RT @jack: “I'm not afraid of death; I just don't want to be there when it happens.”—Woody Allen
26 minutes ago
Finance & Markets Channel: Latest Posts
-
Finance & Markets
Credit Spreads and How Lax Is Monetary Policy?
All eyes have been on the housing market as the trigger for the financial crisis, but we’re all aware that there are other potential “triggers” for additional distress: auto loans and credit cards. In addition, spreads are not everything — levels of real interest rates matter as well.
-
Emerging Markets
An International Perspective on the US Bailout
As the US economy is hit by the financial crisis and associated bailout costs, it is useful to take an international perspective on current events. In the last three decades, many countries in the developing world have also experienced financial crises and large bailouts. Yet, the growth gains brought by financial liberalization and deregulation have, in most cases, far more than offset the output and bailout costs of crises. Importantly, financial liberalization by itself did not generate crises: government meddling and implicit bailout guarantees were often involved. In many ways, the US story is not that different.
-
Finance & Markets
Jobless Claims Down for the Second Week
As we move beyond the market panic, we can zero in on the data that define the economy. Employment is one of four key areas that define the economy — the others being production, earnings growth and consumer spending.
-
Finance & Markets
Dow Falls 730 on Deteriorating Fundamentals, Evidence Rescue Efforts Not Taking Hold
Boy, that was short lived. The massive EU and US rescue efforts to pump equity into banks, the TARP, the increase in the Term Auction Facility (from $150 billion to $900 billion), the Fed offering unlimited dollar swaps to foreign central banks, and those monetary authorities themselves engaging in liquidity operations, appears to have come [...]
-
Finance & Markets
Countrywide Bondholders Settle; Paulson Bails as Next Wave of Approaches
Before we get to the evolution of the bailout, some pending business from the land of restructuring, where the Countrywide Financial saga continues. On or about October 10, 2008, Bank of New York Mellon (NYSE:BK) and mortgage lender Countrywide Financial, a subsidiary of Bank of America (NYSE:BAC), agreed to settle a Delaware Chancery Court lawsuit involving Countrywide [...]
-
Finance & Markets
Analysts Forecasts Remain Too High
Well, now that we got THAT unpleasantness behind us, its time to look forward to earnings season! Its not going to be pretty. The question is from these still depressed levels, will there be any further damage wrought. On that exact subject, I hope in the midst of the recent market activity, you did not [...]
-
Finance & Markets
Anyone Planning to ‘Fess Up on Lehman’s CDSs?
Just curious, but is anyone planning to ‘fess up on the Lehman-related CDS losses last week? As I wrote last Thursday, there was oodles of worry about the auction, with some people tossing out apocalyptic numbers, the highest of which were usually based on confusions about notional and net exposure. Nevertheless, there seemed to be [...]
-
Finance & Markets
The global recession
IMF research economist Prakash Loungani reports some statistics on the extent to which housing price declines are being seen worldwide. The house price decline during 2008 has actually been more modest in the U.S. than in countries such as Denmark, New Zealand, the U.K., and Spain, though the price decline has been going on for [...]
-
Finance & Markets
The coming collapse in business spending – made visible today
Smart managers react quickly and strongly to changed conditions. Unfortunately, when those conditions are a systemic event visible and affecting everyone their actions re-enforce the event. Positive feedback. This creates much of the business cycle’s volatility, the big swings. The “dampeners” of Keynesian economics, contra-cyclical monetary and fiscal policy, fight these in order to maintain [...]
-
Finance & Markets
Goal: Increase Minority Homeowners by 5.5 Million in a Decade
Guess who’s goal this was? You might be surprised: “More and more people own their homes in America today. Two-thirds of all Americans own their homes, yet we have a problem here in America because few than half of the Hispanics and half the African Americans own the home. That’s a home ownership gap. It’s [...]
