Archive for the 'Economy' Category
HOME PRICES MAY FALL 20% AMID BAD LOANS
April 13th, 2007A quick passage from my Wall Street Chop Shop story is in order here: The firm externalized the financial risks of being in this business by selling all of the paper they generated into the secondary mortgage market at the end of every month. This is an institutional marketplace that trades in commoditized mortgages, “debt […]
China’s Foreign Reserves Rise Past $1.2 Trillion
April 13th, 2007Any guesses on what that U.S. trade deficit number is going to show in a few hours… Via: Forbes / AP: China’s foreign reserves, already the world’s largest, have risen past $1.2 trillion, a state news agency said Thursday, amid surging trade and plans to create a multibillion-dollar company to invest some of the stockpile. […]
Doomsday for the Greenback
April 13th, 2007This guy’s Magic 8 Ball is saying the same thing as mine. Via: Information Clearing House: The American people are in La-la land. If they had any idea of what the Federal Reserve was up to they’d be out on the streets waving fists and pitchforks. Instead, we go our business like nothing is wrong. […]
New Zealand Dollar Gaps Through 73
April 13th, 2007You might have thought I was exaggerating when I wrote, “New Zealand farmers are going to get nailed to a cross made out of yen and euros.” If anything, that statement wasn’t strong enough. And what are they proposing in Wellington? Raise rates, making the carry trade action even more severe!? Driving the thing even […]
Gold: Switch Off Your Targeting Computer
April 13th, 2007WARNING: This is not a recommendation to buy, sell or hold any financial instrument. I don’t like calling the action in the pits of the most diabolical casino that the world has ever seen, but I’m being forced to pay attention to this. I’m just trying to hold on to as much of the little […]
U.S. Dollar in Strong Decline
April 10th, 2007Via: Reuters: The dollar fell towards last week’s two-year low against the euro on Tuesday, reversing gains sparked by a robust U.S. jobs report, while the yen hit a record trough versus the euro as carry trades flourished. As European traders returned from the long Easter weekend, they pushed the dollar down across the board, […]
Bids Drying Up for Alt-A Paper
April 10th, 2007Via: Business Week: At least five Wall Street analysts downgraded shares of American Home Mortgage Investment Corp. after the home lender said its mortgage loans are fetching lower prices from investors. While it has been well publicized that investors are shying away from “subprime” mortgage debt — or home loans to people with bad credit […]
Bank of America Delays BullionValut Deposits
April 6th, 2007In Money: Going Tactical, I discussed how I wanted to immediately move some of our money into gold using the BullionVault system. I did, indeed, try to move some money to BullionVault. I used the electronic payment option for customers with U.S. bank accounts and followed BullionValut’s instructions exactly. Since I haven’t used BullionVault before, […]
Enronization of America
April 4th, 2007Via: Prudent Bear: The U.S. economy has been held up for the last half decade only by the housing and consumption bubbles caused by cheap money. Much of its healthy capitalist tissue has rotted internally, and been replaced by corrupt politically-determined rent-seeking. Only when the cheap money finally disappears, and recession occurs, will we be […]
New Zealand Dollar Breaks Above 72
April 3rd, 2007WARNING: This is not a recommendation to buy sell or hold any financial instrument. If youre gonna play the game, boy, ya gotta learn to play it right. You got to know when to hold em, know when to fold em, Know when to walk away and know when to run. You never count your […]
