Category: Credit Crisis 2009
The analysis published under this category are as follows.
Friday, January 30, 2009
Banking Sector Groundhog Day Hits U.S. Treasury Bonds / Politics / Credit Crisis 2009
By: Money_and_Markets
Mike Larson writes: Have you ever seen the fantastic Bill Murray movie “Groundhog Day?”
Murray plays Pittsburgh weatherman Phil Connors who's forced to cover the annual February unveiling of Punxsutawney Phil.
He clearly isn't thrilled. And his bad attitude shines through in several hilarious episodes. Fate punishes Murray as a result, by forcing him to re-live Groundhog Day over and over again until he improves his attitude and can win the love of his co-worker, Rita.
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Friday, January 30, 2009
Saving Equals Squandering of Capital / Politics / Credit Crisis 2009
By: Chip_Hanlon
Do you put money away in the bank periodically? You're just wasting it, you know.
At least, that's the assertion of this mindless rant: Millionaire Slumdogs: the uber-rich need to put money back into the economy.
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Thursday, January 29, 2009
Wall Street Deception, Political Quest for Remedy Positives for Gold Safehaven / Stock-Markets / Credit Crisis 2009
By: Jim_Willie_CB
What an interesting time we live in! By now, anyone who feels burned by the establishment, whether the Wall Street banksters (fraud kings) or US Congressional representatives (paid lobbyist clients), or US Congress banking committees (bribed Wall Street tools), or a private hedge fund con man (protected by regulators), or financial markets (victims of naked shorting), or an employer (from foreign plant & equipment investments), beware. More deception and betrayal and smokescreens and outright lies lie directly ahead. Read full article... Read full article...
Thursday, January 29, 2009
How Hedge Funds, Pyromaniacs and Gangsters Caused the Global Financial Crisis / Stock-Markets / Credit Crisis 2009
By: Money_Morning
Martin Hutchinson writes: Let's face it: The financial services sector has suffered a severe loss in popularity.
The result is that governments in both the United Kingdom and the United States are looking for lightening rods to absorb all the criticism, and bankers have made for the ideal candidates.
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Tuesday, January 27, 2009
Financial Crisis, Consequences and Investment Opportunities / Stock-Markets / Credit Crisis 2009
By: Money_and_Markets
Sharon A. Daniels writes: It has been said that the Chinese alphabet uses the same character to represent both the words ‘crisis' AND ‘opportunity.' While this isn't exactly correct in a literal translation of Mandarin — the meaning comes close enough.
Financial markets are a lot like this too. We have all heard: “for every buyer, there's a seller.” In other words, one investor's panic can also be considered another's profit opportunity.
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Tuesday, January 27, 2009
UK Banking Sector and Housing Market Reverting to Below the Mean / Economics / Credit Crisis 2009
By: MoneyWeek
Banks have money - they just don't want to give it to most people - The job losses are stacking up across the world. According to The Times , about 70,000 jobs went globally yesterday. Most of the cuts were in the US - construction equipment maker Caterpillar is cutting 20,000 jobs, while mobile phone operator Sprint Nextel is cutting 8,000 posts. Read full article... Read full article...
Tuesday, January 27, 2009
Warning: Mega-banks Could Fail Despite Federal Bailouts / Companies / Credit Crisis 2009
By: Money_and_Markets
Martin Weiss writes: The time has come to issue one of my sternest warnings to date: Bank of America and Citigroup could fail despite the most radical government rescues of all time.
Right now, after recent close calls with instant death, these two megabanks are on life support, receiving massive transfusions of government capital. But they're still hemorrhaging, and no one in Washington has found a cure.
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Tuesday, January 27, 2009
Protectionism and the Global Banking System Technical Insolvency / Economics / Credit Crisis 2009
By: John_Mauldin
This week I bring you two different articles as an offering for Outside the Box. As a way to introduce the first, let me give you the quote from Merrill Lynch economist David Rosenberg about the rising threat of global trade protectionism:
"The Financial Times weighs in on the rising threat of global trade protectionism in today's Lex Column on page 14 ("Economic Patriotism"). The FT points out that the stimulus packages of many countries include "buy local" provisions. At home, there is a proposed inclusion of a 'Buy American' provision in the economic recovery package and this could set off trade retaliation from importers of US goods. Here is what the FT had to say, 'It was trade protectionism that made the 1930s Depression "Great". Congress would do well to understand that it is in everyone's interest to keep trade open today.'"
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Monday, January 26, 2009
Jim Dandy to the Rescue of the U.S. Economy / Politics / Credit Crisis 2009
By: Steve_Selengut
More than fifty years ago, LaVern Baker & The Gliders, brought Jim Dandy into the fray to lasso runaway horses, dry the tears in little girls' eyes, and to save special mermaids from the hooks of villainous fishermen. (Black Oak Arkansas' rendition on You Tube will help you understand what your parents and grandparents survived.) Go, Jim Dandy! Go, Jim Dandy!Read full article... Read full article...
Monday, January 26, 2009
Financial Crisis Hits Obama Presidency as Republicans Plan to Oppose $825 Billion Stimulus / Politics / Credit Crisis 2009
By: Money_Morning
William Patalon III writes: President Barack Obama's $825 billion stimulus plan heads to the floor of the House of Representatives this week, with House Minority Leader John A. Boehner, R-Ohio, saying many in his party will vote against the package unless significant changes are made.
“Right now, given the concerns that we have over the size of this package and all of the spending in this package, we don't think it's going to work,” Rep. Boehner said yesterday (Sunday) on NBC-TV 's “Meet the Press.” “And so if it's the plan that I see today, put me down in the ‘No' column.”
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Monday, January 26, 2009
The Economic Perversity of our Banking System / Economics / Credit Crisis 2009
By: Joseph_Toronto
I recently wrote about the cause of this recession/depression being a collapse of the money supply. The money supply is collapsing because money is literally evaporating with each loan default and bankruptcy and is accelerated by the reverse multiplier effect of fractional reserve banking. Furthermore, given that the collapsing money supply is causing recession, banks are making things worse by doing exactly what banks are supposed to do to preserve their rapidly eroding capital. They stop their lending in a risky economy and buy risk free T-bills or earn interest in their excess reserve account at the Fed. This is the correct thing to do for bank stockholders, but incredibly and perversely is exactly the wrong thing to do for the economy. Read full article... Read full article...
Monday, January 26, 2009
Obama Announces "New Rules" To Address Financial Crisis / Politics / Credit Crisis 2009
By: Mike_Shedlock
As part of his rescue plan, Obama Signals Tough Restrictions on Banks in Rescue Package .
President Barack Obama signaled that he would toughen restrictions on and oversight of banks as part of a fresh plan to aid the battered industry.Obama blasted the banks yesterday over reports that they've spent money renovating offices after receiving billions of dollars from the government and vowed they would be held accountable for any aid they receive in the future.
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Sunday, January 25, 2009
Protect Your Wealth Using Alternative Investment Strategies / Stock-Markets / Credit Crisis 2009
By: Submissions
VelShan Thani writes: There are many arguments among the economic analysts and experts about whether we are having inflation or deflation or stagflation or depression and so on and so forth.
I was prompted to write this article by those arguments.
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Friday, January 23, 2009
Global Systemic Financial Crash as Extreme Leverge Deleverages / Companies / Credit Crisis 2009
By: Mike_Shedlock
Inquiring minds are investigating a visual comparison of banks' market caps valuation as of January 20, 2009 vs. the second quarter of 2007. Bank Market Cap Comparison
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Friday, January 23, 2009
Great Britain- The “Rust Belt” of Global Finance / Economics / Credit Crisis 2009
By: Money_Morning
Martin Hutchinson writes: Think about Michigan or about Ohio's Mahoning Valley in the 1980s. Both were famous for industries that were world leaders in their time. Yet, once those industries decayed, large parts of both areas became wastelands of home foreclosures, crime and alcoholism.
The decline of the global financial services industry from its unsustainable 2006 peak may produce a similar effect in a once economically thriving country – Britain.
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Wednesday, January 21, 2009
The Obama Blueprint for Solving the U.S. Financial Crisis / Politics / Credit Crisis 2009
By: Money_Morning
By Jason Simpkins
And William Patalon III write: The first 100 days of President Barack Obama's administration officially begin today (Wednesday). But the reality is that President Obama already has a solid head start, as he and his advisor have been working for months to establish the groundwork for one of the most ambitious - and most important - economic-stimulus plans in U.S. history. Read full article... Read full article...
Tuesday, January 20, 2009
British Banks are Technically Bankrupt as BOE Prints Money in Secret / Companies / Credit Crisis 2009
By: Mike_Shedlock
The Independent is reporting (was reporting but the post has been yanked) British banks are 'technically insolvent' . The link above as well as what follows is from Google cache. Not sure how long that cache will stay but here is the article that someone, for some reason, wanted to suppress.
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Tuesday, January 20, 2009
Credit Crisis Explained: History of Debt Bubbles and Long-term Interest Rates / Interest-Rates / Credit Crisis 2009
By: John_Mauldin
There is a reason I call this column Outside the Box. I try to get material that forces us to think outside our normal comfort zones and challenges our common assumptions. And this week's letter from Hoisington Investment Management Company does just that. Let me give you two quotes to pique your interest: "Monetary policy works by creating the environment for a renewed borrowing and lending cycle. This cycle would require that the debt to GDP ratio, which is already at a record level, grow even higher. Would such an outcome really be that desirable when the controlling problem of the U.S. economy is too much improperly financed debt? If the Fed were able to engender an increase in the debt to GDP ratio, this might merely serve to postpone the reckoning of the current debt levels while laying the foundation for an even more vicious unwinding down the road.Read full article... Read full article...
Monday, January 19, 2009
Bailed Out Banks Seek More Money to Fill Financial Black Holes / Politics / Credit Crisis 2009
By: Dr_Ron_Paul
Strengthening or Weakening the Economy? - The economic situation continues to deteriorate this week as past and future bailouts were discussed on Capitol Hill. The debate was over the accountability of already disbursed TARP money, and on whether or not to release remaining funds. Banks that had already been bailed out before are looking for more money to fill the black holes that are their balance sheets, warning that they are simply too big to fail.Read full article... Read full article...
Monday, January 19, 2009
Entire TARP Program a Financial Disaster and Bureaucratic Nightmare / Stock-Markets / Credit Crisis 2009
By: Money_and_Markets
Martin Weiss writres: Just a month after our trusted leaders in Washington told us that the debt crisis was over …
Just a week after Wall Street was still rejoicing with a great “Obama rally”…
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