With the cost of gasoline, food products, and health care increasing at faster rates the current inflationary depression is beginning to show signs of full development. Like the deflationary depression of the 1930’s there will, no doubt, be many ind
The Federal Reserve, struggling to contain a crisis of confidence in credit markets, plans to lend up to $200 billion in exchange for mortgage-backed securities. The Fed coordinated the effort with central banks in Europe and Canada, which plan to in
At a cost of nearly $42 million, the IRS wants you to know: Your check is almost in the mail. The Internal Revenue Service is spending the money on letters to alert taxpayers to expect rebate checks as part of the economic stimulus plan.
AMERICA’s economy is definitely in recession, economists say, amid growing fears that the credit crunch is entering its most dangerous phase. Figures on Friday showing a second successive monthly fall in US employment sealed the question of whethe
Troubles at Lehman, Bear Stearns, Carlyle Capital, and numerous other places continue to mount in a chain reaction fashion. Selling begets selling. Let's take a look. Mish
There was wild action in Bear Stearns options today as share prices hit a 5 year low following Moody's downgrades of Alt-A deals. Normally I would suggest the chart tells the story but in this case the rest of the story is quite interesting, and
``Due to recent turmoil in the market for mortgage-backed securities, the company's lenders have significantly reduced the amount they are willing to lend against the company's portfolio of U.S. government....
Certain financial developments of late, commonly treated by the mainstream media as negative, are gladdening my heart. It is sheer delight to read that Carlyle Capital is unable to meet margin calls. Its stock fell from $12 to $5 in one day. I hope i
Fannie Mae, the largest U.S. [government] home funding company, could face further declines in its already battered share price, and may soon need a [taxpayer] government bailout, according to the latest issue of Barron's.
The dollar sank towards fresh lows against the euro and the yen in Asian trade on Monday after a bleak US jobs report added to concerns that the world's largest economy is in a recession, dealers said. The dollar slipped to 102.29 yen in Tokyo
U.S. average retail gasoline prices have reached a new high of almost $3.20 per gallon and will likely jump another 20 to 30 cents in the next month, worsening the pain of consumers struggling to make ends meet in an economic downturn.
WASHINGTON — The worst fears of consumers, investors and Washington officials were confirmed on Friday, as deepening paralysis on Wall Street collided with stark new evidence of falling employment and a likely recession.
In fact, reading this article, you will conclude that there's no way out, short of running the printing presses. The problem with that end game: At some point, foreigners will revolt.
Carlyle Capital Corp. Friday said lenders were liquidating some of its mortgage securities, painting an even bleaker picture of its already perilous situation.
The markets have become "utterly unhinged," William O'Donnell, a UBS AG government bond strategist in Stamford, Connecticut, wrote in a note to clients today.
March 4, 2008; short video, CNN warns Americans: A New Great Depression Is Coming. 9 million homes "underwater. " Foreclosures could reach as high as 15 million homes.
"The end of the third quarter of 2008 (thus late September, a mere seven months from now) will be marked by a new tipping point in the unfolding of the global systemic crisis.
Americans' percentage of equity in their homes fell below 50 percent for the first time on record since 1945, the Federal Reserve said Thursday.
"You're talking 10 percent of an entire city becoming homeless," Cardoza said. "I don't know how much worse things can get."
The company leverages its $670 million equity 32 times to finance a $21.7 billion portfolio of residential mortgage-backed securities issued by U.S. housing agencies Freddie Mac and Fannie Mae.
Some of America's biggest banks, including Citigroup and Merrill Lynch, have been forced to seek billions of dollars in fresh capital from foreign investors after suffering huge losses tied to risky subprime mortgages. Raised concerns that foreig
Warren Buffett, the famed U.S. investor who heads Berkshire Hathaway Inc, replaced his friend and Microsoft Corp founder Bill Gates as the richest man in the world, Forbes magazine said. The magazine estimated Buffett's worth at $62 billion in it
The US economy is struggling on several fronts, with housing, manufacturing and retail activity losing steam, the Federal Reserve said. It also cited "upward pressure on prices from rising materials and energy prices," a sign of inflation t
However, Bernanke proposed one new, and scary idea: nationalization of mortgages by the FHA on a grand scale. Bernanke is clearly asking taxpayers to foot the bill for irresponsible bank lending.
Property & Portfolio Research calculates that demand justified 36% of the new space built last year and will support 15.7% of the space slated to be completed this year.
Housing is in its "deepest most rapid downswing since the Great Depression," the chief economist for the National Association of Home Builders said Wednesday, and the downward momentum is accelerating.
The verdict is in. The Fed's emergency rate cuts in January have failed to halt the downward spiral towards a full-blown debt deflation. Much more drastic action will be needed.
With crude oil at $100 a barrel, there is going to be a massive transfer of global financial wealth from oil consuming countries to oil exporters. A petrodollar tsunami is coming, with significant consequences for global financial markets.
A very interesting and simple method of explaining things.
That means misery for securities firms with exposure to commercia-real-estate loans and commercial-mortgage-backed securities.