From the monthly archives:

April 2009

Chrysler files for Chapter 11

by Mike Larson on April 30, 2009

in Debt, Economy

One of the “Big Three” automakers — Chrysler LLC — has now filed for Chapter 11 bankruptcy. Here is an excerpt from a Bloomberg story on the filing:
“Chrysler LLC, the smallest of the Big Three U.S. automakers, filed today for bankruptcy protection in New York to streamline operations and shed debt in a reorganization that [...]

Risk Asset Joy Ride

by Bryan Rich on April 30, 2009

in General

Key News
 
*Stocks Rise Worldwide, Pushing S&P 500 to Best Month Since 1991 (Bloomberg)
* Trichet Calls for Silence as ECB Council Bickers Over New Tools (Bloomberg)
*Chrysler Will File for Bankruptcy, Official Says (Update2)  (Bloomberg)
*Bank of Japan slashes forecasts (Financial Times)
 
The Event Agenda

The Morning Run-Down
Yesterday’s joy-ride in risk assets continued the paradox of data versus optimism.  GDP [...]

An Un-Kodak Moment: Another Dividend Cut

by Nilus Mattive on April 30, 2009

in Dividend Stock

Lately it’s seemed like the flurry of dividend cuts we saw earlier in the year has slowed. Then today, Eastman Kodak came out and said its losses more than tripled in the first quarter of 2009.
The firm said it would be trimming executive pay, forcing employees to take an unpaid week off, and  suspending the semiannual dividend.
When [...]

Interesting note on preferred bank stocks …

by Nilus Mattive on April 29, 2009

in General

I devoted the cover story of the March Dividend Superstars newsletter to preferred shares, and in a follow-up this past month, I talked about additional risks associated with this unique class of stock.
Today, I came across an interesting rumor that is floating around: Six of the 19 banks that were given “stress tests” have inadequate capital at the [...]

The Federal Open Market Committee just wrapped up its latest policy meeting. Noteworthy: The Fed left its mortgage backed security (MBS) and Treasury buying targets unchanged. The complete FOMC statement follows:
“Information received since the Federal Open Market Committee met in March indicates that the economy has continued to contract, though the pace of contraction appears [...]

Don’t miss this most recent press release from Weiss Research, Inc.:
Jupiter, Fla., April 28, 2009 — The latest book by Martin D. Weiss, Ph.D., president of Weiss Research, Inc., “The Ultimate Depression Survival Guide,” débuts on the New York Times Best Seller List in the coveted #4 spot of the Advice [...]

There’s some interesting market action in the Treasury arena today. The long bond futures are getting blitzed, with a price decline of 1 2/32 at last check. Moreover, the yield on the 10-year note is once again testing the 3% area (a gain of about 10 basis points on the day).
The immediate catalyst appears to [...]

April 28th, Morning Run

by Bryan Rich on April 28, 2009

in General

Key News
 
*Home Prices in 20 U.S. Cities Declined by 18.6% in February (Bloomberg)
* New Zealand May Cut Interest Rate to Record-Low 2.5% (Bloomberg)
*Citigroup, Bank of America Decline on Capital Report  (Bloomberg)
*Oil, Metals, Grains Drop on Outlook for Demand After Swine Flu  (Bloomberg)
 
The Event Agenda

The Morning Run-Down
Though markets this morning are giving back some of the [...]

Reports this morning that Citigroup is among the losers in the recent bank stress tests confirm our data, reported last week, that the bank’s financial condition has continued to deteriorate in the first quarter, despite reports of profits. (See “Big bank profits are bogus! Massive public deception!”)
Moreover, the stress tests are based on blatantly mild [...]

The latest figures from S&P/Case-Shiller continue to show home prices falling, though the rate of decline has stabilized a bit. The 20-city index dropped at an 18.6% year-over-year rate in February, compared with 19% in the prior month. On a monthly basis, the index fell 2.2%. That compared with a decline of 2.8% a month [...]