Archive for the 'Economy' Category
Merrill Lynch Reports Biggest Quarterly Loss in Its 93-Year History
October 25th, 2007Via: Bloomberg: Merrill Lynch & Co. reported the biggest quarterly loss in its 93-year history after taking $8.4 billion of writedowns, almost double the firm’s forecast three weeks ago. The writedowns on subprime mortgages, asset-backed bonds and leveraged loans led to a third-quarter loss of $2.24 billion, or $2.82 a share, six times more than […]
Trillion-Dollar War: Afghanistan and Iraq Set to Cost More than Vietnam and Korea
October 24th, 2007Via: Independent: President George Bush will have spent more than $1 trillion on military adventures by the time he leaves office at the end of next year, more than the entire amount spent on the Korean and Vietnam wars combined. There are also disturbing signs that Mr Bush is preparing an attack on Iran during […]
Cash-Strapped Americans Raiding Their 401(k)s
October 24th, 2007Via: Chicago Tribune: Despite potential tax and investment problems, more investors have been borrowing from their 401(k) plans or taking hardship withdrawals in recent months, some retirement plan providers say. Many in the field expect more borrowing in 2008, as consumers struggle with tighter credit and potentially higher mortgage payments.
IMF Chief Warns Dollar May Suffer ‘Abrupt Fall’
October 24th, 2007Via: AFP: The head of the International Monetary Fund, Rodrigo Rato, warned Monday of a potential “abrupt fall” in the US dollar that could roil the global economy. “There are risks that an abrupt fall in the dollar could either be triggered by, or itself trigger, a loss of confidence in dollar assets,” Rato said […]
Three Quarters of Adjustable Rate Mortgage Holders Don’t Know How Much Their Payments Will Increase After Reset
October 23rd, 2007Fantastic! Via: CNN: About $50 billion in adjustable rate mortgages reset this month, driving interest rates up for many borderline borrowers. And despite efforts to raise awareness, it doesn’t look like anyone is really prepared for what’s to come. “I don’t know if there’s anything much [borrowers] can do,” said Keith Gumbinger of HSH Associates, […]
U.S. FEDERAL RESERVE OFFERING EMERGENCY FUNDING TO BRITISH BANKS
October 21st, 2007U.S. Dollar holders: Brace for impact. Via: Telegraph: The Fed’s board of governors wrote to both banks 10 days ago, granting them access to funds for customers “in need of short-term liquidity”. The letter to RBS made particular reference to investors holding mortgage-backed securities – which have been at the centre of the sub-prime crisis. […]
California: Abandoned Real Estate Developments and People Who Bought at the Top
October 21st, 2007Oh man, it’s getting ugly out there.
Miami Real Estate Crash: Properties Sell for Half Price at Auction
October 21st, 2007Trying to catch a falling knife too soon… It’s going to get so much worse.
Vultures Are Circling Over Distressed Properties
October 21st, 2007Via: Washington Post: Call them grave dancers, vulture funds, turnaround specialists or the more euphemistic “opportunity investors.” However you identify them, the deal is the same: When hyperactive real estate markets lose their sizzle, or property owners no longer can afford to hang on to their houses, well-capitalized investors smell blood and move in. That’s […]
Zimbabwe’s Millionaires Worth Only $1
October 20th, 2007Via: Times Online: Zimbabwe’s currency has fallen to record levels, with one million Zimbabwean dollars buying a single US dollar (48p) and inflation reaching 8,000 per cent. The bleak data was announced as people in the capital Harare struggled to cope without electricity for the third day. “We closed our business today,†said a woman […]
