Citibank SIVs Hit Norway Townships
• Mike ShedlockThe Asset Backed Commercial Paper ABCP mess has now reached townships in Norway. Amazing. Trust in Citigroup is now likely gone and will not be easily restored.
Contents Pages by Subject
Economy - Economics USA
Oil above $99 a barrel
• BloombergCrude oil rose above $99 a barrel for the first time in New York as a weakening U.S. dollar increased demand for commodities. Oil, gold and silver gained as the dollar fell yesterday to a record low against the euro on speculation that the Federal Re
World stocks rebound, analysts warn of trouble ahead
• AFPWorld stocks trimmed losses Tuesday with many exchanges rebounding into the black as analysts said a recent global sell-off was overdone, despite lingering concerns about the US economy.
Central banks weigh up dollar problem
• Financial TimesThe sliding dollar has presented custodians of the world’s massive foreign exchange reserves with a conundrum. Countries such as China and those in the Gulf, which peg their currencies to the dollar, risk inflationary pressure that has the potential
The Debut of the Non-Book Review
Brock LorberFrosty Woolridge lets bias and invective get in the way of objective review.
Freddie Mac loses $2B, seeks new capital
• ReutersFreddie Mac, the No. 2 U.S. mortgage finance company, stunned Wall Street with a unexpectedly wide loss and plans to slash its dividend or use other means to raise capital to withstand a continuing downturn in the housing market. Freddie Mac shares l
Fed predicts slower growth, more jobless
• APThe housing collapse and credit crisis will slow economic growth and nudge up unemployment next year, the Federal Reserve said in a first-of-its-kind forecast that some economists believe will lead to interest rate cuts early in 2008.
CDO Dumping Ground Still Sinking
• Barron'sIf ACA Capitol were to founder, more than $69 billion worth of CDO's, including the $25 billion in subprime paper, would come rumbling back to the Wall Street banks.
Fannie & Freddie Clobbered Over Need to Raise Capital
• MikeFannie Mae and Freddie Mac were both clobbered when Freddie admitted a need to raise capital.Freddie is considering slashing its dividend. The GSE's ability to buy back loans and to raise loan amounts are now officially DOA. Oh, they can raise lo
3 Homebuilders face ' The Point of No Return'
• Mike Shedlock / MishIt seems likely that Standard Pacific, Beazer Homes, and Hovnanian have all reached the point of no return. In addition, Meritage and Lennar are rapidly losing ground on a percentage-wise basis
5 Homebuilders near ' The Point of No Return'
• Mike Shedlock / MishIt seems likely that Standard Pacific, Beazer Homes, and Hovnanian have all reached the point of no return. In addition, Meritage and Lennar are rapidly losing ground on a percentage-wise basis
Housing Meltdown: 'The Survivors Conference'
• Bloomberg.comDefaults will more than triple to $143 billion by the middle of 2009, the bank forecasts. Total subprime loan defaults will top out at about $270 billion, or 1.52 million homes, in 2010 or later.
Home Builder Confidence at record low
• Calculatedrisk.blogspotThe November HMI held even with October's upwardly revised 19 reading, its lowest point since the series began in January of 1985. The chart is below the level of the past two recessions.
Economists hold 'Fiscal Wake-Up Tour'
• NPR.orgRobert Bixby of the financially conservative Concord Coalition. Also on board: Stuart Butler of the conservative Heritage Foundation; and David Walker, the Comptroller general of the United States.
All of a sudden, it just fell off a cliff
• MikeOn the surface things seem fine in Fairfield California. Beneath the surface, home sales and home prices are collapsing. This has now spilled over into auto sales. Commercial real estate is showing signs of stress as well. Union leaders are worried.
Greenspan `Made a Mess' and U.S. Risks Recession, Stiglitz Says
• BloombergJoseph Stiglitz, a Nobel-prize winning former World Bank economist, said the U.S. economy risks tumbling into recession because of the subprime crisis and a "mess'' left by former Federal Reserve Chairman Alan Greenspan. ``I'm very p
Oil Pricing Unit Red Herring
• MISH: Global Economic AnalysisMuch discussion has transpired over an alleged dollar Armageddon that would supposedly happen if oil was priced in euros. Such discussion is often sensational and some even think the US went to war over the pricing unit. However, oil can be priced in
Saudi Arabian minister warns of dollar collapse
• The BusinessPrince Al-Faisal was heard saying: "My feeling is that the mere mention that the OPEC countries are studying the issue of the dollar is itself going to have an impact that endangers the interests of the countries."
Goldman Sees "Substantial Recession" Risk
• Mish ShedlockGoldman Sachs sees a $2 trillion cut in bank lending that could trigger a "Substantial Recession". The Fed's Kroszner says growth will return. If anything, Goldman has understated what will happen because risk aversion feeds on itself.
Paulson, Bernanke, Bush vs. Mervyn King
• Mish ShedlockBernanke, Paulson and Bush are all being disingenuous when it comes to transparency, inflation and the Dollar. The "Strong Dollar Policy" consists of nothing more than trying to talk it up. The odds of recession are way understated. This is
U.S. could face $2 trillion lending shock: Goldman Sachs
• www.reuters.comLeveraged investors cut back lending to keep capital ratios from falling -- A bank targeting a constant capital ratio of 10 percent, for example, would need to shrink its balance by $10 for every $1 in losses.
Wells Fargo: Housing worst since Great Depression
• Reuters"I don't think we're in the ninth inning of unwinding this," he continued, using a baseball reference. "If we are, it's an extra-inning game.
Jim Rogers mocks Bernanke's indifference to dollar's fall
• GATA"He is a total fool," Rogers said. "He said Americans who buy only American goods are not affected if the value of the U.S. dollar goes down. I was terrified."
Barclays disaster less than feared
• ReutersMajor finance houses went some way to reassure investors that after months of credit market havoc, fallout from the U.S. subprime mortgage meltdown is containable. But the International Monetary Fund said lending by pan-European banks could be furthe
Dollar dives on fears the Gulf States will abandon link
• Daily TelegraphThe Gulf region has some $3,500bn (£1,690bn) in central bank coffers and wealth funds, so any shift in strategy could have a major impact. Kuwait has already ditched its peg.
Dollar dives on fears the Gulf States will abandon link
•Dollar dives on fears Gulf will abandon linkLast Updated: 12:43am GMT 15/11/2007 Have your say Read comments Pegs policy becoming untenable as oil-rich states face soaring property and food prices, writes Ambrose Evans-Pritchard
GE's "enhanced" cash fund breaks the buck
• MISH: Global Economic AnalysisMoney markets have always been considered a safe haven. Not any more. For a paltry extra .1% in yield, many money market funds have invested in SIVs and other toxic debt. BofA, Credit Suisse, Wachovia, and Legg Mason have all shored up money markets
Level 3 Catastrophe Delayed Until After the 2008 Election
• Calculated RiskFear of a bloodbath in the CDO market, in which banks, pension funds, and corporations would be forced to reveal the true value of their Level 3 holdings, necessitated a one year delay in Rule 157.
US dollar will get stronger: Bush
• AFPAsked whether he was satisfied with current exchange rates, Bush replied: "I am satisfied with the fact that we have a strong dollar policy and know that the market ought to be setting the exchange rate."
A Pearl Harbor without War
• der SpiegelFor the United States, a Chinese decision to abandon the dollar would be tantamount to Pearl Harbor without the war. It would represent a challenge to the world's biggest economy by the world's fastest growing economy.
Watch Streaming Broadcast Live:
LRN.fm
DLive
Live Chat
Telegram
Telegram
