Category: Credit Crisis 2008
The analysis published under this category are as follows.
Wednesday, May 28, 2008
Imminent Banking Stocks Destruction to Push Gold Back through $1,000 / Stock-Markets / Credit Crisis 2008
By: Jim_Willie_CB
An important swing in the pendulum is due to manifest itself in the near future. Leverage with gold mining stocks and silver mining stocks depends upon containment of costs. Whether of energy costs (primarily diesel), or materials (like steel & lumber), or labor itself (also in shortage), even equipment (rigs in dire shortage with long waiting periods), the mining firms need to contain costs in order to make their stocks effective investments from which to exploit the rising gold & silver prices. The biggest breakout in the entire collection of commodity prices during the last two months has been in crude oil, with much attention given it. The gold price hit 1000 then pulled back. The silver price hit 21 then pulled back. Crude oil hit 100, then promptly continued its powerful march to 135. Energy prices might be on the verge of a pullback, even a powerful pullback. My forecast is for a pullback to 100 in crude oil this summer, which is soon to begin. Read full article... Read full article...
Friday, May 23, 2008
Credit Crisis Money Printing Crack Up Boom Reflections / Stock-Markets / Credit Crisis 2008
By: Ty_Andros
As regular readers know, I believe the banking and credit crisis has a long way to go. We are in the 2 nd to 3 rd inning of a nine-inning ballgame. The solution the G7 public servants and central banks will propose is they WILL PRINT THE MONEY as they always have and always will. They are confronted with the reality of INFLATE or die, as to not do so invites a deflationary depression and the complete and total BANKRUPTCY of the financial and banking systems. The human emotion of SELF-preservation insures they will try to avoid the bullet that is leveled at the head of the G7 financial system. “They will duck” and let you take the bullet of inflation, the result of letting their financial systems substitute an ever growing financial and banking sector for private sector wealth generation. Read full article... Read full article...
Thursday, May 22, 2008
Iceland Facing Meltdown as the Credit Crunch Sinks its Currency / Economics / Credit Crisis 2008
By: Keith_Fitz-Gerald
Despite rising fast financially in the past few years, Iceland is feeling the chilly effects of the global credit crunch - so much so the fiercely independent island nation is considering European Union membership to save its tanking currency. A special report, jointly developed by U.K. affiliate MoneyWeek Magazine and our experts here at Money Morning, explores the pros and cons of Iceland's potential EU membership. For more information on MoneyWeek, please click here . Read full article... Read full article...
Monday, May 19, 2008
The Effect of Fed Liquidity Facilities on the Markets / Stock-Markets / Credit Crisis 2008
By: Mick_Phoenix
Welcome to the weekly report. This week we look at inflation and deflation, the Dow, gold and FTSE but start with a look at a recent speech by William C. Dudley who is the executive vice president of the Markets Group at the Federal Reserve Bank of New York. He is also the manager of the System Open Market Account for the Federal Open Market Committee. The Markets Group oversees domestic open market and foreign exchange trading operations and the provisions of account services to foreign central banks.Read full article... Read full article...
Friday, May 16, 2008
Want To Fix the Fed? Get Rid of It / Interest-Rates / Credit Crisis 2008
By: Mike_Shedlock
Inquiring minds have been pondering Volcker's latest statements regarding stagflation, the CPI, regulation of banks, and even the need for an administrator to watch over the Fed.Let's see where Volcker is right and wrong with his analysis of the current economic situation and what to do about it.
Read full article... Read full article...
Friday, May 16, 2008
Mortgage Providers Fail to Pass on Interest Rate Cuts to Borrowers / Housing-Market / Credit Crisis 2008
By: MoneyFacts
“It is now five weeks since the last base rate cut and still 24 lenders (25%) have not announced their intentions with regards to their standard variable rate (SVR). Of those lenders that have done so, 20 (28%) have announced a cut of less than 0.25%. Even more disappointingly is the fact that those lenders which have passed on the smallest cuts offer some of the highest SVR rates.Read full article... Read full article...
Wednesday, May 14, 2008
Credit Crisis Investment Round Table- There's Still Life After Sub-prime / Stock-Markets / Credit Crisis 2008
By: William_R_Thomson
IS the earthquake that shook the world's leading financial markets last autumn over, or are there still damaging aftershocks to come - in the markets themselves and in the macro economy? This is the question that The Business Times put to a group of international investment experts and the responses in general were encouraging for investors. There is money to be made even in the immediate aftermath of the crisis, not least in commodities. But investment strategies need to be thought out even more carefully than usual at a time such as this. Our four experts set out their thinking - and their model portfolios - for the benefit of BT readers. Read full article... Read full article...
Tuesday, May 13, 2008
LIBOR Interbank Rate Credibility In Doubt / Interest-Rates / Credit Crisis 2008
By: Mike_Shedlock
Bloomberg is reporting Libor Poised for Shake-Up as Credibility Is Doubted .
The benchmark interest rate for $62 trillion of credit derivatives and mortgages for 6 million U.S. homeowners faces its biggest shakeup in a decade as lawmakers question if banks are understating borrowing costs.
For the first time since 1998, the British Bankers' Association is considering changing the way it sets the London interbank offered rate, according to Chief Executive Officer Angela Knight, who appeared before a parliamentary committee in London today. ``We've put Libor under review,'' Knight said in an interview yesterday. The BBA will announce changes May 30, she said.
Friday, May 09, 2008
Socialization of the G7 Banking System and Food Crisis Horror Story / Interest-Rates / Credit Crisis 2008
By: Ty_Andros
In today's missive we are going to cover the creeping socialization of the G7 banking system and the second act of the horror show known as biofuels. Slowly but surely, the central banks of the G7 are taking over the short term funding needs of the money center and investment banking industries. The march is set to accelerate as the income streams dive as outlined in the Tedbits 2008 Outlook (Wolf Wave at www.TraderView.com ).
In the second piece we will be covering the unfolding debacle known as biofuels versus food, and the impacts about to unfold in the grain markets. They are set to be quite dramatic. There is no escape from the math. The food price and availability crisis is about to get a whole lot worse .
Read full article... Read full article...
Friday, May 09, 2008
Your Latest Credit Crisis Road Map / Stock-Markets / Credit Crisis 2008
By: Money_and_Markets
Mike Larson writes: New developments in the credit and bond markets are happening fast and furiously. This week, I'm going to give you my latest take on the most significant news unfolding.
I'll tell you what I'm seeing, why it matters, and what it means to you as an investor. Here goes ...
Read full article... Read full article...
Friday, May 09, 2008
OPEC Cartel Scuppering G7 Central Bankers Financial Sector Rescue Plans / Commodities / Credit Crisis 2008
By: Gary_Dorsch
The “Group of Seven” central bankers, who control the money spigots in 2/3's of the world's economy, huddled with their colleagues from China and Russia behind closed doors in Basel, Switzerland this week, haunted by the “Crude Oil Vigilantes,” who threaten to unravel G-7 schemes to rescue troubled global banks. Earlier today, the price of West Texas Sweet traded as high as $124 /barrel, doubling from a year ago, and guiding Chicago Corn futures to all-time highs. Read full article... Read full article...
Wednesday, May 07, 2008
The Great Consumer Shutdown of 2008- Wages Squeezed by Inflation / Economics / Credit Crisis 2008
By: Adrian_Ash
"...Now that cheap money's vanished, where will consumers find enough cash to pay the bills...?"
THE CHEAP MONEY BUBBLE might have gone pop. But everywhere we look, the mischief of cheap money continues to cause mayhem for investors, savers, retirees, even school children.
Read full article... Read full article...
Tuesday, May 06, 2008
Fixing The Credit Markets to Avoid Another Credit Crisis / Economics / Credit Crisis 2008
By: John_Mauldin
This week in Outside the Box we take up a topic that should be on the top of the agenda of every regulatory authority, executives at financial services firms of all types, and average investors: How do we fix the credit markets to make sure we do not have such a crisis again? Good friend Michael Lewitt of Hegemony Capital Management gives us his observations, some of which go further than I would personally like to see us go. But this is the conversation that must happen if we are to steer clear of future crises. It is clear to me now that a laissez faire approach to regulating certain financial instruments exposes the entire economy to risks much larger than the loss of a business here or there. While better disclosure is certainly appropriate, it is not enough. Read full article... Read full article...
Monday, May 05, 2008
Delusional Stock Investors and Credit Crisis Vultures / Stock-Markets / Credit Crisis 2008
By: Dr_William_R_Swagell
The actions of Central Banks over the past six weeks have helped global markets rebound from their mid-March troughs. Markets that were down 20%-40% from their peaks of last year have now rebounded 8%-10%. So are we now about to launch into a new bull market or are we merely experiencing a counter-trend rally in a bear market?
A Reuters article (28th April, 2008) ran the headline... “Feasting vultures say market may have bottomed ... The allure of rotting mortgage bonds has grown so strong that Wall Street's vultures have begun picking over the carcasses... these intrepid investors have begun betting billions on a hunch that mortgage security prices have fallen enough.”
Read full article... Read full article...
Tuesday, April 29, 2008
Worst is Not Over for Stock Market Falls, Credit Crisis Or Fed Rate Cuts / Stock-Markets / Credit Crisis 2008
By: Ashraf_Laidi
Commentators and pundits alike have erroneously stated that last week's highs in US equity indices broke important technical levels. The Dow has not only failed to breach above a key trend line resistance of 12,920, prevailing since the October highs but also failed to breach the 50% retracement from the same high to the January lows. Similarly, the S&P500's major resistance stands at the 1,410 trend line resistance acting since the October 10 highs. We remind our readers that these recurring failures are no coincidence but instead a technical failure that is largely in synch with prolonged economic uncertainty. Read full article... Read full article...
Tuesday, April 29, 2008
Why the Credit Crisis is Far From Finished / Stock-Markets / Credit Crisis 2008
By: John_Mauldin
This week in Outside the Box we look at two brief essays which give us different perspective on the Continuing Crisis. The first is by Mohamed El-Erian, the co-chief executive and co-chief investment officer of Pimco. His book, 'When Markets Collide: Investment Strategies for the Age of Global Economic Change', will be published by McGraw Hill in June, and it will be on my summer reading list. El-Erian argues in the thought-provoking piece from the Financial Times that the crisis is still far from finished, and that those who think we are returning to more placid times may be surprised when volatility suddenly becomes even more pervasive. Read full article... Read full article...
Sunday, April 27, 2008
Bank of England Mortgage Backed Securities Pricing System / Interest-Rates / Credit Crisis 2008
By: Mick_Phoenix
Welcome to the Weekly Report. This week we look ahead to the new pricing system for Mortgage Backed Securities and Asset Backed Securities created by the Bank of England, developments in bonds and yields and why the Federal Reserve is central to current yield changes. We ask if the credible policies are leading to increased inflation expectations and look for global reaction. We update the long term trend update for the Dow, FTSE and Gold.Read full article... Read full article...
Tuesday, April 22, 2008
US Fed Takes Money From Main Street to Give to Wall Street / Interest-Rates / Credit Crisis 2008
By: Ned_W_Schmidt
U.S. Federal Reserve has forgotten the most essential rule. They should first do no harm. In a rush to bailout the bankers from their self inflicted mortgage mess, Federal Reserve has seriously distorted the U.S. monetary system. In this week's graph are plotted the year-to-year dollar change for several Federal Reserve balance sheet items. Read full article... Read full article...
Tuesday, April 22, 2008
LIBOR Interbank Market Stays Frozen Despite Bank of England £50 Billion Bailout / Interest-Rates / Credit Crisis 2008
By: Nadeem_Walayat
This weeks Bank of England and UK Treasuries unprecedented near 'panic' action to prevent a string of Northern Rock type Bank Busts has so far failed to have any impact on the interbank market. The spread between the official LIBOR rate and the base rate remains at credit crisis extremes.Read full article... Read full article...
Monday, April 21, 2008
Commercial Banks Heading for Huge Derivatives Losses- Credit Crisis Turning into Credit Armageddon / Stock-Markets / Credit Crisis 2008
By: Money_and_Markets
While most investors are focused on the latest stock market rally, hidden from view is a monumental change that few recognize and fewer understand: Unprecedented amounts of old debts are coming due in America, and many are not getting refinanced.
Even worse, borrowers are going into default, lenders are taking huge losses, and outstanding loans are turning to dust.
Read full article... Read full article...