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Sunday, March 29, 2009

Worthwhile Reading - Mar 29th Edition

PPIP: heads or tails? David Kotok, Cumberland Advisors, via The Big Picture.

Less than meets the eye. Alan Abelson, Barron's, via Financial Armageddon.

Fewer companies likely to emerge from Chapter 11. Yves Smith, naked capitalism.

Roadmap to inflation and sources of cheap insurance. James Montier, SocGen, via John Mauldin's Outside the Box.
you've gotta like this kind of candor:
As Albert and I regularly point out during meetings, we have never been more unsure on the inflation/deflation outlook. I have previously said I was torn between the deflationary impact of the bursting credit bubble, and the inflationary pressures of the policy response. When we read something by the deflationists we sit there nodding our heads in agreement, then we pick up something by the proponents of a return of inflation and we find ourselves agreeing with that as well. The respective sides seem deeply entrenched in their positions.
In contrast, we are trying to keep an open mind on the subject. Albert is biased towards a Japanese style outcome, and I am biased towards an inflationary outcome, but neither of us has any strong conviction.

Only a united front at the London G20 can save the world from ruin. Ambrose-Evans Pritchard, Telegraph.

OCC's quarterly report on bank trading and derivatives activities, fourth quarter 2008. Comptroller of the Currency.
insured U.S. commercial banks now have over $200 Trillion of notional value of derivatives: 87% (!!) of that is held by just four banks (no prizes for guessing those are JPM Chase, BoA, Citi and Goldman)

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