Bank Failures and Puerto Rico (Calculated Risk)
It appears the FDIC is getting closer to taking action in Puerto Rico. Three banks on the island holding more than $20 billion of assets are in trouble … It appears the remaining healthy banks in Puerto Rico don’t have the capacity to acquire these troubled banks – and most banks not in Puerto Rico just aren’t interested.
Crazy Expensive Stuff That’s Helping Push Sotheby’s Back Towards Nosebleed Heights (BID) (Business Insider)
Sotheby’s (BID) is back and the sales are as hot as ever. The auction house, a viable predictor of major market turns, is officially telling us its back to pre-Lehman levels.
Many million dollar pieces are even fetching bids twice the amount predicted, as wealthy buyers appear more than ready to spend again.
Back on March 14th I wrote an article about (BID) as a Market Leading Indicator. Click here to check it out.
U.K. Produce Prices Soar in March (Econompic)
Oil prices rose above $86 a barrel Friday on a weaker dollar and after robust U.S. retail sales in March pointed to growing consumer demand in the world’s biggest energy market. As can be seen, this jump is almost entirely due to the cost of energy (it has not yet fed into other goods / services) and elevated producer prices will be difficult for businesses to pass through to end consumers.
10 Psychological, Valuation, Adapative Investing Rules (The Big Picture)
Everything cycles: Recessions turn into recoveries; bull markets give rise to bear markets. Every rally that there ever was or there ever will be eventually ends. Adapt to this truism or lose your money. – After a collapse (i.e., a 55% market sell off), most of the terrible structural news that existed before the collapse is reflected in prices. Let it go. (Plenty more good ones at the link above)
Southpark: Cartman as Jim Cramer of Facebook
Kudos to Matt Trivisonno for finding this video and finally some straight talk about China.
China is dependent on us, we’re working in order to keep Chinese people working. The Chinese think that we are suckers and are laughing at us.
Check the video below for 4 well spent minutes.
Posted by Investing Freakon March 30, 2010 General /
Comments Off on Nightly Recap 3-30-2010
DOW +11.56 (10,907.42)
S&P -0.05 (1,173.27)
Nasdaq +6.33 (2,410.69)
____________ Disclaimer: Open Positions: SRS at 5.97
Nightly News Links
Downtown New York Office Vacancy Rate Spikes To 9/11 Levels (Zero Hedge)
Bloomberg TV reports that the office vacancy rate in downtown NY has dropped to September 11th levels, and is about to pass 14%.
SPX Struggling at 1180 (The Art Of Trading)
“The SPX has attempted several times to crack thru 1180 and seems to be having trouble. I think it’s best to sit in cash or be very nimble if you wanna play the short side. 1150 is very strong support for the SPX and pullbacks there would likely see some solid bounce i imagine. If i had it my way, i’d love to see the indexes pullback for another few more days. As i type this, i am noticing lots of stocks turning deeper into the red yet the indexes are only down slightly. I think CASH IS KING and look to buy stocks on dips!”
22 Storms in NE: Winter 2009-2010 Radar Loop (AccuWeather)
Today what could be the last Nor’easter of the season is affecting the Northeastern U.S. It’s interesting if you compare the heavy rain area for today’s storm with the heavy snow area from this winter, they are very similar. Major storms are continuing to move up the East Coast as they have all season, it’s just warmer now so we’re seeing rain instead of snow.* These winter storms have dropped 30-40 inches of rain (and liquid snow) in the I-95 corridor, which would normally only receive 20-25 inches over the winter.
That is all for tonight, very boring night link-wise, weather wise and market wise.
Have a Good Night and here’s to a more exciting Wednesday.
Leading Economic Indicators Point to Slowing Recovery (Econompic)
The index of U.S. leading indicators rose 0.1 percent in February, the smallest gain in almost a year, pointing to an economy that may expand at a slower pace in the second half of 2010.A pickup in manufacturing in the last half of 2009 that helped spearhead the recovery has prompted companies to slow the pace of job cuts. Stronger economic growth hinges on employment gains that have yet to occur, one reason Federal Reserve policy makers this week kept interest rates near zero.
The Fed must disclose bailout details (Calculated Risk)
The U.S. Court of Appeals in Manhattan ruled today that the Fed must release records of the unprecedented $2 trillion U.S. loan program … The ruling upholds a decision of a lower-court judge, who in August ordered that the information be released. It will be interesting to see these documents, but it might not be for a few more years.
Goldman Lowers Major Banks’ Projected Q1 EPS By 15% (ZeroHege)
German Central Bank Admits that Credit is Created Out of Thin Air (Naked Capitalism)
Germany’s central bank – the Deutsche Bundesbank (German for German Federal Bank) – has admitted in writing that banks create credit out of thin air.As the Bundesbank states in a publication entitled “Money and Monetary Policy”
The high price of failure in North Korea (The Mess That Greenspan Made)
North Korea has executed a senior official blamed for currency reforms that damaged the already ailing economy and potentially affected the succession, a news agency in South Korea reported today.Pak Nam-gi was killed by firing squad last week.
NOTE: I Will not do Weekend Updates of news. Sorry
Housing Starts Stagnant (Econompic)
Housing starts in the U.S. fell in February as record snowfall in parts of the country hampered construction, while fewer building permits signaled demand is stagnating. Building permits, a sign of future construction, decreased for a second month.
Meredith Whitney: Housing Market will double-dip (CNBC)
The US housing market will face another retreat while mortgage-backed securities and Treasurys are likely to go through a “material” correction, Meredith Whitney, CEO of Meredith Whitney Advisory Group, told CNBC Tuesday. “The Fed has been supporting the housing market, a third of the Fed’s balance sheet is tied to mortgages,” she said.
FOMC Statement: Economic Activity “Continued to strengthen” (Calculated Risk)
As expected, the Fed will continue to provide the trough of free money, for now. You can bet they will be acting with extreme caution when it comes to removing the liquidity so as to not snuff out what could be an actual recovery in the making.
S&P affirms Greece’s BBB+ rating (The Big Picture)
S&P affirmed Greece’s BBB+ credit rating and took them off credit watch with negative implications but the outlook is negative from stable (which reflects their view of the govt’s ability to sustain reform momentum in the medium term). They see “real GDP contracting by 4% this year.”
Our Next Economic Plague: Japan Disease (Caixin Online)
Typically provocative new Andy Xie piece out pointing to aging societies as being fundamental to why all economies are steadily catching “Japan disease”. Further, Xie goes on to argue that innovation won’t save us from debt and death. An economy ages in many ways. Growing old is hard, but watching formerly vibrant economies choke on debt and wither away is downright ugly.