investment-banks
Markets Dive After Feds Shun Lehman
The Feds apparently drew the line this weekend regarding financial bailouts for dysfunctional investment banks, shunning Lehman Brothers despite its desperate pleas for help. Sleep deprived officials from the Federal Reserve and the US Treasury, along with beleaguered financial industry chieftains, were huddled in the NY Fed’s fortress-like headquarters in lower Manhattan, trying to avoid [...]
Get out the Bubbly?- by Greg Strid
Sales of existing homes and condos increased 2.9 percent
to a seasonally adjusted annualized rate of 5.03 million,
crawling past the 4.85 million low-ball concensus estimate
from America’s practitioners of the dismal science- sometimes
known as economists. So, is it time to bring out the bubbly?
This marks the strongest showing for existing home sales
since last October. But, sales are [...]
2007: Naughty Banks Spanked- by Greg Strid
The meltdown in the market for subprime mortgage
securities is fast unraveling into a banking crisis that
threatens to drag the American economy into recession.
During the final stretch of the greatest housing bubble
in American history, financial institutions were tripping
over themselves to extend excessive amounts of credit
to prospective buyers that were lacking in both
qualification and responsibility.
No document loans, [...]
Investment Banks Lose a Bundle
What exactly constitutes a staggering loss these days? Just today, Morgan Stanley announced that it lost $3.7 billion on subprime mortgage-linked securities in the past two months – whoops.
These are actually write-downs of existing investments, and the company mentioned that their exposure to these toxic turds has been cut to a mere $6 billion. This [...]
Wall Street Relies Too Heavily on Interest Rate Cuts
A decaying housing market, deteriorating credit conditions, a sickly dollar, sky-high oil prices, two expensive and useless wars, and the looming mass-retirement of baby boomers are the main ingredients that will create the fuel for a tumble in US economic growth over the next year or two (or three or four, etc.)
Yet the party on [...]
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