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s2rosenberg@chx.com

s2rosenberg@chx.com
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  • Attorney General Holder puts a $5B-plus target on how much S&P (MHP -6.5%) defrauded investors through faulty ratings on MBS, and says the DOJ is going after all of it. "S&P misled investors ... causing them to lose billions of dollars." S&P alone? (earlier: Even $3B seems far too high) [View news story]
    Packaged fraud should go all the way back to the originators and dealers. SP rubber stamped a fraud. To be standing there accused alone and TBTF at all time highs is rather comical. The DOJ is either afraid of the banks or in on it.
    Feb 5 02:08 PM | 2 Likes Like |Link to Comment
  • The yen's decline is the real deal, says George Soros holding court at Davos, and it's going to make for some unhappy German exporters. The euro, he says, is the outlier currency as the ECB stands alone among the major central banks in not engaging in QE. His comments hit an already weak yen, sending the dollar higher against it by 1.8% to ¥90.20. The hedged Japan equity fund (DXJ) +2.6%[View news story]
    Qe = massive lending. Lending = subsidy to Japan companies. Subsidy = discounts to customers = more sales vs. German competitors. Japan gov't short term looks like hero, long term questionable by delaying industry shifts and misallocation of capital in a global economy.
    Jan 24 04:54 PM | 1 Like Like |Link to Comment
  • Feeling the heat from the Martoma case, SAC Capital will reportedly hold an investor call before the bell tomorrow. Talk about the gorilla in many individual names, one wonders what the stock market would look like without SAC. [View news story]
    "one wonders what the stock market would look like without SAC."
    Better for participants like me who play by the rules.

    Madoff ponzi was different but the investors clung to the end almost. A on-going front running scam is fraud nonetheless even though they acutally trade.
    Nov 27 11:18 AM | Likes Like |Link to Comment
  • The EU and IMF reach a deal to cut Greece's debt load to 124% of GDP through a package of steps equivalent to 20% of GDP, reports Reuters' Luke Baker. Greece is saved again. The euro pops 20 pips to $1.2992. [View news story]
    Kick's the can. Greece is asked to grow to get to these projections. I think they've been contracting lately, however. A least it's progress.
    Nov 26 07:54 PM | Likes Like |Link to Comment
  • Lessons From Black Monday [View article]
    The biggest concern with cdo's before they blew up was the bets for and against the default. Overall, the bets against we're sometimes 10-15 times greater than the collateral could be spread. This was made possible by the creation of synthetics that allowed side wagers. This same analogy goes for gold where speculators are merely trying to predict the direction of prices and not using he commodity for its underlying economic merit. Which means all those who have piled in thinking their principal is safe vs. greenbacks are gonna be disappointed. Much in the same when Greenspan allowed bets on housing by participants who had no economic justification to be hedged in housing or mortgage origination. Plain old side betting. Not hedging.
    Oct 25 11:14 PM | Likes Like |Link to Comment
  • Lessons From Black Monday [View article]
    confiscation at work right, McG?
    Oct 24 04:00 PM | Likes Like |Link to Comment
  • Lessons From Black Monday [View article]
    Times: To me gold is a tullip or tech stock in 1999. Priced beyond it's economic merits. Like art and wine. These are things that rich folks like to park their cash in. They have money to burn. I would think real estate and soon stocks will offer you better opportunities over the medium to long term. I fall into the Buffet camp. When nobody wants it it's time to buy.
    Oct 24 03:59 PM | Likes Like |Link to Comment
  • Lessons From Black Monday [View article]
    Times:

    I like your style, but you're speculating on gold and not really diversifying purchasing power risk.

    Confiscation: If gold is pegged at say $500 an ounce and you have to sell to Ft. Knox, you're screwed. I am leaving out the existence of the black market for the time being. If the size of the open interest in all the etf's plus the physical (principal) gets called thru a standard and it was illegal to transact outside the standard then gold is effectively confiscted at the peg price. It has happened before. Gold is a throwback store of value that nitwits like Schiff pump. Think of your investment in gold as principal. If the officials call that principal at an arbitrary price it would thus be confiscated. Just like an early call in bonds.
    Oct 24 02:33 PM | Likes Like |Link to Comment
  • Lessons From Black Monday [View article]
    A gold standard is confiscation. We have had one before. Any officially set price to transact (legally) is effectively confiscation. Much as the same in that the Fed is artificially setting the price for bonds. In that case they are confiscating purchasing power (interest) from the saver of the principal. And a gold standard would screw both holders of the physical and the etf. So chasing gold may seem logical, but all it really does is further advance the gold bubble without the corresponding economic need for the stuff. Very tullip-y. Don't get me wrong speculators can take advanatage of this, but it is that and not diversification per se.
    Oct 24 01:54 PM | Likes Like |Link to Comment
  • Lessons From Black Monday [View article]
    1% of the people in the world who buy gold is a number. They really don't always buy gold, they buy ETF's which are like promissary notes or pledges for gold. The event will be when the physical commodity is unavailable (or confiscated) and the panic starts. How are bubbles predicted for time duration is a great project. Let me see bubble a bunch of gold metal (hoarders) or bubble real estate and the SP500 (Fed)? Fight to finish.
    Oct 24 09:08 AM | Likes Like |Link to Comment
  • Lessons From Black Monday [View article]
    yes. Thus if horders of dollars love their money so much, the Fed will just print more. right? actually quite simple. The notion of the Gov't going broke (LOL) is why horders are turning to pile up gold and other commoddities in their crawl space. Not a very efficient use of "money" don't you think, bidding up gold prices, burying money in the backyard? Then when all the horders who try to pile out the door will get crushed and repeat. Follow the money.
    Oct 24 08:48 AM | Likes Like |Link to Comment
  • Lessons From Black Monday [View article]
    The siphoning of money by banksters and their cabal out of this economy after 2008 was insane. Bernanke et al know the ball is being taken home permanently. That is your structural unemployment at work. Such a grand scheme to de-cash Main St. with corrupt home loans and exotic derivs has gone unpunished except for savers. Oh well. Wall St. can just cut jobs and vendors and go automated in no time as history has shown. A few more banks should have been allowed to fail, imho. Hording is also very unneighborly.
    Oct 23 02:52 PM | Likes Like |Link to Comment
  • More on Citigroup (C): In addition to Pandit's departure, COO John Havens is also stepping down. The board selects Michael Corbat - who previously served as the bank's CEO of Europe, Middle East and Africa - as new Citigroup CEO. Havens had been planning to retire at year's end, but given Pandit's move, decided now was the time. (PR[View news story]
    The fact this generational group of CEO's got bailed out and then walk away with millions of dollars is just incomprehensible. The list is ridiculous: Weill, Fuld, Prince, Pandit, Rubin, etc. Clawbacks would make my day, but nobody has the gumption. Gone money and now the rest of us who played by the rules and did not siphon millions is left to pay for the scam and have no future in a torn industry.
    Oct 16 01:05 PM | 2 Likes Like |Link to Comment
  • According to "The Donald," the Fed's pledge to buy $40 billion in mortgage securities each month is just creating "phony numbers" and will not ultimately benefit the economy. Nor will it will do anything to spur additional activity in the housing market. “Mortgage rates are already very low,” Trump says, “but the banks aren’t lending. So it doesn’t make any difference.” [View news story]
    Wall St. sells 2004-2007 MBS as safe. AAA safe from Moody's, SP, etc lol. This MBS is anything but safe. Fed buys MBS from investors (bond funds) and now Moodys, SP downgrade USA for taking on our books this junk blessed as AAA when the St. sold it. You all are kidding yourselves. Put backs and holding to maturity will be quite interesting going forward. The best part of this are these ratings agencies vigilance 5 yrs too late. MS est. the impaired non subprime loans could number 8mm folks or 14% of all paper. AAA indeed.
    Sep 13 10:40 PM | 1 Like Like |Link to Comment
  • Bernanke: He warns again on the fiscal cliff, saying the Fed's monetary tools will not be enough to offset a "major fiscal shock" such as that. [View news story]
    At some point arresting a few banksters and calling MBS a fraud to begin with will make sense, but for now they're just taking this crap off the market with worthless dollars. It's called monetization. Congress will never close tax loopholes and pass a decent budget. He knows this and the rest of us know it too. Our politicians are utter failures for allowing this rampant securitization with no skin in the game. I found the put back comments particularly interesting. The whole concept of putbacks and QE are commical.
    Sep 13 03:09 PM | 2 Likes Like |Link to Comment
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