Tuesday, September 29, 2009

Tuesday Morning

AlphaNinja - US Stocks opened higher, thanks to a better-than-expected rebound in July home sales. Consumer confidence numbers should be out in 30minutes, and people are expecting the biggest boost in that metric since 2003.



The WSJ points out that the Federal Housing Administration, tasked with the now-discredited goal of pushing people into homes they can't afford, is a wreck, leveraged 50-1.
At a 50 to 1 leverage ratio, the FHA will soon have a smaller capital cushion than did investment bank Bear Stearns on the eve of its crash. (See nearby table.) Its loan delinquency rate (more than 30 days late in payments) is now above 14%, or from two to three times higher than on conventional mortgages.





John Paulsen, who made $3billion personally betting against the housing market, has a suggestion for saving CIT (he owns part of Indymac, and CIT bonds, by the way):
Hedge-fund maestro John Paulson is tossing about a plan to save troubled lender CIT Group through a merger with IndyMac Federal Bank, according to people familiar with the situation

US firms are split over whether they should involve themselves with "climate change" legislation.
The chamber and the manufacturers’ association oppose President Barack Obama’s effort to win passage of a “cap-and- trade” system that would limit carbon emissions to curb global warming. The groups say the proposal amounts to a tax that would cripple the economy. The chamber says the science used to document global warming should be re-examined.



Technology to increase the percentage of dairy cow calfs that are female has come at the worst possible time, with dairy demand down and supply up. “It’s real simple,” said Tony De Groot, an early adopter of the new breeding technology, who milks 4,200 cows on a farm here in the heart of this state’s struggling dairy region. “We’ve just got too many cattle on hand and too many heifers on hand, and the supply just keeps on coming and coming.”

A little feud at a French private equity firm.
The revolt shows how private-equity executives are feuding over power, money and strategy after the credit crisis shut off the debt financing used to make acquisitions. LBO firms have announced about $50 billion of transactions this year, a 73 percent drop from the same period a year earlier, according to data compiled by Bloomberg.

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