Category: Credit Crisis 2010
The analysis published under this category are as follows.
Tuesday, June 29, 2010
The Social Function of Credit Default Swaps / Interest-Rates / Credit Crisis 2010
By: Philipp_Bagus
Whenever the government causes a mess, chances are high that it will accuse speculators of being responsible.[1] In the recent financial crisis, speculators and their financial instruments have been under attack again. Some famous investors have even supported governments' attacks on speculators. Warren Buffet has called derivatives "financial weapons of mass destruction."
Tuesday, June 29, 2010
FDIC Deposit Insurance, Yet Another Bailout for Reckless Savers and Investors? / Personal_Finance / Credit Crisis 2010
By: Nilus_Mattive
We all watched in horror as Washington bailed out failing financial institutions … dishonest lenders … and greedy borrowers and speculators with our tax dollars.
And as responsible savers and investors, we continue to suffer from the fallout as the Federal Reserve’s policies are keeping interest rates on traditional savings vehicles near zero.
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Thursday, June 17, 2010
Spain's Financial System on the Verge of Collapse or Speculators Are Exaggerating Banks Vulnerability / Interest-Rates / Credit Crisis 2010
By: Money_Morning
Jason Simpkins writes: Somebody is bluffing.
Either Spain's financial system is on the verge of a breakdown, or hedge funds and speculators are exaggerating the vulnerability of Spain's banks to capitalize on short-selling Eurozone securities.
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Thursday, June 03, 2010
Euro-zone Credit Crisis and China Shanghai Commodites Market Shakeout / Interest-Rates / Credit Crisis 2010
By: Gary_Dorsch
Until mid-April, few traders knew much about the credit default swap (CDS) markets. They’re traded on an unregulated, over-the-counter market, and far from the public’s view. Yet nowadays, the CDS market has become a major battleground between high-stakes speculators and Euro-zone politicians, with the fate of the Euro currency hanging in the balance. In turn, the violent swings in the CDS markets are having a profound impact on the global bond, commodity, currency, and stock markets.
Tuesday, June 01, 2010
European Commission Fires Big Guns, Euro TARP! / Interest-Rates / Credit Crisis 2010
By: HRA_Advisory
The European Commission brought out the big guns. In a move intentionally reminiscent of the US TARP program, leaders of the continent’s major economies promised to keep throwing money at the problem in bulk until some of it stuck. The set of charts below (courtesy of the Financial Times of London) gives a good graphical representation of the crisis to date.
Friday, May 28, 2010
Credit Storm in Europe, Politics on Capital Hill / Politics / Credit Crisis 2010
By: Mike_Whitney
Credit market turmoil in the Eurozone has ignited frenzied trading on global markets. On Tuesday, shares tumbled nearly 300 points on the Dow Jones before launching an unconvincing 257-point late-day comeback. Wednesday the mayhem continued; all the major indexes seesawed wildly as positive news on durable goods was nixed by reports on wobbly EU banks. Erratic selling pushed the S&P down to 1,067 while the Dow slipped below 10,000 for the first time since February 7.
Friday, May 28, 2010
Credit Crisis Warning Signs Surging to Market Panic Levels Again / Stock-Markets / Credit Crisis 2010
By: Mike_Larson
Heads up people. Something very big is happening in the global credit markets — something you darn well better pay attention to.
The very same “Credit Crisis” indicators that were flashing red before the stock market meltdown of 2007-2008 — the ones Martin and I used to get our subscribers out of almost all stocks, and “short” the market via inverse ETFs — are flashing red again.
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Sunday, May 16, 2010
Rating Agencies Are Dead: Long Live The Rating Agencies. / Politics / Credit Crisis 2010
By: Andrew_Butter
Once upon a time rating agencies were independent research companies advising end-buyers and traders on the fundamental value of securities. They sold opinions of value, i.e. they did valuations – they gave an opinion on how likely it was that projected cash flows would materialise in the future; and once you got a fix on that, working out present value is just arithmetic.
Monday, May 10, 2010
Sovereign Debt Crisis, Washington Complicit in Massive Financial Wall Street Fraud / Politics / Credit Crisis 2010
By: Bob_Chapman
It was 7 years ago we said Fannie Mae and Freddie Mac were bankrupt. Most everyone within the beltway knew it, but no one would say anything about it. This as it now turns out they were the poster companies, which led to sovereign debt problems, but also showed that they were involved in massive fraud over several years and many in Washington knew it. Earnings were fabricated in order to create conditions, so that the officers could collect millions of dollars in bonuses. Part of this scam was engineered by Goldman Sachs, which pushed more than $100 million in earnings into future years. Earnings were structured so that they justified larger payouts for executives.
Saturday, May 08, 2010
Linking Valuation Standards, Basel II, Basil Fawlty, Moody’s, Hitler, & Goldman Sachs / Stock-Markets / Credit Crisis 2010
By: Andrew_Butter
Bill Gross had a go at the rating agencies this week, as always he has a lot of sensible things to say.
The point he didn’t make clearly (he did make it, but it was easy to get distracted by the discussion of working ladies of the night and six-inch heels…(where does he get his information?)), was that rating agencies have a monopoly franchise to “protect” the world financial system.
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Friday, May 07, 2010
Debt Crisis Hit Stock Market Turmoil Continues Benefiting Gold / Stock-Markets / Credit Crisis 2010
By: Andy_Sutton
The obvious pick for a topic this week would be yesterday’s fearful plunge in US Markets. However, absent a well-defined culprit for the plunge (so far), it seems pointless to speculate on what really happened. I am still sifting through my own observations of that ten-minute span as well as those sent to me by subscribers. There are reports of index ETFs with near zero volume and unfilled orders at the market.
Tuesday, May 04, 2010
Financial Fight Club: Ackman's Hedge Fund Vs. Wall Street's Ponzi Machine / Politics / Credit Crisis 2010
By: Janet_Tavakoli
When nobody seems to be losing money, nobody cares. If a corrupt scheme is "making money," everyone involved--from the culprits to the dupes--viciously attacks anyone who tries to expose it. Bill Ackman, manager of hedge fund Pershing Square Capital Management, L.P., learned this lesson the hard way.
Monday, May 03, 2010
Will Anyone At Goldman Sachs Go To Jail? / Politics / Credit Crisis 2010
By: Danny_Schechter
Will Goldman survive the assault? Will the threat of criminal charges being pursued against the world's leading investment bank spill over onto others on Wall Street? Is the criminalization of the crisis underway, or is all this just a maneuver?
Monday, May 03, 2010
Matt Taibbi: The Feds v Goldman Sachs / Politics / Credit Crisis 2010
By: Trader_Mark
From the man who coined Goldman Sachs (GS) the "vampire squid wrapped around the face of humanity" ... we have Matt Taibbi's latest take via Rolling Stone. Again, let it be said that some of the best work on our financial oligarchy is being done by a guy in a music magazine. That tells you what a farce corporate media has become. Then again, when almost all outlets are funding the same lobbyist groups (or mirror images) as those funded by the banking cartel... is is surprising?
Sunday, May 02, 2010
Did Lehman's Dick Fuld Lie Under Oath About Compensation? / Politics / Credit Crisis 2010
By: Trader_Mark
A quite fascinating piece in Bloomberg for those interested in the subject matter, that being executive compensation, how it is hidden by abusing the "spirit of the law", board of director cronyism, and the myth that the CEOs of failed companies actually felt any real pain. We have created a heads we win, tails we still win [Sep 27, 2008: Heads We Win, Tails We Win] executive compensation culture - which is leading to asymmetric outcomes.
Sunday, May 02, 2010
Down with 'Too Big to Fail': Angry Americans march on Wall Street / Politics / Credit Crisis 2010
By: Submissions
The largest anti-Wall Street rally since the credit crunch has taken place in New York. Thousands of workers and trade union leaders marched in anger over lost jobs and ruined lives, demanding answers from the source of the trouble - the banks.
Sunday, May 02, 2010
More Bonus Plus Less Lending Equals The March on Wall Street / Politics / Credit Crisis 2010
By: Static_Chaos
According to a Wall Street Journal analysis of Treasury Department data, the biggest recipients of taxpayer aid made or refinanced 23% less in new loans in February, the latest available data, than in October, the month the Treasury kicked off the Troubled Asset Relief Program (TARP). (Chart 1)
Friday, April 30, 2010
EXTEND & PRETEND: Uncle Sam, You Sly Devil! / Interest-Rates / Credit Crisis 2010
By: Gordon_T_Long
The modus operandi (MO) of deviant behavior aids investigators in doing criminal profiling. Forensic accounting takes a similar approach and leads us to some unnerving conclusions about Uncle Sam. As Tax Payers we place our sacred trust in our elected officials and government. Is that trust being handled similarly to how Goldman Sachs apparently has been handling its fiduciary responsibilities?Read full article... Read full article...
Friday, April 30, 2010
Goldman Slaps The S.E.C. and the Senate Subcommittee Down To Size / Politics / Credit Crisis 2010
By: Andrew_Butter
Leading-up to the hearing on the 28th in front of Senate Permanent Subcommittee on Investigations, Goldman were…“going-to-get-roasted like-a-Louisiana-Catfish”.
The Media and the Blogs were full of it, we even had “a famous New-York lawyer…with connections in the SEC” handing out FREE legal opinions.
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Friday, April 30, 2010
Goldman's "How much of that shitty deal did you sell to your clients?" / Politics / Credit Crisis 2010
By: Mike_Whitney
Tuesday's hearings of the Permanent Subcommittee on Investigations laid the groundwork for future criminal prosecutions of Goldman Sachs Chief Executive Lloyd Blankfein and his chief lieutenants whose reckless and self-serving actions helped to precipitate the financial crisis. Committee chairman Senator Carl Levin adroitly managed the proceedings in a way that narrowed their scope and focused on four main areas of concern. Through persistent questioning, which bordered on hectoring, Levin was able to prove his central thesis: