The Israeli military was said to have been engaged in an air and ground force buildup along the border with Lebanon.

Lebanese security sources said the Israel Army has deployed main battle tanks and armored personnel carriers along the northern border with Lebanon.The sources said Israeli troops and combat vehicles have undertaken what was termed “unusual military activity.”

“This is not an exercise,” a security source said.

The sources identified the Israeli combat platforms as the Merkava Mk-4 MBT, M113 APC and Hammer vehicles. They said the armored vehicles were seen stationed at several points along the 70-kilometer Israeli-Lebanese border, including the Shebaa plateau. Read more…

It’s one of the most dangerous jobs in the world, with the longest commute.

Sailors on board the aircraft carrier USS John C. Stennis are running flight exercises in the Gulf of Alaska this week part of a joint training exercise known as Northern Edge.

It’s like playing Battleship, only with a lot more at stake. Read more…

The Air Force successfully launched an unarmed Minuteman 3 intercontinental ballistic missile Monday from the California coast to an area in the Pacific Ocean some 4,200 miles away.

The ICBM was launched from Vandenberg Air Force Base near Santa Barbara at 3:01 a.m. and carried three unarmed re-entry vehicles to their targets near the Kwajalein Atoll in the Marshall Islands, said Lt. Raymond Geoffroy.

The missile, configured with a National Nuclear Security Administration Test Assembly, was launched under the direction of the 576th Flight Test Squadron, whose members installed tracking and command destruct systems on it to collect data and meet safety requirements. Read more…

The ground force of Iran’s Army started three-day exercises on Monday, local Fars news agency reported.

The drill is to be carried out in the provinces of Khuzestan, Ilam and Lorestan in west and southwest of the country.

The Iranian forces are due to drill their power of commanders’ command control in different regiments during military exercises, the report said. Read more…

Russian forces have begun their biggest military exercise in the Caucasus since the war with Georgia last year.

More than 8,000 troops are taking part in the manoeuvres near the Georgian border, which Georgia has called “a pure provocation from Russia”.

Last month Nato angered Russia by staging exercises in Georgia itself. Read more…

Russia and China will hold joint military exercises next month, a top Russian military official said Monday, as the giant neighbors work towards tighter cooperation.

“The head of the Russian and Chinese military delegations agreed that 1,300 soldiers from each side would participate,” said the deputy army chief Lieutenant General Sergei Antonov, adding 20 Russian war planes would take part. Read more…

Russian Prime Minister Vladimir Putin told state-run banks to expedite loans to companies to help stem a financial crisis that will force the government to run deficits for at least three years.

Putin called on banks such as OAO Sberbank and VTB Group to boost lending by as much as 500 billion rubles ($16 billion) by October. The government will guarantee 300 billion rubles of the total, he said.

“The government expects that banks will consistently expand lending for the priority industries and reduce borrowing costs,” Putin said today on state television. Read more…

UAE banks have ’significant’ exposure to Saudi Arabia’s troubled Saad Group and Algosaibi conglomerates, the UAE central bank governor was quoted as saying today by Reuters. Read more…

The Monetary Authority of Singapore said on Monday they had signed a deal to provide emergency liquidity to banks in each others’ territories.

Under the terms of the arrangement Dutch banks in Singapore can approach the MAS, and Singapore banks in the Netherlands can approach the DNB, if they require “liquidity assistance”. Read more…

The Bank for International Settlements said there’s a risk central banks will raise interest rates and withdraw emergency liquidity too late, triggering inflation.

History shows that policy makers “have a tendency to be late, tightening financial conditions slowly for fear of doing it prematurely or too severely,” the BIS, which oversees central banks, said in its annual report published today in Basel, Switzerland. “Because their current expansionary actions were prompted by a nearly catastrophic crisis, central bankers’ fears of reversing too quickly are likely to be particularly intense, increasing the risk that they will tighten too late.” Read more…

As Larry Levin pointed out earlier, there is no volume as usual, a perfect opportunity for the SPARCs and the (In)visible hands to wreak havoc with all the shorts, as per the running script. Volume run rated to end silly low.

In the meantime, VIX is collapsing: just what your friendly next door quant, who has never heard of arcane concepts like EBITDA, leverage or gross margin, but knows all about charts and the only factor that works, to gun the market into the stratosphere. After all, he know he has so many helping hands to prop him up.

hat tip crazy, energetic scotsman

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Even as Six Flags’ OCC (Official Credit Committee) was being formed in Delaware last Friday, with naive participants such as BoNY, HSBC, Esopus Creek Capital, Schottenfeld Associates, John Gorman, Whirley Drink Works and Coca-Cola (the last two must be royally pissed as all their advance profits on $9.95 small cups of soda have just become General Unsecured Claims) all hoping for some meager recoveries, and financial advisors (Broadpoint, Chanin, Moelis, Mesirow, BDO and Peter J Solomon, all of which are now overnight specialists in the amusement park business) trying to bedazzle the committee with their pretty charts and glass beads (and in the case of some, expansive dinners at Tao, where engagement letters were hoped to be signed on the naked backs of blonde, barely legal, Ukranian imports), the ad hocs were preparing for war according to Debtwire.

As Zero Hedge noted previously, the Six Flags prepackaged plan envisioned a massive cram down of virtually everyone who was not a secured lender. This ended up pissing off one Marc Lasry and his Avenue Capital to no end. Alas, Clinton-clan scion Chelsea is no longer around to have some heated discussions (presumably with the ever-convincing wingman Steve Rattner on the line) with Mark Shapiro over what is best for the economy and for the Avenue Credit Fund. As a result, Avenue, which holds approximately 40-50% of the Six Flags 12.25% OpCo notes, and 10% of the bank debt, has hired Akin Gump and Barclays as legal and financial advisors, and basically instructed them to go to town on the Six Flags valuation. As existing lenders are currently envisioned receiving 92% of the pro forma equity, pretty much everyone below them is rightfully pissed.

However, Avenue and straggler Fidelity will likely have their work cut out for them: good luck proving to a judge that in the biggest depression ever (sorry 1930’s, you were just demoted), a bankrupt amusement park can fetch anything even remotely close to a 7x valuation, especially when you nearest comp Cedar Fair is already trading inside of that.

Then again, if the government is really set on determining a FMV for the S&P of a Abby Joseph Cohen orgasm inducing 2,000, then by all means Avenue has a definite chance of succeeding in not only getting uncrammed, but getting awarded huge warrants in addition to 100% of the equity, and free Medusa rides for life. We wish them all the best.

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Submitted by James Perry.

Everyone speaking about inflation these days. Many seeing it mostly in commodity prices and the insane printing of money. Yet with oil heading steadily back to the range from last summer, there is no bottom anywhere for home prices. Also, banks can hoard up all the cash they want: nobody wants it. Consumer are firmly retrenching into thrift mode, and cutting up credit cards or simply maxing out and not paying them. To say inflation is guaranteed in light of trillions and trillions of consumer wealth destroyed, is very shortsighted.

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As expected last week, the tide in credit is turning. The average loan was 5 bps wider, while toxic bonds, just like that scene in Indiana Jones and the Temple of Doom, are starting their descent back into hell, wider by 78 bps on average, and just 23 bps away from the critical 1,000 bps threshold (after being at 895 bps last week).

Also, to see what a schizophrenic yoyo game even credits have become compare the Neiman Marcus and TRW bond spreads (wider by about 500 and 850 bps, respectively). Compare the TRW action from the current week with that from May 28. Lunacy.

While everyone now knows that the equity market is a manipulated, East Setauket fat-fingered joke (Dow going vertical on more bad news today? enough already), seeing credits act as irrationally should bring many a tear to the eyes of any seasoned credit trader.

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Just a tad aggressive there on the ramp up, but if it works for Templeton, why should Russia be any different. Also:

- Sees 2009 average oil price at USD 54 a barrel (current based on USD 41).
- Gradual global weakening vs. USD through 2012.

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Amusing to see the biggest propaganda voice for the administration and General Electric let this one slip. At 2:22 in the video below, Larry Levin discloses the truth about ongoing flagrant market manipulation. That’s why CNBC needs a 15 second delay, although Freudian slips among all the noise are why watching the channel can be so rewarding at the end of the day.

hat tip JR

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• State Street receives Wells Notice, may be sued by SEC over securities-law violations (Bloomberg and Reuters)
• GE’s Immelt claims crisis over, see only growth from now on, sweeps tens of billions of failed GECC “investments” under the rug (Bloomberg)
• And another permabull talks his book, sees more procyclicality, has no factual justification (Bloomberg)
• Central banks: the visible hand at work (Brown Brothers Harriman)
• As we announced, Porsche rejects Volkswagen offer (WSJ)
• As government chimes in: the two need to agree soon (Reuters)
• Why stagflation is coming (Reuters)
• Sears to let jobless customers stop payments, keep the fridge (Bloomberg)
• Weekly economic report (Hudson Institute)
• Does USA 2009 = Argentina 2001 Part I: falling economy reaches terminal velocity (ITulip)
• Oil rises to $70 on more Nigeria attacks, of course it is all inflation-related, no June 2008 deja vu yet (Reuters)
• Bernanke breaks means reappointment is assured (Bloomberg)
• Why we need a second stimulus (New Republic)
• Looking ahead into the economic dark (National Post)

And now over 400 different points of view with regard to the SEC

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• Commodity rally may end as supply rises, speculators sell bets.
• Dollar up against euro, yen after China central banker says exchange policy ’stable’.
• House passes Cap-and-Trade pollution measure, first to curb US emissions.
• International Energy Agency sees oil demand up 0.6 percent a year over ‘08-’14 period.
• Japan auto production falls in May for 8th straight month of declines.
• Japan industrial output up 5.9 percent in May, rises for third month.
• Japan stocks fall as share dilution fears send financials tumbling.
• Unemployment probably climbed at slower pace, factory slump eased: Bloomberg.
• Japan’s Factory output rises 5.9%, third monthly gain.
• Amazon.com closed accounts with its North Carolina affiliates to avoid paying a proposed sales tax.
• British financials plan to cut 13,000 jobs.
• Cathay, Singapore Air get ‘silver lining’ from fuel.
• Daiwa Securities tumbles on share offering news, fanning worries that value will be diluted.
• GE to a $100M R&D facility near Detroit to employ about 1,200 scientists.
• Hartford Fincl Srvcs gets $3.4B in funds from the US. Treasury’s TARP.
• KB Home reported a narrower qtrly loss of $78.4M; revs came in at $384.5M.
• Mizuho Financial may start 600 billion yen share sale this week.
• Nokia Siemens Networks gets euro250 milllion loan from European Investment Bank.
• Novartis in talks to buy parts of Elan, incl. flagship multiple sclerosis products.
• Oracle, Sun merger gets closer antitrust scrutiny.
• Swiss banks shun Americans as U.S. compels disclosure.
• Towers Perrin, Watson Wyatt to merge creating the world’s biggest employee benefitsconsultancy.
• Vodafone may bid for Deutsche Telekom’s U.K. Unit.
• Markets will get no independence from data in a short week as gauges of employment, factory-sector health are on tap.

Earnings Calendar: API, APOL, BNHNA, HRB, UDW.

Companies to watch: Amazon.com, Apollo Group, GE, H&R Block, KB Home.

Recent Egan-Jones rating actions:

KIMBERLY-CLARK CORP (KMB)
HJ HEINZ CO (HNZ)
MICRON TECHNOLOGY INC (MU)
MCCORMICK & CO INC/MD (MKC)
LENNAR CORP (LEN)
CONAGRA FOODS INC (CAG)
LEAR CORP (LEA)
QUEST DIAGNOSTICS INC/DE (DGX)
LABORATORY CORP OF AMERICA (LH)
RITE AID CORP (RAD)
ORACLE CORP (ORCL)
MONSANTO CO (MON)
CKE RESTAURANTS INC (CKR)

Data from: Egan-Jones Ratings And Analytics
.

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Dear Reader,

“Blogger was the beginning, now it’s moved out of the basement, it’s called www.zerohedge.com”

Today we officially launch our new website, www.zerohedge.com (we expect full transition to occur within a few hours), which will serve as the scaffold for much additional expansion in the months ahead. Blogger has been useful, however it has reached its limitations and it is time to move on. This is especially true as daily traffic has grown to a level far beyond what was envisioned possible when Zero Hedge was started.

As part of the transition you will see many changes, and a format much more reminiscent of a “real” website. Due to bandwidth limitations,the index page will be more streamlined and cohesive, at least initially – we hope to give readers the option of designing their layout shortly. More importantly, we have moved our physical servers and domains offshore, partly to be independent and never be held hostage by any major provider, partly to avoid what has become widespread abuse of the Digital Millennium Copyright Act to silence whistleblowers and force the pre-emptive removal of content without due process of any kind. Most importantly, over the next month, once we are comfortable that the website is fully functioning and bug free, we will launch several major expansions that we believe will provide a substantial service to readers and investors and address “unmet market needs” in banker parlance. Last but not least, the new website is now fully open to reader input with numerous forums covering extensive and broad topics, and will also stream real time news content from RAN Squawk: one of the best headline news scraping services available. Over the next few days, a contributors section will also be up and running, providing a venue for a select few of Zero Hedge’s closest and most erudite collaborators to engage and syndicate their best ideas. Which brings me to another point – Zero Hedge is going global. To address demands for a broader event focus, and to provide what will be almost constant news coverage, we are close to finalizing exclusive relationships with a European and Asian contributor. The ongoing economic drama is not American, it is worldwide.

In the meantime we will cross post on the old blogger website (http://zerohedge.blogspot.com) as we iron out all kinks. We apologize in advance for dropping Disqus in the new version, however it is with a specific purpose in mind, which will be made evident over the next month. Also, for all beta testers, thanks for your work – unfortunately you will need to reregister once again.

Needless to say, we are very excited at all that it unfolding for Zero Hedge, and it is all geared to providing the best possible independent and informative environment for you, dear reader.

We welcome all constructive input: much more than anything, Zero Hedge is an evolving experiment in author-reader interaction. When you speak, we listen.

Your Zero Hedge team

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Price action on GBP/USD, a daily chart of which is shown, has continued progressing sideways within the converging triangle consolidation that has been in place since the beginning of the month. This continued consolidating price action occurs within the context of a steep uptrend (extending from the late April lows)…

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