The banks must be restrained, and the financial system reformed, and balance restored to the economy, before there can be any sustained recovery. – Robert Reich
Archive for the ‘Federal Reserve’ Category
Sustained Recovery?
Posted in Bankruptcy, Equities, Federal Reserve, Foreclosure, Herd Mentality, Interest Rates, Investment Banks, Liquidity, Recession, U.S. on July 14, 2009 | Leave a Comment »
IndyMac Chief Complains of ‘Panicked’ Market
Posted in CMBS, Federal Reserve, Foreclosure, Herd Mentality, Interest Rates, Liquidity, Real Estate, Recession, Subprime, U.S. on July 14, 2008 | 1 Comment »
Michael Perry [CEO of IndyMac] called the markets for mortgage securities “panicked and illiquid” in a letter to employees Thursday.
He said the lender has “very strong liquidity, a good amount of excess capital,” and added that “there are no realistic scenarios that I can foresee that would impair IndyMac’s viability.”
He goes on to say that [...]
Foreign central banks own 60% of Fannie & Freddie Debt
Posted in CMBS, Federal Reserve, Foreclosure, Herd Mentality, Interest Rates, Liquidity, Real Estate, Recession, Subprime, U.S. on July 13, 2008 | Leave a Comment »
I think that this will collapse the bond market regardless of whether they actually put it on the books. The implied guarantee is too well understood by the financial community. The government can always change its obligations on SS and Medicare. Those are not contractual. They are legislative, and more importantly, they are not owed [...]
Gold headed dramatically higher
Posted in Currencies, Energy, Equities, Federal Reserve, Fixed Income, Gold, Herd Mentality, Interest Rates, Liquidity, Natural Gas, Oil, Real Estate, Recession, Silver, U.S. on June 8, 2008 | Leave a Comment »
This deleveraging process has been a very unique one. Over the last decade, the Fed led many central banks around the world in an unprecedented expansion of money supply. While there is massive credit being withdrawn from the global system, the long-term effects of this money supply expansion has yet to filter through. Investors are [...]
It’s So Much Worse Than You Think
Posted in Bankruptcy, CMBS, Equities, Federal Reserve, Foreclosure, Herd Mentality, Interest Rates, Liquidity, Real Estate, Recession, Subprime, U.S. on March 4, 2008 | Leave a Comment »
March 3, 2008 (Motley Fool) – Right now, things look bad. Every day, the economic news looks worse. Unemployment has been creeping up. The service sector is shrinking for the first time in half a decade. Consumer confidence is declining.
The stock market’s performance of late reflects this news. The S&P 500 is down nearly 9% [...]
Risk still far from being priced into the market
Posted in Bankruptcy, Equities, Federal Reserve, Foreclosure, Gold, Herd Mentality, Interest Rates, Liquidity, Real Estate, Recession, Silver, Subprime, U.K., U.S. on January 29, 2008 | 1 Comment »
What amazes me is that investors are still bullish at the slightest bit of good news. Yet, they ignore the growing and very serious macro risks facing the global markets. The report on new home sales released today was an absolute disaster, yet the Dow was up 1.5% on rate cut hopes. [...]
