Archive for the ‘Broker Notes’ Category

Hocus Pocus, Try to Focus

By Derek On December 1, 2011 No Comments

From: Derek Hillen
Sent: Thursday, December 01, 2011 12:34 PM

Subject: Hocus pocus, try to focus

“Fake it until you make it.”  - Steven Tyler

Covering Their Shorts

The Dow had its biggest jump in 2 1/2 years, rallying 490 points and 490 stocks in the S&P 500 finished higher last night too. Other coincidences show China easing by slashing the RRR (50 bps) for the first time since 2008, two hours before global coordinated central bank action, thus drawing a line under falling markets for now and causing a lot of short covering. The magic trick was to avoid European Armageddon, at least until December 9th when euro area finance ministers will hold another meeting. (The result of this is likely to be….another meeting). Obviously, the news about to come out of Europe, from one of their shaky banks, was SO bad central banks were forced to act. Do

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Watching Godzilla Backwards

By Derek On November 15, 2011 No Comments

From: Derek Hillen
Sent: November 15, 2011 11:05 AM

To: Derek Hillen
Subject: Watching Godzilla Backwards

Juliet calls out to Romeo, despondent about his family name, the sworn enemy of hers:

‘Tis but thy name that is my enemy…What’s in a name? That which we call a rose by any other name would smell as sweet;”

News today that China’s ambitious goal of completing 10 mn units of “social housing” by the end of the year is not going to happen, hardly surprises. Just last month China was firmly “on track” to reach that number and now, a few weeks later, up to one third of the 10 mn future hovels are “just holes in the ground.” if that.” What happened? It all comes down to your definition of the words, “construction starts.” With real estate construction accounting for over 10% of GDP and a major consumer of steel

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Mission Impossible

By Derek On October 25, 2011 No Comments

From: Derek Hillen
Sent: Monday, October 24, 2011 11:53 AM

To: Derek Hillen
Subject: Mission Impossible

The good news is that, according to the Obama administration, the rich will pay for everything. The bad news is that, according to the Obama administration, you’re rich.” – P.J. O’Rourke

And the good news out of Europe is anything but. Here is what you need for when it is formally announced:


We also have the latest news out of China and for property speculators it is not good. Premier Wen over the weekend said that property market controls will continue. Li Keqiang, the current vice premier and likely Wen successor, is the guy responsible for housing policy in China. In the run up to leadership change in China in 2012, Mr. Li is going to want to be seen as having beaten the crap out of and tamed the wild housing market so

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