Archive for the 'Economy' Category
The New Chemistry of Speculation
August 5th, 2008WARNING: This is not a recommendation to buy, sell or hold any financial instrument. While this is speculation, I don’t see it as the same type of situation that we’re seeing in the “regulated,” black boxed commodity markets right now. If I understand what’s happening in the case below with the iron ore, the speculator […]
Hundreds of Banks Will Fail, Roubini Tells Barron’s
August 5th, 2008Nothing new here, but Roubini’s message is worth repeating. Via: Reuters: The United States is in the second inning of a recession that will last for at least 18 months and help kill off hundreds of banks, influential economist and New York University Professor Nouriel Roubini told Barron’s in Sunday’s edition. Taxpayers will pay a […]
Housing Lenders Fear Bigger Wave of Loan Defaults
August 5th, 2008Full text below. Via: New York Times: The first wave of Americans to default on their home mortgages appears to be cresting, but a second, far larger one is quickly building. Homeowners with good credit are falling behind on their payments in growing numbers, even as the problems with mortgages made to people with weak, […]
Royal Bank of Scotland Poised for Biggest Loss in UK Banking History
August 4th, 2008Via: Telegraph: THE Royal Bank of Scotland is poised to unveil the biggest loss in UK banking history after taking a hit of almost £6 billion from the credit crisis. Britain’s second-largest bank is this week expected to reveal a pre-tax loss of at least £1 billion for the first six months of the year, […]
FDIC Warns Four More Banks About Liquidity Problems
August 2nd, 2008Via: Financial Times: The Federal Deposit Insurance Corporation revealed on Friday that it had issued warnings to four small US banks that lacked sufficient reserves to cover potential loan losses. The cease-and-desist orders issued in June said the four banks needed to raise more capital, expand their loss allowances and better oversee and diversify their […]
Another Weekend Arrives, Another Bank Failure: First Priority Bank Goes Down
August 2nd, 2008Via: Los Angeles Times: We all can start getting used to this: Friday is going to be Bank Failure Day in the U.S.A. The Federal Deposit Insurance Corp. said late today that it took control of First Priority Bank of Bradenton, Fla., marking the eighth bank failure this year — and the fourth just since […]
Schwarzenegger Lays Off Thousands of California State Employees
August 1st, 2008Via: Guardian: California governor Arnold Schwarzenegger delivered on his threat to lay off thousands of state employees yesterday when he signed an executive order in an attempt to solve the state’s budget crisis. The move, dismissed by critics as a gesture to force legislators to reach a compromise on how to resolve the state’s $15bn […]
GM Posts $15.5 Billion Loss
August 1st, 2008Will this pig ever die? Maybe the Volt albatross will finally pull them under. As Nissan, Subaru, Mitsubishi, BMW, Mercedes and about a dozen smaller firms ready their electric vehicles for release by 2010, GM is going to try to sell the piece of crap Volt with a 40 mile electric range—about half the range […]
STRESSED BANKS BORROW RECORD AMOUNT FROM FED
August 1st, 2008Check out the chart, if you dare. Via: Reuters: Banks borrowed a record amount of funds from the Federal Reserve in the latest week as the year old credit crisis took a persistent toll, while the commercial paper market continued to contract, signaling tough conditions for short term borrowers. Banks’ primary credit borrowings averaged $17.45 […]
Debt Rattle
July 31st, 2008Via: Automatic Earth: Oh boy. Oh boy! Say what you will, the Lords of the Crumbling Manor are moving fast. Everyone was still letting the Fannie and Freddie free money and covered bonds-related issues sink in; Well, Move Over. The Lords have come up with an infinitely bigger and potentially more harmful plan: Now the […]
