Archive for the 'Economy' Category
Saudi, Kuwaiti and Chinese Cash Infusions to Save Citigroup
January 13th, 2008Via: Bloomberg: Citigroup Inc., the U.S. bank facing an estimated $4.21 billion fourth-quarter loss, may get cash infusions from Saudi Prince Alwaleed bin Talal and China’s government to bolster its capital. Citigroup, the largest U.S. lender, is seeking a total of $8 billion to $10 billion from investors including Alwaleed, who already owns almost 4 […]
Taxpayers of America: “You’re Going to Help Bank of America Finance its $4 Billion Buyout of Countrywide”
January 12th, 2008Imagine my shock. Via: Fortune: Guess who’s helping Bank of America pay for its $4.1 billion purchase of Countrywide Financial? Answer: The taxpayers of the United States. That’s because Bank of America, which is solidly profitable, will be able to use some of Countrywide’s losses to offset its own taxable income. The tax break could […]
Over the Last Decade, Every Person in the U.S. has Borrowed About $4,000 from Someone in China
January 12th, 2008Via: The Atlantic: Through the quarter-century in which China has been opening to world trade, Chinese leaders have deliberately held down living standards for their own people and propped them up in the United States. This is the real meaning of the vast trade surplus—$1.4 trillion and counting, going up by about $1 billion per […]
Consumer Confidence Sinks to Record Low
January 11th, 2008Via: AP: Consumer confidence fell to an all-time low as worries about jobs, energy bills and home foreclosures darkened people’s feelings about the country’s economic health and their own financial well-being. According to the RBC Cash Index, confidence tumbled to a mark of 56.3 in early January. That compares with a reading of 65.9 in […]
U.S. Government Likely Favors Bank of America Buyout of Countrywide
January 11th, 2008The title should actually be: U.S. Dollar Holders Are About to Buy Countrywide and Most of Them Don’t Even Know It Countrywide can’t go down. But the U.S. Dollar can. Via: AP: A buyout of hobbled mortgage lender Countrywide Financial likely would be approved by regulators, analysts say, because otherwise the company could file for […]
Merrill Lynch Subprime Losses Are Almost Double Original Estimate
January 11th, 2008Via: New York Times: Merrill Lynch is expected to suffer $15 billion in losses stemming from soured mortgage investments, almost double its original estimate, prompting the firm to raise additional capital from an outside investor. Merrill, the nation’s largest brokerage firm, is expected to disclose the huge write-down when it reports earnings next week, according […]
Helicopter Ben About to Shift the Confetti Shredder Into Afterburner
January 11th, 2008WARNING: This is not a recommendation to buy, sell or hold any financial instrument. Gold nearly hit $900 today. Thanks, Ben. No, really. Thank you, sir. I keep thinking, I need to diversify and hold a little USD. Somehow, I don’t seem to be getting around to it… And that has been a good thing, […]
Cities Holding Lenders Accountable for Foreclosure Aftermath
January 10th, 2008Via: Business Week: On Dec. 17 in a windowless Buffalo courtroom, Cindy T. Cooper, a prosecutor for the city, buzzes among a dozen men in suits, cutting deals. “You’ve got to unboard [the house], go in, and clean it out,” she tells one. “If all the repairs are done quickly, I wouldn’t ask for any […]
South Africa: Gold Output Falls 12.7%
January 10th, 2008They cant just add more zeros in a computer to make more? * chuckle * Via: Reuters: South Africa’s annual gold output fell in November by its biggest margin in seven months, while total minerals production declined 6.4 percent compared with the same month the previous year, data showed on Thursday. Gold production dropped 12.7 […]
Paulson Trying to Prevent “Market Failure”
January 10th, 2008Via: Smart Money: U.S. Treasury Secretary Henry Paulson said Monday the administration is working to ensure that the subprime mortgage crisis doesn’t lead to a “market failure,” while urging Congress to pass bills to help troubled homeowners refinance their loans. In prepared remarks for a speech to the New York Society of Security Analysts, Paulson […]
