.com/news/market_currents/post/25290?source=feed#comment-528452 528452 Tue, 02 Jun 2009 14:10:54 -0400 CENSORSHIP http://seekingalpha.com/instablog/239719-james-quinn/6172-censorship?source=feed#comment-522987 522987 Fri, 29 May 2009 12:07:02 -0400 CENSORSHIP http://seekingalpha.com/instablog/239719-james-quinn/6172-censorship?source=feed#comment-522957 522957 Fri, 29 May 2009 11:46:23 -0400 The May Consumer Sentiment index level was 68.7, beating expectations by 0.7. More consumers anticipate an improved economy although fewer expect their personal finances to improve. http://seekingalpha.com/news/market_currents/post/25117?source=feed#comment-522887 522887 Fri, 29 May 2009 11:12:15 -0400 CENSORSHIP http://seekingalpha.com/instablog/239719-james-quinn/6172-censorship?source=feed#comment-522854 522854 Fri, 29 May 2009 10:53:13 -0400 An accounting rule allowing JPMorgan (JPM) to transform bad loans it bought from WaMu into income is about to net the bank $29B. Wells Fargo (WFC), BoA (BAC) and PNC Financial (PNC) are poised to benefit from the same rule. http://seekingalpha.com/news/market_currents/post/24943?source=feed#comment-519275 519275 Wed, 27 May 2009 08:45:43 -0400 As expected, the Senate approves a bill cracking down on such credit card practices as sudden interest rate hikes and hidden fees. http://seekingalpha.com/news/market_currents/post/24517?source=feed#comment-509959 509959 Tue, 19 May 2009 13:32:42 -0400 To help pay for a health-care system overhaul, some lawmakers are weighing a tax on sodas and other sugary drinks. The tax, which would provide only a small fraction of the funds needed, could face strong opposition from both consumers and the beverage industry. http://seekingalpha.com/news/market_currents/post/24029?source=feed#comment-500330 500330

On May 12 09:58 AM coloneldebugger wrote:

> I would much rather have taxes like this where I can choose whether
> to or not.]]> Tue, 12 May 2009 10:21:24 -0400

On May 12 09:58 AM coloneldebugger wrote:

> I would much rather have taxes like this where I can choose whether
> to or not.]]> Wall Street Breakfast: Must-Know News http://seekingalpha.com/article/134594-wall-street-breakfast-must-know-news?source=feed#comment-485231 485231 Fri, 01 May 2009 08:36:38 -0400 "During last summer's debate over the bailout and stimulus packages, we warned of the potential for fraud in such massive government spending. Sadly, it's turning out to be true. And given the stunning level of corruption so far, don't be surprised when further revelations of fraud and fiscal malfeasance emerge." (IBD) http://seekingalpha.com/news/market_currents/post/22447?source=feed#comment-474232 474232
Add in this gov't corruption and CFO's being killed...we're not that different than Russia, are we. USSA, USSA, USSA...]]> Thu, 23 Apr 2009 11:20:00 -0400
Add in this gov't corruption and CFO's being killed...we're not that different than Russia, are we. USSA, USSA, USSA...]]> Note of apology to our users: Our hosting service had a major outage this morning that took Seeking Alpha down for about five hours. We're back up now, and working hard to get all the articles in our backlog up on the site. http://seekingalpha.com/news/market_currents/post/21779?source=feed#comment-464112 464112 Wed, 15 Apr 2009 16:29:57 -0400 With tweleve years of stock market profits down the drain, Prozac Nation author Elizabeth Wurtzel wonders why no one is stating the obvious: The whole system is warped. "I would love to call the system despicable or detestable or something evil-sounding, but that would be giving it too much credit. It's really just the march of dunces." http://seekingalpha.com/news/market_currents/post/21574?source=feed#comment-459181 459181 Fri, 10 Apr 2009 14:40:59 -0400