Category: Credit Crisis 2008
The analysis published under this category are as follows.
Wednesday, September 03, 2008
In the Eye of the Storm of the Credit Crisis Hurricane / Stock-Markets / Credit Crisis 2008
By: John_Browne
As we enter the height of the hurricane season, it may be worthwhile to recall, when considering the economy at large, the particular deception that lurks in the “eye” of the storm. After a raging tempest, the sudden appearance of the calm ‘eye’ can all too easily encourage people to leave their shelter in order to assess and even repair damage, exposing themselves to the often more devastating second leg of the hurricane. Read full article... Read full article...
Wednesday, September 03, 2008
Once in 100 Years Credit Crisis, World Heads for Deflationary Collapse / Stock-Markets / Credit Crisis 2008
By: Dr_William_R_Swagell
“The credit crunch of the past year has not followed the path of recent economically debilitating episodes characterized by a temporary freezing up of liquidity ─ 1982, 1989, 1997-8 come to mind. This crisis is different ─ a once or twice in a century event deeply rooted in fears of insolvency of major financial institutions.
This crisis was not brought to a closure by the world's central banks' injection of huge doses of short-term liquidity.
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Monday, September 01, 2008
Fed Lending Going Berserk to Distressed Banks / Companies / Credit Crisis 2008
By: Money_and_Markets
Anthony lives in Tokyo — thirteen time zones and 7,400 miles away.
Typically, we talk via instant messenger or computer video-chat. And I must admit that's a lot better than snail mail or ham radio (the way Elisabeth and I often had to communicate 40 years ago).
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Monday, September 01, 2008
Credit Crunch Cancer Metastasizing / Companies / Credit Crisis 2008
By: Money_and_Markets
Martin Weiss writes: First, the subprime mess clobbered subprime lenders like Countrywide Financial.
Then, the cancer spread to America's largest banks that invested heavily in risky mortgage-backed securities.
Now, it's metastasizing again — spreading to regional and state banks as well.
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Sunday, August 31, 2008
Desperation at Washington Mutual (WaMu) Puts US Taxpayers at Risk / Companies / Credit Crisis 2008
By: Mike_Shedlock
Desperation is in the air at Washington Mutual (WM). That WaMu is offering 5% on CDs should be proof enough. From LastNightInVegas . If the 5% rate WaMu is offering on CDs isn't indication enough that there's trouble brewing, the fact that WaMu is promoting it with a hand drawn white board sign certainly clinches it.Read full article... Read full article...
Sunday, August 31, 2008
Latest FDIC US Banking Systems Report Reads Like a Horror Novel / Companies / Credit Crisis 2008
By: Money_and_Markets
Mike Larson writes: Every three months the Federal Deposit Insurance Corporation (FDIC) puts out "Quarterly Banking Profiles." Most investors have never heard of them. The mainstream press has largely ignored them. Even Wall Street traditionally pays them little heed.
But not me! The QBP provides a wealth of information about the state of the U.S. banking industry. It tells you about the credit quality of the loans on the books of U.S. banks, what's going on with bank earnings, how much money the FDIC has on hand to resolve failing institutions, and more.
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Sunday, August 31, 2008
Credit Crisis Set to Intensify as Economies Begin to Crumble / Stock-Markets / Credit Crisis 2008
By: Prieur_du_Plessis
The gyrations of financial markets ahead of the Labor Day weekend tested the patience of bulls and bears alike. As big swings took place in thinly-traded markets, I was reminded of Albert Schweitzer's words: “As we acquire more knowledge, things do not become more comprehensible but more mysterious.”
None the wiser, I also did not succeed in capturing a leprechaun and finding the gold during my visit last week to the Emerald Isle. However, the beautiful Irish scenery, hospitality and “open for business” attitude resulted in a very successful trip and will keep me going back in search of the “buried treasure”.
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Sunday, August 31, 2008
Credit Crisis Financial Armageddon / Stock-Markets / Credit Crisis 2008
By: Christopher_Laird
Where are we now in the credit crisis, and why isn't the massive Fed and ECB weekly lending working to loosen interbank lending? Why is the credit crisis not really improving? Where is this going next? We describe what may happen next as Credit Crisis II in this article.
Now that the credit crisis that started in 2007 is a year old, there has been a debate about whether the financial system will recover, or will the Western/world financial system end up like the Japanese financial system after the stock and real estate crashes in the 1990's. In that case, the Japanese banks more or less carried their tremendous losses for ten years, and Japan entered a mild but painful decade of deflation. To this day, Japan is battling some of the deflationary forces from that time.
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Sunday, August 31, 2008
Credit Crisis Pushing World Economy Into a Soft Depression / Economics / Credit Crisis 2008
By: John_Mauldin
- It's All About the Spread
- The Coming Bank Credit Crunch
- More Thoughts on Fannie and Freddie
- Who Is Holding the Old Maid?
When is the credit crisis going to end? How will we know? The credit crisis is getting ready to enter its second phase. This week we examine what that means, and what the economic environment will look like over the coming quarters. We also (sadly) re-visit Freddie and Fannie and examine the risks that they put into the markets.
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Saturday, August 30, 2008
Is This the Epicenter of the Biggest Financial Crisis in History? / Stock-Markets / Credit Crisis 2008
By: Professor_Emeritus
Cut Off Your Tail To Save My Face! refers to Aesop's tale about the wolf that has lost his tail in a trap. As he felt uncomfortable being so different from others in the pack, he tried to persuade his fellow wolves that they, too, should get rid of this cumbersome and useless appendage. He declared that "the tail of a real wolf is a barbarous relic". Read on to find out how an experienced wise old wolf answered him. Read full article... Read full article...
Saturday, August 30, 2008
Broken Financial Systems & Dysfunctional Regulatory Mechanisms / Stock-Markets / Credit Crisis 2008
By: Jim_Willie_CB
The highest functions of the financial system have finally broken to the point where smart and connected people are openly making comments. Shortages are acute, to the point where low prices for gold & silver, for instance, render supply as inadequate to meet huge growing demand that wants to exploit the artificially low prices. Even the USTreasury Bonds are enjoying artificially high prices, undoubtedly an extension of the colossal usage of US Federal Reserve lending swap facilities. They print new USTBonds and exchange new third world ( US ) government debt securities for acidic US mortgage bonds, some hastily cobbled into securities by ailing lending institutions from cratered mortgage loans portfolios. It seems the US Federal Reserve and the Euro Central Bank might accept bonds from English, German, and possibly Swiss sources soon. That seems fair, since they contributed to making vacant US mortgage bonds look attractive.Read full article... Read full article...
Saturday, August 30, 2008
Fannie and Freddie GSEs are Too Big to Survive / Companies / Credit Crisis 2008
By: Michael_Pento
Wall Street's recent mantra—emblematic of its support for bailouts, especially of financial firms—is that Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) are too big to fail. I've written before about the potential problems associated with the G.S.E.s, but it is now quite clear how much trouble these companies are in, so I thought it was time to write a follow-up.Read full article... Read full article...
Saturday, August 30, 2008
The Greatest Government Bailout of All Time / Companies / Credit Crisis 2008
By: Money_and_Markets
We are now witnessing a rapid-fire 1-2-3 chain reaction of events that's leading to the greatest government bailout of all time ...
Event #1. In the mortgage market, where this crisis first erupted, nearly half of all subprime loans issued in 2006 are now delinquent ... late payments on mid-quality "Alt-A" mortgages have soared 41.5% ... and delinquencies on prime jumbo mortgages are up a staggering 55.2% in the past 6 months.
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Friday, August 29, 2008
Iraqi Bonds Safer than American Banks / Companies / Credit Crisis 2008
By: Mike_Shedlock
Bloomberg is reporting Iraq Safer Than Ohio Banks Stung by Credit Crisis . Iraq's bonds are delivering the biggest returns in emerging markets as oil export revenue bolsters government finances and violence declines.
The country's $2.7 billion of 5.8 percent bonds due 2028 gained 45 percent since August 2007, according to Merrill Lynch & Co. indexes. Investors demand 4.84 percentage points more in yield to own the debt instead of Treasuries, down from 7.26 percentage points a year ago. The spread is narrower than for notes of Ohio banks National City Corp. and KeyCorp, suggesting Baghdad may be safer for bond investors than Cleveland.
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Thursday, August 28, 2008
Fannie and Freddie Failure Would be Catastrophic for Global Financial System / Commodities / Credit Crisis 2008
By: Mark_OByrne
Gold finished trading in New York on Friday at $819.30, down $7.60 and silver was down 14 cents to $13.36. Gold and silver traded sideways in Asian trading prior to a sell off in early European trading this morning. Gold is trading at $811.30/811.70 per ounce (1030 GMT).Read full article... Read full article...
Thursday, August 28, 2008
US Financial's and Auto's Dead Men Walking / Companies / Credit Crisis 2008
By: John_Mauldin
Last Friday's letter was about the fact that it is not just Freddie and Fannie. There are other problems. The Weekend Edition and today's Wall Street Journal are filled with stories about the problems with Freddie and Fannie. The assumption in so many quarters is that they will soon need government assistance. The only questions seem to be when and in what form? Can this wait until a new president is in place? Congress is leaving town soon. Can it wait until the lame duck session?
As I have been writing for well over a year, the credit crisis is going to be deeper and take longer to correct than the main stream media and economists think. Losses at banks are going to be much larger, and they are going to bleed for a long time. That means we are going to see more banks failing.
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Thursday, August 28, 2008
Pension Benefit Guaranty Corporation Defies Risk Suggesting Another Future Taxpayer Bailout / Companies / Credit Crisis 2008
By: Joe_Nicholson
At the heart of every financial transaction is risk. With few exceptions, the only way to increase what you have using investments is to shoulder some risk. This can work, growing your money and creating much more than id you had not done a thing. And if it doesn't work, you could lose all of the money you invested or just a portion.Read full article... Read full article...
Wednesday, August 27, 2008
The United States of America is the Next Argentina / Economics / Credit Crisis 2008
By: Darryl_R_Schoon
DON'T CRY FOR ME ARGENTINA SAVE YOUR TEARS FOR YOURSELF - While bankers do control the issuance of credit, they cannot control themselves. Bankers are the fatal flaw in their deviously opaque system that has substituted credit for money and debt for savings. The bankers have spread their credit-based system across the world by catering to basic human needs and ambition and greed; and while human needs can be satisfied, ambition and greed cannot—and the bankers' least of all. Read full article... Read full article...
Saturday, August 23, 2008
Banking Systemic Crisis as Losses Pass $500 Billion / Companies / Credit Crisis 2008
By: John_Mauldin
- It's More Than Freddie and Fannie
- The US Banking System Is in Trouble
- $500 Billion and Counting
- Fannie, Freddie, and the Credit Crisis
Yet another crisis confronts us, as we will have to deal with the aftermath of a rather large number of bank failures over the next year, which is likely to overwhelm the ability of the FDIC to insure your bank deposits. Today we look at the banking system, the FDIC, and Freddie and Fannie. It's not pretty, but as realists we must know what we are facing.
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Saturday, August 23, 2008
Imminent Bank Failures- Credit Crisis Worst is Yet to Come / Stock-Markets / Credit Crisis 2008
By: Anthony_Cherniawski
The deepening toll from the global financial crisis could trigger the failure of a large US bank within months, a respected former chief economist of the International Monetary Fund claimed Wednesday, fueling another battering for banking shares.
Professor Kenneth Rogoff, a leading academic economist, said there was yet worse news to come from the worldwide credit crunch and financial turmoil, particularly in the United States, and that a high-profile casualty among American banks was likely.
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