Two weeks after Deutsche Bank first announced it would raise €8 billion in capital as part of a comprehensive restructuring, the German lender on Sunday announced the terms of its upcoming massive dilution.
For the second week in a row, Deutsche Bank's strategist Parag Thatte has a somewhat conflicted message for the bank's clients: on one hand, he writes that positive economic surprises continue "but are getting less so", and although the divergence between hard data surprises and sentiment is diminishing the bank is somewhat confident that a "pullback in the very near term is unlikely" (here DB disagrees with Goldman Sachs).
Government dysfunction is at its worst. We voted them in. We have no one to blame but ourselves.
Granted, the choices were abysmal. But the Republican and Democratic parties,
with no third party competition, can continue to run dysfunctional governments,
whittling away our dominant global position until the cracks of our broken government
becomes abundantly clear. As a society,
we play right into their subterfuge of keeping us so upset at the other party,
By Chris at www.CapitalistExploits.at
On Wednesday, we took a gander at global real estate and today I've got a follow up to that dealing with REITs.
My long term buddy, fellow hedgie and confidant Kuppy, who can be found lurking here, shares his thoughts on the US real estate sector and in particular REITs:
Him: I think people are wrong. There are lots of instances where the Fed has raised rates and nothing bad has happened.
Me: Name one time.
Via Global Macro Monitor blog,
The Fed tightens on Wednesday and bonds rally. What the hay?
GaveKal, Jeff Gundlach, and Jim Bianco nailed it in that every spec and their mother are/were short 10-year Treasuries.
Source: Quandl (see here for interactive chart)
But this is only a small part of the story: The global bond markets are broken.