In early 2007 Paulson and Bernanke became aware that there were problems and the economy was in jeopardy. Their first move was to protect the elite (their peers, i.e. Goldman, JP morgan, etc.). Bernanke probably thought that rate cuts, sharing key information with a few of the elite, and doling out Fed largess would solve [...]
Clarity of vision is in short supply by all including economists, however, this collection profiled here is more right than wrong. Shall we recap a portion of 2008?
1. Housing bubble collapse.
2. 400+ trillion derivative/credit default swaps worldwide
3. Switzerland’s Krono disappears for all practical purposes because of overboard investment in collaterized debt securities.
4. Bernard Madoff already [...]
Since when is it the president’s job to create jobs in a country unless that country is Communist?
“For years governments have been promising more than they can deliver, and delivering more than they can afford.”-Paul Martin-
It’ll drive this country into bankruptcy (if it isn’t already). Government can not ensure employment nor should it bailout [...]
This was the last Friday before Christmas! Ditto for Lowe’s. Went out today for lunch and drove around for a look see, not much happening, more like a regular day not the holidays! This doesn’t bode well for post Christmas sales figures.
I see some major problems in the first quarter of next year;
1. The commercial [...]
Major banks on the edge of collapse.
Auto industry facing bankruptcy.
Retail sales plummeting.
Unemployment numbers accelerating.
Housing market crumbling.
Ponzi schemes making a comeback.
Major retailers filing for BK.
Stock market down almost 50% from the highs.
Treasury notes yielding Zero.
Credit Default Swaps over 5 times GDP looming out there.
Commercial real estate market starting to crack.
(Did I forget anything?) Oh ya, $8 [...]
The level of complacency is astounding in my opinion.
Take the CMBS market for example. Commercial Real Estate Mortage Backed Securities stuff is not some joke…consumer credit shrunk for the first time since 1950 and the consumers are pulling back and ratilers are going bust and then commercial real estate guys are defaulting and that would [...]
I think the MBA, NAR, Freddie-Fannie, and all the bad actors are feverishly coming up with ‘a method’ to artificially get people back into homes, or keep those there that are underwater via govt. bailout.
So much became predicated on a go-go, expensive home market (including fat fees, political contributions, borrowing against homes for consumer purchases, [...]
“…The reason why Lehman is having a hard time to find a buyer is that it is most likely insolvent. If you had to mark to market the value of it illiquid and toxic assets (the $40 billion of commercial real estate assets, its remaining residential MBS and CDOs, its holdings of real estate private [...]
WASHINGTON (MarketWatch) - The U.S. economy was squeezed further by the credit crunch in the past three months, and most banks expect to keep a lid on credit for the next year at least, the Federal Reserve reported Monday. A record percentage of banks were making it more difficult for borrowers in the three months [...]
In “good times” consumers shun the canned meat aisle altogether, but no more. Today, Spam sales are soaring; grocery stores can’t keep it on the shelves. Everyone is looking for cheaper ways to feed their families. The Labor Dept. assures us that core-inflation is only 4 per cent, but everybody knows it’s load of malarkey. [...]
Deutsche Bank, Allianz take fresh write-downs
Worsening market conditions in March lead to loss for Deutsche Bank
By Simon Kennedy, MarketWatch
Last Update: 4:39 AM ET Apr 29, 2008
LONDON (MarketWatch) — Deutsche Bank and Allianz, Germany’s two biggest
financial groups, both announced further write-downs on Tuesday after the credit
crisis worsened towards the end of the first quarter.
Deutsche Bank (DE:514000)(DB) [...]
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