As a national of a Latin American country, I watch in disbelief what is happening to America. After years and years of having your bureaucrats wag their fingers telling us how lousy managers of our economies we were, you guys end up wrecking your economy like this. I believe that the events of 2008 are [...]
Bear Stearn and other investment firms merge with traditional banks, forming hybrid bank entities. And then the hedge fund investors disallow redemption. A few hedge fund manager collude with Goldman, Citi, BoA, JP Morgan investment divisions to manipulate the market.
The hybrid bank entities then go to the government and ask for billions of bail out [...]
By Shannon D. Harrington and Abigail Moses
Nov. 6 (Bloomberg) — The most comprehensive report on unregulated credit-default swaps didn’t disclose bets in the section of the more than $47 trillion market that helped destroy American International Group Inc., once the world’s biggest insurer.
A study by the Depository Trust and Clearing Corp. fails to [...]
The Fed announced that it and other central banks would be providing unlimited liquidity to anyone who wanted it, more or less.
http://www.dailyreckoning.com.au/financial-system-no-doc-loan/2008/10/14/
–Specifically, it said that participants to its new lending program, “will be able to borrow any amount they wish against the appropriate collateral in each jurisdiction.” This is like a giant no-money down, [...]
Moody’s: Municipal-Only Bond Insurers Might Get AAA
Last Update: 7/31/2008 10:31:20 AM
By Lavonne Kuykendall
Of DOW JONES NEWSWIRES
CHICAGO (Dow Jones)–Bond insurers that cover only municipal and public purpose
bonds might be more likely to win a top credit rating than insurers that dabble
in securities backed by consumer and other [...]
DOW JONES NEWSWIRES
Ambac Financial Group Inc. (ABK) said it wrote down $228 million in
collateralized-debt obligations in April as it continues to be weighed down by
the credit crunch.
In a monthly update on its pretax financial data, the second-largest bond insurer
also reported a $53.4 million loss on fair-value changes in its investment
portfolio more than offset [...]
Credit crunch to stretch into 2009: analyst
Pain is far from over for U.S. banks, Oppenheimer’s Whitney says
By John Spence, MarketWatch
Last Update: 1:39 PM ET May 20, 2008
BOSTON (MarketWatch) — Shares of large-cap U.S. banking stocks traded lower
Tuesday after analysts at Oppenheimer & Co. said they see the turmoil in credit
markets lingering at least into next [...]
Moody’s warns on bond-insurer ratings again
This time, second-lien mortgage securities may test ratings, agency says
By Alistair Barr, MarketWatch
Last Update: 4:16 PM ET May 13, 2008
SAN FRANCISCO (MarketWatch) — Poor performance of second-lien residential
mortgage-backed securities could put pressure on the credit ratings of bond
insurers, Moody’s Investors Service said Tuesday.
Bond insurers have significant exposure to second-lien residential
mortgage-backed [...]
ZURICH (Dow Jones)–Credit Suisse Group (CS) will continue to whittle down
positions hit by the spread of the subprime crisis, such as major buyout loans,
the bank’s chairman said Friday.
“We will therefore continue to reduce our remaining positions in a prudent
fashion and try to recover a significant proportion of the write-downs over
time,” Credit Suisse Chairman Walter Kielholz [...]
Ambac Financial Group Inc. (ABK) swung into the red in the first quarter on
another $1.73 billion in collateralized-debt-obligation losses and $1.04 billion
in loss provisions as the nation’s second-biggest bond insurer continued to be
weighed down by the credit crunch.
The company reported a net loss of $1.66 billion, or $11.69 a share, compared
with year-earlier net income of [...]
VIENNA (MarketWatch) — Merrill Lynch said it swung to a $1.96 billion, or $2.19 a share, loss during the first quarter, with revenue down 69% to $2.9 billion on $1.5 billion write-downs from asset-backed securities CDOs and credit valuation adjustments of $3 billion on hedges with financial guarantors. Merrill Lynch earned $2.16 billion in the [...]
If there is more bad news to come, UltraShort Financial could be a very profitable holding. It will likely be volatile, but at the same time, it’s highly probable that the worst isn’t over for the financial sector.
There are two strategies to invest in this ProShares fund: Buy a full position (whatever you decide [...]
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