I recently wrote a piece entitled The Tale of Two Markets, where I talked about the “Fannie Mae/Freddie Mac Experiment”. That experiment has now clearly failed and a bailout/privatization/nationalization of Fannie and Freddie is now being planned. While I have been expecting nationalization for quite a while, I am intrigued along with my peers and [...]

Stocks fall as financial jitters return
Oil surges as dollar dips, tensions rise over Russia’s presence in Georgia
By Nick Godt, MarketWatch
Last Update: 8/21/2008 12:49:00 PM
NEW YORK (MarketWatch) — U.S. stocks were firmly lower on Thursday as
nervousness about distress at mortgage-giants Fannie Mae and Freddie Mac returned
to the fore and fresh concerns emerged about investment firm Lehman [...]

PARIS (Dow Jones)–Europe’s insurers remain in the hunt for small to midsize
acquisitions, with the action likely to center on promising emerging markets in
the East and South, while larger, balance-sheet-straining deals in mature markets
will likely have to wait as companies tread cautiously in the face of the global
credit crisis.
Insurance heavyweights such as Axa SA (AXA), Assicurazioni [...]

Interesting that more and more people are talking about deflation -almost unheard of 6 months ago when it looked more likely that the banks were on the verge of suffering a “negative feedback loop” or deflationary death spiral. Talking about deflation back then meant getting “thumbed down.” Deflation does strengthen the currency as it gets [...]

Merrill’s Fire Sale Might Leave A Lot Of Fingers Burned
Last Update: 7/29/2008 9:03:18 AM
By Andrew Dowell and Ed Welsch
Of DOW JONES NEWSWIRES
Merrill Lynch & Co.’s (MER) fire sale of toxic assets might burn some other
fingers on Wall Street.
In the world of complex and infrequently traded securities, the venerable
investment [...]

NEW YORK (MarketWatch) — U.S. financial stocks fell early Tuesday, as the
Financial Select Sector SPDR , an ETF that tracks the financial stocks in the S&P500, lost 1.2%, while the Amex Securities Broker/Dealer Index slipped 0.3%.
Investors are closely eyeing financial firms as the third quarter begins, and are
maintaining negative outlook as the credit crisis continues [...]

By Harry Wilson
Of FINANCIAL NEWS
Barclays Capital, Citigroup and Deutsche Bank were among the worst hit banks in
Europe in the first half of this year as investment banking fees dropped by more
than a third in the wake of the credit crisis.
The three banks each lost market share in investment banking and saw their fees
fall by more [...]

Federal Reserve signals aggressive rate cuts are over; unclear about when rate hikes will come
WASHINGTON (AP) — The Federal Reserve’s aggressive period of cutting interest rates to keep the country from falling into a recession is over. That point is in general agreement. The trouble starts when you try to figure out what period the [...]

Morgan Stanley’s quarterly profit off 60%
By Greg Morcroft, MarketWatch
Last Update: 6/18/2008 8:57:00 AM
NEW YORK (MarketWatch) — Morgan Stanley, the third U.S. investment bank to
report financial results this week, said Wednesday second-quarter profit fell 60%
as continued weakness in key businesses reflected the ongoing credit crunch as
well as the falling real-estate market.
The company (MS) reported net income [...]

Lehman Shares Fall Below $28 Price In Capital-Raising >LEH
Last Update: 6/10/2008 11:50:06 AM
DOW JONES NEWSWIRES
Shares of Lehman Brothers Holdings Inc. (LEH) continued their fall, dropping over
6% Tuesday as their month-long swoon resulted in the brokerage shedding 40% of
its market value.
Monday’s projection of a $2.8 billion quarterly loss deepened anxieties that
banks and [...]

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