The Big Picture

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• 10 Tuesday PM Reads
• Media Appearance: Dylan Ratigan Show (11/8/11)
• Weekend Update: A Closer Look At Europe
• Winners and Losers of 2011s IPO Market
• Greek Exit Not Fatal for Euro
• BERLUSCONI TO RESIGN
• Italian bonds/why euro is NOT closer to 1.0
• Media Appearance: Bloomberg Surveillance Midday
• Major Secular Bear Markets (Inflaion Adjusted)
• The Story of ETF Creation and Redemption

10 Tuesday PM Reads Posted: 08 Nov 2011 02:30 PM PST Afternoon train reading: • Parallels Between China And Pre-Crash Japan: Déjà Vu All Over Again (Patrick Chovanec) • Liesman vs Achuthan: Why investors should be terrified of certainty (Interloper) • Small Banks on Occupy Wall Street’s “Move Your Money Day” (Fast Company) • Nassim Taleb: End Bonuses for Bankers (NYT) • Apple: For What It's Worth, Part II (Jeff Matthews Is Not Making This Up) • Steven Pearlstein: You bet it's another bubble (Washington Post) but see The Extraordinary Popular Delusion of Bubble Spotting (WSJ) • High Bank Fees Give Wal-Mart a Money Aisle (NYT) • Did Fannie Cause the Disaster? (NY Review Of Books) see also WaMu Bank Executives Knew of Rampant Fraud, Yet Failed to Act (Alter Net) • How Jonah Hill Became An Action Hero In Call Of Duty Modern Warfare 3 [video] (Fast Company) • Louis CK’s next comedy special: It’s not TV, it’s NOT HBO. It’s online. (Pop Watch) What are you reading? > Source: The Reformed Broker

Media Appearance: Dylan Ratigan Show (11/8/11) Posted: 08 Nov 2011 01:00 PM PST > Let’s try this again, shall we? This afternoon ~4:15pm to discuss EuroZone. Bullet points: • Greece is a small dysfunctional economy with a disastrous set of policies — it will be painful, but not impossible for them to default or leave the Euro. • Italy is a large robust economy with a disastrous set of deficits — it will be disastrous and impossible for them to default or leave the Euro. They will be bailed out or the Euro will collapse. • Spain is a large dysfunctional economy; they cannot restructure or grow their way out of their problems — like Italy — and they cannot defaulty or leave the Euro like Greece. The options for EU policy makers re: Spain are terrible or awful. • US Bonds remain a safe haven More to come later. >

Weekend Update: A Closer Look At Europe Posted: 08 Nov 2011 12:15 PM PST Ironically SNL does a better job of explaining the European financial crisis than most Wall Street economists via Saturday Night Live

Winners and Losers of 2011s IPO Market Posted: 08 Nov 2011 11:30 AM PST From Column Five, we get this awesome 2011 IPO graphic: > click for ginormous graphic Hat tip Column Five

Greek Exit Not Fatal for Euro Posted: 08 Nov 2011 11:28 AM PST Barry Ritholtz, chief executive officer at FusionIQ, talks about global markets and Europe’s debt crisis. He speaks with Tom Keene on Bloomberg Television’s “Surveillance Midday.” 14:36 Source: Bloomberg Nov. 8

BERLUSCONI TO RESIGN Posted: 08 Nov 2011 10:49 AM PST BN:  *ITLAY’S BERLUSCONI TO RESIGN AFTER APPROVAL OF AUSTERITY LAW

Italian bonds/why euro is NOT closer to 1.0 Posted: 08 Nov 2011 09:08 AM PST As Berlusconi has lived to fight another day after winning a budget vote (although he didn’t get a majority because of abstentions and this could lead to a confidence vote within days), Italian bond yields 5 yrs and 10 yrs out have reversed higher and the 2 yr yield, up all morning, is now extending its gain to 19 bps to 6.17%. For those calling for the ECB to behave like the Fed, new ECB member Weidmann, a German with a Bundesbank mentality said not on his watch, “one of the severest forms of monetary policy being roped in for fiscal purposes is monetary financing, in colloquial terms also known as the financing of public debt via the money printing press.” Money printing is a drug that provides only a temporary high with long term negative consequences. It is this mentality of the ECB as opposed to the vision of the Fed that has the euro at near 1.40 to the US$ rather than closer to 1.0.

Media Appearance: Bloomberg Surveillance Midday Posted: 08 Nov 2011 09:00 AM PST > I am off to go chat with Bloomberg's Tom Keene at 12 noon — watch it live on BBTV or stream it on the web. I guess this makes me a Keenesian! (get it? Its a pun on Keynesians!)

Major Secular Bear Markets (Inflaion Adjusted) Posted: 08 Nov 2011 08:30 AM PST Yesterday we looked at 4 Major Secular Bear Markets. Several people asked for an inflation adjusted version. Thanks to Lance Roberts of Street Talk Advisors, you will find that below: > Real Price S&P 500 with Shiller's Data and recessions click for larger chart

The Story of ETF Creation and Redemption Posted: 08 Nov 2011 07:32 AM PST Ever wonder what allows ETFs to be liquid? The answer is “creation and redemption,” the process that lets ETFs trade even when volume is low. Using simple illustrations and a metaphor about flowers, this seven-minute animation will change the way you look at ETFs. Hat tip Themis Trading

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