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sr1977

sr1977
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  • More on jobless claims: At 350K, it's the lowest level since March 2008, but the number is likely skewed by seasonal adjustment issues (last week included July 4). Look for a makeup bounce in the print next week. S&P futures are showing no reaction, remaining -0.7%.  [View news story]
    Thx :-)
    Jul 12 04:47 PM | Likes Like |Link to Comment
  • More from Supervalu (SVU): After the big earnings miss, the company suspends the dividend and announces a strategic review of "alternatives for our business." "We will be pursuing deeper and more structural cost savings. we are adopting more flexible financing facilities," says CEO Craig Herkert. Shares -21% AH. (PR)  [View news story]
    You need to price the cost of a fancy cardboard box & poly bag too, plus advertising. The cost of the contents are miniscule in comparison to the packaging and advertising.
    Jul 12 09:31 AM | Likes Like |Link to Comment
  • More on jobless claims: At 350K, it's the lowest level since March 2008, but the number is likely skewed by seasonal adjustment issues (last week included July 4). Look for a makeup bounce in the print next week. S&P futures are showing no reaction, remaining -0.7%.  [View news story]
    Up as usual and the food stamp deflator index remains elevated as well.
    Jul 12 09:25 AM | 4 Likes Like |Link to Comment
  • Italy's national statistics body ISTAT threatens to stop issuing data on the economy, saying it has been crippled by government spending cuts aimed at reducing national debt. That's one way to solve the ugly-data problem.  [View news story]
    "Some ISTAT data releases have been disrupted or delayed in recent weeks by a group of staff members protesting the fact that a promotion they won two years ago has not yet been recognized."

    Why are municipal workers (world-wide) so out of touch with current events? Refusing to measure the depth of the water in the Titantic unless they get their mandated rasies...
    Jul 12 06:36 AM | Likes Like |Link to Comment
  • More from Supervalu (SVU): After the big earnings miss, the company suspends the dividend and announces a strategic review of "alternatives for our business." "We will be pursuing deeper and more structural cost savings. we are adopting more flexible financing facilities," says CEO Craig Herkert. Shares -21% AH. (PR)  [View news story]
    Structural Cost Savings = Layoffs...coming soon to many companies who miss big this qtr.
    Jul 11 04:55 PM | 1 Like Like |Link to Comment
  • Midsize futures broker PFGBest collapsed yesterday evening, after being forced to freeze client accounts following accusations of misappropriating customer funds. The shortfall in funds now exceeds $200M.  [View news story]
    "PFGBest's Chairman Russell Wasendorf reportedly was intercepting confidential regulatory documents that were mailed by the National Futures Association to what the NFA believed was U.S. Bank, PFG's bank. Instead, they were sending the documents, used to independently verify the broker's bank balances, to a post office box that Wasendorf had set up. Wasendorf would then forge signatures and fabricate bank balances on the documents and simply mail them back to the Chicago-based NFA"

    This scheme went awry when the NFA recently switched to electronic transfer of those type of regulatory documents.

    A number of former MF Global customers had moved their accounts to PFGBest after Wasendorf had assured them that his firm was not like MF Global.

    PFGBest filed for chapter 7 Bankruptcy (liquidation) on Tuesday July 10.
    Jul 11 07:35 AM | 2 Likes Like |Link to Comment
  • Midsize futures broker PFGBest has been forced to freeze client accounts following emergency action by the NFA, the futures industry's self-regulatory body. The broker's founder has been hospitalized following a suicide attempt and faces closure after being accused of misstating financial records.  [View news story]
    Rumor is that the missing "segregated" client funds are in a JP Morgan account.
    Jul 10 08:14 AM | Likes Like |Link to Comment
  • Midsize futures broker PFGBest has been forced to freeze client accounts following emergency action by the NFA, the futures industry's self-regulatory body. The broker's founder has been hospitalized following a suicide attempt and faces closure after being accused of misstating financial records.  [View news story]
    "The NFA said PFGBest only had about $5 million on deposit at U.S. Bank, despite the firms claims of more than $225 million on deposit. It added that it received information Mr. Wasendorf "may have falsified bank records."

    "As of June 4, PFGBest, which is largely engaged in retail commodities and foreign exchange trading, reported about $400 million worth of client funds on deposit to back up outstanding trades..."

    "The NFA said it has taken "Member Responsibility Action to protect customers because PFG has failed to demonstrate that it meets capital requirements and segregated funds requirements." The group also said it "has reason to believe" the firm doesn't have enough assets to meet obligations to customers.
    Jul 10 05:23 AM | Likes Like |Link to Comment
  • Barclays, the BoE (and anyone else manipulating Libor) "probably saved the financial system," argues one contrarian in a letter to the FT. With wholesale money markets frozen, an actual portrayal of the lending rate likely would have caused a run on Barclays that would have spread across the globe, he says.  [View news story]
    Agreed, in times of extreme stress I don't think anyone has a problem with a little rate manipulation to keep us from falling into the financial abyss.

    It's the years before and after that I have a problem with.
    Jul 9 07:52 AM | Likes Like |Link to Comment
  • The reason for the worsening jobs picture, writes Floyd Norris in the NYT, is because everybody looks at seasonally adjusted figures. "But those adjustments most likely overstate reality." Pre-adjustment, the private sector added 800K jobs/month in the last 3 months, while in June, the number of jobs rose by 1.8M Y/Y. Expect a poor July and August, a pick-up in September and an impressive October.  [View news story]
    So people might contend that has already happened to some degree when you consider the effect QE (or perodic subtle promises of more QE) has had on the markets, while main street bounces along on the bottom.

    At any rate, consumer spending is 70% of the economy and since unemployed consumers spend less than employed ones its going to be hard to disconnect the market from the jobs reports.
    Jul 8 04:53 PM | Likes Like |Link to Comment
  • A report from independent investigators shows that the Samsung (SSNLF.PK) Galaxy S smartphone that caught fire last month in Ireland did so because of an external energy source rather than because of defects in the device. It turns out that the user had tried to dry out the phone after it fell in water.  [View news story]
    The owner admitted he dried it out in a microwave oven after it got wet...that's why it "blew up".
    Jul 8 09:27 AM | 3 Likes Like |Link to Comment
  • Fed Has Economic, Political Cover To Launch Bullish QE3 [View article]
    I don't know the exact mechanics of Keen's proposal, but it my opinion (as I stated in my first post) there should be less stimulus for people who don't need it (to control inflation) and also less for people who are already receiving excessive transfer payments (to control moral hazard). So, although "hardworking, productive and honest citizens" with no debt would get less, so would the "lazy & incompetent" people at the other end of the spectrum - the ones already getting excessive transfer payments. The average, hardworking low to middle class consumer with excessive debt would stand to gain the most from this type of program.

    The current system of QE merely preserves the existing debt, while Keens approach would eliminate some of it.
    Jul 8 05:03 AM | 1 Like Like |Link to Comment
  • Fed Has Economic, Political Cover To Launch Bullish QE3 [View article]
    Keen contends that all debt matters. Since there is way too much of it in the private sector, QE for the public makes sense. It would improve the consumers balance sheet and help them to spend more.

    Charity needs to be private? What about QE1 & 2 - that was charity for banks wasn't it?
    Jul 7 08:20 PM | 2 Likes Like |Link to Comment
  • Fed Has Economic, Political Cover To Launch Bullish QE3 [View article]
    Quantitative Easing for the Public:

    Considering how many people are unemployed and how many consumers are de-leveraging, I think a new approach to QE might be helpful. Instead of giving banks money, every taxpayer or family would get a stimulus check, but a much larger one than past programs offered. The catch would be that it would have to be used to pay down any debt first and then the remainder could be used for any purpose. Forcing consumers to pay down debt first would help them to de-lever and also help prevent too great an increase in inflation from a program of this type. This program would help the unemployed, help debt strapped consumers and help stimulate the economy. It would put money in the hands of people who could certainly use it.

    There would probably need to be some eligibility cut-off in this measure. For instance, if someone made $75K a year and had no debt, they probably would receive a lower amount. On the other end of the spectrum, people who are already receiving substantial transfer payments might only be eligible for less as well.

    This is an approach proposed by economist Steve Keen.
    Jul 7 07:35 PM | 1 Like Like |Link to Comment
  • Weak jobs data increase the likelihood of Fed action, but don't ensure it, according to Fed-whisperer Jon Hilsenrath (via). Some officials are interested in mortgage bond purchases, but the FOMC hawks want to reserve action for more serious threats, he reports. Stocks come off the lows, the S&P 500 -1.1%.  [View news story]
    Comes a down day, comes a fresh QE rumor.
    Jul 6 04:31 PM | 1 Like Like |Link to Comment
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