zero hedge Fri 2009-08-28 17:15 EDT

The Oil-Gas Six Sigma Dislocation

The CFTC has earned its stripes by allowing speculators to take the oil to natty relationship to unprecedented arb levels. Represented in energy content equivalents, where oil traditionally has been in the 6x-12x range for gas, the most recent reading is 26.36! This is, as the chart indicates, your six sigma event for the day. A long NG1 - short CL1 arb may take some abuse but absent Amaranth coming out of somewhere (and even they were eventually prosecuted), this relationship should collapse to some semblance of normalcy. Although in this bizarro market it is guaranteed to do the opposite of what any fundamental or technical relationships dictate.

Oil gas; Sigma Dislocation; Zero Hedge.

The IRA Analyst Wed 2009-08-26 15:50 EDT

Washington Fiddles as Global Deflation Rages

The surprise facing Geithner, Bernanke et al is that by Q3, the true economic deterioration in many toxic assets will be clear for all to see. ``whatever relief that financial institutions and other residents of the hold-to-maturity world believe that they will receive through the modification of fair-value accounting and other official dispensation, they will lose through deteriorating economic fundamentals and falling cash flows supporting these assets as 2009 unfolds.''

Global Deflation Rages; IRA Analyst; Washington fiddles.

The Economic Populist - Speak Your Mind 2 Cents at a Time Tue 2009-04-21 00:00 EDT

How we got here, and how to prevent it from happening again | The Economic Populist

``whatever the fundamental problem with banking system is it is at the very least 35 years old, if not older...Wall Street proved themselves to be unable to detect toxic debt from bubble assets''

economic populist; happened; Mind 2 Cents; prevent; speaking; Time.

Tue 2009-04-21 00:00 EDT

Interfluidity :: When did the crisis begin?

``the crisis that we're in now is precisely the same crisis we've been in since at least the S&L crisis. We've had a cancer, with some superficial remissions, but fundamentally, for the entire period from the 1980s to 2008, our financial system in general and our banks in particular have been broken.''

crisis begin; Interfluidity.

Fri 2008-11-07 00:00 EST

Calculated Risk: Fed's Warsh: Fundamental Reassessment of Every Asset Everywhere

assets; Calculated Risk; Fed's Warsh; fundamental reassessment.

Tue 2008-09-23 00:00 EDT

The Perilous Price of Oil - The New York Review of Books

The Perilous Price of Oil, by George Soros - The New York Review of Books; ``prices in financial markets do not necessarily tend toward equilibrium...There is a two-way, reflexive interplay between biased market perceptions and the fundamentals, and that interplay can carry markets far from equilibrium. Every sequence of boom and bust, or bubble, begins with some fundamental change, such as the spread of the Internet, and is followed by a misinterpretation of the new trend in prices that results from the change. Initially that misinterpretation reinforces both the trend and the misinterpretation itself; but eventually the gap between reality and the market's interpretation of reality becomes too wide to be sustainable.''

books; New York Review; Oil; Perilous Price.

Thu 2008-07-03 00:00 EDT

naked capitalism: Are Trichet's Rate Hikes 1930 All Over Again?

"rather have the central bankers simply sit tight and do nothing for a quarter and try to get a better handle on the fundamentals."

naked capitalism; Trichet's Rate Hikes 1930.

Fri 2008-06-13 00:00 EDT

The REAL reasons for high gas prices | The Economic Populist

oil bubble attributed to fundamentals, falling dollar, Iraqi war

economic populist; high gas price; real reason.

Thu 2008-05-29 00:00 EDT

Jeff Matthews Is Not Making This Up: Congress Blames the Hedge Funds--Yeah, That's It!

Jeff Matthews Is Not Making This Up: Congress Blames the Hedge Funds--Yeah, That's It! commodity speculation trumped by oil price fundamentals

Congress blames; Hedge funds; Jeff Matthews; makes.

Mon 2008-05-19 00:00 EDT

Hussman Funds - Weekly Market Comment: Poor Fundamentals with Borderline Market Action - May 19, 2008

appeasement defined; 2003 arguments against war, in favor of diplomacy

19; 2008; Borderline Market Action; Hussman Funds; poor fundamentals; weekly market comments.

Fri 2008-04-11 00:00 EDT

Jesse's Café Américain: "Nothing Fundamentally Broken on Wall Street" - Bernanke

Jesse's Café Américain: "Nothing Fundamentally Broken on Wall Street" - Bernanke

Bernanke; fundamentally broken; Jesse's Café Américain; Wall Street.

Fri 2008-03-28 00:00 EDT

10 days That Changed Capitalism

by Rob Johnson and Robert Borosage; "market fundamentalism that has dominated our economics over last three decades has been unmasked as a sham"

10 day; changing capital.

Tue 2007-12-04 00:00 EST

naked capitalism: "Fundamentals, not liquidity conditions, are behind MBS crash"

CreditSights believes MBS pricing in line with fundamentals, since severity loss ratio is historically elevated

fundamental; liquidity conditions; MBS crash; naked capitalism.

Thu 2007-09-13 00:00 EDT

The shock doctrine | Business | Guardian Unlimited Business

The Shock Doctrine: The Rise of Disaster Capitalism, by Naomi Klein (edited excerpt; Guardian Unlimited); Milton Friedman; Chicago school; market fundamentalism; exploiting disaster to obtain market reform

business; Guardian Unlimited Business; Shock Doctrine.

Tue 2007-03-20 00:00 EDT

RGE - Who is to Blame for the Mortgage Carnage and Coming Financial Disaster? Unregulated Free Market Fundamentalism Zealotry

by Nouriel Roubini

blames; Coming Financial Disaster; Mortgage Carnage; RGE; Unregulated Free Market Fundamentalism Zealotry.

Mon 2007-03-19 00:00 EDT

RGE - Who is to Blame for the Mortgage Carnage and Coming Financial Disaster? Unregulated Free Market Fundamentalism Zealotry

blames; Coming Financial Disaster; Mortgage Carnage; RGE; Unregulated Free Market Fundamentalism Zealotry.