Monday, July 30, 2012
THE COOKIE IS CRUMBLING
Earnings Season: It’s the Revenue, Stupid!
Breakout"Only 42% of companies have beat revenue estimates so far, well below an average of 60% from the last four years," says John Butters, senior earnings analyst at FactSet. More »
Saturday, July 28, 2012
CLOSE UP OF CURRENT SPX RALLY
There is not volume nor conviction in the market, what we have are hopes and prayers and sound bites that allow the players to hose the shorts with weak hands.
REALLY....is a 1.5 GDP a sign of good news? REALLY? Is a promise to "defend" the EURO by one of the players a big deal or anything new? Does it help their economies that are sinking or lower their interest rates that are making it impossible to fund their debts?
Here the 1.5 GDP is said to be a MEET EXPECTATION or BEAT??? on one hand and the other opens door for "MORE FED INTERVENTION"??????
Not in any life I live does any of that add up for me, nor does the market action which is msking underlying weakness and warnings from some our top companies about future earnings and prospects for the economy.
D
Friday, July 27, 2012
WEAKENING FUNDAMENTALS. TRIM TABS BEARISH
http://finance.yahoo.com/news/us-economic-growth-slowed-1-123346624.html
"US economic growth slows to 1.5 percent annual rate(note they say TOPS ESTIMATES!!) from April-June, consumer spending weakens
"US economic growth slows to 1.5 percent annual rate(note they say TOPS ESTIMATES!!) from April-June, consumer spending weakens
US economic growth slows to 1.5 percent annual rate from April-June, consumer spending weakens"
"Despite Mario Draghi's reassurance that the ECB will do everything in its power to save the euro zone, Europe is not going to do anything meaningful and central bank action will not save the equity markets - on the contrary, they'll "implode", Charles Biderman, Chief Executive and Founder of TrimTabs Investment Research, told CNBC."
Yes looking ahead though it is likely Growth in coming quarters will slow below that and that is CONTRACTION.
If so, look out for falling stock prices which have been propped up by FED actions. And should the FED lose ANY cred with investors.....kaboom.
D
Thursday, July 26, 2012
ZYNGA INSIDERS CASH OUT BEFORE CRASH, FB FACEPLANT AND MORE
http://finance.yahoo.com/blogs/daily-ticker/zynga-insiders-cashed-just-stock-crashed-144334658.html
Face Book takes a face plant in after hours, man did the IPO and then some after get hosed on that POS!
I hate to say it, but I do believe it, we're entering the MOST painful phase of the longest running Bear Market since the Great Depression.
You will survive, so will our country, but how different will it look? Will we still have the Reserve currency. The current administration has added $5 TRILLION of debt to our countries deficits in just 4 years almost 50% increase.
He concentrated on Health Care reform when the economy is job # 1.
Bush tax cuts are ending in 2013, but the congress just argues and does the circle jerk....."we will handle this next year, we have plenty of time....." OMG!!!
We are nearing the end of the longest running bull markets of all time, the BOND MARKET! AT some point, will it be an orderly rise to interest rates?
We have historic LOW interest rates at the same time we have the largest deficits that need funding??? REALLY does this make sense to you? This is possible as US GOVT BONDS are seen as a "SAFE HAVEN" but yields SNOT! It may be seen safer than any EURO bond right now....but it's not like the US has its fiscal health in order....there is NO end in sight to the $trillion deficits and we are not even talking about SS and Medicare entitlements that bring the total tab to around $100 TRILLION.
What IF the 10 year bond starts to tick up making our debt harder to finance, or those buying require higher rates to buy? With SO MANY countries scrambling to sell debt how can all the debt be funded?
MANY "players" continue to talk about the coming runaway inflation, really? You can create money....digitally but it has to get out into the real economy to do that kind of damage.
Other than commodities, like raw stuff for food and energy have been effected by the falling US $? DO we have too much money chasing too few goods? classic definition of inflation.
We have too few monies chasing TOO many goods....creating a scenario for falling prices if not propped up one way or another.
If a EURO goon comes out and says blah blah sup-port EURO blah blah...the market ignites? more like death throes.
Some KEY companies in the economy have warned. There WILL be pockets of strength....all business doesn't die, but in a slowdown of spending and investment....where all the FED seems capable of doing is either talking a good game or throwing money to keep stocks suspended....the REAL ECONOMY will continue to deteriorate wothout real investment.
Normally that comes from real savings, that banks lend out in the form of loans to real peopl, eral companies who intend to expand their business ans buy products and hire REAL PEOPLE.
NOBODY gets it. OBAMA and ROMNEY together couldn't make a 2 ring circus, both are clowns.
SURE the people are hurting, you need to support business FOOLS, they hire....the GOVT doesnt make anything, but war.
Defense spending cuts into 2014 will be drag and eliminate anywhere from 1 to 2 million jobs. We've shipped scads of manufacturing off the China, and if you have a net connection jobs to India and Philippines.
YET, companies right here in MD do not have enough "skilled" workers to fill certain jobs....most have forgotten or never learned to use their hands except to text or play XBOX.
WE have a lost generation of kids that are experts in CALL OF DUTY, but can't tie their own shoes! Will be living home with mommy and daddy until their thrown out at 30.
8% plus OFFICIAL unemployment 3 years after bottom of crisis is indicative of a more insidious problem.
There are man brave and wonderful people in this country willing to die for their country, who treat their fellow man with respect and care. and in all different tax brackets.....many more good people than those who are as crazy like psycho in Colorado....many more HEROES than losers...they deserve better,,,,a better govt.
We live in a world manipulated by just a FEW MEN, the men of the Federal Reserve, and even though their 0% rate policy has only worked to goose markets (temporarily), and STARVE savers of any real return on their money....they continue....and talk of more QE.
MORE QE would cause gold to spike along with other commodities causing an inflationary like virus.
They have expanded their balance sheets 4 fold....they talk like they can do more....the law of diminishing return has hit....AUDIT THE FED movement is gaining momentum....none of this good in a time where the insiders still believe the FED can save them from anything, even as more imbalances are being pile on top of the ones already there...and many feel they have green light to buy stocks with a FED backstop.....remove the allure and belief in the FED can fix anything and watch this thing unravel very quickly.
Duratek
Face Book takes a face plant in after hours, man did the IPO and then some after get hosed on that POS!
I hate to say it, but I do believe it, we're entering the MOST painful phase of the longest running Bear Market since the Great Depression.
You will survive, so will our country, but how different will it look? Will we still have the Reserve currency. The current administration has added $5 TRILLION of debt to our countries deficits in just 4 years almost 50% increase.
He concentrated on Health Care reform when the economy is job # 1.
Bush tax cuts are ending in 2013, but the congress just argues and does the circle jerk....."we will handle this next year, we have plenty of time....." OMG!!!
We are nearing the end of the longest running bull markets of all time, the BOND MARKET! AT some point, will it be an orderly rise to interest rates?
We have historic LOW interest rates at the same time we have the largest deficits that need funding??? REALLY does this make sense to you? This is possible as US GOVT BONDS are seen as a "SAFE HAVEN" but yields SNOT! It may be seen safer than any EURO bond right now....but it's not like the US has its fiscal health in order....there is NO end in sight to the $trillion deficits and we are not even talking about SS and Medicare entitlements that bring the total tab to around $100 TRILLION.
What IF the 10 year bond starts to tick up making our debt harder to finance, or those buying require higher rates to buy? With SO MANY countries scrambling to sell debt how can all the debt be funded?
MANY "players" continue to talk about the coming runaway inflation, really? You can create money....digitally but it has to get out into the real economy to do that kind of damage.
Other than commodities, like raw stuff for food and energy have been effected by the falling US $? DO we have too much money chasing too few goods? classic definition of inflation.
We have too few monies chasing TOO many goods....creating a scenario for falling prices if not propped up one way or another.
If a EURO goon comes out and says blah blah sup-port EURO blah blah...the market ignites? more like death throes.
Some KEY companies in the economy have warned. There WILL be pockets of strength....all business doesn't die, but in a slowdown of spending and investment....where all the FED seems capable of doing is either talking a good game or throwing money to keep stocks suspended....the REAL ECONOMY will continue to deteriorate wothout real investment.
Normally that comes from real savings, that banks lend out in the form of loans to real peopl, eral companies who intend to expand their business ans buy products and hire REAL PEOPLE.
NOBODY gets it. OBAMA and ROMNEY together couldn't make a 2 ring circus, both are clowns.
SURE the people are hurting, you need to support business FOOLS, they hire....the GOVT doesnt make anything, but war.
Defense spending cuts into 2014 will be drag and eliminate anywhere from 1 to 2 million jobs. We've shipped scads of manufacturing off the China, and if you have a net connection jobs to India and Philippines.
YET, companies right here in MD do not have enough "skilled" workers to fill certain jobs....most have forgotten or never learned to use their hands except to text or play XBOX.
WE have a lost generation of kids that are experts in CALL OF DUTY, but can't tie their own shoes! Will be living home with mommy and daddy until their thrown out at 30.
8% plus OFFICIAL unemployment 3 years after bottom of crisis is indicative of a more insidious problem.
There are man brave and wonderful people in this country willing to die for their country, who treat their fellow man with respect and care. and in all different tax brackets.....many more good people than those who are as crazy like psycho in Colorado....many more HEROES than losers...they deserve better,,,,a better govt.
We live in a world manipulated by just a FEW MEN, the men of the Federal Reserve, and even though their 0% rate policy has only worked to goose markets (temporarily), and STARVE savers of any real return on their money....they continue....and talk of more QE.
MORE QE would cause gold to spike along with other commodities causing an inflationary like virus.
They have expanded their balance sheets 4 fold....they talk like they can do more....the law of diminishing return has hit....AUDIT THE FED movement is gaining momentum....none of this good in a time where the insiders still believe the FED can save them from anything, even as more imbalances are being pile on top of the ones already there...and many feel they have green light to buy stocks with a FED backstop.....remove the allure and belief in the FED can fix anything and watch this thing unravel very quickly.
Duratek
Wednesday, July 25, 2012
AUDIT FED GAINS STEAM, PHASE #3 OF BEAR IS COMING
This all plays into the final leg of the great bear mkt. WHen faith is lost in the FED (our saviour) and our do nothing govt which is broke cant get out of its own way, EUROPE is broke. Everybody wants to issue currency, bonds get bailouts....but we are basically broke $100 T if you add unfunded liabilites, Obama a joke....sheeple still believe...MITT a joke
Recent report I read suggests 3 potential outcomes and possible strategies
2. EURO is toast
3. Gold will rise after correction to $3,000 play mining stocks
4. US stocks will fall, can short by being in cash
5. Inflation is real go long inflation (but wil DEFLATION ACTUALLY WIN first?)
We can never pay back out debts, what will our world look like if we lose reserve currency? F ME!
Phase 1 of bear ended 2009 lows, Phase 2 in process near end where they come back for more punishment and think stocks are safe, worse yet the FED policies keep MORE in them even though bond funds getting big flows.
Phase 3 will take us below 2009 lows IMHO
THEN if still around....BUY WITH BOTH FEET...most will not be able or just stomach it.... Our leaders are all BS, they argue about what to do, who to tax or not, and so do nothing. SUPER COMMITTEE formed last year had not one single suggestion.
D
BDI PROXY
INdexes, stocks etc, always go up and down in a pattern, never straight.....DO YOU SEE A TREND HERE? Yes it's a downtrend channel...thank you.
D
HOME SALES ROIL RALLY?
Tuesday, July 24, 2012
IN THE RED
Some noted names in the corporate landscape have been giving less than wonderful earnings result sand warnings about future results.
CHIPOTLE, TXN, UPS, AAPL to name a few. Some experts see $110 SPX profits for 2012....I don't see how this can be accomplished if we get sub 1.5 GDP.
FED Policy can do little to help the economy, and they might be reluctant to do much with elections on the horizon as the unemployment rate remains stubbornly above 8% almost 4 years into so-called recovery.
The FED has expanded their balance sheet 3 fold since crisis began but they control barely 15% of the money supply, bankd control the rest and interbank lending is down 70%!
Money is created when you go to thebank and take out a loan, otherwise it might be just sitting around doing nothing but gaining .25% for the banks, thanks to FED policy
Why not take away the inducement to just let the money sit around.....but in any case, are their people pout there willing to take on risk, loans in this uncertain environment.
Going into 2014 the defense spending cuts have been said will cut anywhere from 1-2 million jobs.
AM I always a bear? It just may seem that way, as I've called 2 bear markets, both BRUTAL in last 10 years....I didn't ask for it, I just call it like I see it.
I run my OWN company, I NEED to sell the products to customers....so trust me, I want to see a vibrant economy....you don't get there in the direction we are headed.
SO I SAY AGAIN, beware.....now after really turning in some amazing profits since 2009....is it starting to unravel?
D
CHIPOTLE, TXN, UPS, AAPL to name a few. Some experts see $110 SPX profits for 2012....I don't see how this can be accomplished if we get sub 1.5 GDP.
FED Policy can do little to help the economy, and they might be reluctant to do much with elections on the horizon as the unemployment rate remains stubbornly above 8% almost 4 years into so-called recovery.
The FED has expanded their balance sheet 3 fold since crisis began but they control barely 15% of the money supply, bankd control the rest and interbank lending is down 70%!
Money is created when you go to thebank and take out a loan, otherwise it might be just sitting around doing nothing but gaining .25% for the banks, thanks to FED policy
Why not take away the inducement to just let the money sit around.....but in any case, are their people pout there willing to take on risk, loans in this uncertain environment.
Going into 2014 the defense spending cuts have been said will cut anywhere from 1-2 million jobs.
AM I always a bear? It just may seem that way, as I've called 2 bear markets, both BRUTAL in last 10 years....I didn't ask for it, I just call it like I see it.
I run my OWN company, I NEED to sell the products to customers....so trust me, I want to see a vibrant economy....you don't get there in the direction we are headed.
SO I SAY AGAIN, beware.....now after really turning in some amazing profits since 2009....is it starting to unravel?
D
Monday, July 23, 2012
A BULLISH CALL FOR TODAY FROM "ANONYMOUS"
2 Comments- Show Original PostCollapse comments
1 – 2 of 2
D
1 – 2 of 2
THIS weekend call from "anonymous", hey I don't have bag over my head when I make a call or comment....?
- Anonymous said...
- 60The BDI is up three percent plus this month. Big S&P rally on the way
Marc R said...- MY, you called that rally well ! haaa Remember MR CEO....your post that 170 pts in DOW a week ago proved a bullish market, how childish. BUT I won't call today's drubbing any more than a bad MONDAY open...fundamentally, if you read the articles of truth, the world has serious issues.
D
Saturday, July 21, 2012
Kondratieff Winter
"The recent admission of price-fixing by Barclays Bank over the Libor rate is just the tip of the iceberg in what is sure to be the greatest financial scandal of our lifetime."
http://kondratieffwinter.com/blog/
The perfect storm in the K Wave Winter
http://www.safehaven.com/article/22646/the-perfect-storm-in-a-kondratieff-long-wave-winter
http://kondratieffwinter.com/blog/
The perfect storm in the K Wave Winter
http://www.safehaven.com/article/22646/the-perfect-storm-in-a-kondratieff-long-wave-winter
IN THE EYE OF THE STORM!!!
http://prudentbear.com/index.php/creditbubblebulletinview?art_id=10687
"At 5.62%, two-year yields are almost back to panic spike highs from last November – and are essentially at the highest level since 1997. Despite the EU’s recently negotiated 100bn euro bailout, Spain’s borrowing costs have moved only further into unsustainable territory. The Spanish stock market was hit for 5.8% today. Things have reached the boiling point, as mass public discontent with the latest round of austerity measures recalls Greece’s unraveling."
What would happen here in the US if yields started to rise? How would our government be able to afford the escalating interest payments on our overwhelming debt?
HERE IS AN EXCERPT FROM WASHINGTON TIMES
http://www.washingtontimes.com/news/2010/feb/14/us-debt-will-keep-growing-even-recovery/
circa 2010 !!
"The government already has made so many promises to so many expanding “mandatory” programs. Just keeping these commitments, without major changes in taxing and spending, will lead to deficits that cannot be sustained.
Take Social Security, Medicare and other benefits. Add in interest payments on a national debt that now exceeds $12.3 trillion. It all will gobble up 80 percent of all federal revenues by 2020, government economists project.
That doesn’t leave room for much else. What’s left is the entire rest of the government, including military and homeland security spending, which has been protected and nurtured by the White House and Congress, regardless of the party in power."
What is brewing? In 2014 as part of the AUSTERITY movement the defense budget is being slashed and studies suggest a HUGE LOSS OF JOBS
http://www.bloomberg.com/news/2012-07-17/defense-industry-says-budget-cuts-may-cost-2-million-jobs.html July 2012
"Across-the-board cuts to federal programs may cost the U.S. 2.14 million jobs and reduce the gross domestic product by $215 billion next year, according to a study funded by defense contractors lobbying to forestall the reductions. "
OUR US interest rates for the 10 year bond are around 1.5% !! so if you buy them your return will be LESS THAN THE INFLATION RATE??!!
BUY the US stock market and your return could be MINUS 40% !!! IF the Bear market returns (hasn't it?) and is that OK with you? Can you stomach a 20-50% haircut? WE are already over the time limit for the AVERAGE BULL MARKET OF 39 months.....those who bought in early 2009 and fought tremendous levels of FEAR were justly rewarded.....how many of the pros are going to just sit around when she goes SOUTH and let those huge gains evaporate? WHO is going to sit around with HUGE gains and NOT SELL BEFORE the BUSH tax cuts are gone and capital gain TAXES RISE?
Now has it been the savings grace for US stock investors the fact the we are perceived not as bad as Europe? SO why my friends are the yields on our 10 year Bonds at HISTORIC lows? 1.46%? did I just answer my own question? OR is this just the action of those who can access FED money at next to nothing in cost and buying the 10 yr? IS the 10 YR or US treasuries in general still "the safest play if all"?
When in history has the yield been near Historic LOWS (FEAR) and the stock market near its highs? I don't think there was a time....usually stocks sold off and people rushed into bonds driving the yield DOWN.
Now the yield is near its historic lows of 1.440% and stocks are near there highs? DOES THAT MAKE ANY SENSE? or HAS THE PERFECT STORM TRAP been set?
When the market falls you can sort of BE SHORT the market by being in cash as your worthless cash buys more as prices fall. THIS CANNOT happen if you always just sit it out and HOLD can it?
Our need to finance our debt, the wars, domestic responsibilities, etc etc etc.....is at ALL TIME HIGHS but YIELDS ARE AT ALL TIME LOWS.. "what is the law of supply and demand?
If supply increases and demand remains unchanged, then it leads to lower equilibrium price and higher quantity."
This is one case, because of going through 2 nasty bears here, and problems abroad....and FED buying of their own treasuries in the previous and ongoing QE gambit.....demand for bonds nearly outstrips the supply.....BUT IN SPAIN 2 year yields are near 5.7% !!! and the 10 YR over 7% !!!! HOW CAN THEY FUND THEIR DEBT???? Highest levels since 1997 !!!! and this after historic ECB EURO LAND $100B EURO BAILOUT FUND AGREED UPON????
Are we headed for the fiscal cliff? WE CANNOT continue to go into $TRILLION deficits year after year after year.....SOMEONE HAS TO MAKE THE INTEREST PAYMENTS....THAT SOMEONE'S IS YOU AND ME....and they will do it with AUSTERITY (LOSS OF MORE JOBS) and YES the RAISING OF SERVICES COSTS AND TAXES....
$TRILLIONS have been lost in the first ever year over year decline in home values......so the FED has engineered and targeted the STOCK MARKET for appreciation.....what happens when the words don't come and actions to keep supporting this? HAVE we not come to the fork in the road.
SOONER OR LATER, the imbalances must balance, debts default or have to be inflated away or thye get paid...which one will it be?
D
"At 5.62%, two-year yields are almost back to panic spike highs from last November – and are essentially at the highest level since 1997. Despite the EU’s recently negotiated 100bn euro bailout, Spain’s borrowing costs have moved only further into unsustainable territory. The Spanish stock market was hit for 5.8% today. Things have reached the boiling point, as mass public discontent with the latest round of austerity measures recalls Greece’s unraveling."
What would happen here in the US if yields started to rise? How would our government be able to afford the escalating interest payments on our overwhelming debt?
HERE IS AN EXCERPT FROM WASHINGTON TIMES
http://www.washingtontimes.com/news/2010/feb/14/us-debt-will-keep-growing-even-recovery/
circa 2010 !!
"The government already has made so many promises to so many expanding “mandatory” programs. Just keeping these commitments, without major changes in taxing and spending, will lead to deficits that cannot be sustained.
Take Social Security, Medicare and other benefits. Add in interest payments on a national debt that now exceeds $12.3 trillion. It all will gobble up 80 percent of all federal revenues by 2020, government economists project.
That doesn’t leave room for much else. What’s left is the entire rest of the government, including military and homeland security spending, which has been protected and nurtured by the White House and Congress, regardless of the party in power."
What is brewing? In 2014 as part of the AUSTERITY movement the defense budget is being slashed and studies suggest a HUGE LOSS OF JOBS
http://www.bloomberg.com/news/2012-07-17/defense-industry-says-budget-cuts-may-cost-2-million-jobs.html July 2012
"Across-the-board cuts to federal programs may cost the U.S. 2.14 million jobs and reduce the gross domestic product by $215 billion next year, according to a study funded by defense contractors lobbying to forestall the reductions. "
OUR US interest rates for the 10 year bond are around 1.5% !! so if you buy them your return will be LESS THAN THE INFLATION RATE??!!
BUY the US stock market and your return could be MINUS 40% !!! IF the Bear market returns (hasn't it?) and is that OK with you? Can you stomach a 20-50% haircut? WE are already over the time limit for the AVERAGE BULL MARKET OF 39 months.....those who bought in early 2009 and fought tremendous levels of FEAR were justly rewarded.....how many of the pros are going to just sit around when she goes SOUTH and let those huge gains evaporate? WHO is going to sit around with HUGE gains and NOT SELL BEFORE the BUSH tax cuts are gone and capital gain TAXES RISE?
Now has it been the savings grace for US stock investors the fact the we are perceived not as bad as Europe? SO why my friends are the yields on our 10 year Bonds at HISTORIC lows? 1.46%? did I just answer my own question? OR is this just the action of those who can access FED money at next to nothing in cost and buying the 10 yr? IS the 10 YR or US treasuries in general still "the safest play if all"?
When in history has the yield been near Historic LOWS (FEAR) and the stock market near its highs? I don't think there was a time....usually stocks sold off and people rushed into bonds driving the yield DOWN.
Now the yield is near its historic lows of 1.440% and stocks are near there highs? DOES THAT MAKE ANY SENSE? or HAS THE PERFECT STORM TRAP been set?
When the market falls you can sort of BE SHORT the market by being in cash as your worthless cash buys more as prices fall. THIS CANNOT happen if you always just sit it out and HOLD can it?
Our need to finance our debt, the wars, domestic responsibilities, etc etc etc.....is at ALL TIME HIGHS but YIELDS ARE AT ALL TIME LOWS.. "what is the law of supply and demand?
If supply increases and demand remains unchanged, then it leads to lower equilibrium price and higher quantity."
This is one case, because of going through 2 nasty bears here, and problems abroad....and FED buying of their own treasuries in the previous and ongoing QE gambit.....demand for bonds nearly outstrips the supply.....BUT IN SPAIN 2 year yields are near 5.7% !!! and the 10 YR over 7% !!!! HOW CAN THEY FUND THEIR DEBT???? Highest levels since 1997 !!!! and this after historic ECB EURO LAND $100B EURO BAILOUT FUND AGREED UPON????
Are we headed for the fiscal cliff? WE CANNOT continue to go into $TRILLION deficits year after year after year.....SOMEONE HAS TO MAKE THE INTEREST PAYMENTS....THAT SOMEONE'S IS YOU AND ME....and they will do it with AUSTERITY (LOSS OF MORE JOBS) and YES the RAISING OF SERVICES COSTS AND TAXES....
$TRILLIONS have been lost in the first ever year over year decline in home values......so the FED has engineered and targeted the STOCK MARKET for appreciation.....what happens when the words don't come and actions to keep supporting this? HAVE we not come to the fork in the road.
SOONER OR LATER, the imbalances must balance, debts default or have to be inflated away or thye get paid...which one will it be?
D
Friday, July 20, 2012
"ARE STOCKS CHEAP"?
"Looking at the less bullish era from the 1950s to the early '80s stocks traded around 10x, a valuation Ellis believes to be more applicable today. Calling low P/Es a "siren song" luring investors to their doom, Ellis advises investors to take a cue from the late Baron Biggs and do more legwork before diving in blind."
http://finance.yahoo.com/blogs/breakout/no-market-isn-t-cheap-says-ellis-134154826.html
http://finance.yahoo.com/blogs/breakout/no-market-isn-t-cheap-says-ellis-134154826.html
Thursday, July 19, 2012
WE ARE NOT EQUAL
http://finance.yahoo.com/news/morgan-stanley-commodities-risk-leaps-164128344.html
"(Reuters) - Morgan Stanley's commodities trading risk shot to pre-financial crisis highs during the second quarter but revenue from the sector and other trading fell, showing that its bid to buck Wall Street's lower-risk approach did not pay off.
The only major U.S. investment bank to keep risk up while navigating tough oil, metals and grains markets in the three months to June, Morgan Stanley's Value-at-Risk (VaR) in commodities rose to its highest since the second quarter of 2008.
In comparison, arch rival Goldman Sachs slashed its commodities VaR to 8-year lows during the same period."
"(Reuters) - Morgan Stanley's commodities trading risk shot to pre-financial crisis highs during the second quarter but revenue from the sector and other trading fell, showing that its bid to buck Wall Street's lower-risk approach did not pay off.
The only major U.S. investment bank to keep risk up while navigating tough oil, metals and grains markets in the three months to June, Morgan Stanley's Value-at-Risk (VaR) in commodities rose to its highest since the second quarter of 2008.
In comparison, arch rival Goldman Sachs slashed its commodities VaR to 8-year lows during the same period."
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