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Dr. Fly

18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.

Sociopath, Sean Egan, Downgrades Germany

I predicted this three weeks ago.

6/26/2012: Federal Republic Of Germany: EJR lowered AA- to A+ (Neg.) (S&P: AAA) (3413Z GR)
Synopsis: German chancellor Angela Merkel continues to create tension with EU member states by resisting calls for EU bonds (shared liabs.), money printing calls and for her pushing for fiscal controls and the seniority of bailout funding. Germay is likely to be outvoted by other ECB members and therefore will have greater prospective exposure. Watch for the EFSF and the ESM morphing into banks (thereby depressing eventual recoveries) and a rise in the number of euros. The fallout from a likely Greek exit needs to be monitored. We are cutting to ” A+ “

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Goldman Puts $JPM On ‘Conviction Buy List’ And Lowers $MS Guidance

Says JPMorgan could resume share buybacks in 2012

* Cuts JPMorgan’s Q2 EPS estimates to $0.60 from $0.75

* Cuts Morgan Stanley’s 2012 EPS estimates to $0.56 from $1.04

* Sees muted capital markets activity hurting Morgan Stanley earnings

June 26 (Reuters) – Goldman Sachs added JPMorgan Chase & Co to its America’s conviction buy list, saying the U.S. bank’s capital position and earnings power can offset its recent hedging loss of at least $2 billion.

Goldman downgraded Morgan Stanley to “neutral” from “buy,” and removed the stock from its conviction buy list, saying earnings could be hurt by muted capital markets activity.

While Goldman sees value in Morgan Stanley’s shares at current depressed levels, it expects better returns at JPMorgan.

The 15 percent decline in JPMorgan share price since the largest U.S. lender by assets announced trading losses at its chief investment office has been “drastic,” given the unit’s 5 percent average earnings per share contribution, Goldman said.

Full Article

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Travolta Strikes Again!

Zanzi said the actor motioned to an area behind his neck, apparently complaining about the label tag of his bathrobe, according to the federal lawsuit first obtained by Courthouse News.

When Zanzi reached for the neck area to help, Travolta shed the robe and “forced his naked person and his erect penis” against the unsuspecting ship worker, the lawsuit states.

“Travolta stated to (Zanzi) that he was beautiful and asked (him) to ‘take me, I will take care of you, please,’” the lawsuit claims.

Full Article

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Woman Stoned on Bath Salts Tried to Eat Cops Face

The Utica Observer-Dispatch reports that police officers were called to Stanley’s Bar Saturday night to check out a woman described as emotionally disturbed. When an officer approached her, she lunged at him and tried to bite his face. Police say she screamed that she wanted to “kill someone and eat them.”

 

Full Article 

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Ag Stocks Upgraded On ‘Win-Win’ Scenario

Fertilizer shares sprouted Monday after an analyst upgraded CF Industries (CF), Potash Corp. of Saskatchewan (POT) and others on an emerging “win-win” scenario.

Dahlman Rose analyst Charles Neivert said the large corn crop expected this year is already priced in to the fertilizers’ stock prices.

If that large yield occurs, the shares have limited downside, he noted, and should climb with the fall fertilizer application. But if weather or other disruptions make for a smaller harvest than the large planting suggests, then fertilizer shares could climb even higher.

“Either situation produces a positive outcome and that is the time to own the shares,” Neivert wrote.

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Nerd Alert: Atlanta Fed Compares the Present to Crisis of 1763!

We’re fucked. These people are imbeciles.

In August 1763, northern Europe experienced a financial crisis with numerous parallels to the 2008 Lehman Brothers episode. The 1763 crisis was sparked by the failure of a major provider of acceptance loans, a form of securitized credit resembling modern asset-backed commercial paper. The central bank at the hub of the crisis, the Bank of Amsterdam, responded by broadening the range of acceptable collateral for its repo transactions. Analysis of archival data shows that this emergency source of liquidity helped to contain the effects of the crisis, by preventing the collapse of at least two other major securitizers. While the underlying themes seem to have changed little in 250 years, the modest scope of the 1763 liquidity intervention, together with the lightly regulated nature of the eighteenth century financial landscape, provide some informative contrasts with events of late 2008.

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(working paper link not working yet)

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Apple Employs An Army of Slaves: $AAPL

“I was earning $11.25 an hour,” he said. “Part of me was thinking, ‘This is great. I’m an Apple fan, the store is doing really well.’ But when you look at the amount of money the company is making and then you look at your paycheck, it’s kind of tough.”

America’s love affair with the smartphone has helped create tens of thousands of jobs at places like Best Buy and Verizon Wireless and will this year pump billions into the economy.

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FLASH: SYRIA JUST SHOT DOWN A TURKISH JET

The office of Turkish Prime Minister Recep Tayyip Erdogan says it is “understood” that Syria shot down a Turkish military jet. The Syrian military confirmed that it downed the plane “over Syrian territorial waters.”

The office’s statement says Turkey will “decisively” take the necessary measures once all details of the incident come to light, Reuters reports. The search and rescue operation for the missing parts is still underway, the statement says.

“As a result of information obtained from the evaluation of our concerned institutions and from within the joint search and rescue operations with Syria, it is understood that our plane was brought down by Syria,” The Prime Minister’s office stated.

The statement was issued after a two-hour meeting between Erdogan, members of the cabinet and the military.
Rescuers have already found an ejector seat and a parachute in the sea, though there were no signs of the plane itself, Turkish state television reported.

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FLASH: New Greek Finance Minister Taken to Hospital

Report: Greek journalists say new Greek fin min has suffered some form of collapse, has been taken to hospital. PM in hospital over detached retina.

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FLASH: $MS ONLY GETS TWO LUMPS

Morgan Stanley issues statement on Moody’s two-notch downgrade, ‘the ratings still do not fully reflect the key strategic actions we have taken’ (13.96 -0.24)
Co issued the following statement in reaction the Moody’s two-notch downgrade:

“While Moody’s revised ratings are better than its initial guidance of up to three notches, we believe the ratings still do not fully reflect the key strategic actions we have taken in recent years. However, their acknowledgment of our long-term partnership with MUFG as well as our industry-leading capital and liquidity highlight some of the transformative steps we have taken. With our de-risked balance sheet, stable sources of funding, diverse business mix and strong leadership team, we are well positioned to deliver for clients and shareholders.”

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