Commercial Paper Demand Rising?

From Stone McCarthy Research:

Federal Reserve Commercial Paper Outstanding Up $11.8 Bln in Oct. 26 Week

Commercial paper (CP) outstanding rose $11.8 billion on an adjusted basis in the week ended October 26. This was the first rise since mid-July, and hints that demand for commercial paper may have finally started to improve along with business confidence.

Nonfinancial paper rose $8.7 billion, with domestic nonfinancial paper up $7.7 billion, and foreign nonfinancial paper up $1.0 billion.

Financial paper fell $5.7 billion, with domestic financial paper down $12.5 billion, and foreign financial paper up $6.8 billion.

Portfolio Managers Are On The Move: 3x Increase To PM's Who Plan To Be Active In The Coming Week

The following is a survey constructed by Stone & McCarthy Research Associates.  The questionnaire is first followed by the results, in detail.  What SMRA did was create a poll and surveyed Portfolio Manager's.  What we can deduce from this is a) PM's have been moving cash, rapidly and b) the movements we see in the market over the next few days can be attributed to reallocation and redeployment of side-lined cash.  Worth noting is that on the final table, the percentage of PM's planning to be active has increased from a steady 5% over the past 4 weeks to 17%!

(Clearly) The Rules Are Meant To Be Broken

"The National Best Bid and Offer (NBBO) is a term applying to the SEC requirement that brokers must guarantee customers the best available ask price when they buy securities and the best available bid price when they sell securities".

• Red Dots are the best Ask
• Green Dots are the best Bid
• White dots are trades
• Warm colored lines are exchange Asks
• Cool colored lines are exchange Bids

A Chat With "The Man": An Interview With Nanex Founder Eric Hunsader

  

Thar She Goes!

Netflix bombed....

Traders Mourn The Death Of The Fair Market As Increase In Data Reveal Less Liquidity And More Noise

The exchanges are being overloaded once again and this time the SEC is slowly waking up to the threat which presents itself at the front door.  As NANEX continues to drive home the fact that HFT increase quote traffic and thus the data pile that is derived from it, others in the world still claim that HFT tighten spreads between bids and asks and that also more data means more liquidity by default (erroneous).  With a 10 gigabit circuit used to receive data from the Options Price Reporting Authority even NANEX is feeling the pain of HFT as costs go north of $40,000/month and data mining operations are hanging in the balance, which means we here at CC won't be able to get the truth filled white papers like this one on Biadu referenced in the article below, that offer to help traders make sense of this whole tight spread, high liquidity facade on the HFT face.  The problem with all this data is that when the exchanges receive the quotes for trades, they get so backed up that trades end up appearing to be made prior to the price even being offered on the exchange.  We're happy to see that the discussion is beginning to include a slightly marked increase in truthfulness, if only now someone could act fast and readily enough.  We highly suggest you read NANEX's Proposal for improving the market here and be prepared as regulator's and scammers will come out in droves with the same drum beat of tight spreads and increased liquidity.

Sunday Debate Reprised

Friedman, shows why he is unsurpassed in modern times in defending liberty. He cheerfully decapitates the ideas of a government-controlled economy, over a wide range of examples. His layman's explanation as to how government intervention and the Federal Reserve control of the money supply helped cause the Great Depression is simply outstanding.  Herbert Hoover had stated that he "learnt to his sorrow that the Federal Reserve was a 'weak-read' for a nation in time of trouble".   So here we have Milton blaming the government oversight and interaction in markets as what lead to to the 1929 societal breakdown.  Watch as economist Milton Freidman smacks down Donahue’s equating of capitalism with greed. If only Friedman were alive today to take Obama to school. What a debate that would be. Obama would not know what hit him, he would be left in a stuttering, stammering pile of  um’s and uh’s. If only....

Note that around the 6 minute mark in Part 1 Phil D. mentions that serious problems facing society during this time, a problem in which Ralph Nader saved the population by enabling bendable hood ornaments on cars so that women and children would stop being impaled when cars hit them.....how far we have come in protecting life.

Man Versus Machine