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Does Size Matter?


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Does size matter?

 

Too early to tell. Right now, size doesn?t matter. The JCB market seems to be holding up under the pressure for now.

 

In today?s Wall Struck Journal an interesting article on the JCB market. Is it too big?

 

?Japan?s government bond market is the largest in the world, the result of massive government spending aimed at boosting economic growth. The market is already as big as the combined economies of Germany and France.?

 

?The problem with Japan?s bond market is that there is too much money, invested by too few companies, with too much at stake. More than 60% of JCB debt is held by the Japanese banks, with 10% held by the top 4 banks alone. The potential for losses is dizzying. The eight major banks would lose about 1 trillion yen for each percentage point increase in the 10-year bond yields.?

 

Right now, the Bank of Japan is buying 1.2 trillion of bonds per month to ?pump money into the economy? and is changing its accounting rules so it will not have to mark to market its portfolio when prices change.

 

Of course, the BOJ is now trying to offload to the public:

 

?Japanese regulators are exploring ways to make the market more stable, primarily by adding more investors. Earlier this year, the Ministry of Finance began running print and TV ads in which a popular Japanese actress encourages people to buy government bonds, selling them through banks, securities firms, and post offices.?

 

?So far, bond buying by individuals isn?t catching on as quickly as hoped. Ministry officials are kicking around new ideas, hoping to make buying bonds as easy as purchasing postage stamps, by offering them online and at convenience stores.?

 

What a colossal fraud.

 

Using sexy actresses to dump this worthless garbage on to the hapless consumer.

 

Why gold hasn?t taken off to $500/oz. is a bizarre mystery. I guess the public just doesn?t get it.

 

The infatuation with paper remains intact.

 

Merry Lynching?s earnings are out. And they were a blowout.

 

?Revenue from principal transactions, or trading using the firm?s money, surged to $1.1 billion in the second quarter. The firm also implemented significant cost cuts, reduced communications and tech spending, reduced spending on advertising and travel, and lower headcount.?

 

Mark?s Translation:

 

Drastic cutbacks were made in TV advertising after the ?petting the bull? TV spots proved to be a complete bomb. Flying around the country, soliciting investment banking and underwriting business was halted, and all personal cellphones were dropped. Instead, outrageous amounts of incentives were awarded to the top 5 Riverboaters in the trading department, using the bank?s own capital, using extremely high risk strategies. In a nutshell, Merrill Lynch has been transformed from a full fledged retail and institutional brokerage house into a 5 ? man Hedge Fund, gambling with the firm?s capital, using 5:1 leverage off of credit lines provided by Bank of America Prime Brokerage.

 

Well, we'll have to keep a close eye on GS and LEH, the top fixed income borkers on the planet.

 

How well is the carry trade working now?

 

Guess we'll find out soon enough.

 

Unless Al Green proves that his manhood is big enough to swing around and reverse the T-Bond market selloff.

 

Maniacal short squeezes continue. There will be no selling until the HedgeHogs stop trying to short stocks like HDI and PII. I guess Joe Sixpack is expected to continue buying his Harley and Jetski without the Refi Lotto Ticket.

 

So far, the XAU and HUI held up OK without too much damage after yesterday. NEM is trying to retest the high volume low from June 8. As long as the low holds on lighter volume, then it should be OK. I imagine that the shorts are piling on now. We'll see if the bulls can overpower them.

 

Take it away, Stool Towners......

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Still like this as a short and hold but Doc sees 52-53 before the levee breaks. I won't argu with him.

 

Still straddled the spx. We should hit the 975-980 area and i might cover the short Monday for a small bounce back to the 995 area before the shit storm to 955- begins.

 

Have a good night.

post-7-1058386425.gif

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Instead, outrageous amounts of incentives were awarded to the top 5 Riverboaters in the trading department, using the bank?s own capital, using extremely high risk strategies. In a nutshell, Merrill Lynch has been transformed from a full fledged retail and institutional brokerage house into a 5 ? man Hedge Fund, gambling with the firm?s capital, using 5:1 leverage off of credit lines provided by Bank of America Prime Brokerage.

 

Where's the risk to ML hedge hoggers when ML can front run the public on every trade?

Seems to me the 1.1B profit was simply a transfer of wealth directly to ML by all those amateur Ameritrader retail shorts blown out in this last rally.

 

We should all just admit we can't beat 'em and join 'em instead.

Everybody go long ML and it'll be ML and ML longs vs the stubborn proletariat of individual investors who still think they can play against them and win.

 

Resistence is futile. you will be ASSimilated *

 

* ASSimilated is a registered trademark of BAREister and has been used without his permission

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Citigroup's Weill Steps Down as CEO

Wed July 16, 2003 04:20 PM ET

 

By Jonathan Stempel

NEW YORK (Reuters) - Sanford Weill on Wednesday said he will step down as Citigroup Inc.'s C.N chief executive, relinquishing power to a close confidant after building the world's No. 1 financial services company.

 

Charles Prince, 53, will become CEO on Jan. 1. He has run Citigroup's global corporate and investment bank since last September and was previously the company's top lawyer. Weill, known as "Sandy," turned 70 in March and will remain chairman until Citigroup's 2006 annual meeting.

 

Citigroup also named Robert Willumstad, 57, chief operating officer. Willumstad will replace Michael Masin as COO. Masin, who has been a Citigroup vice chairman, will remain a consultant through 2005.

 

Willumstad has run Citigroup's global consumer business since Dec. 2000 and been Citigroup president since Jan. 2002.

 

Robert Rubin, the former U.S. Treasury Secretary, will remain chairman of Citigroup's executive committee.

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good luck trying to ascertain what ibm really earned. These guys are the worst. WIth this exclusion, and that exclusion, throw in some crap from this merger, throw out some crap from that one. ON and on. Total crap. Until investors can get a clean set of numbers, this bear has a ways to go

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Uncle Buck and the Long Bong Hit

 

Anals Closing

 

Sign up for the Anals and get access to these two great daily features RIGHT NOW!

 

See you tonight in your Anals market wrapdown!

 

For those bears who prefer their discussions in a more quiet environment, respectful of their bearish convictions, please join Doc, soup, bearman, piles, et. al, in Bear Zone Stool Post Mortem - Aftermarket Bear Fumes

 

And don't forget, coming soon to a website near you-

 

Bullstool.com- A real pile of crap

 

Bullstool.com will be a wide open, unmoderated Yahoo-like forum where bulls and bears can argue, curse and swear at one another to their hearts content. Registaration will be open, and guest posting will be allowed.

 

How d'you like dem road apples. :lol: :lol: :lol:

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