Geithner, Commerce Secretary Gary Locke, Energy Secretary Steven Chu, and U.S. Trade Representative Ronald Kirk all expected to attend with the president.
Comments »Yearly Archives: 2011
Fed Keeps Rates Unchanged and Will Continue QE2
A Chinese Copper Disaster in the Making
Chinese banks are in the business of extending loans to people against copper inventories. It gets better.
FT Alphaville said it best:
…buy copper on credit, take delivery of said copper, sell said copper at full price to market, then post the returns in higher yielding assets until the due date for the full payment of the letter of credit arrives — in most cases some 180 days later.
Get it? In other words, the Chinese are extending credit for the explicit purposes of commodity speculation, not so much different than our banks blowing up the housing market with hot money to homeless guys in need of a Mcmansion. Moreover, this sort of fucked up banking is not exclusive to just copper. Basically, ALL COMMODITIES CAN BE USED AS COLLATERAL for cold hard cash. Essentially, people have 180 days to pay for the copper once it’s delivered into the country—“inventory financing.”
Now you know why copper demand is so high. However, the billion dollar question is: where is all that “inventory financing” money going? And, what will happen to said investments should the price of copper begin to unwind and trade lower?
1 year chart- copper
Comments »Tax changes may reduce charitable healthcare donations
Cuts in tax reductions proposed by a number of Congressional committees may reduce the amount of money Americans give to non-profit healthcare organizations, warns the Association for Healthcare Philanthropy in a bold statement of the obvious.
Comments »Fed Meeting Prelude
Europe Closes Firmly in the Red With Germany Showing Worst Performance
Standard & Poors March 15 ratings actions
Prestige Auto Receivables Trust 2011-1 $221.62 Million Notes Assigned Preliminary Ratings 15-Mar-2011
11:33 EST
Rating On South Davis Recreation District, UT’s 2004 Bonds Raised To ‘AA-‘ On Strong Financial And Population Trends 15-Mar-2011
11:23 EST
Six Ratings From Three CDOs Lowered; 14 Ratings Affirmed 15-Mar-2011
11:21 EST
Preliminary Ratings Assigned To Bank of Scotland’s U.K. RMBS Transaction Headingley RMBS 2011-1 15-Mar-2011
11:17 EST
Western Refining Inc.’s $325 Million Term Loan B Rated ‘B’ (Recovery Rating: 3) 15-Mar-2011
11:16 EST
Florida Housing Finance Corp. 2011 Bonds Rated ‘AA+’ 15-Mar-2011
11:00 EST
Grupo ACP Inversiones y Desarrollo Rated ‘BB-‘; Outlook Stable 15-Mar-2011
10:43 EST
Taylor, MI’s GO Debt Rating Lowered To ‘BBB’ Due To Weakened Finances 15-Mar-2011
10:39 EST
Esterline Technologies Corp. Rating Raised To ‘BB+’ From ‘BB’ On Improving Financials; Outlook Is Stable 15-Mar-2011
10:14 EST
Alberto-Culver Co. ‘BBB’ Rating Remains On CreditWatch Positive Pending Close Of Unilever Transaction 15-Mar-2011
09:54 EST
North Spencer County Elementary School Building Corp., IN’s Series 2011 Bonds ‘AA+’; Outlook Stable 15-Mar-2011
09:31 EST
Ratings Assigned In Dutch RMBS Transaction STORM 2011-II 15-Mar-2011
07:26 EST
BNP PARIBAS ZAO Upgraded To ‘BBB’ On Very Likely Group Support, “Core” Status; Outlook Stable; Affirmed At ‘A-3/ruAAA’ 15-Mar-2011
07:17 EST
Ratings Assigned In Dutch RMBS Transaction STORM 2011-I 15-Mar-2011
07:16 EST
S&P Resolves Counterparty Related CreditWatch Placement Of Asti Finance’s Class A Notes 15-Mar-2011
07:04 EST
Kazakh Agrarian Credit Corp. Proposed KZT3 Billion Bond Rated ‘BB/kzA+’ 15-Mar-2011
05:58 EST
eBay Announces Free Listing of Up To 50 Items
American Express Reports Write Off Rate of 3.8%
American Express reports Feb U.S. card metrics (43.29 -0.61)
Co reports Feb U.S. Managed Net write-off rate of 3.8% vs 3.8% in Jan. Co reports Feb loans 30 days past due was 2.0% vs 2.1% in Jan
Comments »URS Corp. (URS)
Gotta fix nuclear plants? URS. Gotta close Nuclear plants? URS.
Book $50
Cash 7.00
Debt .16
12x eps
.4x sales
Price 44.23
Quick Headlines In Tech, Media, and Business
MSFT Internet Explorer 9,
MSFT kills the ZUNE
iPad 2 ships in 4-5 weeks
Google Refreshes Street View Application
More consumers getting news from IBC and or online outlets
Comments »Despite Speculation Mexico and The U.S. Strengthen Their Bond
The Drug war seems to have brought the two countries closer.
Full Press conference remarks form March 3rd
Comments »U.S. Bond Purchases Fall for a Third Consecutive Month
China has continued to reduce its purchase of U.S. treasuries. With Japan under such distress how will future auctions go ?
Comments »Worries Develop Over Radiation Entering the Food chain
Keep an eye on the radiation levels and which way the winds blow; at risk are cow’s milk, fish, and live stock in general…
Comments »Raw Commodities Are Getting Hammered
Stocks are not the only asset class getting poleaxed, so are raw commodities.
Uranium -15%
Biofuels -9%
Palladium -7%
Tin -6%
Sugar -6%
Gasoline -5%
Cotton -4%
Coffee -3%
Data provided by The PPT
Comments »Confidence in U.S. Government Just Hit Jimmy Carter Days
Sectors Outperforming The S&P This Morning
Sectors outperforming the S&P as the indices extend the morning rebound include: Silver SLV, Steel SLX, Materials XLB, Ag/Chem MOO, Networking IGN, Housing XHB, Retail XRT, Casino BJK
Minor new rebound highs for Dow -220 and S&P -25 — Nasdaq Comp -59 has not yet confirmed the new high -Update
initial intraday resistance noted earlier for the S&P is in the 1271/1275 area.
Comments »Is Deflation Stronger Than Most Think ?
Oil is getting hammered like the rest of the market. The dollar is being bot, but there is no real significant spike. Also oil seems to be ignoring what is transpiring in the Gulf….
Comments »Economists Are Not Aligned on the Feds Next move
General consensus was to see a exit strategy moving towards June. Now in light of Japan the second largest purchaser of treasuries economists are divided on the Feds next move….
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