The Credit Crisis Financial Stocks Short Journal

[Daal]

Quote from Daal:

The higher oil goes I'd expect more and more speeches coming in the hawkish side.

Plosser yesterday now
'Fed May Need to Taper $600 Billion in Purchases, Bullard Says'

 

[ralph00]

Quote from m22au:

For what it's worth, I think Brent above $100 and NYMEX crude above $94 gives Bernanke the political / economic cover to do QE3.

As we saw in 2008, oil above $100 acted as a drag on economic activity. Yes it does mean higher prices for energy products (gasoline, heating, airfares), but broadly speaking these "inflationary" effects mean that economic activity is reduced, especially for discretionary retail.

Disagree. He might try, but the country will go Egyptian on his (and Timmy's) ass if he does.

 

[Daal]

I'm creating a new journal that I believe has a more up to date name and might attract more people interested on global macro

http://www.elitetrader.com/vb/showthread.php?s=&threadid=215992

I will stop adding entries to this one

 

[Dogfish]

Quote from Martinghoul:

The stress tests are obviously a complete jawk... Take Dexia that had to be bailed out and is known to hold all sorts of toxic crap. Here's the headlines:
*DEXIA HAS EU3.679 BLN IN GREECE BANKING BOOK
*DEXIA HAS EU2.8 BLN IN PORTUGAL BANKING BOOK
*DEXIA HAS EU1.788 BLN IN SPANISH BANKING BOOK

*DEXIA HAS EU34 MLN IN SPANISH TRADING BOOK

Now, guess what, sovereign bond haircuts are applied to trading books only, so, of course, heroic Dexia passes with flying colors. What a total load of bollox!

That was 07-23-2010^^

You can only polish a turd so far...

 

[gmst]

Wow I didn't know that stress tests applied sovereign bond haircuts to only trading books and left banking books as such. Even Steve Jobs was not able to achieve such a level of reality distortion!!!