Jay's Daily News

How Long Before the Fed's Days Are Numbered?

Michael J. Panzner
July 7, 2009 07:59 PM

...ask yourself how is it that an institution charged with maintaining stability has overseen so many crises through the years and allowed our nation's currency to lose more than 95 percent of its purchasing power since the Fed's creation in 1913?

America's central bank hasn't just failed in its economic mission. It's track record as a regulator also leaves a lot to be desired. Among the many questions people should -- and will -- be asking is: how come the Fed was ignorant of and did little to rein in the leverage and lending misadventures of America's banks, many of which have long had Federal Reserve examiners ensconced in their offices? Moreover, how is it that an institution that should have known about the intricacies of derivatives was so oblivious to the threats posed by these "weapons of financial mass destruction"?

If that gentleman read the book "The Creature of Jeckyll Island", it will become much clearer to understand.
Long Before the Fed's Days Are Numbered?

Well, I believe once enough people know and understand the scam, the days can be numbered.

AIG Seeks Clearance For More Bonuses

$2.4 Million in Executive Payments Due Next Week



Washington Post
Friday, July 10, 2009

American International Group is preparing to pay millions of dollars more in bonuses to several dozen top corporate executives after an earlier round of payments four months ago set off a national furor.
The troubled insurance giant has been pressing the federal government to bless the payments in hopes of shielding itself from renewed public outrage.
The request puts the administration's new compensation czar on the spot by seeking his opinion about bonuses that were promised long before he took his post.
AIG doesn't actually need the permission of Kenneth R. Feinberg, who President Obama appointed last month to oversee the compensation of top executives at seven firms that have received large federal bailouts. But officials at AIG, whose federal rescue package stands at $180 billion, have been reluctant to move forward without political cover from the government.

And the Asshole Of The Week's Award goes to...AIG!

http://static.10gen.com/businessinsi...5437ba0029f926

We've Wiped Out All The New Jobs Of The 21st Century

What's the best way to express just how bad the job market is? You could look at the soaring unemployment rate, or perhaps the ever-shortening work week. How about this: Total nonfarm payrolls, notes economist James Hamilton, are now back to where they were in mid 2000, and in a few months they'll certainly be back to pre-2000 levels. 21st century job creation: gone.

http://www.businessinsider.com/chart-of-the-day-2009-7

U.S. Food-Stamp Recipients Reached Record 33.8 Million in April

http://www.bloomberg.com/apps/news?p...d=aDhdHJrK42P0

Don't need to go to Africa to find hungry people. "Green shoots" of the economy my fat freezing ass.

Nationwide offers 125% mortgage


Negative equity mortgages are being offered to customers of Nationwide that will allow homeowners once again to borrow more than the value of their intended house purchase.

Nationwide has begun offering its customers suffering from negative equity a mortgage that provides up to 125 per cent of a property’s value, should they want to move.

http://www.ft.com/cms/s/0/64f4b7cc-6...nclick_check=1 (FREE signup required)

Bradford & Bingley Swaps Triggered by Credit Event

http://www.bloomberg.com/apps/news?p...d=a0bpbqvFP.3s

AIG May Have Zero Value After Rescue, Citigroup Says

As if Citigroup was one to talk about "value".

July 9 (Bloomberg) -- American International Group Inc., the insurer bailed out four times by the government, fell the most in nine months after Citigroup Inc. said the firm may have no value left for shareholders after repaying the U.S...

http://www.bloomberg.com/apps/news?p...d=a.SanYh6Y1EY

FDIC Said to Withhold CIT Debt Guarantees Due to Credit Risk

July 10 (Bloomberg) -- The Federal Deposit Insurance Corp. is unwilling to guarantee CIT Group Inc.’s bond sales because the commercial lender’s credit quality is worsening, according to people familiar with the regulator’s thinking...

http://www.bloomberg.com/apps/news?p...d=atILheyOTRr8

Pimco Says Avoiding Japanese Bonds Is a ‘Huge Risk’

July 10 (Bloomberg) -- Pacific Investment Management Co., which runs the world’s largest bond fund, said investors who avoid Japanese government debt may miss out on a rally.

Yeah, uhmmm. They're selling bonds and their opinion is clearly biased. -J.W.

http://www.bloomberg.com/apps/news?p...d=a2QlRfgbs1No

Sergey Aleynikov is the guy who got busted with Goldman's trading codes.

Citadel is the company Aleynikov was working for at the moment he got busted.

The gloves are now completely off in the escalating program trading fiasco that was started by Goldman's former Sergey Aleynikov. Oddly, while Zero Hedge was fully expecting the Teza injunction to come from Goldman, it seems Griffin was more than happy to burden himself with that task. Hopefully Citadel is not faced with a case of reverse discovery and forced to document the 40% returns that it generated compliments of Malyshev when all its other groups on average lost around 50% in 2008. From Bloomberg:

http://zerohedge.blogspot.com/2009/0...m-trading.html

f f needs such a thread congradulations
from Brian

http://i31.tinypic.com/2jbm79e.png

The peak in initial claims might be in but the peak in unemployment has not. Moreover, reported continuing claims hit 6.883 million, setting a new all time record. By the way, the real number of continuing claims is closer to 9.4 million as detailed below.

http://globaleconomicanalysis.blogsp...00-to-new.html

http://www.dol.gov/opa/media/press/eta/ui/current.htm

Friday, July 10, 2009

Rogue Algorithms And Other Mutually Assured Destruction Program Trading Alternatives

Why Institutional Investors Should Be Concerned About High Frequency Traders

By Sal L. Arnuk and Joseph Saluzzi

A Themis Trading LLC Mini White Paper

It is now generally understood that high frequency traders (HFTs) are dominating the equity market, generating as much as 70% of the volume.

HFTs are computerized trading programs that make money two ways, in general. They offer bids in such a way so as to make tiny amounts of money from per share liquidity rebates provided by the exchanges. Or they make tiny per share long or short profits. While this might sound like small change, HFTs collectively execute billions of shares a day, making it an extremely profitable business.

Why should institutional or retail investors care? After all, aren’t HFTs adding liquidity? That’s what they and the exchanges, who court their business, say.

There’s a lot to worry about.

Friday, July 10, 2009

Breaking News: http://www.xp-dev.com



Critical disclosures by Bloomberg underway, but here is the Aleynikov server: http://www.xp-dev.com/

Xp-dev.com is registered to London resident Roopinder Singh, who describes himself on a blog linked to the site as a trading systems developer working in London’s financial services industry. The site offers “subversion hosting,” letting users track current and previous versions of programming code and other documents.
Singh told his customers in the blog yesterday that he’d been contacted by “local UK authorities,” who had seized his hard drives to examine them and shut his service down for 45 hours, beginning on July 6, two days after Aleynikov’s arrest.
“It turns out that some idiotic moron a user had uploaded data on to the service that he/she was not authorized to have,” he said, crossing out the words “some idiotic moron.” “This is your basic intellectual property theft case here.”

Medvedev Shows Off Sample Coin of New ‘World Currency’ at G-8

By Lyubov Pronina
July 10 (Bloomberg) -- Russian President Dmitry Medvedev illustrated his call for a supranational currency to replace the dollar by pulling from his pocket a sample coin of a “united future world currency.”
“Here it is,” Medvedev told reporters today in L’Aquila, Italy, after a summit of the Group of Eight nations. “You can see it and touch it.”

My attempt here is not to show the lighter side but to demonstrate how news outlets are making every effort to distract from issues that truly matter.

http://blogs.abcnews.com/politicalpu...n-in-rome.html

Yes, this is the story about Obama checking out the backside of Mayora Tavares.

There's also a video showing how he really wasn't staring at Ms. Tavares.

Seriously, so what if he did? Are we to think that he never had a glance at Michelle Robinson and that he only got to see her curves on their wedding night?

While it certainly would be inappropriate to look in such a way (if it is in fact what he did), let's not go fooling ourselves and pretend that it is actually important. People in France are certainly not making a fuss over how Sarkozy was observing Ms. Tavares.

I wonder if that pinhead, Hal Turner got one of those.

I believe Medvedev doesn't realize that he just triggered a whole bunch of conspiracy theorists to go wild. "Medvedev had one in his pockets", etc, etc...

Credit Losses Rising Anywhere and Everywhere

by Mike Larson 07-10-09

...figures from the American Bankers Association (ABA). In the first quarter of 2009 …

 

1. Home equity loan delinquencies increased from 3.03 percent in the fourth quarter of 2008 to 3.52 percent.
2. Home equity line of credit delinquencies rose from 1.46 percent to 1.89 percent.
3. Credit card delinquencies rose from 5.52 percent to 6.6 percent (measured on a “percentage of dollars outstanding” basis).
4. Direct auto loan delinquencies increased from 2.03 percent to 3.01 percent.
5. RV loan delinquencies increased from 1.38 percent to 1.52 percent.
6. Mobile home loan delinquencies increased from 2.96 percent to 3.70 percent.
7. Personal loan delinquencies increased from 2.88 percent to 3.47 percent.