Category: Credit Crisis 2010
The analysis published under this category are as follows.
Friday, April 30, 2010
Barofsky Threatens Criminal Charges in AIG Coverup, Goldman Sachs Abacus Deal / Politics / Credit Crisis 2010
By: Mike_Shedlock
The day that Tim Geithner lands in jail will be a day of celebration. Don't count on it soon or ever, but Neil Barofsky, Special Inspector General for the Troubled Asset Relief Program (SIGTARP), is now threatening criminal charges.
Friday, April 30, 2010
Goldman's Fraud, But What About John Paulson’s Other $13 Billion? / Politics / Credit Crisis 2010
By: Graham_Summers
Disaster has been good to John Paulson.
The hedge fund manager rose from relative obscurity to legend within the span of 12 months when his bets against the subprime mortgage market netted him and his investors billions. The returns on invested capital were absolutely absurd: one of his funds returned 590 in 2007, another returned 353 percent. By the time the smoke cleared, Paulson had made $3.7 billion for himself, and another $10+ billion for his investors.
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Thursday, April 29, 2010
Declining Bank Loans – Write-Downs or Pay-Downs? / Economics / Credit Crisis 2010
By: Paul_L_Kasriel
We mentioned in our April 2010 U.S. Economic and Interest Rate Outlook [It's Been A While] that the ongoing contraction in commercial bank lending was an important factor curbing our enthusiasm about near-term growth in U.S. aggregate demand. But we did acknowledge that our lack of optimism might be misplaced if the cause of the continued contraction in bank lending was due more to write-downs of loans gone sour rather than of pay-downs of loans. We argued that if bank loans were falling because the dollar amount of write-downs exceeded the dollar amount of new loans being granted, the write-downs were immaterial with respect to new spending.
Thursday, April 29, 2010
Tax Payer Bailed Out Banks Shorting U.S. States and Cities / Politics / Credit Crisis 2010
By: Washingtons_Blog
Americans bailed out the giant banks. So how do the too big to fails re-pay the American taxpayers?
By betting that American states and cities will fail.
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Thursday, April 29, 2010
Bring Down Goldman Sachs and Expose the Financial Coup / Politics / Credit Crisis 2010
By: David_DeGraw
Not only did Goldman Sachs profit on betting against CDOs they designed to fail; more importantly, they insured them through AIG which led to a $182 billion taxpayer bailout.
Tuesday, April 27, 2010
What Really Triggered the Financial Crisis? / Politics / Credit Crisis 2010
By: Mike_Whitney
The Shadow Banking System Blew Up
Do you understand the root-cause of the financial crisis? Not many people do, which is why congress' attempt to regulate the system will probably fail and there will be another crisis in couple of years.
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Sunday, April 25, 2010
Politicians Attempt to Diffuse Goldman Sachs and Mega-Banks Financial Scandal / Politics / Credit Crisis 2010
By: Bob_Chapman
As the world faces an ongoing sovereign debt debacle we see an attempt to defuse an oncoming scandal involving Goldman Sachs, Paulson and perhaps others.
The collapse of the fiat money system is underway and each day picks up momentum. The only question is how long it can survive? In the interim we are faced with inflation and perhaps hyperinflation as the privately owned Federal Reserve and other central banks add stimulus and money and credit into their financial systems.
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Saturday, April 24, 2010
EXTEND and PRETEND, Is the U.S. Facing a Cash Crunch? / Interest-Rates / Credit Crisis 2010
By: Gordon_T_Long
The US Government is caught in a cash vise and is being squeezed between too slow a rebound in tax revenues and the limitations on how quickly it can realistically take its funding requirements to the US Treasury auction. The US Treasury was saved in March by what the government reports as “proprietary receipts”. Those receipts require an explanation that is not well publicized since it begs the question of what happens next month without the $117 BILLION journal entry.
Friday, April 23, 2010
Mendacity Antidotes for Investor Profit and Protection / Stock-Markets / Credit Crisis 2010
By: DeepCaster_LLC
“The European Central Bank used the proceeds from gold sales to boost its U.S. dollar reserves in 2009, helping lift the dollar…
The ECB also confirmed it had not intervened in currency markets in 2009. The last time it intervened was in 2000.”
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Friday, April 23, 2010
Goldman Sachs History Suggests Its Vulnerability in Periods of Negative Social Mood / Companies / Credit Crisis 2010
By: EWI
Goldman Sachs Charged With Fraud: Who Could Have Guessed?
In the November 2009 issue of Elliott Wave International's monthly Elliott Wave Financial Forecast, co-editors Steven Hochberg and Peter Kendall published a careful study of Goldman Sachs history -- and made a sobering forecast for its future.
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Friday, April 23, 2010
Are Interest Rate Derivatives a Ticking Time Bomb? / Interest-Rates / Credit Crisis 2010
By: Washingtons_Blog
Derivatives are the world's largest market, dwarfing the size of the bond market and world's real economy.
The derivatives market is currently at around $600 trillion or so (in gross notional value).
In contrast, the size of the worldwide bond market (total debt outstanding) as of 2009 was an estimated $82.2 trillion.
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Friday, April 23, 2010
Heavy-Handed Politics Could Boost Bank Reform, Stock Prices and the Economy / Politics / Credit Crisis 2010
By: Money_Morning
Shah Gilani writes: Defenders of Goldman Sachs Group Inc. (NYSE: GS) say the civil fraud charges the U.S. Securities and Exchange Commission has levied against the investment-banking giant are without foundation, and are politically timed to push President Barack Obama's bank-reform agenda.
Friday, April 23, 2010
Asking a Better Question About Who to Blame for the Financial Crisis / Politics / Credit Crisis 2010
By: Tim_Iacono
One look at yet one more story about how the world should assess and assign blame for the ongoing financial crisis, this one appearing over at the Wall Street Journal Real Time Economics Blog the other day titled No Resolution in Sight in Fed Blame Game, has belatedly brought me to the conclusion that, for years now, nearly everybody has been asking the wrong question about blame for the financial crisis.
Thursday, April 22, 2010
Lehmans Failure a Story of Fraud / Politics / Credit Crisis 2010
By: Mike_Whitney
On Tuesday, Former regulator William Black appeared before the House Committee on Financial Services and beat the living-tar out of Lehman CEO Dick Fuld for 8 full minutes. It was a moment of sheer, unalloyed pleasure that will be savored for a long time to come.
Thursday, April 22, 2010
Goldman Sachs "Financial Fraud!" What a Happy Noise. Revenge is Sweet / Companies / Credit Crisis 2010
By: Mike_Whitney
Schadenfreude. The pleasure derived from watching someone else suffer. It's human nature and it's what's what's driving the Goldman pile-on. SEC Enforcement director Robert Khuzami had barely uttered his statement on Friday, before the the yelps of joy arose from every corner of the country. "Fraud!" What a happy noise. Revenge is sweet. Suddenly the prospect of subpoenas, indictments, and long prison sentences didn't seem so remote. But don't get your hopes up. Goldman was picked for a reason, and that reason has nothing to do with its shady business transactions. It's politics.
Wednesday, April 21, 2010
Geithner and the NY Fed Accused of Covering Up Lehman's Fraud / Politics / Credit Crisis 2010
By: Mike_Shedlock
Inquiring minds are digging into a 27 page statement made by William Black before the Financial Services committee. Black is an Associate Professor of Economics and Law, at the University of Missouri.
Tuesday, April 20, 2010
Bad Banks, Are There More Cockroaches in the Kitchen? / Companies / Credit Crisis 2010
By: Hans_Wagner
If you have you ever seen a cockroach in the kitchen, you know there are more than what you see. The same concept applies to improper financial activity by companies. When you find one bad action, you will more than likely find others. The Securities Exchange Commission (SEC) is suing Goldman Sachs for failure to disclose “vital information” regarding a synthetic collateralized debt obligation, named Abacus 2007-ACI.
Tuesday, April 20, 2010
The Criminalization of Wall Street, Lynching Bankers is not the Solution / Politics / Credit Crisis 2010
By: Global_Research
Six out ten Americans have a hostile view of Wall Street, according to a recent poll. And this survey was taken before the news last week that the US government is charging top Wall Street bank Goldman Sachs and its vice president with fraud over trade in mortgages and derivatives. The charge is serious, given that Goldman Sachs is accused of being aware that there would be an imminent collapse in the US housing market. Nevertheless, the bank went ahead anyway, merrily trading its toxic assets.
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Tuesday, April 20, 2010
Goldman Sachs and the Mega Banks: Too Big To Obey The Law / Politics / Credit Crisis 2010
By: Global_Research
Simon Johnson writes: On a short-term tactical basis, Goldman Sachs clearly has little to fear. It has relatively deep pockets and will fight the securities “Fab” allegations tooth and nail; resolving that case, through all the appeals stages, will take many years. Friday’s announcement had a significant negative impact on the market perception of Goldman’s franchise value – partly because what they are accused of doing to unsuspecting customers is so disgusting. But, as a Bank of America analyst (Guy Mozkowski) points out this morning, the dollar amount of this specific allegation is small relative to Goldman’s overall business and – frankly – Goldman’s market position is so strong that most customers feel a lack of plausible alternatives.
Monday, April 19, 2010
ProPublica's (and NY Times') "Untold" Magnetar Story Creates Excuses for Wall Street and Washington / Politics / Credit Crisis 2010
By: Janet_Tavakoli
ProPublica, Planet Money, and radio show This American Life recently carried stories about Magnetar, a hedge fund that profited from the housing crisis. Unfortunately, many thought it was a fresh revelation. Magnetar wasn't a previously unknown hedge fund. Magnetar did not create the synthetic CDO structure, and the magnitude of Magnetar's role in the subprime crisis has been overblown.