More Investors Position for Possibility of U.S. Default

Geithner Gone Wild: Treasury Entertains 100 Year and GDP-Linked Bonds to Fill New $2.4 Trillion "Demand"

 

Commodity Whack-A-Mole

Submitted by Tyler Durden on 02/04/2011 14:41 -0500

Ok, someone needs to step in here before people get hurt... Well, more. The chart below is not of some biotech strategically bought by various CT hedge funds having just announced a successful obesity Phase 3 trial. It is corn: one of the most widely consumed commodities in the world. And while corn appears to be today's limit up commodity, elsewhere cotton has just limited down as a continuation of the recent ICE plundering, courtesy of the exchange's margin hike; rice, after touching on highs, has decided to drop aggresively, as have cocoa (never mind the Ivory Coast government vacuum) and coffee. This is the kind of environment in which companies that do not have commodity price hedges can go bankrupt in a span of months. Which reminds us to create a basket of companies that do versus those that do not have input price hedges. That could be one of the most profitable pair trades in 2011.

Is Another Banking Crisis Inevitable?

 

Rosenberg Deconstructs The Unemployment Number

 

US Needs To Generate 246,600 Jobs A Month To Get To Pre-Depression Employment By End Of Obama Second Term

 

Federally Funded Friday – Bernanke Says More Free Money!



Jim Sinclair’s Commentary
CIGA Marc, our in the trenches businessman, reports:
“Steel prices are on the rise once again. The cost of steel has increased by almost 25% since September 2010 and we anticipate that steel prices will increase an additional 10-15% by April 2011.”



As Long as Jobs Remain Weak, Stocks Can Depend on the Fed

It's NFP Day, Do You Know Where Your Vapor Melt Up Volume Is?

 

Query For The Bernank: What Is The Fair Value Of Netflix Stock Expressed In 8% Unemployment?

Submitted by Tyler Durden on 02/04/2011 15:36 -0500

Yesterday, while we were listening to the Chairsatan(^© Bill Gross), we made the following semi-serious realtime translation of Bernank's presentation to the sycophants' club: "Let me explain it to you: 9% unemployment: NFLX $300; 8% unemployment: NFLX $500; 6% unemployment: NFLX $1000. Kapishe?" And while we were mostly joking in our correct interpretation of the Fed's massively wrong understanding of causality between the market and the economy, Nicholas Colas of BNY today took a comparable idea and analyzed what the level of the S&P should be for unemployment to get to a Fed acceptable level based on empirial data. We quote: "By our analysis of the last forty years of history for the S&P 500 and unemployment rates, in order to get to the Fed’s 8% target in 2012, the U.S. equity market needs to climb another 35% in 2011, putting the S&P 500 at 1755. That’s not our price target, but it just may be the Fed’s." Since this is most likely the entire "sophisticated" plan laid bare of one Iosif Vissarionovich Bernank, expect to see a complete elimination of volume as the mutual fund cartel continues with the never-sell collusion, and the only incremental buying is PDs with taxpayer money and HFTs' bid-bias fully compensated by rebates for providing the PDs with the "liquidity" they need to send stocks up another 350 points. Luckily, few if any care what the joke that is the stock market actually does.