BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Bernanke: Failure to Raise Debt Ceiling Could Be 'Catastrophic']]>http://www.bloggingstocks.com/2011/02/06/bernanke-on-debt-ceiling/http://www.bloggingstocks.com/2011/02/06/bernanke-on-debt-ceiling/http://www.bloggingstocks.com/2011/02/06/bernanke-on-debt-ceiling/#commentsFiled under: , ,

Ben BernankeThe past week's data-point-of-consequence for investors was delivered by none other than the head of the world's most powerful central bank. U.S. Federal Reserve Chairman Ben Bernanke underscored the nation's need to raise the debt ceiling.

Speaking at a National Press Club luncheon in Washington Thursday, Bernanke said delays in raising the debt ceiling limit, currently $14.3 trillion, could have "catastrophic" consequences, Reuters reported.

Continue reading Bernanke: Failure to Raise Debt Ceiling Could Be 'Catastrophic'

Bernanke: Failure to Raise Debt Ceiling Could Be 'Catastrophic' originally appeared on BloggingStocks on Sun, 06 Feb 2011 10:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Ben BernankeBernankebond marketbudget deficitcredit marketsdebt ceilingdebt ceiling limitFederal Reserveinthenewsnational debtSun, 06 Feb 2011 10:40:00 EST<![CDATA[IMF Lowers Bank Financial Crisis Losses to $2.28 Trillion]]>http://www.bloggingstocks.com/2010/04/20/imf-lowers-bank-financial-crisis-losses-to-2-28-trillion/http://www.bloggingstocks.com/2010/04/20/imf-lowers-bank-financial-crisis-losses-to-2-28-trillion/http://www.bloggingstocks.com/2010/04/20/imf-lowers-bank-financial-crisis-losses-to-2-28-trillion/#commentsFiled under: ,

Tuesday's good news comes from the International Monetary Fund (IMF). Their latest forecast projects losses from the financial crisis to total $2.28 trillion, down $533 billion from the organization's October 2009 forecast.

And the reason for the improvement? You guessed it: the global economic recovery, which has reduced estimated bank write-downs and also improved bank capital positions, among other benefits. The IMF, in its revised Global Financial Stability Report, also cut its estimate for U.S. bank losses to $855 billion, down from a $1.03 trillion estimate in October 2009.

Continue reading IMF Lowers Bank Financial Crisis Losses to $2.28 Trillion

IMF Lowers Bank Financial Crisis Losses to $2.28 Trillion originally appeared on BloggingStocks on Tue, 20 Apr 2010 18:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bank sectorbankscredit marketsIMFInternational Monetary FundinthenewsTue, 20 Apr 2010 18:00:00 EST<![CDATA[Private equity biz back in action]]>http://www.bloggingstocks.com/2009/10/15/private-equity-biz-back-in-action/http://www.bloggingstocks.com/2009/10/15/private-equity-biz-back-in-action/http://www.bloggingstocks.com/2009/10/15/private-equity-biz-back-in-action/#commentsFiled under: , , ,

Up until the credit crisis, private equity firms had it made. They had plenty of leverage to play with and could load up their acquisition targets with it. So, they could realize a fantastic return on equity, mitigate their own risks, and show that they were the studs of the Street.

Then, all that went away. Credit markets dried up, and private equity companies lost their acquisition fuel. The numbers aren't as big as they used to be, but it looks like the private equity market is back in action.

Continue reading Private equity biz back in action

Private equity biz back in action originally appeared on BloggingStocks on Thu, 15 Oct 2009 11:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>acquisitionsblackstoneblackstone groupbxcarlyle capitalcarlyle groupcredit crisiscredit marketsinthenewsipoiposm and amergersmergers and acquisitionsprivate equity fundsstephen schwarzmanThu, 15 Oct 2009 11:00:00 EST<![CDATA[M&A plunges, investment banks find money elsewhere]]>http://www.bloggingstocks.com/2009/06/26/manda-plunges-investment-banks-find-money-elsewhere/http://www.bloggingstocks.com/2009/06/26/manda-plunges-investment-banks-find-money-elsewhere/http://www.bloggingstocks.com/2009/06/26/manda-plunges-investment-banks-find-money-elsewhere/#commentsFiled under: , , ,

Mergers and acquisitions aren't delivering the fees that investment bankers used to enjoy, but fortunately, the money's coming from elsewhere. Data from Thomson Reuters reports a 29% increase in capital markets and M&A fees for the first time in more than a year. Share sales (e.g., rights offerings) were where dealmakers found the action. In the shrinking M&A space, Morgan Stanley (NYSE: MS) has taken the lead spot.

Since there are fewer banks in the marketplace than there were a year ago -- and they have less money -- the capital is starting to come from elsewhere. Because they aren't lending at their previous pace, companies are issuing bonds and equity to replenish their coffers. Pfizer (NYSE: PFE), for example, raked in more than $23 billion from the bond market to fund its acquisition of Wyeth (NYSE: WYE), and Roche nabbed Genentech with the help of a $30 billion debt issuance.

Continue reading M&A plunges, investment banks find money elsewhere

M&A plunges, investment banks find money elsewhere originally appeared on BloggingStocks on Fri, 26 Jun 2009 11:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>credit marketsdebt marketequityequity issuancegoldman sachsgsinitial public offeringipoiposjpmjpmorganMAmergersmergers and acquisitionsmorgan stanleymspfepfizerthomson reuterswyewyethFri, 26 Jun 2009 11:00:00 EST<![CDATA[Pakistan: Best bond investment this year]]>http://www.bloggingstocks.com/2009/06/18/pakistan-best-bond-investment-this-year/http://www.bloggingstocks.com/2009/06/18/pakistan-best-bond-investment-this-year/http://www.bloggingstocks.com/2009/06/18/pakistan-best-bond-investment-this-year/#commentsFiled under: , ,

Looking for a new emerging market? Try Pakistan! Despite a continued sense of tension with India and open hostility along the Afghan border, the country's bond market is the best in the world, according to data from JPMorgan Chase & Co. (NYSE: JPM). Debt sold by Pakistan has surged 88% this year -- topping the 45 emerging markets that JPMorgan watches and the 19 that Merrill Lynch & Co. (NYSE: BAC) follows.

And, the stock market may be next.

Money managers, according to a report by Bloomberg, believe that the Pakistani equity market could become the next global superstar. The Karachi Stock Exchange 100 Index is only trading at 9.6X earnings, making it the lowest in Asia (excluding Japan) . . . and this follows a 21% increase year-to-date.

Continue reading Pakistan: Best bond investment this year

Pakistan: Best bond investment this year originally appeared on BloggingStocks on Thu, 18 Jun 2009 11:20:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>credit marketcredit marketsdebt marketDebtMarketemerging marketemerging marketsfeaturedimfinternational monetary fundInternationalMonetaryFundkarachimoney managerspakistanstock marketThu, 18 Jun 2009 11:20:00 EST<![CDATA[Lies, damn lies, and consumer credit figures ]]>http://www.bloggingstocks.com/2009/04/08/lies-damn-lies-and-consumer-credit-figures/http://www.bloggingstocks.com/2009/04/08/lies-damn-lies-and-consumer-credit-figures/http://www.bloggingstocks.com/2009/04/08/lies-damn-lies-and-consumer-credit-figures/#commentsFiled under: , , ,

This Post was written by Minyanville contributor Minyan Peter.

Based on yesterday's Consumer Credit figures for February, in the "shoot twice, think once" world in which we increasingly live, I can already hear Congressmen condemning credit card issuers for cutting off credit to consumers.

But, before you act, I would strongly recommend that you completely ignore the headline data.

First, in a world of secular debt deleveraging, "seasonally adjusted data" is meaningless. And particularly for credit card lending, where Christmas is so important. And given the this past Christmas was a bust, the seasonal data for December, January and February don't make any sense.

Continue reading Lies, damn lies, and consumer credit figures

Lies, damn lies, and consumer credit figures originally appeared on BloggingStocks on Wed, 08 Apr 2009 15:45:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>cofcredit marketsCreditMarketsdfsinthenewsWed, 08 Apr 2009 15:45:00 EST<![CDATA[Doomsday Scenario: Craig's List is another nail in the news coffin]]>http://www.bloggingstocks.com/2009/04/07/doomsday-scenario-craigs-list-nail-in-the-news-coffin/http://www.bloggingstocks.com/2009/04/07/doomsday-scenario-craigs-list-nail-in-the-news-coffin/http://www.bloggingstocks.com/2009/04/07/doomsday-scenario-craigs-list-nail-in-the-news-coffin/#commentsFiled under: , , , , ,

Ah, yes. Tuesday, baseball season, and new NCAA champs. Sigh. Online classified ad growth skyrocketed by 84% in February, according to Hitwise (tip to MarketingCharts.com). The bad news? Craig's List and other free classified sites dominated the growth, further sealing the doom of newspapers. Steve Ruble of Micropersuasion interviewed Jeff Jarvis of "What Would Google Do?" fame (and Buzzsaw, of course) and asked what the future of online advertising was. The reply? Bleak to non-existent.

Continue reading Doomsday Scenario: Craig's List is another nail in the news coffin

Doomsday Scenario: Craig's List is another nail in the news coffin originally appeared on BloggingStocks on Tue, 07 Apr 2009 17:06:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>consumer spendingConsumerSpendingconsumptioncredit crunchcredit marketsCreditCrunchCreditMarketsdepressiongreat depressionGreatDepressionnewspapersnytnytimesTue, 07 Apr 2009 17:06:00 EST<![CDATA[Inaction and a financial crisis don't mix]]>http://www.bloggingstocks.com/2009/03/18/inaction-and-a-financial-crisis-dont-mix/http://www.bloggingstocks.com/2009/03/18/inaction-and-a-financial-crisis-dont-mix/http://www.bloggingstocks.com/2009/03/18/inaction-and-a-financial-crisis-dont-mix/#commentsFiled under: , , , , , , , ,

Investor Jim Rogers, noted for his expertise in commodities, is someone Wall Street professionals, business executives, and economists alike pay close attention to, as he's frequently been ahead-of-the-curve regarding market and investment trends.

Still, that's not to say that Rogers sometimes can't overdo it a bit and/or does not get it wrong.

A recent chat Rogers had with Bloomberg News is an example of the latter, as the talk yielded more rhetoric, half-truths, and flat out absurd statements and not a whole not of illumination.

Continue reading Inaction and a financial crisis don't mix

Inaction and a financial crisis don't mix originally appeared on BloggingStocks on Wed, 18 Mar 2009 16:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>banking systembanksbond marketCongresscredit marketsFedJim Rogerstoxic assetsU.S. economyWed, 18 Mar 2009 16:40:00 EST<![CDATA[Global economy will contract in 2009 for first time since World War II, World Bank says]]>http://www.bloggingstocks.com/2009/03/09/global-economy-will-contract-in-2009-for-first-time-since-world/http://www.bloggingstocks.com/2009/03/09/global-economy-will-contract-in-2009-for-first-time-since-world/http://www.bloggingstocks.com/2009/03/09/global-economy-will-contract-in-2009-for-first-time-since-world/#commentsFiled under: , , , ,

Investors received yet another indicator Monday that this is not your father's recession.

The global economy will likely contract in 2009 for the first time since World War II -- including a decline in trade - - the World Bank announced in its most recent report.

Continue reading Global economy will contract in 2009 for first time since World War II, World Bank says

Global economy will contract in 2009 for first time since World War II, World Bank says originally appeared on BloggingStocks on Mon, 09 Mar 2009 11:10:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>credit marketsemerging marketsfeaturedfiscal policyFiscalPolicygdpglobal economyglobalizationmonetary policyMonetaryPolicytradeWorld BankMon, 09 Mar 2009 11:10:00 EST<![CDATA[Soros says world is witnessing end of pure, unregulated capitalism model]]>http://www.bloggingstocks.com/2009/02/23/soros-says-world-is-witnessing-end-of-pure-unregulated-capitali/http://www.bloggingstocks.com/2009/02/23/soros-says-world-is-witnessing-end-of-pure-unregulated-capitali/http://www.bloggingstocks.com/2009/02/23/soros-says-world-is-witnessing-end-of-pure-unregulated-capitali/#commentsFiled under: , , , ,

You might say that a key investor, one of the exemplars, is no longer bullish on the pure bulls. Or on the unregulated bulls. Or on the totally free market bulls.

Billionaire investor George Soros told Bloomberg News that the current global financial crisis originated during the deregulation of the 1980s, and signals the end of the free market model that has dominated capitalist countries, and indeed much of the developed world, since the the end of the Cold War with the break-up of the Soviet Union in 1991.

Continue reading Soros says world is witnessing end of pure, unregulated capitalism model

Soros says world is witnessing end of pure, unregulated capitalism model originally appeared on BloggingStocks on Mon, 23 Feb 2009 15:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Asiabanking sectorbanksbond marketcredit marketsEuropegdpGeorge SorosinthenewsSorostoxic assetsU.S. economyMon, 23 Feb 2009 15:00:00 EST<![CDATA[Home prices continue to drop, but is it really a bad thing?]]>http://www.bloggingstocks.com/2009/02/12/home-prices-continue-to-drop-but-is-it-really-a-bad-thing/http://www.bloggingstocks.com/2009/02/12/home-prices-continue-to-drop-but-is-it-really-a-bad-thing/http://www.bloggingstocks.com/2009/02/12/home-prices-continue-to-drop-but-is-it-really-a-bad-thing/#commentsFiled under: , , , , ,

Home prices drop in fourth quarterWe all know that the real estate market is in trouble, and another sign of just how bad things are came out today as the National Association of Realtors announced another steep drop in home prices during the fourth quarter.

The NAR started keeping comprehensive data on home sales back in 1979, and in that time period there has not been another quarter that saw home prices drop as much as they did in the fourth quarter of last year. So just how much did values drop? A massive 12.4%.

Continue reading Home prices continue to drop, but is it really a bad thing?

Home prices continue to drop, but is it really a bad thing? originally appeared on BloggingStocks on Thu, 12 Feb 2009 17:04:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>californiacreditcredit marketsCreditMarketsforeclosureshome priceshome valuesHomePricesHomeValuesinterest ratesInterestRatesinthenewsmortgagesNARNational Association of RealtorsNationalAssociationOfRealtorsnevadaThu, 12 Feb 2009 17:04:00 EST<![CDATA[Pricing system for toxic assets deemed key to U.S. Treasury bank rescue plan]]>http://www.bloggingstocks.com/2009/02/11/pricing-system-for-toxic-assets-deemed-key-to-u-s-treasury-bank/http://www.bloggingstocks.com/2009/02/11/pricing-system-for-toxic-assets-deemed-key-to-u-s-treasury-bank/http://www.bloggingstocks.com/2009/02/11/pricing-system-for-toxic-assets-deemed-key-to-u-s-treasury-bank/#commentsFiled under: , ,

Investors should not read too much into the Dow's nearly 400-point drop Tuesday. What they should concentrate on, in the view of a pair of economists, is the mechanism the U.S. Treasury uses to price toxic assets.

The above is the most important 'unknown' in the U.S. Treasury's financial stability plan, so says economist David H. Wang -- how toxic assets that are clogging banks' balancing sheets and restricting credit -- will be priced.

"Will the United States government set-up a clearinghouse? Or will they design some type of open outcry, or managed open outcry? These are the key unknowns," Wang said. "Treasury Secretary Geithner and his staff cannot rush this decision, but on the other hand they cannot take two quarters to developed it. They have to announce the structure of the pricing program within a couple of weeks. I cannot underscore enough the importance of this pricing methodology. It will be the biggest factor in whether the credit system recovers, or something much worse occurs."

Continue reading Pricing system for toxic assets deemed key to U.S. Treasury bank rescue plan

Pricing system for toxic assets deemed key to U.S. Treasury bank rescue plan originally appeared on BloggingStocks on Wed, 11 Feb 2009 12:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bank bailoutbank rescuebanking sectorcredit marketsfeaturedGeithnermortgage backed securitiesnationalizationtoxic assetsU.S. TreasuryWed, 11 Feb 2009 12:00:00 EST<![CDATA[With rates near zero, investors will be focusing on the Fed's statement]]>http://www.bloggingstocks.com/2009/01/27/with-rates-near-zero-investors-will-be-focusing-on-the-feds-st/http://www.bloggingstocks.com/2009/01/27/with-rates-near-zero-investors-will-be-focusing-on-the-feds-st/http://www.bloggingstocks.com/2009/01/27/with-rates-near-zero-investors-will-be-focusing-on-the-feds-st/#commentsFiled under: , , ,

With its benchmark and new, short-term interest rate already in its 0-0.25% target range, investors are expected to concentrate on the U.S. Federal Reserve's statement and any information (or clues) it may provide about both the U.S. economy and the central bank's quantitative easing policy.

Further, Fed officials are also considering a revision of the central bank's forecasts so that they include periods beyond three years, Boomberg News reported Tuesday. The Fed will release its statement Wednesday at 2:15 p.m. ET.

Economist Peter Dawson told BloggingStocks he, and probably many other economists, will be looking for any Fed commentary / analysis of its quantitative easing strategy.

Continue reading With rates near zero, investors will be focusing on the Fed's statement

With rates near zero, investors will be focusing on the Fed's statement originally appeared on BloggingStocks on Tue, 27 Jan 2009 18:31:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bank sectorBernankecredit marketsdeflationfeaturedFedfederal reserveFederalReserveinflationmonetary policyquantitative easingTue, 27 Jan 2009 18:31:00 EST<![CDATA[Federal Reserve starts buying mortgage backed securities ]]>http://www.bloggingstocks.com/2009/01/05/federal-reserve-starts-buying-mortgage-backed-securities/http://www.bloggingstocks.com/2009/01/05/federal-reserve-starts-buying-mortgage-backed-securities/http://www.bloggingstocks.com/2009/01/05/federal-reserve-starts-buying-mortgage-backed-securities/#commentsFiled under: , ,

U.S. policy makers are putting all hands on deck. All engines are being used to pull this train out of the station. In this case, nearly every cliché applies.

The Federal Reserve Bank of New York announced Monday it has started buying mortgage backed securities (MBS), as part of its $500 billion program to improve credit market liquidity and jump-start the housing market.

The Fed said it began buying MBS guaranteed by Fannie Mae (NYSE: FNM), Freddie Mac (NYSE: FRE), and Ginnie Mae. Purchase amounts will be published on the Fed's web site beginning January 8 and will be updated each Thursday.

Goldman Sachs Asset Management (NYSE: GS), Pacific Investment Management Co., and Wellington Management Co. will manage the $500 billion in MBS the Fed expects to purchase by June.

Continue reading Federal Reserve starts buying mortgage backed securities

Federal Reserve starts buying mortgage backed securities originally appeared on BloggingStocks on Mon, 05 Jan 2009 13:42:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>banking sectorbanksbond marketcredit marketsinthenewsmortgage backed securitiesmortgagesquantitative easingMon, 05 Jan 2009 13:42:00 EST<![CDATA[Stabilized credit markets could hit more bumps in road in 2009, economist says]]>http://www.bloggingstocks.com/2008/12/19/stabilized-credit-markets-could-hit-more-bumps-in-road-in-2009/http://www.bloggingstocks.com/2008/12/19/stabilized-credit-markets-could-hit-more-bumps-in-road-in-2009/http://www.bloggingstocks.com/2008/12/19/stabilized-credit-markets-could-hit-more-bumps-in-road-in-2009/#commentsFiled under: , , ,

Global credit markets have recovered and stabilized following a brush with a global financial meltdown in September, but those markets have not normalized and a tough stretch of road remains ahead, so says an economist.

"We are on 'a great, long, slow journey' to use a Chinese saying," economist David H. Wang told BloggingStocks. "We have to be prepared for more bumps in the road ahead in 2009. We must be both proactive and also take corrective action in the credit markets."

Short-term interests have fallen considerably in the past three months, with the London rate for three-month loans in dollars (LIBOR) declining Friday to 1.50% from 4.82% earlier this fall, Bloomberg News reported, primarily on the strength of $8.4 trillion in liquidity-oriented interventions by the U.S. Federal Reserve and the other, major central banks.

The LIBOR is particularly important because it determines rates for $360 trillion of financial products worldwide, from home loans to derivatives.

Central banks: on the watch for credit stress signs

What could represent one of those 'bumps,' i.e. a re-igniting of short-term rates, in Wang's view? Another wave of home mortgage foreclosures, which would lead to another batch of toxic-bonds, write-offs, and financial institution stress, he said. The aforementioned "underscores the urgency of the Obama Administration and Congress passing a major home mortgage refinance plan for preventable foreclosures," Wang said. "If we stem the rise in mortgage foreclosures, we will make progress on the road leading to economic recovery."

Continue reading Stabilized credit markets could hit more bumps in road in 2009, economist says

Stabilized credit markets could hit more bumps in road in 2009, economist says originally appeared on BloggingStocks on Fri, 19 Dec 2008 15:51:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bond marketcredit marketsinterest ratesinthenewsLIBORmonetary policyFri, 19 Dec 2008 15:51:00 EST<![CDATA[No bids for Port Authority of NY/NJ bond offering shows credit crisis far from over]]>http://www.bloggingstocks.com/2008/12/03/no-bids-for-port-authority-of-ny-nj-bond-offering-shows-credit-c/http://www.bloggingstocks.com/2008/12/03/no-bids-for-port-authority-of-ny-nj-bond-offering-shows-credit-c/http://www.bloggingstocks.com/2008/12/03/no-bids-for-port-authority-of-ny-nj-bond-offering-shows-credit-c/#commentsFiled under: ,

In another sign that the credit crunch has not disappeared, the Port Authority of New York and New Jersey received no bids from investment banks to underwrite a taxable note offering.

The Port Authority was trying to sell $300 million worth of three-year notes, backed by revenue streams, Bloomberg News reported. The Port Authority operates airports, river crossings, and certain transit systems in the New York metropolitan area and has a strong credit rating. The agency is also rebuilding the World Trade Center site, including the new Freedom Tower.

Economist David H. Wang was apoplectic about the failed offering. "This is unbelievable," Wang said. "It's a ridiculous situation, frankly, and something has to be done to free-up these credit markets. This is the financial equivalent of Warren Buffett not being able to get a $20 million loan."

State, cities, and other taxing districts have had trouble selling bonds through advertised bidding, after institutional investors pared-back their appetite for fixed-income securities -- and just about every other asset class -- as the financial crisis intensified in September. In tandem, investment banks have balked at bidding for certain debt, sensing insufficient client demand, Wang said.

Continue reading No bids for Port Authority of NY/NJ bond offering shows credit crisis far from over

No bids for Port Authority of NY/NJ bond offering shows credit crisis far from over originally appeared on BloggingStocks on Wed, 03 Dec 2008 17:34:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bond marketbondscredit crunchcredit marketsinterest ratesinthenewsPort AuthorityPort Authority of New York and New JerseyWed, 03 Dec 2008 17:34:00 EST<![CDATA[Next target for fear mongers: Credit cards]]>http://www.bloggingstocks.com/2008/12/01/next-target-for-fear-mongers-credit-cards/http://www.bloggingstocks.com/2008/12/01/next-target-for-fear-mongers-credit-cards/http://www.bloggingstocks.com/2008/12/01/next-target-for-fear-mongers-credit-cards/#commentsFiled under: , ,

Banking analyst Meredith Whitney is credited with questioning assets on bank balance sheets given the collapse in the real estate market.

Taking advantage of a complete lack of information, Ms. Whitney triggered a massive collapse of trust in an industry by claiming that mortgage-backed securities were worth far less than what the market had perceived.

While she may have had a basis for her claims, her assessment was more sensational than factual. Mortgage-backed securities are quite complex instruments whereby loans are sliced, diced and packaged for sale to a global market.

With maturities extending 30 years into the future, it is unreasonable and unfair to assume that paybacks, even with high default rates will amount to what is currently priced into the market.

The lack of understanding of the underlying security or loans at the individual level has created uncertainty that has yet to be resolved.

For fans of the original "Star Wars" movie, think of the weakness in terms of attacking the Death Star. That one hole was exploited (we can debate the merits of doing so later) by Ms. Whitney and those like her.

Continue reading Next target for fear mongers: Credit cards

Next target for fear mongers: Credit cards originally appeared on BloggingStocks on Mon, 01 Dec 2008 17:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>capital onecapital one financialCapitalOneCapitalOneFinancialCOFcreditcredit cardscredit marketsCreditCardsCreditMarketsMeredith WhitneyMeredithWhitneymortgage backed securitiesmortgage defaultsMortgageBackedSecuritiesMortgageDefaultsMon, 01 Dec 2008 17:00:00 EST<![CDATA[Bulls vs. Bears battle for Dow 8,000 continues]]>http://www.bloggingstocks.com/2008/11/20/bulls-vs-bears-battle-for-dow-8-000-continues/http://www.bloggingstocks.com/2008/11/20/bulls-vs-bears-battle-for-dow-8-000-continues/http://www.bloggingstocks.com/2008/11/20/bulls-vs-bears-battle-for-dow-8-000-continues/#commentsFiled under: , , , ,

Once again, Dow 8,000 has come back into focus.

For those investors who may not follow indices closely, the 8,000 level has a psychological but not technical support, the latter of which measures such things as the number of investors who are buying / selling, whether investors are committing more money to the market etc.

Even so, right now, a battle is taking place between the bulls and the bears: the bears argue the worst economic news stemming from the financial crisis is yet to come; the bulls argue that the worst news is behind us, and that government stimulus, fiscal and monetary, will get the U.S. economy moving again.

The Dow Jones Industrial Average Wednesday closed below 8,000 at 7,997. If the bears can keep the Dow below 8,000 and then push it through 7,800, then 7,600, it will not be a pleasant time for investors.

Let's do a condensed, cross-methodology analysis to see if we can arrive at an informed investment decision / conclusion regarding where the Dow is headed, near-term.

Continue reading Bulls vs. Bears battle for Dow 8,000 continues

Bulls vs. Bears battle for Dow 8,000 continues originally appeared on BloggingStocks on Thu, 20 Nov 2008 10:10:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>banking sectorbanksbearsbond marketbullsCCitigroupcredit default swapscredit marketsDJIADowearningsfeaturedFedgdpresistancesupportU.S. economyU.S. Federal ReserveunemploymentThu, 20 Nov 2008 10:10:00 EST<![CDATA[Boeing, Airbus may end up 'storing' 200 new planes in the desert]]>http://www.bloggingstocks.com/2008/11/12/boeing-airbus-may-end-up-storing-200-new-planes-in-the-desert/http://www.bloggingstocks.com/2008/11/12/boeing-airbus-may-end-up-storing-200-new-planes-in-the-desert/http://www.bloggingstocks.com/2008/11/12/boeing-airbus-may-end-up-storing-200-new-planes-in-the-desert/#commentsFiled under: ,

In the quarters ahead, new autos may not be the only inventory item piling up.

A 'really big ticket item' -- new commercial airplanes -- may start piling up, as well. Boeing and Airbus may end up with as many as 200 new planes without buyers in 2009 because airlines are unable to obtain funds to pay for them, due to the credit crunch.

In the second half of 2008, banks and other sources of capital decreased lending to airlines -- and to just about everyone else, it seems -- on concerns the loans won't be paid back. Other banks are decreasing lending primarily as a means of rebuilding damaged balance sheets.

The lending cutback may create a funding gap of about $65 billion at Boeing next year, and a $20 billion gap at Airbus. Boeing Capital Corp., the airplane manufacturing giant's financing unit, is expected to make $1 billion in loans to customers in 2009.

Continue reading Boeing, Airbus may end up 'storing' 200 new planes in the desert

Boeing, Airbus may end up 'storing' 200 new planes in the desert originally appeared on BloggingStocks on Wed, 12 Nov 2008 17:25:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>AirbusBABoeingcommercial aviationcredit crunchcredit marketsEADSexportsinthenewsTARPU.S. TreasuryWed, 12 Nov 2008 17:25:00 EST<![CDATA[Short-term interest rates record mixed Monday]]>http://www.bloggingstocks.com/2008/11/10/short-term-interest-rates-record-mixed-monday/http://www.bloggingstocks.com/2008/11/10/short-term-interest-rates-record-mixed-monday/http://www.bloggingstocks.com/2008/11/10/short-term-interest-rates-record-mixed-monday/#commentsFiled under: ,

Policy makers and bank officials are hoping it's just a Monday 'pause that refreshes.'

Short-term interests notched a mixed day on Monday, as the London rate for three-month loans in dollars declined for the 24th consecutive day, dropping another 6 basis points to 2.24%.

However, the three-month rate is still 124 basis points above the U.S. Federal Reserve's target interest rate. Further, the five-year average for the three month rate is 22 basis points. In addition, the overnight rate, or LIBOR, rose 2 basis points to 0.35%.

Also, the difference between what banks and the U.S. Treasury pay to borrow dollars for three months, the TED spread, fell another 6 basis points to 170 basis points, which is down from 387 basis points on October 10.

However, the TED spread was 87 basis points before the Lehman Brothers bankruptcy, and the current rate is still 159 basis points above the 11-basis-point, five-year average.

Continue reading Short-term interest rates record mixed Monday

Short-term interest rates record mixed Monday originally appeared on BloggingStocks on Mon, 10 Nov 2008 11:11:00 EST. Please see our terms for use of feeds.

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