Running Naked, High Tech Disconnect II
Running Naked....
State and local borrowers are discovering that buying municipal bond insurance from MBIA and Ambac is a waste of money.
Some investors said they didn't want the insurance because of doubts raised about the insurers' ability to pay and maintain ratings
Wisconsin, California, New York City and about 300 other municipal issuers sold bonds without buying insurance in recent weeks, avoiding premiums that are as high as half a percentage point of the bond issue.
Many investment grade munis would have AAA ratings without insurance if they were ranked the same way as corporate debt. Every state except Louisiana would be Aaa.
If you haven't already, go short on these worthless guarantors. MBIA gets about 33% of its insurance premiums from munis and Ambac gets 50%. Do the math.
Sovreign funds get the Vig... in the last 30 days and all paying 9% for the money....
China Investment Corp agreed to pump $5 billion (10% control) into Morgan Stanley as the U.S. investment bank posted a Q4 loss fuelled by $9.4 billion in losses.
Citigroup agreed last month to sell a 4.9% stake to Abu Dhabi for $7.5 billion, while UBS accepted a $9.75 billion investment from the Government of Singapore Investment Corporation (GIC).
Last month, Merrill Lynch announced total exposure to subprime mortgages and collateralized debt obligations was $27.2 billion.
Yesterday it was reported that Merrill may have another $8.4 billion in write downs, while Bear Stearns reported its first loss ever.
Today WSJ reports, Merrill Lynch may get up to $5 billion in a capital infusion from Singapore state investor Temasek Holdings.
No doubt this sovereign fund will command 9% interest on the stock option tenders.
Blame it on the Flu II... Walgreens sales up 10%, same store sales +5.4%. But sales were slower than anticipated as...
a warm autumn across much of the country delayed the flu season, holding down sales of medicines, vaporizers and related products.
Payroll reductions were largely responsible for a drop in expenses as a percentage of sales.
The company also said it was seeing strong sales of its more profitable private-label goods "as the economy softens and consumers search for more value."
In contrast to Oracle's Ellison... CEO Jeffrey Rein: "We are in the neighborhood, we are close to home.
With gas prices increasing, people are coming to our stores. In my opinion we are recession resistant, but we are not recession proof.".
High Tech Disconnect Continues... As reported previously, CPI & PPI confirm the price of computers has fallen -23% this year.
Yet, after the holiday season, CompUSA will be closing the remainder of its stores and liquidating. Meanwhile...
Circuit City reported a $207.3 million Q3 loss vs -$20.4 million Q306. Net sales -3%, Same store sales -5.6%.
The electronics retailer has posted three straight quarterly losses and changed its forecast for the current quarter to a loss.
CC has cut costs (laid off 3000 tenured and replaced them with lower paid staff) and closed stores this year in a bid to turn around its business.
The Nattering One muses... Tech rallies big, as tech retailers get stomped and prices plunge, make any sense? NOT! Hattip to Reuters and Bloomberg.
State and local borrowers are discovering that buying municipal bond insurance from MBIA and Ambac is a waste of money.
Some investors said they didn't want the insurance because of doubts raised about the insurers' ability to pay and maintain ratings
Wisconsin, California, New York City and about 300 other municipal issuers sold bonds without buying insurance in recent weeks, avoiding premiums that are as high as half a percentage point of the bond issue.
Many investment grade munis would have AAA ratings without insurance if they were ranked the same way as corporate debt. Every state except Louisiana would be Aaa.
If you haven't already, go short on these worthless guarantors. MBIA gets about 33% of its insurance premiums from munis and Ambac gets 50%. Do the math.
Sovreign funds get the Vig... in the last 30 days and all paying 9% for the money....
China Investment Corp agreed to pump $5 billion (10% control) into Morgan Stanley as the U.S. investment bank posted a Q4 loss fuelled by $9.4 billion in losses.
Citigroup agreed last month to sell a 4.9% stake to Abu Dhabi for $7.5 billion, while UBS accepted a $9.75 billion investment from the Government of Singapore Investment Corporation (GIC).
Last month, Merrill Lynch announced total exposure to subprime mortgages and collateralized debt obligations was $27.2 billion.
Yesterday it was reported that Merrill may have another $8.4 billion in write downs, while Bear Stearns reported its first loss ever.
Today WSJ reports, Merrill Lynch may get up to $5 billion in a capital infusion from Singapore state investor Temasek Holdings.
No doubt this sovereign fund will command 9% interest on the stock option tenders.
Blame it on the Flu II... Walgreens sales up 10%, same store sales +5.4%. But sales were slower than anticipated as...
a warm autumn across much of the country delayed the flu season, holding down sales of medicines, vaporizers and related products.
Payroll reductions were largely responsible for a drop in expenses as a percentage of sales.
The company also said it was seeing strong sales of its more profitable private-label goods "as the economy softens and consumers search for more value."
In contrast to Oracle's Ellison... CEO Jeffrey Rein: "We are in the neighborhood, we are close to home.
With gas prices increasing, people are coming to our stores. In my opinion we are recession resistant, but we are not recession proof.".
High Tech Disconnect Continues... As reported previously, CPI & PPI confirm the price of computers has fallen -23% this year.
Yet, after the holiday season, CompUSA will be closing the remainder of its stores and liquidating. Meanwhile...
Circuit City reported a $207.3 million Q3 loss vs -$20.4 million Q306. Net sales -3%, Same store sales -5.6%.
The electronics retailer has posted three straight quarterly losses and changed its forecast for the current quarter to a loss.
CC has cut costs (laid off 3000 tenured and replaced them with lower paid staff) and closed stores this year in a bid to turn around its business.
The Nattering One muses... Tech rallies big, as tech retailers get stomped and prices plunge, make any sense? NOT! Hattip to Reuters and Bloomberg.
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