So the Earth isn’t going to explode. The consumer isn’t entirely tapped out. Stronger retail sales is a good thing right?
Unless of course, you’re a banking asshat who is relying on Cramer to beg the Federal Reserve for more cut rates—like a zombie “politely” asking for “more brains.”
How can the Fed cut rates, while the economy is spitting out better than expected retail sales numbers? We’re just in one of those weird spots (for the markets) when up is down— and down is up. At the end of the day, earnings per share will rule the day. However, until we get to that, the Fed wants to make sure we aren’t getting sucked into a blackhole. Fortunately, we are not.
Right out the open, stocks are surging. However, I anticipate, as the day goes on, they will fade, led by the horse-fucking bank stocks.
Sell [[LEH]]
Developing…
NOTE: Ragin’ Cagin’s favorite sector, solar, is on fucking fire. Nice job.
UPDATE: This ties into what Gunners was saying. By the way, the “Gunners post” may go down as the best ranked post ever— on the PG. It may get framed and put on the kitchen wall.
09:53 | Lehman is increasingly concerned about broker-dealer exposure to synthetic CDOs |
Lehman notes that credit markets were significantly wider over the past week because of weak economic data and heightened concerns around structured credit unwinds. Firm says sell-offs in leveraged loans and CMBS deepened last week, continuing the deleveraging trend throughout fixed income. Firm believes that investors are rightly concerned about negative technicals in the market given unwinds in market-value CLOs, the variety of highly leveraged structured credit products and a large widening of spreads. Actual unwinds are more likely to be driven by fundamental loss expectations rather than automatic unwinds because of spread widening. That said, correlated defaults, particularly in synthetic CDOs could cause a more dramatic unwind, they say. The firm is increasingly concerned about broker-dealer exposure to synthetic CDOs given an active underwriting pipeline over the past few years that may have left inventory on balance sheets. |