Confirmation from yesterday’s rumors now confirmed officially…
Comments »2008 Comparisons to Yesterday’s Central Bank Coordination
Have your coffee first…. or what ever makes you happy in the am.
Comments »The ECB Will Agree to More Solutions IF Members Agree to Austerity
Somehow the Europeans do not realize we just saved their asses again.
What disrespectful sobs ! IF…???
Comments »India Begins to Dabble in CDS to Attract Investors to the Corporate Bond Market
After 8 years of deliberation and more likely a shunning from the market place India decides to play with fire.
Comments »Spain and France Kick Off Decent Bond Auctions as Investor Nerves Calm
Both countries sold bonds at lower yields than previous auctions. A good bid to cover was had according to the article.
Comments »Curbs Take Down Home Prices in China for a 3rd Month in a Row
Prices fell in 57 of 100 cities polled. They dropped .28% after a .23% drop in October.
Comments »Bond Yields Relax Across Europe
Fed Documents Reveal Wall Street May Have Sparked the Central Bank Coordination
Would not be surprised. Also explains why such large blocks of call options went off Monday in the banking sector. Of course others will say that was a old man Buffett move of buying on death’s door.
Comments »Fun With Dylan Ratigan (video)
Fairholme Capital Had a Huge Day
No. Ticker Inst. Holdr. (% outstanding) Institutional Holder % Change
1 MBI 25.09 FAIRHOLME CAPITAL MANAGEMENT 18.73
2 RF 4.81 FAIRHOLME CAPITAL MANAGEMENT 14.21
3 MS 2.52 FAIRHOLME CAPITAL MANAGEMENT 11.04
4 RRR 11.42 FAIRHOLME CAPITAL MANAGEMENT 10.36
5 AIG 5.34 FAIRHOLME CAPITAL MANAGEMENT 10.27
6 C 0.83 FAIRHOLME CAPITAL MANAGEMENT 8.72
7 GS 1.19 FAIRHOLME CAPITAL MANAGEMENT 7.80
8 FUR 2.87 FAIRHOLME CAPITAL MANAGEMENT 7.74
9 LUK 7.56 FAIRHOLME CAPITAL MANAGEMENT 7.69
10 CIT 9.65 FAIRHOLME CAPITAL MANAGEMENT 7.19
11 JEF 1.73 FAIRHOLME CAPITAL MANAGEMENT 7.07
12 JOE 28.69 FAIRHOLME CAPITAL MANAGEMENT 7.00
13 TAL 4.78 FAIRHOLME CAPITAL MANAGEMENT 5.79
14 GGP 9.06 FAIRHOLME CAPITAL MANAGEMENT 5.17
15 SHLD 15.22 FAIRHOLME CAPITAL MANAGEMENT 5.06
16 STD 0.06 FAIRHOLME CAPITAL MANAGEMENT 4.61
17 SPR 9.31 FAIRHOLME CAPITAL MANAGEMENT 4.33
18 HUM 2.06 FAIRHOLME CAPITAL MANAGEMENT 3.70
19 WCG 8.39 FAIRHOLME CAPITAL MANAGEMENT 3.05
Disclosures and Data Show Hedge Funds Dump Stocks to Levels Not Seen Since 2008
The New Meredith Whitney, Eagan Jones, Downgrades France
El-Erian Comments on Today’s Central Bank Action
“Mohamed El-Erian, chief executive and co-chief investment officer at PIMCO, submits this guest post to FT Alphaville in reaction to this morning’s coordinated announcement.
Risk markets love liquidity injections, real and perceived. As such, they will welcome today’s announcement by six major central banks to reduce the price of emergency financing and broadening its scope. They will also like the possibility that this dramatic coordinated move provides a stronger context for further actions at the level of individual institutions.
In justifying the move, the central banks point to the need to counter pressure on “the supply of credit to households and businesses and so help foster economic activity.” This is an objective that will sell well to the public and politicians. But it is not one that will be effectively met by the announced measures. Indeed, the importance of the announcement is elsewhere, involving two related issues.
First, these monetary institutions feel that, again, they have to move because other entities have continued to be too slow and too ineffective; and second, they feel that they cannot, and should not ignore an actual or anticipated need to relieve acute pressures within the banking system.
These two reasons were made even more pressing by last week’s dislocations in the functioning of European financial markets – most notably, the inversion of the Italian yield curve, pressure on government bond markets in core Europe, the growing fragility of the banking system, a drop in market liquidity, and growing hesitation by market participants to warehouse any risk.
The immediate impact on markets unambiguously favors risk assets across the world. The longer-term effect depends on the scale and scope of the follow through from others. This is particularly important as we count down to yet another European Summit on December 9.
The hope is that central banks are acting because, looking forward, they feel confident that other policymakers will finally catch up with a big and spreading debt crisis that has serious implications for growth, jobs and inequality. The fear is that they are acting because they feel that they must again pre-empt yet another set of potential disappointments.”
Comments »Jim Cramer: Banks Work for a Day and Then They Don’t (video)
Jim Cramer says buy gold, oil, and copper. Defcon 2 avoided, but central bank action will only work for a day.
Comments »Crescenzi: Central Bank Action is Back Door Easing
“The coordinated actions by the Federal Reserve and other central banks is aimed at the funding strains faced by European banks in what was becoming a modern day run on the banks. The run has differed from the run that George Bailey watched as he drove up to the Bailey Building and Loan in It’s a Wonderful Life, but it has been a run nonetheless. The world in fact has been playing a game of hot potato with European bank debt as well as European sovereign debt, and the only player with oven mitts to hold the hot potato is the world’s central banks.
Illustrating the run on European banks is the sharp reduction in exposures by U.S. institutional prime money funds to European banks. For years the prime money funds invested about 50% of their investable money in European banks. This lasted until June. Since then, data from Fitch indicate the tally has fallen to 35%.
Further evidence of strain has been in the inter-bank market, in particularLIBOR . Whereas in June the 3-month LIBOR hovered close to the 0.25% rate the Fed pays on excess bank reserves, it was today at 0.53%, indicating banks were having increased difficulty obtaining dollar funding. Moreover, forward rates on LIBOR were priced for 3-month LIBOR to eventually reach about 85 basis points and the trend was accelerating.”
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