Henry Blodget sets a target range of $16-$24 for Facebook (FB -11%), based on a valuation of 20x-30x a 2013 EPS estimate of $0.80. Blodget's retort to those bullish due to Facebook's growth potential: Facebook has already been working on monetization for years; Mark Zuckerberg cares more about Facebook's "social mission" than its business; and the company's next billion users, weighted towards emerging markets, will be much less valuable than its first billion. (previous) [View news story]
he's right
that and the insulting governance structure makes this thing untouchable at these prices.
Expect denials soon, but sources says Angela Merkel suggested to the Greek president the country hold a referendum on continued use of the euro at next month's elections. Syriza: Merkel is treating Greece as a "Protectorate." New Democracy: Merkel proposal "unfortunate." The German Chancellor has managed to unite the feuding Greek parties. [View news story]
cutting off the gangrenous toe is always the right decision to make
greece is now at that point. they cannot stay in so therefore they must leave and try it on their own
cuttting off a body part is always painful in the short term but eventually the body heals
as for the rest leaving - believe me - once they see the punishment meted out to these idiots - they will swallow whatever medicine they need to take to stay in - it will get ugly for the greeks - there is nothing but pain and more pain ahead of them
that said good news for me - Athens will become a third world city with prices to boot - very nice - per capita GDP over there will sliced by about 40% - overnight. And the rest of Europe won't skip a beat because the ECB will print money to smooth the transition for the ones remaining.
Expect denials soon, but sources says Angela Merkel suggested to the Greek president the country hold a referendum on continued use of the euro at next month's elections. Syriza: Merkel is treating Greece as a "Protectorate." New Democracy: Merkel proposal "unfortunate." The German Chancellor has managed to unite the feuding Greek parties. [View news story]
it's over
the greeks (lower case - as that is what they will become) will leave the Euro.
Once that happens - they will print their money - it will be like artist commune scrip - and be cut off from external sources
After that they will appreciate the true meaning of πόνος
ECRI Reaffirms Recession Call Again [View article]
how about applying some commonsense
how do you have recession when loan growth is rising and businesses are expanding their LOC's. How is that possible? this is about the best forward indicator you can have.
if you were in business or had the remotest understanding of business you would get that recession - shallow or otherwise does not happen under those conditions.
as for the charts - leaving off all the calls on the cyclical trends chart is straight out dishonest
as for the RPI chart - it is a joke - look at the volatility on it - are you kidding with the arrow?
what an ass.
look - if you have good stuff and it makes sene you can persuade me. but this is nonsense. worse it is dishonest nonsense.
Asia's closer to getting on board the regional trade pact bus, as Japan's Prime Minister Yoshihiko Noda boards a flight to Beijing and says he'll speed up negotiations on a trade structure with China and South Korea. The so-called FTA would match up in size with NAFTA and the EU. [View news story]
Mark Thoma says ~200K people will lose unemployment benefits in California and other states today. Under the terms of last year's agreement in Congress, benefits would be cut off if jobless rates fell below certain thresholds; despite a weak job market, rates have been falling. "Will a cut in benefits motivate workers who have become dependent on the program to go out and find jobs?” [View news story]
Just two days after JPMorgan (JPM) announced a massive $2B trading loss, Pimco's Bill Gross comes to its defense, calling it one of the “best-run banks in the world." It’s a decently capitalized bank, Gross says, with $120B of Tier-1 capital. "That’s 10.5%, which is higher than the 9% U.S. average.” And capital quality, according to Pimco, is what you need to trust most in a situation like this. [View news story]
Kid Dynamite draws on his career in an internal hedge fund to provide outstanding perspective. The issue is JPM has TRILLIONS in exposure, too complicated for even the most seasoned professionals to understand. If this could happen to the best-in-class, what might we think about the rest of the banks? 2008 is not that long ago and the loss in "trust" is of far more import than the $2B. [View news story]
W Walker the explanation that kwm3 gave you is about as clear and as good as you will get.
Take it to the bank.
Banks do this stuff as part of the normal course.
In this instance as Dimon says JPM was sloppy etc. It is not the fact of doing this activity that should be the issue - although the chattering classes seem to be focused there - it is the way it was done - they messed up.
Two things about Dimon - he will beat the holy crap out of whoever did this and it will not happen again. You can take that to the bank also.
Stocks move into the green following the Consumer Sentiment print, S&P 500 +0.2%, Nasdaq +0.7%. At 77.8 the index is at its highest level since January 2008. The read on current conditions jumped to 87.3 from 82.9, also the highest level in 4 years. A slight negative, the gauge on expectations declined to 71.7 from 72.3. [View news story]
"This is demoralizing," says Dick Bove of the JPMorgan (JPM -7.5%) news. Bove was a loud voice arguing the mid-April London Trading Whale story meant little. He maintains a Buy on the stock as $2B means little to a company that could earn 10X that much this year. But, he says, people "buy and own this stock because they trust management not to make errors." So which is it? [View news story]
Why Germany needs a functioning euro-periphery: Its trade surplus with the rest of the eurozone fell to €62.2B in the 12 months ended in March - the lowest of any 12-month period since 2002. Much of Germany's solid growth has come from Club Med states borrowing to buy Bimmers. With credit cut off and PIIGS economies contracting, the German surplus is disappearing. [View news story]
bbro
per capita Porsche sales in Greece highest of any where in Europe.
those idiots were borrowing the money - over paying themselves and spending the money on consumables - that is the real reason they are up the creek.
Debt is not the issue. Debt used to fund consumption or unproductive investment and a lack of structural reform and very weak institutions (they seem to be unable to collect taxes) are the issues in Greece.
President Obama's advance team might want to do a little more fact checking next time they send the president out with the housing crisis' latest "victims" to tout home refinance. The president visited a Nevada couple on Friday, describing them as “responsible” homeowners who owe more on their mortgage than it's currently worth. The fact is, the couple did a cash-out refinance in 2007, borrowing $178K off the equity in the home. Had they not taken that money out, and continued paying on the original mortgage, they would not be underwater today. [View news story]
you cannot blame people for doing what they are supposed to do.
for years the US Government has told the population that they really must buy a house.
it was touted as the American Dream...agencies were set up to foster and grow the mortgage market...the tax system encouraged it
in the late 90's and into the 2000's the decision was made - by successive Congress and Administrations to shift this into hyperdrive and move down the credit curve so that people who could not obtain credit to buy a home were given the possibility to do so. the market and the people responded.
people are people. they will do what is best for themselves. you cannot balme them for that.
the real issue is the system and rules that facilitated this mass hysteria much of which remains intact today. change that.
if Government set up StockyMae and gave tax deduction on margin debt used to buy stocks, if stocks could be sold with no capital gains etc. etc. what do you think would happen to equity prices?
5 Undervalued Dividend Stocks With High Expected Growth Rates [View article]
E
Henry Blodget sets a target range of $16-$24 for Facebook (FB -11%), based on a valuation of 20x-30x a 2013 EPS estimate of $0.80. Blodget's retort to those bullish due to Facebook's growth potential: Facebook has already been working on monetization for years; Mark Zuckerberg cares more about Facebook's "social mission" than its business; and the company's next billion users, weighted towards emerging markets, will be much less valuable than its first billion. (previous) [View news story]
that and the insulting governance structure makes this thing untouchable at these prices.
E
Expect denials soon, but sources says Angela Merkel suggested to the Greek president the country hold a referendum on continued use of the euro at next month's elections. Syriza: Merkel is treating Greece as a "Protectorate." New Democracy: Merkel proposal "unfortunate." The German Chancellor has managed to unite the feuding Greek parties. [View news story]
greece is now at that point. they cannot stay in so therefore they must leave and try it on their own
cuttting off a body part is always painful in the short term but eventually the body heals
as for the rest leaving - believe me - once they see the punishment meted out to these idiots - they will swallow whatever medicine they need to take to stay in - it will get ugly for the greeks - there is nothing but pain and more pain ahead of them
that said good news for me - Athens will become a third world city with prices to boot - very nice - per capita GDP over there will sliced by about 40% - overnight. And the rest of Europe won't skip a beat because the ECB will print money to smooth the transition for the ones remaining.
E
Expect denials soon, but sources says Angela Merkel suggested to the Greek president the country hold a referendum on continued use of the euro at next month's elections. Syriza: Merkel is treating Greece as a "Protectorate." New Democracy: Merkel proposal "unfortunate." The German Chancellor has managed to unite the feuding Greek parties. [View news story]
the greeks (lower case - as that is what they will become) will leave the Euro.
Once that happens - they will print their money - it will be like artist commune scrip - and be cut off from external sources
After that they will appreciate the true meaning of πόνος
For that is the way they have chosen.
E
ECRI Reaffirms Recession Call Again [View article]
how do you have recession when loan growth is rising and businesses are expanding their LOC's. How is that possible? this is about the best forward indicator you can have.
if you were in business or had the remotest understanding of business you would get that recession - shallow or otherwise does not happen under those conditions.
as for the charts - leaving off all the calls on the cyclical trends chart is straight out dishonest
as for the RPI chart - it is a joke - look at the volatility on it - are you kidding with the arrow?
what an ass.
look - if you have good stuff and it makes sene you can persuade me. but this is nonsense. worse it is dishonest nonsense.
where do they get these people?
E
Recession Forecast Reaffirmed [View article]
I heard the same call - last September of an imminent slowdown
I heard it again in February - imminent
Now again in May - the same.
Eventually they must get it right.
So what. Even a broken watch is riight twice a day.
Smug, arrogant and wrong with zero accountability.
If he worked for me he would have been fired long ago.
E
Asia's closer to getting on board the regional trade pact bus, as Japan's Prime Minister Yoshihiko Noda boards a flight to Beijing and says he'll speed up negotiations on a trade structure with China and South Korea. The so-called FTA would match up in size with NAFTA and the EU. [View news story]
Mark Thoma says ~200K people will lose unemployment benefits in California and other states today. Under the terms of last year's agreement in Congress, benefits would be cut off if jobless rates fell below certain thresholds; despite a weak job market, rates have been falling. "Will a cut in benefits motivate workers who have become dependent on the program to go out and find jobs?” [View news story]
E
Just two days after JPMorgan (JPM) announced a massive $2B trading loss, Pimco's Bill Gross comes to its defense, calling it one of the “best-run banks in the world." It’s a decently capitalized bank, Gross says, with $120B of Tier-1 capital. "That’s 10.5%, which is higher than the 9% U.S. average.” And capital quality, according to Pimco, is what you need to trust most in a situation like this. [View news story]
Time to buy
E
Kid Dynamite draws on his career in an internal hedge fund to provide outstanding perspective. The issue is JPM has TRILLIONS in exposure, too complicated for even the most seasoned professionals to understand. If this could happen to the best-in-class, what might we think about the rest of the banks? 2008 is not that long ago and the loss in "trust" is of far more import than the $2B. [View news story]
Take it to the bank.
Banks do this stuff as part of the normal course.
In this instance as Dimon says JPM was sloppy etc. It is not the fact of doing this activity that should be the issue - although the chattering classes seem to be focused there - it is the way it was done - they messed up.
Two things about Dimon - he will beat the holy crap out of whoever did this and it will not happen again. You can take that to the bank also.
Time to buy
E
Stocks move into the green following the Consumer Sentiment print, S&P 500 +0.2%, Nasdaq +0.7%. At 77.8 the index is at its highest level since January 2008. The read on current conditions jumped to 87.3 from 82.9, also the highest level in 4 years. A slight negative, the gauge on expectations declined to 71.7 from 72.3. [View news story]
E
"This is demoralizing," says Dick Bove of the JPMorgan (JPM -7.5%) news. Bove was a loud voice arguing the mid-April London Trading Whale story meant little. He maintains a Buy on the stock as $2B means little to a company that could earn 10X that much this year. But, he says, people "buy and own this stock because they trust management not to make errors." So which is it? [View news story]
ECRI Posts Second Week Of Negative WLI Growth [View article]
Other indicators and data are more interesting.
E
Why Germany needs a functioning euro-periphery: Its trade surplus with the rest of the eurozone fell to €62.2B in the 12 months ended in March - the lowest of any 12-month period since 2002. Much of Germany's solid growth has come from Club Med states borrowing to buy Bimmers. With credit cut off and PIIGS economies contracting, the German surplus is disappearing. [View news story]
per capita Porsche sales in Greece highest of any where in Europe.
those idiots were borrowing the money - over paying themselves and spending the money on consumables - that is the real reason they are up the creek.
Debt is not the issue. Debt used to fund consumption or unproductive investment and a lack of structural reform and very weak institutions (they seem to be unable to collect taxes) are the issues in Greece.
E
President Obama's advance team might want to do a little more fact checking next time they send the president out with the housing crisis' latest "victims" to tout home refinance. The president visited a Nevada couple on Friday, describing them as “responsible” homeowners who owe more on their mortgage than it's currently worth. The fact is, the couple did a cash-out refinance in 2007, borrowing $178K off the equity in the home. Had they not taken that money out, and continued paying on the original mortgage, they would not be underwater today. [View news story]
for years the US Government has told the population that they really must buy a house.
it was touted as the American Dream...agencies were set up to foster and grow the mortgage market...the tax system encouraged it
in the late 90's and into the 2000's the decision was made - by successive Congress and Administrations to shift this into hyperdrive and move down the credit curve so that people who could not obtain credit to buy a home were given the possibility to do so. the market and the people responded.
people are people. they will do what is best for themselves. you cannot balme them for that.
the real issue is the system and rules that facilitated this mass hysteria much of which remains intact today. change that.
if Government set up StockyMae and gave tax deduction on margin debt used to buy stocks, if stocks could be sold with no capital gains etc. etc. what do you think would happen to equity prices?
E