Category: Credit Crisis 2008
The analysis published under this category are as follows.
Monday, August 11, 2008
Foreign Investors Growing Weary of US Junk Paper / Interest-Rates / Credit Crisis 2008
By: Captain_Hook
You Can Stiff Some Of The People Some Of The Time - But, you can't stiff all the people all of the time. To what do we refer? Answer: The likelihood that once the Beijing Olympics are over, because increasing defaults of US corporate paper / agency debt leave a worsening bad taste on foreigner's palates, demand for domestic sovereign debt is expected to wane at an accelerating rate, which would send bond yields (market rates) higher – possibly much higher.Read full article... Read full article...
Monday, August 11, 2008
Fed Failing to Get Credit Flowing / Interest-Rates / Credit Crisis 2008
By: Money_and_Markets
Mike Larson writes: 
It's no secret what the Federal Reserve — as well as Congress and the Bush administration — want. They want banks to open their wallets. They want lenders to keep the credit flowing. They want firms of all stripes to take the Fed's cheap money and DO something with it — make business loans, make mortgages, make car loans, you name it.
But the lenders aren't playing ball!
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Sunday, August 10, 2008
RBS Record Loss as Systemic Banking Crisis Deepens / Companies / Credit Crisis 2008
By: Nadeem_Walayat
The Royal Bank of Scotland (RBS) Lost a record £691mln during the first six months of 2008 set against a profit of £5 billion for the same period last year, as the bank continued to write down the value of assets in the face of mounting bad debts as a consequences of exposure to the US subprime housing market. The loss was lower than analysts estimates that had varied to as high as 1.6 billion, following its most recent write down of £6 billion. Read full article... Read full article...
Friday, August 08, 2008
Auction-Rate Debt Buyback, Now What? / Interest-Rates / Credit Crisis 2008
By: Paul_Lamont
With news of UBS' $19 Billion dollar buyback of frozen auction-rate debt , we expect former clients of UBS ( Merrill Lynch, Citigroup, Wachovia and Bank of America, too ) to begin looking for secure places for their cash. Some may even be considering CDs. We would like to point out to investors that CDs (in fact all deposits) allow banks to borrow short and lend long.Read full article... Read full article...
Thursday, August 07, 2008
Systemic Risk Spreads as Gold Loses Safe-haven Status / Stock-Markets / Credit Crisis 2008
By: Anthony_Cherniawski
Less than meets the eye…is a good description for the Wal-Mart July sales report . The sales results, along with cautious outlooks for August, left little hope for any lasting boost from tax rebate checks to prop up consumers headed into the back half of the year and an all-important December holiday season.
"The stimulus (checks) really had a marginal effect at best and it has run its course and there's no carry-through," said Retail Metrics President Ken Perkins. "It's difficult to see where some sort of boost in spending is going to come from."
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Thursday, August 07, 2008
Money Printing to Save Imploding Banking System Will Send Gold Soaring / Stock-Markets / Credit Crisis 2008
By: Jim_Willie_CB
The path to the printing press is a long one. It is used at first to spread credit indiscriminately in sustaining commerce and funding financial systems. For the United States , that means horribly inefficient usage of credit in commerce, where 5 units of credit produce one unit of business activity. In the twisted bizarre arena that is Wall Street, the financial maze they created has imploded as yet another chapter is written in the standard textbook of boom & bust. They managed to cause the most powerful deflation storm in eighty years, all born from the monetary inflation wellspring, no easy feat. Read full article... Read full article...
Wednesday, August 06, 2008
Credit Crisis Continues as Banks Sell Assets to Cover Losses / Interest-Rates / Credit Crisis 2008
By: Money_Morning
Keith Fitz-Gerald writes: "Have we seen the worst from the financial sector?"
The question - a very good one - came from an audience member following my global investing presentation at the Agora Wealth Symposium in Vancouver, British Columbia. During my entire time there, the interest in the ongoing credit crisis was intense.
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Tuesday, August 05, 2008
Citigroup Posts Loss on Credit Cards and Fantasy Balance Sheets / Companies / Credit Crisis 2008
By: Mike_Shedlock
In what is likely to be the shape of things to come across the board, Citigroup Posts Loss on Credit-Card Securitizations .Aug. 4 (Bloomberg) -- Citigroup Inc. reported its first loss since at least 2005 on credit-card securitizations, signaling that risks may be growing in a business that generated $3.5 billion of revenue in the past three years.
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Tuesday, August 05, 2008
The Light at the End of the Tunnel of the Financial Crisis? / Stock-Markets / Credit Crisis 2008
By: Adam_Perl
Covered bonds to stimulate the housing sector, GDP of 1.9%, Jobless claims of 448,000 and unemployment that reached a new level of 5.7% - those were just a few of the things that painted the screens red last week, as the major indices erased Monday and Tuesday's bullish sentiment, showing optimists that it is still to early to jump for joy. In addition to the data released in the U.S, showing a dire situation, global economies continue to lag behind the US , affected by high inflation and slow economic growth. Taking a glance at the chart below, one can see that five of the main economies are still showing real negative growth, due to high inflation, accompanied by high unemployment.Read full article... Read full article...
Tuesday, August 05, 2008
US Blackmailed By China on Fannie and Freddie Bailout / Interest-Rates / Credit Crisis 2008
By: Mike_Shedlock
Bloomberg is reporting Fannie's Mudd Soothed Asian Investors as Bonds Rose . Fannie Mae Chief Executive Officer Daniel Mudd was sitting down to a glass of wine with his wife at their Washington home around 10 p.m. on Saturday July 12 when Treasury Secretary Henry Paulson called.
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Monday, August 04, 2008
Derivatives Deleveraging Forcing Lehman's to Sell Assets at a Big Loss / Companies / Credit Crisis 2008
By: Mike_Shedlock
Reuters is reporting Lehman may have to raise capital if sells assets . Lehman Brothers Holdings Inc is expected to follow in Merrill Lynch & Co Inc's footsteps and sell a lot of risky assets at a loss. But shedding the assets may create another headache for Lehman -- the need to raise large amounts of new capital, including common equity.
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Monday, August 04, 2008
Homebuilder Credit Defaults Swaps Review / Interest-Rates / Credit Crisis 2008
By: Mike_Shedlock
In light of the WCI Chapter 11 Bankruptcy Filing this morning, inquiring minds have been asking "Who's Next?" While that question cannot be directly answered, we can take a look at how the credit market players perceive the situation.
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Saturday, August 02, 2008
Worthless AAA CDO's Hit National Bank of Australia, 90% Debt Writedowns / Stock-Markets / Credit Crisis 2008
By: Mike_Whitney
Monday's trading on the New York Stock Exchange (NYSE) was a real humdinger. It started off with the White House announcing that this year's fiscal deficit would soar to a new record of nearly $500 billion. That was followed by news of rising oil prices, weak quarterly earnings and a slowdown in consumer spending. Plunk, plunk, plunk; one domino after another. By mid-morning the markets were in full retreat. That's when investment giant Merrill Lynch announced that it would notch a $4.6 billion second-quarter loss and write-downs of $9.4 billion on collateralized debt obligations (CDOs) and other mortgage-related assets. Read full article... Read full article...
Saturday, August 02, 2008
Henry Paulson Loses Control Over US Economy, Financial System / Stock-Markets / Credit Crisis 2008
By: F_William_Engdahl
When Henry Paulson agreed to leave his job as chairman of the powerful Wall Street investment bank, Goldman Sachs to go to Washington as Treasury Secretary in 2006 he demanded extraordinary powers as de facto economic czar. He got it. Paulson is also head of the President's Working Group on Financial Markets -- the secretary of the treasury and the chairmen of the Federal Reserve Board, the Securities and Exchange Commission and the Commodity Futures Trading Commission.Read full article... Read full article...
Friday, August 01, 2008
Panicking Fed Scrambles to Hide Credit Crisis Truth / Stock-Markets / Credit Crisis 2008
By: Mike_Shedlock
The Fed, now in continual panic mode, Extends Emergency Borrowing Program . The Federal Reserve said Wednesday that it was extending its emergency borrowing program to Wall Street firms and was taking other steps to ease a tight credit market that has hobbled the national economy.
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