By Krishna Guha in Washington
Published: December 20 2008 05:01 | Last updated: December 20 2008 05:01
Hedge funds will be allowed to borrow from the Federal Reserve for the first time under a landmark $200bn programme intended to support consumer credit.
The Fed said on Friday it would offer low-cost three-year funding to any US company investing [...]
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 [...]
WASHINGTON (MarketWatch) - Stung by the loss of $2.81 trillion in their net wealth, U.S. households paid down their debts in the third quarter for the first time since at least 1952, the Federal Reserve reported Thursday. As of Sept. 30, households’ total outstanding debt shrank at an annual rate of 0.8% from $13.94 trillion [...]
The biggest issue next year in the American economy will be jobs. Not credit, not consumer credit. Our economy doesn’t rest on consumer spending. No! It rests on jobs. We’ve been careless and shipped them overseas. We’ve let the CEOs follow their bliss (profits) and they’ve managed to drag our economy over a cliff.
There was [...]
By Ed Welsch
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)–Citigroup Inc. (C) said losses in its consumer loans could
rise between $1 billion and $2 billion each quarter from now through the first
half of next year, according to Chief Executive Vikram Pandit’s speech notes
released on the company’s Web site.
The notes reveal [...]
Newsflash: HOMES ARE TOO EXPENSIVE! Middle-class families still can’t afford them unless both parents work. The market will decide a fair price for a house, not government intervention.
It is amazing to me the lengths these people are going to try and keep this bubble inflated. Even Paulson’s changes to the TARP program (focusing on consumer [...]
By Karl Denninger
If you’re playing “Buffett”, following his claim (note: there is no penalty for lying on national television about what you’re doing in your personal account) that he’s buying here, there is a little ugly fact you need to be aware of.
That fact is treasury issuance.
See, to fund all this bull excrement that [...]
Consumers still haven’t FULLY exhausted their personal credit lines.
I went to the mall this weekend to pick up a friend and was ASTOUNDED to see how many people were BLOWING money on shoes and high end consumer goods.
So, it will only be a matter of time before consumer credit is maxed…and about a year later [...]
Consumer debt — including credit cards and auto loans but not including mortgages - increased $4.6 billion to $2.59 trillion, the Fed said. It was the slowest growth in credit since the 1.9% growth rate in December.
June’s growth was revised down from 6.7%, or $14.3 billion, to 5.1%, or $11 billion.
Slowing consumer credit means that [...]
Soft Credit-Card ABS Market May Add To Consumer Credit Woes
Last Update: 8/5/2008 7:38:00 AM
By Aparajita Saha-Bubna and Prabha Natarajan
Of DOW JONES NEWSWIRES
(This article was originally published Monday)
NEW YORK (Dow Jones)–Investors are growing wary of bonds backed by consumers’
payments on their credit-card debt, jamming up another debt market and [...]
S&P affirmed its ‘AA-/A-1+’ credit rating on Citigroup Inc. and its ratings on Citigroup’s units. Standard & Poor’s also said that it removed all these ratings from CreditWatch, where they were placed on April 15, 2008, with negative implications. The outlook on all these companies is negative. “Despite the challenges facing Citigroup over the next [...]
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