ARM rates disconnect from treasuries. There is panic at the short end of the yield curve and a consortium of notables is clamoring for rates cuts. Barack Obama has his own plan, best described as being from outer space. But nonsense will not end unti
(What a shocker) The Wall Street Transcript has just published its Homeland Security Report offering a timely review of the sector to serious investors and industry executives. This 12 page feature contains an expert roundtable forum of leading indu
Margin calls are mounting at Carlyle. A letter from the CEO says conditions are worse than what caused the demise of Long Term Capital Management. The apology misses the mark. The real problem is Carlyle borrowed money and bet it all. Basis Yield Alp
Federal Reserve officials, underestimating the impact of credit-market turmoil, focused at their Aug. 7 meeting on inflation and slowing productivity. Minutes of the session released yesterday showed that the Fed was intent
When Twist last spoke at the ABC it was to a large audience, and was voted the most important talk of the year. She showed why the Phoenix and national housing market was going to collapse -- had to collapse -- and then...
Stocks posted their biggest drop in 3 weeks on weaker consumer confidence and speculation tighter credit will hurt banks. The declines erased all of last week's gains. The S&P 500 decreased 2.4%, the Dow Jones lost 2.1%, and Nasdaq slipped 2.4%
U.S. home prices fell 3.2% in the second quarter, the steepest rate of decline since Standard & Poor's began its nationwide housing index in 1987. The decline shows no evidence of a market recovery anytime soon. The declining residential real est
The U.S. insurance industry, responding to what it says is a growing risk of chemical and biological terrorism, is pressing Congress to dramatically increase its backing of terrorism insurance policies. Industry analysts cite the increased use of
Ben Bernanke's critics from Washington to Wall Street are starting to ask whether the Federal Reserve chairman is ready for a prime-time crisis. The global credit crunch is proving the severest test of Bernanke's 18-month tenure atop the U.S.
The two sales are being referred to by market traders as "bin Laden trades" because only an event on the scale of 9-11 could make these short-sell options valuable. There are 65,000 contracts @ $750.00 for the SPX 700 calls for open interes
With much fanfare Bush signed the "Secure Fence Act" but only 15 of 700 miles have been completed. One look at the pathetic fence is enough to prove the fence isn't secure and a total waste of $billions. Protectionist sentiment is risin
St. Louis Federal Reserve Bank President William Poole termed "troubling" a rising tide of protectionist sentiment in Washington, which could undermine U.S. exports. "Some U.S. legislative proposals seem to be based on a presumption th
Former Treasury Secretary Lawrence Summers said the risks of a recession are greater now than at anytime since the September 11 attacks due to real estate and mortgage market troubles. "But I would say that the risks of recession are now greater
If the Federal Reserve is waiving a fundamental principle in banking regulation, the credit crunch must still be sapping the strength of America's biggest banks. Fortune's Peter Eavis documents an unusual Fed move.
John Francis, who owns the McDonald's in Sidney, Mont., said he tried advertising in the local newspaper and even offered up to $10 an hour to compete with higher-paying oil field jobs. Yet the only calls were from other business owners upset the
Bad credit has supplanted terrorism as the gravest immediate risk threatening the economy. Borrowers' withering ability to pay their bills and the subsequent fallout in the credit markets topped the list of short-term risks on peoples' minds,
Bill Gross pleaded with "W" to "Write some checks, bail ‘em out, prevent a destructive housing deflation that Ben Bernanke is unable to do." A quick look at PIMCO's Total Return Fund shows the top 5 positions are all Fannie Mae and 40% of the fund is
Now, the soaring market and the fast car are gone. Last week he lost his job, along with 6,000 other employees of First Magnus Financial Corp., a mortgage lender. With a 1999 Dodge Grand Caravan, he plans to move back in temporarily with his ex so th
A prolonged US housing slump is causing a surge in the number of job losses announced by US financial services companies, consulting firm Challenger Gray & Christmas Inc. said on Tuesday. The financial industry has announced 87,962 job cuts
A disbeliever in both the Fed and fiat currencies 10 reasons to own gold as rebuts 3 arguments for not owning gold are presented. There is also a discussion about plays on gold and silver with no downside risk. Individuals have to decide if and how t
Weaker minds in the U.S. Senate are determined that China revalue its currency. Up it must go. Leaving aside abysmal logic, the historical precedent of America’s revaluation of the Chinese currency is a sorry episode of U.S. foreign policy. The earli
"We're certainly not at the end of the story. There are question marks surrounding the development of the American economy. ... People who had neither income nor capital got credit with very attractive conditions. Now reality is striking bac
The witch hunt has begun. French president Nicolas Sarkozy has vowed to hunt down the "speculators". Germany's Angela Merkel is eyeing laws to curtail hedge funds. The US Congress is orchestrating a show trial of "predatory lenders
The credit crisis that has hit home mortgages and shaken worldwide financial markets is turning into a political albatross for President Bush and Republican presidential contenders, piling atop an unpopular war in Iraq and eroding traditional GOP cla
Experts are reassuring investors that U.S. money market mutual funds, which have gathered about $165 billion in new assets over an eight-week period, are safe from the subprime mortgage problems that have caused steep losses at several hedge funds.
Business involves risk, and businesses that miscalculate risk should be liquidated, their assets reallocated to businesses that correctly judge risk and make profits. Instead, the Fed has injected $64 billion into the jittery markets, effectively a b
Short term results aren't that important to the man you're about to meet. David Walker thinks the biggest economic peril facing the nation is being ignored. He has been traveling the country urging people to wake up before its too late.
The flight to safety continued today with no bids coming in for corporate bonds & the 1 month treasury yield sinking to an amazing 1.4%. Cash is king. Layoffs were announced at both Countrywide and Capital One. The latter shut down its wholesale mort
The US dream of home ownership is going up in smoke in Cleveland, now littered with broken promises and lost hopes as it tops the nation's tragic roll call of foreclosures. In the first seven months of this year, ther
A staunch supporter of lower taxes, a dramatically smaller government, and long-term conservative monetary policy, a Ron Paul presidency could mean big changes for the US Dollar and its relationship to other currencies. We investigate the specific af