Food supplies go critical... Prices could "explode" higher at any time
"Things are so tight, if Mother Nature so much as hiccups, it can be unusually bullish for commodities..." 

Weekly Insider Selling To Buying Ratio: 565x 

Submitted by Tyler Durden on 05/10/2011 12:49 -0400

It has been a while since we refreshed the relentless insider selling rush. So it was good to see there were no surprises in the latest Bloomberg reported S&P 500 insider selling and buying. In the week ended May 6, there was $1.2 million worth of purchases, primarily in PBCT and NDAQ (some insider seems to think there is a possible upside catalyst here, ahem NYSE-deal), with a total of 10 insider purchases in the week. This was offset with a meager 165 insider sales, totalling $650 million, for a selling-to-buying ratio of 565x. The biggest selling occurred in GOOG, Praxair, Waters Corp, Campbell and Equity Residential. And while there are those who claim it is perfectly normal for insiders to cash out promptly without regard for the message sent to other shareholders, even Barrons' noticed the massive spike in selling in recent weeks, noting that any selling to buying ratio over 20 is bearish based on its limited universe of stocks. So, what about 565? 

 

 

 

 

Iran Speaks Up: "Paper Dollar Destroying World Economy" 

Submitted by Tyler Durden on 05/10/2011 12:05 -0400

This one is just too good to pass by: the latest critic of US monetary, and budget policy, is none other than... Iran. From PressTV: "Iran's President Mahmoud Ahmadinejad strongly criticizes US economic policies, saying that the paper currency created by the American government is taking a heavy toll on the global economy." In an address to the fourth UN Conference on the Least Developed Countries in Istanbul, Turkey, on Monday, Ahmadinejad said that the cash injected into the global economy in the form valueless US dollars amount to over USD 32 trillion, IRNA reported. “This is while the US budget deficit for the 2011 fiscal year is expected to reach a figure above USD 1.6 trillion,” he added. Who would have thought The Onion reality of our centrally planned times would get to a point where Iran speaks more truth than our own politicians...

$32 Billion 3 Year Bond Prices At 1.000%, Indirects Decline For Third Month In A Row 

Submitted by Tyler Durden on 05/10/2011 13:09 -0400

Today's $32 billion bond priced at the memorable 1.000%, with auction strength confirmed by no surprises to the WI, and also the highest Bid To Cover since August, and the third highest ever. Naturally, none of this due to actual demand, but merely due to Primary Dealer expectations of a prompt and profitable flip back to Brian Sack: PDs accounted for 51.9%, with Directs taking down a notable 15.3%, leaving Indirects with the lowest allocation of the three past auctions or 32.7%, the the third lowest since January 2009. But nobody cares about the declining foreign interest: after all the ponzi game is all internal. And since this auction is potentially debt limit busting (as it is more than the total capacity under the debt ceiling), we can't wait to see what machinations Tim Geithner's henchmen will concoct to prevent an unconstitutional breach of what is now known as the "debt target." Look for Cusip QM5 to be briskly monetized as soon as the next 3 Year POMO is announced, when the next POMO schedule is revealed tomorrow at 2 pm. 

 

 

 

 

 

Whitney Tilson's Comprehensive Presentation On Life, The Economy, And Everything 

Submitted by Tyler Durden on 05/10/2011 13:43 -0400

Lately, Whitney Tilson's "value investing" record has taken some bruises (today's latest MSFT fiasco notwithstanding: bottom line is sometimes stocks are "value" for a reason), although he still makes presentations better than most. Below is his latest comprehensive analysis of the economy "An Overview of Behavioral Finance and the Economy, What Worries Us, Our View of the Market, and Some Stock Ideas." Lots of pretty charts and some good overall observations, with an emphasis on housing and macroeconomics. 

 

 

 

 

 

Ireland Proposes To Tax Pensions 

Submitted by Tyler Durden on 05/10/2011 14:13 -0400

Ireland just floated another proposal that is sure to be very popular with the general population: "The various tax reduction and additional expenditure measures which I am announcing today will be funded by way of a temporary levy on funded pension schemes and personal pension plans. I propose that the levy will apply at a rate of 0.6% to the capital value of assets under management in pension funds established in the State. It will apply for a period of 4 years commencing this year and is intended to raise about €470 million in each of those years. The levy will not apply to pension funds established here and providing services and benefits solely to non-resident employers and members....I am conscious of the concerns of the pensions industry about the impact of a levy in circumstances where the pensions sector, in common with other sectors in our economy and society, is finding the current economic and financial environment very challenging. However, the imposition of the levy is for a relatively short period and its purpose is to improve that environment by providing the means to encourage job creation in areas of our economy most likely to deliver that employment quickly."