Aaron Krowne

A Bad News Day For Citigroup

Yesterday wasn’t the best of news days for Citigroup. The key stories I saw were:

Citigroup has appeared to clumsily reverse course on their previous “pledge” not to support their ailing SIV vehicles (now apparently reaching about $66 billion; formerly as high as $83 billion) in the form of statements by one William Mills:

Is The Fed Flushing Out The “Excess Credit” Demons?

My summary answer to this question is “no”. The debate spurring my remarks here, which is presently raging in the Fed-skeptic/hard money camp, has splintered into the “austere Fed” vs. “profligate Fed” sub-camps. There are assumed to be important practical ramifications of the answer to this question regarding investing, trading, and the […]

Markets Are Not Math!

August 9 – The Wall Street Journal (Henny Sender and Kate Kelly): Quant funds – ‘quant’ stands for quantitative — generally operate by building computer models of market behavior and then allowing the computer programs to dictate trading. A recurring characteristic of the recent trouble in financial markets is that many lenders, funds and brokerages […]

Fodder for Greater Fools

Resuming a familiar refrain, the market is moving up today for all the wrong reasons.  Bad news is being taken as good—as if the deteriorating economic situation over the past year is not proof enough that doe-eyed readings of the leading month or week’s data is pure folly.

Smoot-Hawley’s Revenge

“The bottom line here is very clear: The US Congress just doesn’t do macro.”  –Stephen Roach, in Past The Point Of No Return
Isn’t it remarkable that the pea-brains on capitol hill don’t link the obvious negative consequences of the trade imbalance with China (manufacturing job loss) with the “positive” results we’ve come to depend on: […]