Brent Nyitray
Fairlington Blade
Let the mutherfuker burn!
jnc4p
Kevin S. Willis
Michigoose
lmsinca
markinaustin
Arcanaut
novahockey
quarterback
ScottC
yellojktVital Statistics:
| Last | Change | Percent | |
| S&P Futures | 1392.5 | 3.8 | 0.27% |
| Eurostoxx Index | 2581.0 | 6.2 | 0.24% |
| Oil (WTI) | 105.51 | 0.1 | 0.08% |
| LIBOR | 0.4737 | 0.000 | 0.00% |
| US Dollar Index (DXY) | 80.436 | -0.129 | -0.16% |
| 10 Year Govt Bond Yield | 2.33% | 0.06% |
Equity markets continue to rally as bonds sell off. The 10-year now stands at 2.33% after yielding around 1.9% last week. MBS are lower as well, with some lenders now best-exing at 4-1/8%. That is a big move in a short period of time.
The producer price index (a measure of wholesale inflation) and initial jobless claims came in as expected. Empire Manufacturing (a New York – based measure of business sentiment put out by the New York Fed) showed general business conditions are expanding at a moderate pace. Prices paid jumped as did average workweek. Sentiment is optimistic.
ISDA is going to hold its auction to set the payouts on Greek CDS. The early indications seem to be that 23 is going to be the price on the roughly $2.6 billion in swaps. According to Bloomberg, The Austrian government is holding the old maid here, and will have to inject 1 billion euros into KA Finanz AG (the “bad bank” of nationalized Kommunalkredit Austria AG) to cover losses on Greek swap payouts.
Foreclosures are set to increase, according to RealtyTrac, as some of the barriers are removed (especially the State AG settlement) According to Bloomberg, the shadow inventory of homes in foreclosures or about to become foreclosures is around 4.5 million units. I wonder what the economic effect will be when those people who have been living for free suddenly have to pay rent.
On the other hand, the NAR shows list prices and demand up, with inventory down in its latest Real Estate Trends report. Total inventory is down 22% YOY, with list prices up 6.82% and age down 9.8%. The recovery seems to be concentrated in the hardest hit areas – Florida and Arizona. Phoenix inventories are down 48% and list prices are up 21%. I have been hearing anecdotal evidence of strong investor interest in Phoenix property, and these numbers do bear that out.
Filed under: Morning Report |
All Things in Moderation 
As everyone here probably knows, I appreciate a good Matt Taibbi screed as much as the next person, but I believe he goes overboard here on the latest piece about BoA and leaves out certain government culpability, especially as it relates to the merger with Merill Lynch.
http://www.rollingstone.com/politics/news/bank-of-america-too-crooked-to-fail-20120314
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In a publicity stunt that will have an effect for about a week, the US and UK agreed to tap into their SPR’s.
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Did you notice that I came to your defense on PL again, this time about oil? “They” do not like you.
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No missed that, but thanks.
Now the WH is denying the story which means it’s true but somebody jumped the gun, most likley in the UK. wonder who made a ton of money on this?
I’ve also been rethinking the possibility that they have recieved a timetable from the Israelis and are getting in ahead of the game.
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John-
Based on this Reuters article, it looks like it was a UK official who leaked the SPR rumor. Although that article says Obama and Cameron just discussed it and no agreement was ever made on the subject.
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ash:
Yes, but of course they do have some sort of agreement, it’s just the timing that is in question
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it’s just the timing that is in question
Yeah, I’m sure the source winked when he/she said they only discussed it. Hasn’t oil been going down over the last week or so?
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So much for accountability:
“SEC likely to win its defense of ‘no-admit’ Citigroup settlement, appellate panel says
By David S. Hilzenrath,
Updated: Thursday, March 15, 11:25 AM
Federal regulators won an initial round Thursday in their defense of Wall Street fraud settlements that include no admission of wrongdoing.
The Securities and Exchange Commission and Citigroup “have a strong likelihood of success” in their joint effort to overturn a judge’s decision to reject their $285 million fraud settlement, a three-judge panel of the 2nd Circuit Court of Appeals declared.
The appeals court panel agreed to consider whether U.S. District Court Judge Jed S. Rakoff had overstepped his authority in rejecting one of the biggest settlements to emerge from the financial crisis, Citigroup’s proposed $285 million deal with the SEC.
The panel said the SEC and Citigroup can challenge Rakoff’s ruling and agreed to delay a scheduled trial in the case while that challenge is pending.”
http://www.washingtonpost.com/business/economy/sec-likely-to-win-its-defense-of-no-admit-citigroup-settlement-appellate-panel-says/2012/01/30/gIQAnVcDES_story.html
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ash:
Just by coincidence of course, tomorrow is the end of this options period. Now if you just happened to have some puts to unload, I’m just sayin . . .
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IMO, what Citi did on that CDO deal was probably scummy, but not illegal. As an institutional investor, you have to assume the bank is betting against you.
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“Brent Nyitray, on March 15, 2012 at 1:32 pm said: Edit Comment
IMO, what Citi did on that CDO deal was probably scummy, but not illegal. As an institutional investor, you have to assume the bank is betting against you.”
Then they shouldn’t have to pay a fine if they didn’t break the law. In that case, the fine is nothing more than a shakedown by the government as the cost of doing business, just like a crooked cop shaking down a drug dealer or a pimp.
I agree with Judge Rakoff that there is a public interest in a legal determination of actual guilt or innocence here.
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