Sunday, August 07, 2011

DTCC, OCC stand pat on U.S. Treasuries

Timmy Geithner reassures the President, and by extension the country (presumably) that he will NOT resign.  Strangely, DTCC and OCC haven't reversed course on their U.S. Treasuries as collateral position.

OCC
O[ption] C[learing] C[orporation] said today it has no current plans to adjust its current valuations or haircuts on Treasury Securities used as collateral in light of the Standard & Poor's rating change on U.S. sovereign debt.

DTCC
The Depository Trust & Clearing Corp. told traders that its Fixed Income Clearing Corp. subsidiary would not immediately require more Treasurys to be posted to maintain required collateral levels for outstanding trades, signaling that one of the biggest U.S. clearinghouse operators did not anticipate a dramatic slide in the value of U.S. debt following the S&P downgrade.

Saturday, August 06, 2011

The chips are falling

A casual trip through Zero Hedge alerted me to the fact that Germany won't commit 133% of their GDP to save Italy, let alone Spain. 
So, I reacted the way I usually react:  find the supporting articles from mainstream publications and throw the links up on Facebook with semi-snarky commentary.

Here are the three (3) I threw up in quick succession Saturday afternoon.

My comment: The New Zealand Stock Exchange opens 8am Monday, 3:00pm Sunday Chicago time.

My comment: This man is lying: Francois Baroin, France's finance minister, who would chair such a meeting under the French presidency of the G7 and G20, said in a radio interview it was too early to say whether there would be an early G7 meeting.

And finally, this:
My comment: "Mr Trichet said mounting speculation that Italy would be unable to pay its share of the second Greek bailout package was ridiculous." There is nothing ridiculous about bankrupt countries bailing out other bankrupt countries. *The U.S. through the IMF is also bailing out European countries.


Game on!

Friday, August 05, 2011

S&P Said They Were Going To Do It. And They Did It.

Way after market close on Friday, 5 August 2011, S&P downgraded the U.S. from AAA to AA+.

In other news, I think I deciphered why the White Sox mega-suck this year (although they managed to beat the Twins 5-3 at Minnesota tonight).  They're part of the Resistance, trying to overthrow the Vichy Chicago regime.

The First Rule of Panic: If you are going to panic, do so before everyone else does.

Northern Rock bank run, September 2007.

Thursday, August 04, 2011

The South Shore Sinkhole ate the stock market

Not a great day in the markets,and if you want me to be more specific than not a great day in ANY market.  Every flipping bourse closed down, down, down doobie down.

Reuters:  Wall Street suffers worst sell-off in two years
FT: Global stock sell-off accelerates
Bloomberg:  Japan stocks plunge most since March amid global equities rout
     Bloomberg resists the urge to use "sell-off."
IBD:  U.S. stocks pummeled on economic worries
The Guardian:  Police raid Milan offices of Moody's and Standard and Poors
Sydney Morning Herald:  Black magic behind sharemarket carnage
     From this article:  After the ASX opened today, shares fell 4.4 per cent on the All Ordinaries Index, or 192.3 points, to a two-year low of 4160.6. The dive adds to the $65 billion or so lost since Tuesday.


So that's good news.  The rapine of stock markets continues, rolling west from PacRim to Europe to Americas to PacRim again.

Oh, and gold & oil sold off.  Margin calls.

Meanwhile, the South Shore Sinkhole at 70th Street and Oglesby is growing.  That Sheltie in the lower left corner better be careful.

Monday, August 01, 2011

Beware of Greeks bearing yogurt

I found out that you should never have super-fiber oatmeal and Greek yogurt in the same meal unless you want to be incapicated 6 hours later.