More Bernanke: "Many households remain more financially fragile than might be inferred from the aggregate statistics alone," he says, touting new, even more detailed data the Fed is monitoring. The Fed never saw the greatest macro event in generations coming (even when it was on top of us), and Bernanke lays some of the blame on a lack of intricate numbers coming across the desks of central bank economists. [View news story]
auto loans/leases to sub/below sub borrowers that will never be paid off student loans that can't possibly be paid back by students encouraged to pursue areas of study where there are no jobs hamp program participants back in foreclosure for the second time change you can believe in
More on the Q1 GDP (first estimate) miss: Government spending slowdown continues, with real federal government spending off 8.4% vs. 14.8% in Q4; defense spending off 11.5% vs. 22.1%. Real PCE +3.2%. Nonresidential fixed investment +2.1%. Real exports +2.9%, Real imports +5.4%. Real final sales +1.5% vs. 1.9% in Q4. Inventories added 103 bps to GDP in Q1 after subtracting 152 bps in Q4. SPY -0.3% premarket. The long bond pops half of a point. TLT +0.8% premarket. (full report) [View news story]
mostly inventory rebuilding final sales up 1.5 percent 2 percent gdp for the next few qtrs
China's flash HSBC PMI for April slides to 50.5, missing expectations by a full point and against March's read of 51.6. "New export orders contracted after a temporary rebound in March, suggesting external demand for China's exporters remain weak," says HSBC. "Weaker overall demand has also started to weigh on employment in the manufacturing sector." Shanghai (FXI, CAF) is off 1.5 in early trade. Hong Kong (EWH) -0.9%. [View news story]
within the realm of statistical error. stall speed?
More on Bank of America (BAC) Q1 earnings: Cost-cutting efforts paying off, with non-interest expense of $18.15B off nearly $1B from a year ago (total income is $2.6B) - headcount of 262.8K vs. 278.7K a year ago. Net interest income of $10.9B, down from $11.1B a year ago, thanks to lower loan balances and low rates - NIM of 2.43% vs. 2.51% a year ago. Credit loss provision of $906M, up $29M Y/Y "as improvement in portfolio trends have stabilized." $25M in mortgage loans funded - nearly all refinances - up 56% Y/Y. Shares flat. (PR) [View news story]
breakout merrill's contribution and you arrive at what the "bank" really earned.
you miss the point the left absolutely despised seps, iras, 401k's etc. any retirement program "before tax" that allowed an individual with "means" to have an advantage over the "less" fortunate. the obamanistas want a 50 percent tax on people with gross incomes over 250,000 and no adjustments or deductions. that is the goal of the "fair share" crowd.
Market recap: Stocks moved broadly higher, propelling the Dow and S&P 500 to new record levels and capping the year's strongest three-day rally. Investors took comfort in the knowledge the Fed is still very much in the mix, and surprisingly strong data from China and Europe provided an early base for optimistic sentiment. Gold was the one major weak area, knocked back by Goldman's cautious outlook. [View news story]
multiple expansion coming to an asset class near you
Bank of America (BAC) has won federal judge's approval for a $2.43B settlement with investors who said the lender hid crucial information when it bought Merrill Lynch in a $50B all-stock deal in September 2008. The settlement, which is among the largest stemming from the global financial crisis, culminated from what the judge referred to as "extraordinarily hard-fought litigation." [View news story]
In a speech titled "Too soon to relax," San Francisco Fed chief and member of the dovish wing of the FOMC John Williams nevertheless says he thinks we could see substantial improvement in the labor market by summer. "If that happens we could start tapering our purchases then ... we could end the purchase program sometime last this year." [View news story]
janet yellen will be defacto fed chief by fall 13 bb gone by holidays stepping down jan 14 the 6.5 % employment number is her baby. low interest rates and qe for a while yet.
"It's fun to be able, for once, to place yourself on the cheerleaders' side of the U.S. markets," writes Richard Russell, advising his readers to buy the DJIA ETF (DIA). "It makes sense to be on the side of the (Fed)." Russell last week: I've never seen anything like this. [View news story]
Goldman Sachs' (GS) lucrative P-E business is set to shrink thanks to the Volcker rule which will force the bank to dramatically cut its participation in its own funds. A key selling point for investors has always been the bank and its partners investing right alongside, but no more. Bank of America (BAC) is exiting P-E altogether and Citigroup (C) is exploring its options. [View news story]
The Fed's prodigious bond-buying has pushed its balance sheet to above $3T, with total assets rising $48B in the past week to a record $3.01T as of Wednesday. The balance sheet is now more than triple its size on September 10, 2008, the week before Lehman Brothers collapsed. "We're in uncharted territory," says former Fed economist Julia Coronado. [View news story]
Bank Of America's Turnaround Means Shares Will Double [View article]
bank of the treasury dept. what percentage of bac "earnings" attributable to merrill contribution? can bac stand alone once the bank is forced to spin out merrill to comply with basel?
More Bernanke: "Many households remain more financially fragile than might be inferred from the aggregate statistics alone," he says, touting new, even more detailed data the Fed is monitoring. The Fed never saw the greatest macro event in generations coming (even when it was on top of us), and Bernanke lays some of the blame on a lack of intricate numbers coming across the desks of central bank economists. [View news story]
that will never be paid off
student loans that can't possibly be paid back
by students encouraged to pursue areas of study
where there are no jobs
hamp program participants back in foreclosure
for the second time
change you can believe in
ISM Services Weaker Than Expected [View article]
left and is moving to the lower right.
Apr. ISM Manufacturing Index: 50.7 vs. 51.0 consensus and 51.3 prior. [View news story]
this economy is stalling
More on the Q1 GDP (first estimate) miss: Government spending slowdown continues, with real federal government spending off 8.4% vs. 14.8% in Q4; defense spending off 11.5% vs. 22.1%. Real PCE +3.2%. Nonresidential fixed investment +2.1%. Real exports +2.9%, Real imports +5.4%. Real final sales +1.5% vs. 1.9% in Q4. Inventories added 103 bps to GDP in Q1 after subtracting 152 bps in Q4. SPY -0.3% premarket. The long bond pops half of a point. TLT +0.8% premarket. (full report) [View news story]
final sales up 1.5 percent
2 percent gdp for the next
few qtrs
China's flash HSBC PMI for April slides to 50.5, missing expectations by a full point and against March's read of 51.6. "New export orders contracted after a temporary rebound in March, suggesting external demand for China's exporters remain weak," says HSBC. "Weaker overall demand has also started to weigh on employment in the manufacturing sector." Shanghai (FXI, CAF) is off 1.5 in early trade. Hong Kong (EWH) -0.9%. [View news story]
stall speed?
More on Bank of America (BAC) Q1 earnings: Cost-cutting efforts paying off, with non-interest expense of $18.15B off nearly $1B from a year ago (total income is $2.6B) - headcount of 262.8K vs. 278.7K a year ago. Net interest income of $10.9B, down from $11.1B a year ago, thanks to lower loan balances and low rates - NIM of 2.43% vs. 2.51% a year ago. Credit loss provision of $906M, up $29M Y/Y "as improvement in portfolio trends have stabilized." $25M in mortgage loans funded - nearly all refinances - up 56% Y/Y. Shares flat. (PR) [View news story]
and you arrive at what the
"bank" really earned.
A Bright Golden Haze [View article]
the left absolutely despised seps, iras, 401k's
etc. any retirement program "before tax" that
allowed an individual with "means" to have an
advantage over the "less" fortunate.
the obamanistas want a 50 percent tax on people
with gross incomes over 250,000 and no
adjustments or deductions. that is the goal
of the "fair share" crowd.
Market recap: Stocks moved broadly higher, propelling the Dow and S&P 500 to new record levels and capping the year's strongest three-day rally. Investors took comfort in the knowledge the Fed is still very much in the mix, and surprisingly strong data from China and Europe provided an early base for optimistic sentiment. Gold was the one major weak area, knocked back by Goldman's cautious outlook. [View news story]
Bank of America (BAC) has won federal judge's approval for a $2.43B settlement with investors who said the lender hid crucial information when it bought Merrill Lynch in a $50B all-stock deal in September 2008. The settlement, which is among the largest stemming from the global financial crisis, culminated from what the judge referred to as "extraordinarily hard-fought litigation." [View news story]
In a speech titled "Too soon to relax," San Francisco Fed chief and member of the dovish wing of the FOMC John Williams nevertheless says he thinks we could see substantial improvement in the labor market by summer. "If that happens we could start tapering our purchases then ... we could end the purchase program sometime last this year." [View news story]
fed chief by fall 13
bb gone by holidays
stepping down jan 14
the 6.5 % employment number
is her baby. low interest rates
and qe for a while yet.
"It's fun to be able, for once, to place yourself on the cheerleaders' side of the U.S. markets," writes Richard Russell, advising his readers to buy the DJIA ETF (DIA). "It makes sense to be on the side of the (Fed)." Russell last week: I've never seen anything like this. [View news story]
Goldman Sachs' (GS) lucrative P-E business is set to shrink thanks to the Volcker rule which will force the bank to dramatically cut its participation in its own funds. A key selling point for investors has always been the bank and its partners investing right alongside, but no more. Bank of America (BAC) is exiting P-E altogether and Citigroup (C) is exploring its options. [View news story]
DJIA Highs, Actual And Inflation Adjusted [View article]
The Fed's prodigious bond-buying has pushed its balance sheet to above $3T, with total assets rising $48B in the past week to a record $3.01T as of Wednesday. The balance sheet is now more than triple its size on September 10, 2008, the week before Lehman Brothers collapsed. "We're in uncharted territory," says former Fed economist Julia Coronado.
[View news story]
Bank Of America's Turnaround Means Shares Will Double [View article]
what percentage of bac "earnings"
attributable to merrill contribution?
can bac stand alone once the bank is forced to
spin out merrill to comply with basel?