Implode-Explode Heavy Industries news feed

Why Crony Capitalist Brats Make Me ILL - David Stockman

Wed, 16 Apr 2014 18:22:16 GMT

During 2012 Levin's 14-person team of speculators apparently made a $2.0 billion profit on a short-term bet on about $7.5 billion of busted loans and bonds-- mainly the smoking remnants of sub-prime CDOs and private labor MBS. As head of the trading group, Leven's share was apparently the aforesaid $119 million, and this swell outcome was truly a gigs-to-riches story.
... in an honest two-way market, no one in their right mind would bet $7.5 billion on financial drek using high leverage and minimal hedges. And no 30-year old would be given leave to close his eyes and bet the ranch, as apparently Levin did, based on merely the "housing recovery" word clouds being emitted by the monetary politburo and its echo-boxes in the financial press.''

Yellen: Fed's Rate Policy Hinges on 3 'Big Questions'

Wed, 16 Apr 2014 18:19:17 GMT

``In a speech at the Economic Club of New York on Wednesday, Ms. Yellen said a too-low inflation rate is a bigger worry than the Fed's easy-money policies sparking a surge in consumer prices. She also reiterated her arguments from a late-March speech that she sees quite a bit of slack left in the labor market in measures other than the official jobless rate, which stood at 6.7% in March. The comments underscore Ms. Yellen's concern about the economy and labor market as well as the Fed's plan to keep interest rates low for many more months. ''

Haunted by soured mortgages, Bank of America loses $276 million

Wed, 16 Apr 2014 18:16:46 GMT

``Socked by mortgage-related legal expenses, Bank of America Corp. lost $276 million during the first quarter, sending its stock down sharply. The quarterly loss, its first in 2½ years, came despite lower loan losses and better than expected results in fixed-income trading, a slowing business that hurt rival JPMorgan Chase & Co. during the quarter. The results included $6 billion in litigation expense, much of it related to toxic bonds backed by housing-boom mortgages from Countrywide Financial Corp., ''

What the Heck is Going on With US Treasuries In Belgium?

Wed, 16 Apr 2014 18:12:42 GMT

``All we know for now is that someone in panic-mode yanked a pile of Treasuries away from the Fed and transferred it to some other entity... The entity could be Euroclear, which would then as custodian, and thus under its name, transfer some of them back to the Fed. Now that they're no longer in Russia's name [if this was indeed Russia], the US government would presumably have trouble freezing them as part of the sanction spiral unfolding over the Ukraine -- couldn't even credibly threaten to freeze them.''

The Best SEC [Retirement] Speech Ever

Wed, 16 Apr 2014 18:09:16 GMT

``I have had bosses, and bosses of my bosses, whose names we all know, who made little secret that they were here to punch their ticket. They mouthed serious regard for the mission of the commission, but their actions were tentative and fearful in many instances.''

Tom Deutsch of the ASF on Eminent Domain & Loan Modifications -- A Mandelman Matters Podcast

Tue, 15 Apr 2014 17:44:54 GMT

``If Professor Robert Hockett is the man behind the plan to use eminent domain to take over underwater loans and write them down for homeowners, Tom Deutsch is his arch nemesis. On this 30 minute podcast, you'll get to hear one of the chief opponents to Professor Hockett's Municipal Plan, describe in detail why he believes the plan is entirely wrong in every way, and why he believes that is will ultimately fail.''

"What's the Frequency Zenith?" - Grant Williams

Tue, 15 Apr 2014 16:53:34 GMT

``I can't speak for anybody else, but having spent those nearly thirty years immersed in equity, bond, and commodity markets all around the world, I have seen enough to absolutely confirm in my own mind that the markets are rigged.''

Lending Drops to 17-Year Low as Rates Curb Borrowing: Mortgages

Tue, 15 Apr 2014 16:20:02 GMT

``At Wells Fargo, home-loan originations exceeded $100 billion for seven straight quarters, ending in June 2013. The figure plunged to $36 billion in the three months through March, the San Francisco-based bank said April 11... Lending has been tumbling since mid-2013 when mortgage rates jumped about a percentage point after the Federal Reserve said it might taper stimulus spending. A surge in all-cash purchases to more than 40 percent has kept housing prices rising, squeezing more Americans out of the market. That will help push lending down further this year, according to the association.''

CME Group Named in High-Frequency Trading Suit

Tue, 15 Apr 2014 14:25:50 GMT

``Backlash against high-frequency trading has led to a lawsuit against the CME Group (NYSE: CME), operator of the world's largest futures exchange, the Chicago Mercantile Exchange. Three CME users have filed suit claiming the exchange sold order information to high-frequency traders that allowed the high-speed users to trade ahead of other market participants.''

Forex Scandal Hits Singapore Central bank

Sun, 13 Apr 2014 17:42:01 GMT

``A SUSPENDED Deutsche Bank trader may have had inappropriate links to the Monetary Authority of Singapore (MAS), it emerged yesterday... The revelation means Singapore's central bank joins the Bank of England in having links with the emerging scandal.''

SEC eyes test that may lead to shift away from 'dark pools'

Sun, 13 Apr 2014 17:36:11 GMT

``A trade-at rule would force brokerages and dark pools to route trades to public exchanges, unless they can execute the trades at a meaningfully better price than available in a public market.''

CDS: The ultimate in foolish leverage

Sun, 13 Apr 2014 14:55:14 GMT

``The Financial Times revealed this week that trades in index credit default swap (CDS) options had managed to avoid being listed on exchanges, with all the transparency requirements that brings, instead being allowed to continue trading on an over-the-counter basis. The amount outstanding is relatively small in relation to the $25 trillion of CDS outstanding, but lack of transparency is likely to hide a deep underlying problem... The London Whale took these kinds of risks, made large bonuses as a result and came close to wiping out J.P. Morgan. Had he been playing in CDS swaptions rather than CDS his risk-reward ratio would have been even more favorable for him and even more likely to be fatal for the bank. An additional wrinkle is that the new upsurge in trading volume is in index CDS ["swaptions"], in which the underlying credits represent a basket of different borrowers.''

All Hail The Draghi Put: The Global Bond Market Is Now Well And Truly Broken | David Stockman

Sun, 13 Apr 2014 14:49:18 GMT

`` the howling pack of money managers who scooped up the Greek debt at an oversubscribed rate of 5X were not pricing the non-credit of the former Greek state, but the promises of Mario Draghi---the Goldman Sachs plenipotentiary temporarily seconded to Frankfurt.''

Faber: "2014 Crash Will Be Worse Than 1987"

Fri, 11 Apr 2014 21:50:16 GMT

See video.

JPM's Blythe Masters Under Investigation By Federal Prosecutors

Fri, 11 Apr 2014 21:48:21 GMT

``Masters is under investigation by federal prosecutors in Manhattan, according to two people with knowledge of the matter. That probe was opened following a settlement with regulators that alleged JPMorgan manipulated power markets in the Midwest and California." This is somewhat ironic because it was none other than Zero Hedge which asked nearly a year ago if "JPMorgan's "Enron" Will Be The End Of Blythe Masters?" Suddenly, the answer appears to be yes.''

Bank of China Sydney branch issues 2 bln yuan bonds

Fri, 11 Apr 2014 21:43:30 GMT

``Bank of China's Sydney branch issued 2 billion yuan (325 million U.S. dollars) of yuan bonds on Wednesday, the first yuan bond in Australia, the bank announced on Thursday. The two-year bonds, with a coupon rate of 3.25 percent, were well-received in the market, oversubscribed 1.45 times. ''

Draghi Seen Easing Policy by June as ECB Readies Rate Cut

Fri, 11 Apr 2014 21:40:29 GMT

``Mario Draghi will probably take action within two months against the threat of deflation, economists said. Almost two-thirds of respondents in the Bloomberg Monthly Survey predicted the European Central Bank president will ease policy by June. Of those economists, just under half said he may implement multiple measures ranging from interest-rate cuts to asset purchases and long-term loans.''

Vietnam Sentences Corrupt Bankers To Death By Firing Squad

Fri, 11 Apr 2014 01:06:32 GMT

``American bankers who brought on the 2008 global financial collapse, by and large, didn't get indicted, or face any significant consequences for their actions. In fact, many of them even got huge bonuses.
That wouldn't have been the case in Vietnam, another nation struggling with corrupt and unscrupulous bankers.

During a recent cleanup of Vietnam's financial sector, the strictly authoritarian nation sentenced three bankers to death by firing squad in the past six months alone.''

Jay Taylor - "Petrogold", "Shocking" Gold Bull Market to Come

Thu, 10 Apr 2014 22:23:53 GMT

``GR: How would petrogold work in practice? / JT: Russia would provide China with much of its energy needs and would be paid in renminbi. The Russians would then take their renminbi to the Chinese exchange and get gold for it, if they so desire. I think the infrastructure is being set up, both with petroleum exchanges and gold exchanges, in Russia and China and other countries in Asia.''

Conflict with Russia Raises Buried Questions of German Identity

Thu, 10 Apr 2014 21:40:07 GMT

``It's thus no wonder that the debate about Russia's role in the Ukraine crisis is more polarizing than any other issue in current German politics. For Germany, the Ukraine crisis is not some distant problem like Syria or Iraq -- it goes right to the core of the question of German identity. Where do we stand when it comes to Russia? And, relatedly: Who are we as Germans? With the threat of a new East-West conflict, this question has regained prominence in Germany and may ultimately force us to reposition ourselves or, at the very least, reaffirm our position in the West.''