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Featured Articles: GEMS of the Week
Category: Credit Crisis 2008
The news items published under this category are as follows.
Friday, November 21, 2008
Financial System Crisis, Stay Focused on the Big Picture / Economics / Credit Crisis 2008
By: Chris_Galakoutis
In these trying times it is critical that we remain focused on the big picture and stay true to our convictions; one can always revisit their reasoning and conclusions, like I do, but I would hope that at this stage many of you have done so as well, so that our minds are not treated like a flimsy ship in rough seas. Read full article... Read full article...
Wednesday, November 19, 2008
U.S. Economy Reflation Challenge and LIBOR Deceptive Manipulation / Interest-Rates / Credit Crisis 2008
By: Jim_Willie_CB
A major challenge looms large on the immediate horizon. The US Economy must be reflated in order to avoid collapse. Debts have become a crippling factor. Liquidation of speculative trades coincides with economic retreat, and hedge funds are under attack by their creditors (largely Wall Street firms) while major companies shed workers by the tens of thousands. When asked about economic prospects, a standard answer lately of mine has been to observe important signals not of recession but of potential disintegration. Read full article... Read full article...
Wednesday, November 19, 2008
G20 Summit Fails to Achieve Anything of Substance / Politics / Credit Crisis 2008
By: Mike_Whitney
As expected, the G-20 Economic Summit in Washington turned out to be a total bust. None of the problems which have pushed the global economy to the brink of disaster were resolved and none of the main players who gamed the system with their toxic securities were held accountable. Instead, the visiting dignitaries gorged themselves on stuffed quail and roast rack of lamb before settling on a toothless "Statement on Financial Markets" which accomplished absolutely nothing. The one noteworthy clause in the entire document is a two paragraph indictment of the United States as the perpetrator of the financial crisis. At least they got that right.Read full article... Read full article...
Monday, November 17, 2008
Iceland Savings Account Freeze Thaws as G20 Meet / Stock-Markets / Credit Crisis 2008
By: Mark_OByrne
The G20 leaders showed a united front as they pledged to shore up global growth, introduce regulatory reform in a relatively short timeframe and avoid protectionism. However, the timeframe for resolution of these reforms is as soon as March 31st. Success will hinge on the new US Administration's willingness to take big decisions, a mere 2 months after taking office. US analysts think that it will make more sense to try and overcome the crisis first before implementing far-reaching reforms. These reforms include efforts to strengthen the credit derivative markets, create colleges of national supervisors to monitor global banks and provide guidance for valuation of illiquid securities. There will be a follow up summit on April 30th, probably in London.Read full article... Read full article...
Monday, November 17, 2008
The Brutal Truth About the Credit Crisis / Politics / Credit Crisis 2008
By: Money_and_Markets
Mike Larson writes: I don't know about you. But I started keeping a mental “Outrage List” a while back. The idea: Chronicle all the ridiculous statistics, all the lies, all the questionable practices, and all the dubious “rescue packages” Wall Street and Washington keep shoveling onto the public's lap.
And boy oh boy, is it getting long these days!
Read full article... Read full article...
Sunday, November 16, 2008
G-20 Summit Politicians Blame Investors For Credit Crisis / Politics / Credit Crisis 2008
By: Mike_Shedlock
Hopes were high that the G-20 summit would issue a statement on US dollar hegemony, currency fluctuations, a new world order, a return to a gold standard, or make some other earth shattering statement. I predicted the summit would be a complete waste of time. Let's take a look. Bloomberg is reporting G-20 Calls for Action on Growth, Regulatory Changes .
Read full article... Read full article...
Thursday, November 13, 2008
Stop Blaming Capitalism for Government Failures / Politics / Credit Crisis 2008
By: Ayn_Rand
Speaking of the financial crisis, French president Nicolas Sarkozy recently said, “Laissez-faire is finished. The all-powerful market that always knows best is finished.” Sarkozy was echoing the views of many, including president-elect Obama, who assume that the financial crisis was caused by free markets--by “unbridled greed” unleashed by decades of deregulation and a “hands off” approach to the economy. And given this premise, the solution, they say, is obvious. Read full article... Read full article...
Wednesday, November 12, 2008
Your FDIC Backed Bank Could Fail, Discover the Safest U.S. Banks / Companies / Credit Crisis 2008
By: EWI
With big bank bailouts dominating the news, there's no better time to get the truth about bank safety.
This informative article has been excerpted from Bob Prechter's New York Times bestseller Conquer the Crash . Unlike recent news articles that are responding to the banking crisis, it was published in 2002 before anyone was even talking about bank safety. However, you may find the information even more valuable today than ever before.
Read full article... Read full article...
Tuesday, November 11, 2008
Credit Crisis Eases as Interbank Rates Hit Multi-year Lows / Interest-Rates / Credit Crisis 2008
By: Ashraf_Laidi
Although signs of easing credit strains are manifested in multi-year lows in interbank rates, the market turmoil has exasperated the already shaky cash situation of US auto manufacturers, retailers and shippers, forcing fresh waves of nation-wide layoffs, which would only feed off the negative loop from rising employment, falling consumption, lower earnings and eroding bank credit. Consequently, JPY retains the last word over the USD, while both low yielding currencies dominate dealing flows against European and antipodean FX as Asian and European markets are mired in prolonged downside, failing to break Mondays sell-off in the US. Read full article... Read full article...
Tuesday, November 11, 2008
Credit Crisis Worse to Come as Bank Credit Contracts / Stock-Markets / Credit Crisis 2008
By: John_Mauldin
Can the credit crisis get any worse? In this week's Outside the Box my London partner Niels Jensen shows that it indeed can. Banks, and mainly European banks, have large exposure to emerging market debt of all types through both sovereign, corporate and individual loans. Just as banks have had to write down large losses from the subprime crisis and other related problems, next will come a wave of potential losses from yet another source. Niels then goes on to give us a look the size and problems with hedge fund deleveraging. Altogether, this is a very interesting letter and one that is written from a non-US point of view that I think you will find instructive. Read full article... Read full article...
Tuesday, November 11, 2008
Credit Crisis Tentacles Spread to Every Sector of Finance Market / Stock-Markets / Credit Crisis 2008
By: Dr_Krassimir_Petrov
Finally there is a 100% consensus between economists, experts, journalists, and government officials that restoring interbank lending will restore the stability of the financial system and will reignite economic growth. Too bad, the consensus has gotten again all wrong. This is a pure myth and nothing can be further from the truth.
The grim reality is very different and already forgotten. The reality is that most markets for the majority of financial instruments have collapsed completely and reviving interbank lending will not resurrect any of those markets. In other words, resolving the problem of interbank lending will not help the economy in any way. It is like an air balloon that has deflated and we desperately need to reflate it again with helium, but we are told that even ordinary cold air will lift it off the ground; since the balloon is stubbornly stuck on the ground, we are told we simply need more air!
Read full article... Read full article...
Sunday, November 09, 2008
Reaping the Derivatives Mania Whirlwind / Stock-Markets / Credit Crisis 2008
By: Stephen_Lendman
"Reaping the whirlwind" for money manager and market strategist Jeremy Grantham in his latest no-nonsense commentary. Worlds different from most in the mainstream. Cheerleaders in upturns. Downplaying risks. Soft-pedaling reversals and still many in denial about the severity of today's crisis. The virtual certainty of a deep and protracted recession. The likely emergence of a changed world order at its end - for better or worse. The result of what Grantham calls "the poisonous wind we all sowed," and went on to explain it with his customary thoughtful analysis. Calling it like he sees it as one of the earliest to spot the current storm. Even though it arrived sooner and with more severity than he imagined. In that respect, it fooled some of the best and brightest but no longer the ones most credible. Read full article... Read full article...
Saturday, November 08, 2008
The Impact of Deleveraging on Economic Growth / Economics / Credit Crisis 2008
By: John_Mauldin
- The Problems of Deleveraging
- 1.2 Million Jobs and Counting
- Be Careful of Geeks Bearing Recovery Data
- Back to 1982
In general, we consider it a good thing to save money and to "owe no man anything save love." But what happens when a debt-happy society wakes up and decides that saving is a good thing for everybody? What happens when banks and hedge funds decide (or are forced) to reduce their debt? What happens when businesses of all sizes find it harder to get loans to operate?
Read full article... Read full article...
Friday, November 07, 2008
Will Fortune Favour the Brave in This Crisis Investment Climate? / Stock-Markets / Credit Crisis 2008
By: William_R_Thomson
OVERVIEW - FORTUNE is said to favour the brave, but is it bold or foolhardy to venture back yet into bombed-out equity and other financial markets? A panel of investment veterans assembled by The Business Times was of the view, on balance, that now is indeed the time to be venturing back into the markets, although one expert was bearish to the point of suggesting that financial markets could yet be brought to a standstill by confusion over the valuation of assets. There was a consensus too that the worst is by no means over yet for the global macro-economy. Read full article... Read full article...
Tuesday, November 04, 2008
More from the Front Lines of the Financial Crisis / Stock-Markets / Credit Crisis 2008
By: Stephen_Lendman
In its latest economic outlook, Merrill Lynch economists "worry about inflation, or more precisely," a lack of it. From crashing global equity markets, falling commodity prices, rising unemployment, stagnant wages, over-indebted households, declining production, the continuing housing crisis, and more. All pointing to several future quarters of negative growth. Showing that Fed chairman Bernanke will face "his greatest fear: deflation." An analysis of the coincident to lagging indicators signals "deep recession." Read full article... Read full article...
