Category: Credit Crisis 2008
The analysis published under this category are as follows.
Thursday, October 23, 2008
Mortgage Interest Rate Resets May Fuel LIBOR Market Manipulation / Interest-Rates / Credit Crisis 2008
By: Money_Morning
Shah Gilani writes:It's panic time for U.S. legislators, regulators, banks and lenders. More than $24 billion worth of adjustable-rate mortgages (ARMs) are expected to “re-set” to higher interest rates in November – boosting the likelihood of further home foreclosures.
And it gets worse. That increase in borrowing costs will spread to other parts of the global debt market, representing an across-the board threat to corporate, institutional and sovereign borrowers. If interest rates remain high and interbank lending remains tight, the credit crisis is not likely to recede.
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Wednesday, October 22, 2008
The Credit Crisis Survival Kit / Personal_Finance / Credit Crisis 2008
By: EWI
Before it became the worst credit crisis since the Great Depression, the credit crisis used to be an arcane topic discussed only in financial publications. Now, it's on every computer, television screen, and front page of every newspaper in the world.
In these tough economic times, you'll be hard pressed to find a more relevant and useful free resource than the Credit Crisis Survival Kit. It's packed with 15 hand-picked reports, videos, and articles to help individuals survive and prosper from the Credit Crisis.
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Tuesday, October 21, 2008
Capital and Liquidity Injections Results in Modest Credit Market Improvement / Economics / Credit Crisis 2008
By: Joseph_Brusuelas
Credit and Money Supply Indicators: The injection of capital and elimination of caps on swap lines between foreign central banks and the Fed have engineered modest improvement in credit indictors over the past week.Read full article... Read full article...
Tuesday, October 21, 2008
Time to Stop Blaming and Start Solving the Credit Crisis Debt Problems / Politics / Credit Crisis 2008
By: Frank_Holmes
One of the key reasons behind the current financial crisis is that the big investment banks, hedge funds and other financial companies borrowed way too much money. Another key reason we're in this big mess is that way too many American households borrowed way too much money.
Extreme debt is the common denominator that links Wall Street and Main Street , and the numbers are truly staggering. When the debt suddenly came due, neither Street had anywhere near the cash to cover it. Overleveraging hurt hedge funds when markets got tougher and many of their investors wanted their money back. These hedge funds were forced to sell sizable positions in natural resources and energy equities, driving prices down sharply.
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Tuesday, October 21, 2008
Keynesian Economic Claptrap From PIMCO / Interest-Rates / Credit Crisis 2008
By: Mike_Shedlock
The amount of total nonsense currently circulating on the so called Paradox of Thrift is staggering. The paradox: An increase in saving, which is generally good advice for an individual during bad economic times, can actually worsen the macroeconomy causing a reduction in aggregate income, production, and paradoxically a decrease in saving.
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Tuesday, October 21, 2008
How LIBOR Threatened to Destroy the Global Banking System / Interest-Rates / Credit Crisis 2008
By: Money_Morning
Martin Hutchinson writes: largest financial crisis since the Great Depression has revolved around an interest rate that many U.S. investors are only now hearing about for the very first time: The London Interbank Offered Rate (LIBOR).
But if you understand that rate, and study the forces that have been influencing it, chances are very good that you can figure out how we can escape the current banking-sector mess without wrecking the entire world economy.
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Monday, October 20, 2008
Understanding Derivatives to Understand the Credit Crisis / Stock-Markets / Credit Crisis 2008
By: Rob_Kirby
Like it or not we hear the term “derivatives” bandied about in the mainstream financial press these days with increasing regularity.
In recent times it has come to be a term that, when mentioned in conjunction with a particular financial institution, can cause loss of confidence or worse, maybe a herd-like run on deposits [or policies] on the offending institution.
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Monday, October 20, 2008
After the Market Crash Liquidity Starts to Repair Banking System / Stock-Markets / Credit Crisis 2008
By: Paul_J_Nolte
Another historical week – the largest one day decline since the '87 crash and the largest one day gain since the '29 crash. OK, so the market is/has crashed – now what? Liquidity in the form of government and Federal Reserve funds are flooding the markets, buying nearly everything from bad bank debt to actual bank stock. Some have argued we are moving to a socialist society, but we'll leave the politics for someone else to discuss. Unfortunately the liquidity has not made it into the hands of those with loans outstanding or for those wanting to enter loan arrangements. The banking system is acting as a sponge, sopping up any and all liquidity it can find to repair very poor balance sheets. Read full article... Read full article...
Monday, October 20, 2008
Government Bailouts Herald New Era of Tax Payer Slavery / Politics / Credit Crisis 2008
By: Dr_Ron_Paul
In the midst of highly unpopular bailouts of Wall Street, many justifications have been given about why Washington feels the need to act. Some claim that capitalism and the free market are to blame, but we have not had capitalism. If you compare our financial capital to our aggregate debt, this would be obvious. In the same way, we have not had a truly free market. The monetary manipulations of the Federal Reserve, a complex tax code, the many "oversight" agencies and their mountains of regulations show that we are far removed from a free market economy. Read full article... Read full article...
Monday, October 20, 2008
Ghost of John Maynard Keynes- Comments on Economic and Financial Crisis / Economics / Credit Crisis 2008
By: William_R_Thomson
1/What is your view of how long the financial system crisis will continue and how much deeper it will it get?
One can only hazard a guess by looking at other experiences with banking crises. Japan took about 5 years from the time it started to recapitalize its banks. Sweden and Thailand took a little less time but none were V shaped recoveries. There is a far greater urgency to efforts now in the US and Europe after a year of dithering and denial but these are still early days and the scale being global is larger and we have the unprecedented scale of the derivative problem. It could still spiral out of control requiring the whole banking sector to be taken into public ownership, but more likely we will have an extended period of recession and subnormal growth covering much of the Obama presidency – assuming he wins.
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Sunday, October 19, 2008
Bush Seeks Advice from Credit Crisis Losers Instead of Winners / Politics / Credit Crisis 2008
By: Mike_Shedlock
In response to the Credit crisis president Bush is gathering up all the people who did not see what was coming, denied what was happening, and then failed to see the implications of what was indeed happening. Read full article... Read full article...
Sunday, October 19, 2008
Nationalisation and Capital Injections Mean Worst of Financial Crisis Behind Us / Stock-Markets / Credit Crisis 2008
By: Prieur_du_Plessis
BCA Research: Policymaker action finally hitting critical mass - “Fresh capital and government guarantees for bank liabilities are very positive signs that the credit crisis is nearing an end, although it will be a long road to recovery.
“Policymakers around the world have ‘pulled out the big guns' in their efforts to get the credit markets working again. Over the weekend, numerous European governments announced a massive bank bailout plan that includes funds for recapitalization, credit guarantees, and the purchase of troubled assets.
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Sunday, October 19, 2008
The Mechanism Of Capital Destruction / Interest-Rates / Credit Crisis 2008
By: Professor_Emeritus
Address at the Annual Dinner of the Committee for Monetary Research and Education, CMRE
on October 16, 2008
New York City
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Sunday, October 19, 2008
Those Responsible for the Credit Crisis Should Go to Jail / Stock-Markets / Credit Crisis 2008
By: Money_Morning
Keith Fitz-Gerald writes: By far, the No. 1 question I've received this week has been: Why aren't the guys who caused the credit-crisis meltdown headed for jail? Personally, I believe these savings-sapping, market-mashing miscreants ought to be rotting at the bottom of a deep dark hole. At the very least, they should be impoverished and prevented from capitalizing any further on the chaos they caused, meaning no book deals or fruitful forms of tell-alls.
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Friday, October 17, 2008
The Current Financial Crisis- Causes and Consequences / Stock-Markets / Credit Crisis 2008
By: The_Gold_Report
Adrian Day's reputation for discovering big winners adds credibility to the global investing pioneer's insights, which he is sharing with The Gold Report subscribers via excerpts from recent articles in Adrian Day's Global Analyst . Acknowledging what trying times these are for investors, in this first segment of a five-part series, Day discusses what led to the current economic crisis and how he sees Washington's $700 billion (and counting) bailout playing out. Read full article... Read full article...
Friday, October 17, 2008
Why Mortgage Interest Rates Are Rising Despite Government Actions! / Interest-Rates / Credit Crisis 2008
By: Money_and_Markets
Mike Larson writes: The government is throwing everything … and I do mean EVERYTHING … at the credit and mortgage markets.
It has taken over Fannie Mae and Freddie Mac.
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Friday, October 17, 2008
Elegant Market-based Solution to the Financial Crisis / Personal_Finance / Credit Crisis 2008
By: David_Haas
THE PROBLEM: In a strange and awkward way, some of us here in the mezzanine have experienced a rather morbid and dark sort of enjoyment as we watch those on stage who created the world-altering credit crisis, and the governments who enabled it, squirm and writhe - like a child caught in his first big lie - as they attempt to sort out the consequences of what they've done. What we see from our vantage point is, instead of coming clean, they continue adding layer-upon-layer of ever-glossier, ever-less-credible volumes to their original prevarications. In my opinion, this is EXACTLY NOT what the world needs right now. Read full article... Read full article...
Wednesday, October 15, 2008
Derivatives Crunch Means Savings Is the New Investing / Stock-Markets / Credit Crisis 2008
By: Mick_Phoenix
Welcome to the Weekly Report. As I write this on Saturday afternoon, I see nothing from the G7 statements that can be taken as co-ordinated action. Indeed all I see is a repeat of what is becoming a tired mantra:
- At the White House, Mr Bush pledged the G7 most industrialised nations would take robust action together.
On Friday, G7 finance ministers agreed to take moves to free the flow of credit, back efforts by banks to raise money and revive the mortgage market.
Tuesday, October 14, 2008
Financial Crisis is the Birth Pains of a New Currency / Currencies / Credit Crisis 2008
By: David_Vaughn
What can we say?
We are experiencing the most severe financial crisis since 1929. It hurts. There appears to be no relief in site. What began with mortgage defaults has now spread to the derivative markets.
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Tuesday, October 14, 2008
U.S. Mistakes Triggered Financial Markets Crash / Stock-Markets / Credit Crisis 2008
By: Money_Morning
Shah Gilani writes:
In the mid-80s, I ran a private partnership – call it a hedge fund – from the floor of the Chicago Board of Options Exchange Inc . (CBOE). I was an independent market maker , meaning I could walk into any trading pit on the floor and trade any options and any stocks. More often than not, one of my principal trading plans was to play the crowd.Read full article... Read full article...