Category: Credit Crisis 2008
The analysis published under this category are as follows.
Tuesday, September 30, 2008
Global Deleveraging- Are You Really Prepared for What's Coming? / Stock-Markets / Credit Crisis 2008
By: Kurt_Kasun
I only wish to make a couple of points in this short commentary.
The debacle envisioned by Austrian economists is now becoming an undisputed reality. Don't be fooled by calls for Keynesianism. It might have worked when we were a creditor nation, but now that we have squandered most of our wealth (through Keynesian policies) and are the biggest debtor nation in the history of the world, it will fail miserably this time around...bond yields will soar and our currency will plummet.
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Tuesday, September 30, 2008
What's Next After the Bailout Plan? / Economics / Credit Crisis 2008
By: Darryl_R_Schoon
This article was written just prior to the announcement of the rejection of the bailout bill but has been qualified to reflect current conditions. Celebrate today's victory! It is a victory for all of us, whether we know it or not. Much thanks to Ron Paul and all the brave souls both Republican and Democrat who withstood their party's commands and instead sided with us, the people of the United States of America ! Darryl Robert Schoon
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Monday, September 29, 2008
Financial Markets Crash into a Credit Freeze Ice Age / Stock-Markets / Credit Crisis 2008
By: Ty_Andros
Pre NO Vote Commentary -
The greatest transfer of wealth in history (from those who hold their money in paper to those that don't) took a GREAT LEAP forward since the last edition of this newsletter. The wall of money which will someday become known as the great REFLATION began in earnest in the last two weeks. The MONETARY flooding we anticipated then has now MATERIALIZED and the initial BLANK checks have been written. A whopper of a BLANK check is due to arrive sometime in the next week (I am writing this on a Sunday morning) when the BAILOUT of the biggest banks and brokers in the world is FINALIZED and we actually get to see 120 pages of POLITICAL compromises. A political compromise means political supporters will BENEFIT while the PUBLIC gets FLEECED.Read full article... Read full article...
Monday, September 29, 2008
Financial Catastrophe Entire Global Financial System in Collapse / Politics / Credit Crisis 2008
By: Stephen_Lendman
The crime of the century. The greatest one ever. Author Danny Schechter calls it "Plunder." The title of his important new book on the subprime and overall financial crisis. Economist Michael Hudson and others refer to a kleptocracy. A Ponzi scheme writ large. Maybe an out-of-control Andromeda Strain. An economic one. Deadly. Unrecallable. Science fiction now real life. Potentially catastrophic. World governments trying to contain it. Trying everything but not sure what can work. Maybe only able to paper it over for short-term relief. Buy time but in the end vindicate the maxim that things that can't go on forever, won't. Read full article... Read full article...
Monday, September 29, 2008
Investors Reappraise Investment Risks to Include Credit Worthiness / InvestorEducation / Credit Crisis 2008
By: Richard_Shaw
Investors, not just mortgage lenders, whether owning bonds or stocks, need to pay more attention to credit worthiness now and in the future than they have in the past.
Investors have become used to thinking of risk as merely volatility (standard deviation of return), but there is also absolute risk — the risk of permanent loss of value.
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Sunday, September 28, 2008
Mainstream Media's Failure to Understand the Credit Crunch / Politics / Credit Crisis 2008
By: Gerard_Jackson
It's is a rule of the universe that every effect has a cause. And so it is with the current financial crisis. Instead of starting with those economic theories -- that should be rightly called fallacies -- we need to take heed of the unfortunate fact that the vast majority of people are getting their information from the media. I say unfortunate because not only are the great majority of journalists incapable of explaining the processes that brought about the crisis, they are also outrageous political bigots who see it as their duty to blame every conservative politician in sight, even if it means lying. Read full article... Read full article...
Sunday, September 28, 2008
Last Chance for Financial Crisis Truth / Stock-Markets / Credit Crisis 2008
By: Money_and_Markets
Martin Weiss writes: On this fateful Sunday morning, while Congress inches closer to approving the greatest financial bailout in history, while we teeter on the brink of what the President himself calls "a financial panic," and while you and I enjoy the momentary luxury of a quiet respite, it's time to sit back and take a long, hard look at what's best for us, our country, our children and their children as well.
This is a defining moment of your lifetime and mine. It's the moment I have been writing you about — and helping friends like you prepare for — week after week, month after month.
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Sunday, September 28, 2008
Banking System in Meltdown, Fed Fights to Keep Dead Banks Alive / Politics / Credit Crisis 2008
By: Mike_Whitney
The financial system is blowing up. Don't listen to the experts; just look at the numbers. Last week, according to Reuters, "U.S. banks borrowed a record amount from the Federal Reserve nearly $188 billion a day on average, showing the central bank went to extremes to keep the banking system afloat amid the biggest financial crisis since the Great Depression." The Fed opened the various "auction facilities" to create the appearance that insolvent banks were thriving businesses, but they are not. They're dead; their liabilities exceed their assets. Read full article... Read full article...
Sunday, September 28, 2008
US Banking Crisis Explained / Companies / Credit Crisis 2008
By: Money_Morning
Shah Gilani writes: How Complex Securities, Wall Street Protectionism and Myopic Regulation Caused a Near-Meltdown of the U.S. Banking System - [ In Part III of his three-story investigation of the credit crisis,Money MorningContributing Editor Shah Gilani details how the very complexity of the global financial system brought us to the brink of a total meltdown. In a special addendum tomorrow (Thursday), the former professional trader and hedge-fund manager will detail a banking-system overhaul that would immediately end the credit crisis - possibly without a single penny of taxpayer money.] Read full article... Read full article...
Saturday, September 27, 2008
Credit Crisis Truth: The Real Story Behind the Collapse of AIG / Companies / Credit Crisis 2008
By: Money_Morning
Shah Gilani: In Part II of his three-story investigation of the credit crisis, Money Morning Contributing Editor Shah Gilani shows us how American International Group, a perfectly sound company that's survived for 89 years, was destroyed by some errant bets on a derivative security called a “credit default swap,” or CDS. It's
a story you'll read nowhere else . Editor
There's nothing fundamentally wrong with the core insurance business units of American International Group Inc. ( AIG ). Nothing at all. What imploded the venerable insurance giant was an accumulation of misplaced bets on credit default swaps.
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Saturday, September 27, 2008
Bailout Secret- To Prevent $68 Trillion Derivatives Collapse Chain Reaction / Stock-Markets / Credit Crisis 2008
By: Andrew_Butter
Paulson doesn't give a toss about the balance sheets. It's what's OFF them that's frightening him to death. When I read Shah Gilani's excellent analysis How to End the Credit Crisis at No Cost to US Taxpayers which was much better than the analysis that I wrote a few days previously “How to save the US Taxpayer $700 Billion and the Failure of "Mark to Market" the penny finally dropped. Read full article... Read full article...
Saturday, September 27, 2008
How I Would Have Fixed the Credit Crisis Fiasco / Stock-Markets / Credit Crisis 2008
By: Money_Morning
Keith Fitz-Gerald writes: I was speaking to a standing-room-only crowd at a North Carolina investing conference recently when a sharply worded question soared over the group from a gentleman seated in the back row – and who was clearly agitated by my analysis of the whole bailout-plan situation.
“How would you have handled it differently, Mr. Smarty-Pants?” he asked, in a challenging voice.
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Saturday, September 27, 2008
Credit Markets Hit by Category 5 Financial Hurricane / Interest-Rates / Credit Crisis 2008
By: Money_and_Markets
Mike Larson writes: I'll never forget Hurricane Jeanne, which struck Florida four years ago this week.
My wife, young daughter, and I huddled in the shower of our older house as the battery-powered TV flashed tornado warnings and updates on the storm's 115-MPH winds.
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Friday, September 26, 2008
WaMu Goes Bust- The Credit Market Is CLOSED! / Interest-Rates / Credit Crisis 2008
By: Mike_Shedlock
Minyanville Professor Bennet Sedacca is the brightest fixed income mind I know. Inquiring minds are tuning in to see his take on the Credit Rout for Wachovia, WaMu .
Welcome to the credit market, folks, it is officially closed.
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Thursday, September 25, 2008
Credit Stress Interbank Money Market Freeze Evident In TAF, Ted Spread, Everywhere / Interest-Rates / Credit Crisis 2008
By: Mike_Shedlock
Credit dislocations continue to fester. Evidence can be found in corporate bonds, preferred shares, hybrids, the Ted Spread, and even in the most recent Term Auction Facility (TAF) auctions. Let's take a look. Inquiring minds are looking at a chart of the Ted Spread.
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Wednesday, September 24, 2008
Who to Blame for America's Financial Crisis ? / Stock-Markets / Credit Crisis 2008
By: Ronald_R_Cooke
Time for a reality check - The traditional checks and balances of America's financial system have been deliberately bypassed. The Real Estate industry has encouraged the production of very high risk mortgage applications. Most of the Banking system has ignored its responsibility to monitor the credit worthiness of mortgage applicants. And these worthless debt instruments were then passed on to Wall Street which sliced and diced them into $$ billions of highly questionable securities called Collateralized Debt Obligations, Mortgage Backed Securities, credit default swaps, or whatever other name Wall Street's MBAs could dream up. And of course, everyone dipped their hands into the cookie jar along the way. Millions and billions of dollars. Get rich selling worthless paper. Read full article... Read full article...
Wednesday, September 24, 2008
Moral Hazard and the Aggregate Wealth Portfolio / Stock-Markets / Credit Crisis 2008
By: Mack_Frankfurter
The largest financial bailout in United States history, which some traders are starting to call the ‘Securitized Housing Investment Trust' (hint: think acronym), is causing an existential crisis amongst those who hold to purest free market ideology. Senator Jim Bunning, Republican of Kentucky, echoed this sentiment when he said, “The free market for all intents and purposes is dead in America .” These ideologues doth protest too much, methinks. Read full article... Read full article...
Wednesday, September 24, 2008
Historic Week: US Government Avoids Financial Armageddon / Stock-Markets / Credit Crisis 2008
By: NewsLetter
September 22nd , 2008 Issue #27 Vol. 2Dear Reader,
The financial markets aptly ended a tumultuous week with record busting rallies as Hank Paulson at the US Treasury suspended the FREE MARKET so as to prevent a collapse of the financial system. The two triggering events for the turnaround in stock markets were
a. The SEC banning of short-selling of 799 financial stocks.
b. The US government announcement of the intention to buy up bad bank debt, where the initial outlay will cost the US Tax payer 700 billion.
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Wednesday, September 24, 2008
US Government Financial Crisis Misinformation / Politics / Credit Crisis 2008
By: EWI
Three Questions The Government Doesn't Want You To Ask About the Financial Crisis And 3 Shocking Answers!
Bob Prechter, President of Elliott Wave International (EWI), is no stranger to challenging the status quo. His New York Times bestseller, Conquer the Crash , was published in 2002 before anyone was even talking about the current financial crisis.
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Tuesday, September 23, 2008
Credit Crisis Analysis and Conclusions / Stock-Markets / Credit Crisis 2008
By: John_Mauldin
This week we look at a very solid piece of analysis on the world economy from my friends and London business partners Niels Jensen and Jan Wilhelmsen of Absolute Return Partners ( www.arpllp.com ). I find it is quite useful to read the considered opinions of those from outside the US and particularly from people who have developed keen insight from years in the trenches. Niels and Jan are certainly in that category. The world economy is clearly out of balance and they point out where some of the opportunities and problems lie. I think you will find this edition of Outside the Box quite useful. If you care to, you can write them at info@arpllp.com . Read full article... Read full article...