US, China, Eurozone & Rest of the World Covered In Weekly Tweets

Market Dynamics

  • On Paradigm Shifts Hunter takes us through mental exercises 2 make us intelligently contrarian. “Invert, Always Invert” May 02, 2012
  • Hedgers’ net short position vanishes in US oil Commercial interests do not fear lower prices, could be bullish 4 crude May 02, 2012
  • There’s Plenty of Money for Junk Presently the credit cycle is virtuous; vicious part is coming, but no appt set $$ May 02, 2012
  • Bad Models Mistook Housing Bust for Dot-Com Bubble Busts of assets that are heavily levered harder than unlevered $$ May 02, 2012
  • Best U.S. Real Estate With Self-Storage Self storage a winner in the past, may not do so well in the future; hi vals May 02, 2012
  • Marginal oil production costs are heading towards $100/barrel Same as my reasoning on high crude prices $$ May 02, 2012
  • Four-percent rule a relic, advisers say Better rule: 10y Tsy yield plus 0% if bearish, 1% if neutral, 2% if bullish $$ May 01, 2012
  • The remarkable resurgence in synthetic credit tranches Increases in the notional amounts of several corp bond swaps May 01, 2012
  • Contra: Black Scholes & the formula of doom Debt levels & Asset-Liab mismatch largest causes of crisis not BS model Apr 30, 2012
  • Energy’s Pain is Consumer Discretionary’s Gain I have been on the wrong side of this trade. Sigh. $$ Apr 30, 2012
  • Notes from the DoubleLine Lunch with Jeffrey Gundlach, Spring 2012 Gives a good overview, w/a large topping of snark $$ Apr 30, 2012



  • China’s Auditing Train Wreck Any Chinese firm listed in the US, the auditors should be subject to SEC scrutiny. $$ May 05, 2012
  • China bear Pettis says world coming around to his view Pettis isn’t a bear but a realist; invt-led growth overplayd $$ May 04, 2012
  • The Family and Corruption Family ties & group affiliation dominate economic/political power among Chinese Communists $$ May 04, 2012
  • Who is Fu? Chinese exile is ‘God’s double agent’ Story of a Chinese Pastor in US & escape of Chen Guangcheng $$ May 02, 2012
  • Microblogs Survive Real-Name Rules–So Far Even the CCP would have a hard time shutting down their Twitter-apps $$ May 02, 2012
  • Beijing’s secret: It’s not really loosening There is not enough demand in China 2 pay all of the high prices. $$ May 02, 2012
  • China’s Left Behind Children Economic growth that separates parents from children imposes significant costs on China $$ May 02, 2012
  • China Closes Unirule Website Founder receives award from Cato Institute; China government shuts down his website $$ May 02, 2012
  • China’s property boom has peaked, forever Amount of deadweight in China property is so large that prices have peaked $$ Apr 29, 2012

Financial Services

  • Caution: Contents May Be Hot I worry about ETF slippage from bad creation/redemption unit design & bad trading by users May 04, 2012
  • Well, That Was Awkward… Bank Chiefs’ Regulatory Concerns Met With Official Silence; maybe regulators getting fed up May 04, 2012
  • A talent shortage looms as the industry booms Financial planners getting old/retiring faster than the Baby Boomers $$ May 04, 2012
  • 2nd attempt2 automate bond trading 1st failed RT @BloombergNews: Goldman preps trading system for corporate bonds | May 04, 2012
  • Mortgage Rates in US for 30-Year Loans Fall to Record Low Mtge rates b nimble, MR b quick, MR go under limbo stick $$ May 04, 2012
  • Spending A Year On An M&A Bidding War Is Apparently Overrated It’s well-known that scale acquirers underperform $$ May 04, 2012
  • Every liability has an asset, but not every asset has a liability. Some are owned outright. May 03, 2012
  • Canadians Dominate World’s 10 Strongest Banks Ask again after their housing bubble pops, same 4 other fringe nations May 03, 2012
  • Pimco’s latest ETF shields against price spikes I wonder if active ETFs will have more performance slippage. $$ May 02, 2012
  • Hedge Funds Hurt by Volatility Hedge funds r vehicles that do better when credit spreads r tightening $$ May 01, 2012
  • Bond Market Is Creating A New Galaxy for Trading Dealer inventories thin; trading costs rise; electronic mkts start May 01, 2012
  • US banks still cutting commercial real estate exposure Banks still rotating out @ an almost constant rate since 2009 $$ Apr 30, 2012
  • Largest U.S. Banks Resist Federal Reserve’s Credit Limits Big banks need 2b broken up or shrunk; they don’t accept it Apr 29, 2012

US Fiscal/Regulatory Policy

  • CEOs rank Texas tops for business, California worst 8th year in a row for this survey; high taxes/regs annoy CEOs $$ May 04, 2012
  • Exposing the Medicare Double Count Same $$ being spent twice, must borrow the difference. May 02, 2012
  • Coburn: `We Ought to Totally Revamp Our Tax Code’ Very similar to my proposals; simplify code eliminate deductions $$ May 02, 2012
  • U.S. Considers Notes That Float Intermediate-dated Tsy floaters would trade above par, neg yields like TIPS $$ May 01, 2012
  • Trying to Shed Student Debt Lawmakers Rethink Bankruptcy-Law Ban on Walking Away From Education Loans $$ #slavery Apr 30, 2012
  • Can the US Economy Recover Without a Housing Recovery? It will probably have to try w/o housing’s assistance $$ Apr 30, 2012
  • Central Bank paper suggests house prices have ‘over-corrected’ Have Irish housing prices overshot? Tough 2 say. $$ Apr 30, 2012
  • Treasury floaters could b issued @ premium 2 par 2 inflation speculators allowing the Tsy 2 finance @ negative rates Apr 30, 2012
  • U.S. Perfecting Formula for Budget Failure, Says Bowles It’s nice 2b a part of a nation that is a global leader ;) $$ Apr 30, 2012
  • Will TARP Make a Profit? That’s the Wrong Question Conflicting govt goals make policy hard 2 implement & interpret $$ Apr 30, 2012
  • You will buy more Govvies, or else Financial Repression, Quantitative Easing, Debt Monetization, Hyperinflation $$ Apr 30, 2012
  • On Student Loans, Accounting Gimmicks, Electric Cars, FX and a note on SS Hodgepodge of insight from @brucekrasting $$ Apr 30, 2012
  • “The Treasury should be issuing 100 year or perpetual bonds until the market can’t stand it anymore to lock in these … Apr 30, 2012
  • The floating YTMs will probably be negative, as interest rate speculators will pay more than par for the floating rat… Apr 30, 2012