Sorted Weekly Tweets

Bernanke press conference (reverse order)

  • It’s over!
  • FOMC Participants Central Tendency of PCE inflation @ Year-End 2013-5, LR 1.22% 1.68% 1.88% 2.00% change -0.33% -0.07% -0.05% 0.00%
  • Bernanke gives an odd answer to Nikkei reporter, particularly given the Fed’s adoption of failed Japanese economic & monetary policies $$
  • Yeah, weird answer. RT @Matthew_C_Klein: “Volatility is linked to the BOJ’s efforts. Seems logical.” Um…
  • BB shows his ignorance on the topic of money market funds, a floating NAV will destabilize, and lead to runs on funds
  • FOMC Participants Central Tendency Unemployment Rate @ Year-End 2013-5, LR 7.23% 6.60% 6.02% 5.57% Change -0.12% -0.17% -0.19% 0.00% $$
  • FOMC Participants Central Tendency Change in GDP @ Year-End 2013-5, LR 2.40% 3.14% 3.19% 2.43% Change -0.13% -0.03% -0.07% 0.00% $$
  • BB, markets do not care about the past, they care about the future. Stock levels of bonds r the past, future behavior affects markets now $$
  • FOMC Participants Target Federal Funds Rate at Year-End 2013-5, LR 0.26% 0.58% 1.78% 4.01% Change from prior -0.03% 0.03% 0.47% 0.00% $$
  • Overview of FOMC participants’ Appropriate Timing of Policy Firming central tendency shrinks by 2 months to 2.3 years
  • Bernanke questioned on MBS holdings, denies that the Fed is having a big effect on the market. If so, why buy there for policy reasons? $$
  • BB is confused think that holding securities will keep rates low; yields react to changes in expectations of future actions $$
  • Cutting off asset purchases at 7% unemployment further clouds the market view of Fed policy; the Fed is far more flexible than that. $$
  • BB also refuses to talk about his future at the FOMC, after being asked by a Washington Post reporter. $$
  • Bad question from Bloomberg reporter suggesting that the unemployment trigger should be lower. BB gives no much of an answer. $$
  • Good question on the rise in real rates from the FT reporter. BB says that he doesn’t get why that happened. $$
  • Question on long term interest rates — BB says that is is an improving economy. Points to housing again (the dead cat bounce) $$
  • Hilsenrath asks a decent question on punk economic growth. BB responds with housing and State govs & 2 small of a deficit (!) $$ #pleasego

Companies & Industries


  • Validus Plunges, Credit Suisse Cites Cat-Bond Threat Cat bonds, ILTs r useful, but no threat 2 reinsurers FD:+ $VR $$
  • Warren Buffett Bought This Stock. Should You? $YHOO has2 get a technical analyst 2find someone 2disagree w/Buffett $$

Market Impact


  • Credit market rout may force US IG issuers to do more legwork This is normal for Wall Street; this is not news $$
  • Gold Trade Most Bearish Since ’10 as Fed Spurs Drop The juice comes out of every risk asset w/end of QE hint $$
  • Nobody Is Paying Attention To Junk? As I have argued before, yields r better indicators of risk than spreads. $$
  • Honeywell CEO: Boomer Retirement ‘Will Crush the System’ Duh, it took you this long to figure it out? $$ #FTL
  • Risks of Too Much Oneness If assets bundle into risky and riskless, it is usually time 2 reduce risk $$
  • Bank Everbright defaulted on an interbank loan 10 days ago amid wild spikes in short-term “Shibor” borrowing rates $$
  • Income hunters: Bank on this dividend stock play Feels like a tired bunch of large cap blend stocks $$ #noedge
  • With a Month to Go Before Dell’s Buyout Vote, Eyes on Proxy Firms Q boils down2 what %age of $DELL is held by arbs $$
  • Missing the Target Target date funds should b called asset allocation funds with varying levels of volatility $$
  • The Intelligent Investor: Why the Markets’ Latest Stumbles Are Good News @jasonzweigwsj Areas 2consider investment $$
Rest of the World


  • Brazilian Revolt Claims Second Life as Violence Erupts Tensions spread partly due 2 easy $$ pushing EM inflation
  • Moody’s warns on China’s local govt debt China’s debt crisis will be a national crisis b/c China won’t let cos die $$
  • PBOC Said to Inject Cash After China Money Rates Jump Like the US in 2007, where insolvency hid behind illiquidity $$
  • Abe’s Arrows of Growth Dulled by Japan’s Three Principles Flexible labor markets r an aid 2 growth in any economy $$
  • China Banking Stress May Come Faster on Cash Crunch, Fitch Says Interbank market failures plague Middle Kingdom $$
  • G8 three Ts: trade, tax and transparency Stem tax leakage from corporations & individuals, & maybe trade freely $$
  • Cracks Appearing on the Great Financial Wall of China – Remember 1997? Interbank lending market skittish over Fed $$
  • Chinese Consortium, $AIG Extend Deadline on Deal for Plane-Lease Unit Makes 10% downpayment, financing rest shaky $$
  • In Japan, Reform Plan Faces Troubles With Mergers Some cultures r averse 2change, even if there r gains 2b made $$
  • Friendships Die Hard for Hezbollah Angering Gulf Over Syria Increasingly a Shia-Sunni proxy war, raising tensions $$
  • Rohani Wins Iran Presidential Vote in First Round Now 2c what he can do vs the mullahs that hold economic power $$
  • The Cracks in China’s Shiny Buildings Adjusted 4 quality, China is not the 2nd largest economy in the world $$ #GIGO
  • Ancient Roman Concrete Is About to Revolutionize Modern Architecture Roman cement had lyme &volcanic ash: enduring $$
  • Obama Says Bernanke Has Been @ Fed ‘Longer Than He Wanted’ Long than we wanted, rather, but who wants Yellen? $$ #yuk

Illegal Spying by the Government


  • Booz Allen, the World’s Most Profitable Spy Organization Almost nothing gets done in DC w/o a contractor $$
  • NSA Surveillance Leaks Startle Privacy Board Back to Life Weak privacy board brought to attention by whistleblower $$
  • It’s OK For The NSA To Spy On Americans, But Don’t Monitor A Mosque Profiling is controversial, but it saves $$
  • Phone Metadata Proves a Powerful Tool 4 NSA, Police If fewer crimes get solved thru lack of metadata, that’s fine $$

Central Banking


  • Bernanke Makes Life Even More Difficult for the Euro All risk assets r getting hit; the Euro has its own problems $$
  • Bullard’s Unusual Dissent Unworthy of the St. Louis Fed. Time to find a new president who believes in sound money $$
  •  Central Banking at a Crossroad Agree w/Volcker on monetary policy, but not on all aspects of regulation. Good read $$
  • Tapering 101, Courtesy of Japan Bernanke needs to learn from Japan; the biggest item is that QE did not work $$
  • Market Calls Fed’s Bluff Fed is now tied into the markets; they have lost the freedom to jolt markets w/o cost $$
  • “This was really eye-opening for me”: Fed’s Raskin shocked@ low quality of work @ local job fair Utter Lightweight $$
  • Obama Says Bernanke Has Been @ Fed ‘Longer Than He Wanted’ Long than we wanted, rather, but who wants Yellen? $$ #yuk

US Politics


  • Case Closed? Far From It. Whatever Rep. Elijah Cummings says, the opposite is usually true. $$ #endtheMDgerrymander
  • IMF calls on government to reduce wage and firing costs even further Deregulation is the only economic free lunch $$
  • Pension Fund Takes Neighborly Advice Jack Bogle advises his county pension fund to index & they do so $$
  • Jefferson County Debt Plan Is Costly Presence of capital appreciation bonds increases the debt load $$ cc: @munilass

Financial Companies


  • Reason: banks have short, callable liability structures and insurance companies generally don’t. Insurance is better regulated than banks $$
  • US Weighs Doubling Leverage Standard 4 Biggest Banks Insurance companies have ~10% capital, banks should have more $$



  • Sodomy Hazing Leaves 13-Year-Old Victim Outcast in Colorado Town Rape of any sort should be automatic expulsion $$
  • A Few Voices Warn of US Energy Revolution ‘Hype’ Depletion is the issue here, $ fracked wells tend 2 deplete fast $$
  • Impossibly Efficient Good note on EMH, points out how EMH needs people who don’t believe in it to make EMH work $$
  • The Curious Case of Doug Kass and the Twitter Haters I don’t know; a man as stalwart as @DougKass will return $$
  • A Warning Shot on Management Buyouts Basically a slap on the wrist that might expand 4 future violators $$ $REV #FTL
  • Wrong: Even Pessimists Feel Optimistic About American Economy These r economists being interviewed, biased views $$
  • Nuclear Decommissioning Surge Is Investor Guessing Game It pays 2 delay final cleanup, radiation levels fall $$
  • Meh: LinkedIn Builds Its Publishing Presence I guess it works for some, but I rarely find their publishing useful $$
  • Rupert Murdoch Files 4Divorce From Pie-Deflecting Wife Who will protect him now? He doesn’t have 2 worry about her $$
  • Wrong: Detroit Looks to Pay Less to Bondholders Bold words from a man whose city will lose in court vs creditors $$
  • Bloomberg Reporters’ Practices Become Crucial Issue for Company Q: Is this disclosed in the subscriber agreement? $$

Replies, Retweets, and Comments

  • @TheStalwart QE Increases debt. In a situation where there are too many debts, deflation comes b/c ppl think that debts will not b $$ good.
  • Join me in calling on the NSA and the US government to #stopwatchingus. Sign this now: Stand up & b counted $$
  • @c_c_saunders I would prefer John Taylor, Lacker, Plosser, Warsh, Fisher, Hanke, James Grant, etc. I would even take the challenge, & win $$
  • “We’re down 4% since BB started talking. Markets are discounting mechanisms; you know that well…” — David_Merkel $$
  • @ReformedBroker Knew she was a lightweight; this just confirms it. I thought the Fed was exempt from diversity requirements…
  • Except through M&A, IPOs, etc., money doesn’t really enter or leave markets. That said, relative…” David_Merkel $$