Showing posts from January, 2017

U.K. Economics - Bank Rates & Sterling Lending Rates

STERLING 6 MONTH MEAN INTERBANK LENDING RATE (Source: Bank of England) Interest rate, Percent, Interbank lending rate 6 month mean, Sterling . For more information, please see:






OFFICIAL BANK RATE (Source: Bank of England) Interest rate, Percent, Official Bank Rate, Sterling . For more information please see:






GOLD PRICE AGAINST STERLING (Source: Bank of England) Exchange rates, Fine troy ounces, Gold price, Sterling . For more information, please see:






GOLD PRICE AGAINST US$ (Source: Bank of England) Exchange rates, Exchange rates, Fine troy oun…

Fresh Lawsuit: American Apparel (From WWD)

Fresh Lawsuit: American Apparel (From WWD)
From WWD / Kari Hamanaka

A fresh lawsuit from Standard General serves up more questions as to whether American Apparel ever had a fair shot at a turnaround following its first go at bankruptcy.

New York investment firm Standard General on Monday filed a lawsuit against Goldman Sachs, Monarch Alternative Capital, Coliseum Capital Partners LP, Pentwater Capital Management and Blackwell Partners LLC — the other financial firms that comprise American Apparel’s lender committee — for breach of contract in hopes of winning damages and have a judge reassess the priority of payment claims on certain loans.

The picture painted isn’t pretty, with Standard General alleging the lender committee propped up the company with additional debt — $82 million between April and October of last year — as it focused on a sale of the business for the highest price rather than a turnaround of American Apparel.
Prior to and during the company’s second bankruptcy the lend…

The State of Dodd-Frank News & Updates on Dodd-Frank

Headlines and news rundowns from my personal reading...

The Dodd Frank Report studies the resolution of financial institutions as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (U.S. Courts Page)

"I don't support going back to Glass-Steagall as is," Mnuchin told the Senate Finance Committee. "When we talked about policy with the president-elect, our view is we need a 21st century version."

Away from that....A paper from Federal Reserve staff released in December that found that the Volcker rule had a negative effect on corporate-bond liquidity, or the ease with which buyers and sellers can find each other. Federal Reserve Paper: Volcker Rule and Market-Making - Link

The head of CME Group on the Volcker Rule: Everybody thinks Dodd-Frank is in full swing, so people want to dismantle something that's not even 100% enacted today. So I think we have to wait and see how this plays out. But the pendulum definitely swung a little to…

U. S. Economics: Jan. 19, 2017 8:30 am

Philadelphia Fed Business Outlook Survey : Prior: 21.5, Prior Revised:

19.7, Consensus: 16.0, Consensus Range: 12.0 to 22.2, Actual: 23.6

Housing Starts : Prior: 1.090M, Prior Revised: 1.102M, Consensus:
1.200M, Consensus Range: 1.100M to 1.275M, Actual: 1.226M

Initial Jobless Claims Drop 15,000 to 234,000, vs
255,000 Estimates; Week Ended 1/7 Revised Up to 249,000

US Building Permits (Dec) M/M -0.2% vs. Exp. 1.1% (Prev. -4.7%)

US Philadelphia Fed Manufacturing Index (Jan) M/M 23.6 vs. Exp. 15.8

Market Deregulation

I am a big fan of the JOBS ACT - but not of crowdfunding. However, I am not against crowdfunding, and I see it working in some circumstances, but it's not an excitement. The point is that with a good comes a bad. The JOBS ACT untied some knots but not enough to fully let open the floodgates of capital. The extra oomph needed was confidence. We now have that, and sentiment seems to be on a non stop train, ticking up and up, higher and higher.  So should we repeal Dodd Frank?
Is this bad?
I can't possible answer that, but I will say that I think it could be bad now that we have Trump as president. I am fearful of idiotic risk takers, financial magic oil salesman, and bad deals. Is it really time to roll back Dodd Frank?
Anyways, as a restructuring professional, I can only comment.

What Gold Is Really Worth (Right Now)

Gold is falling and that is a good thing. Unless the new president pushes us back to a gold standard, gold is likely to settle. I'd like to see that level near 2007-2008 levels, however we have to see how active the market stays, and how much supply is leveraged for derivative trading. Yes, in times of extreme instability gold can hold a value standard, but that does not compute to long term holding of the metal.  My theory is that the extreme scare and flight of capital out of equities into gold in 2008 pushed the price up to an unruly price. 
See Zermatt's Gold Report PPT - Zermatt Institute

The Lows of the Euro (EURUSD)

Where has the Euro gone?

StartUp Part 7: MAGIC (Season 4, Episode 10)

Hey guys - If you want to hear me on a podcast the link is here: Gimlet Media

Following his ousting from American Apparel, Dov Charney has been eager to restart and launch his new venture—Los Angeles Apparel. He has assembled the fabric, the equipment, and the people to help make his new clothing line. Now he needs to find his customer base. In this, the season finale of StartUp, Charney debuts his product to a group of people that knows his history well. But will his past prove to be an obstacle, or become part of what leads his new business to success?
Gimlet Media

CHAD: And we made some jokes to the point that hey, let’s go ahead and get in touch with these guys, because, you know, we’re fine loaning money to them if they’re taking it at 15%.

ISM Manufacturing Index Rises to Highest Level in Two Years

ISM Manufacturing Index Rises to Highest Level in Two Years as New Orders, Prices Jump - 10:32 AM EST, 01/03/2017 (MT Newswires) -- The Institute for Supply Management's manufacturing index rose to the highest level in two years last month and the overall economy grew for the 91st straight month, the ISM said in a report on Tuesday. The manufacturing index rose to 54.7% in December, up from November's 53.2%, the ISM said. The new orders index rose to 60.2%, up 7.2 percentage points, from the prior monthly. The employment index came in at 53.1%, up from 52.3%, and raw-material inventories were reported at a 47% reading, down 2 percentage points from November, the ISM said. The prices index rose 11 points to 65.5% in December, an indication of higher raw material prices. Eleven of the 18 manufacturing industries -- petroleum and coal, primary metals, miscellaneous manufacturing, food, beverage and tobacco, apparel, paper products, machines, electrical equipment, appliances, com…

Salt In China 2017

A little economic history: the word salary is derived from salt. 

Beijing prepares to dissolve ancient grip on salt market - Link

Salt, salt production, and salt taxes played key roles in Chinese history, economic development, and relations between state and society. The lure of salt profits led to technological innovation and new ways to organize capital. Debate over government salt policies brought forth conflicting attitudes toward the nature of government, private wealth, the relation between the rich and the poor, while the administration of these salt policies was a practical test of a government's competence. - Wikipedia

Michigan Surveys - A Look At Sentiment & Inflation

A Look At Consumer Sentiment & Inflation