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Thread: In the news this weekend

  1. #1
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    Default In the news this weekend



    HONG KONG (MarketWatch) -- Japanese stocks slumped Friday as panic-stricken investors dumped shares across the board after Wall Street stocks suffered deep losses overnight.
    http://www.marketwatch.com/news/stor...%7D&siteid=rss

    The global economic dam has now cracked wide open. Water is pouring everywhere. The bursting of the dam is a fitting tribute to Paulson's and Bush's $700 billion boondoggle to add liquidity to banks.
    http://globaleconomicanalysis.blogsp...ith-water.html

    The credit crisis claimed another casualty Thursday when Lloyds TSB PLC announced a 12 billion pound (US$22 billion) deal to take over struggling HBOS PLC, Britain's biggest mortgage lender and owner of major British banks including Halifax and the Bank of Scotland.
    http://bankimplode.com/blog/2008/10/09/hbos-implodes/

    The US government's debts have ballooned so badly the National Debt Clock in New York has run out of digits to record the spiralling figure.
    http://news.bbc.co.uk/2/hi/business/7660409.stm

    With that statement by Finance Secretary Arun Ramanathan, India joins the grown ranks of governmental fools that have no freaking idea what the problem even is.
    The problem is solvency, not liquidity, and the root cause is fractional reserve lending. So what does India do? Lower reserve requirements of course, in a foolish attempt to stimulate lending when there is clearly insufficient capital to lend.
    http://globaleconomicanalysis.blogsp...t-in-bank.html

    Oct. 10 (Bloomberg) -- Italian Prime Minister Silvio Berlusconi said political leaders are discussing the idea of closing the world's financial markets while they ``rewrite the rules of international finance.''
    http://www.bloomberg.com/apps/news?p...BWM&refer=home

    http://lolfed.com/2008/10/09/schwarz...ets-to-a-pulp/

    So the final results from the Lehman Brothers CDS auction are in, and they're even uglier than expected. Finally price is 8.625 cents on the dollar.
    http://www.clusterstock.com/2008/10/lehman-cds-wipeout

    Oct. 10 (Bloomberg) -- Finance ministers and central bankers from the Group of Seven nations signaled reluctance to adopt a coordinated effort to shore up banks, risking a deeper crisis of confidence after this week's crash in global stock markets.
    http://bloomberg.com/apps/news?pid=2...IiE&refer=home

    (Someone put Iceland on Ebay, but it got taken down)
    Icelandic Currency (ISK) loses 73% of its value in a single day. Yesterday, 1 USD = 92 ISK. Today, 1 USD = 418 ISK.
    http://finance.google.com/finance?q=CURRENCY:ISK

    Japan Nikkei & Australia ASX Plunge Biggest In History
    http://globaleconomicanalysis.blogsp...sx-plunge.html

    HONG KONG (MarketWatch) -- Japanese insurer Yamato Life Insurance Co. filed for bankruptcy protection from creditors Friday, reportedly becoming the first in the Japanese industry to do so in seven years.
    http://www.marketwatch.com/news/stor...%7D&siteid=rss

    Oil at more than 1-year low, down 17% on week
    IEA cuts global demand forecast; Deutsche Bank says oil's still 'richly priced'
    http://www.marketwatch.com/news/stor...%7D&siteid=rss

    The plan was a complete failure, as it did nothing to stop the slide. This proves that short sellers were not the reason behind the fall in the stock values --- it was simply one thing "fundamentals" which are terrible.
    http://www.streetinsider.com/Insider...a/4055312.html

    Investors cast a shocking vote of no confidence in the future of U.S. automakers Thursday.
    http://globaleconomicanalysis.blogsp...ath-watch.html

    Fannie, Freddie to Buy $40 Billion a Month of Troubled Assets
    http://www.bloomberg.com/apps/news?p...yM0&refer=home

    G-7 Jawbones About Taking 'All Necessary Steps' to Stem Crisis
    http://globaleconomicanalysis.blogsp...necessary.html

    Anyone hearing anything else interesting?
    Once again, the conservative, sandwich-heavy portfolio pays off for the hungry investor
    - Dr John Zoidberg

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    Default Re: In the news this weekend

    What this shows is that the first rate resets for the Subprime loans has mostly passed. So people who were going to default on rate payment shock have largely had their day of doom. If you look at 2009 - 2011, you see that there are 2 more flavors left to sour: Alt-A and Option ARM.
    http://and-still-i-persist.com/2008/...t-700-billion/
    Once again, the conservative, sandwich-heavy portfolio pays off for the hungry investor
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    Default Re: In the news this weekend

    ^^^ and if you do a little math, you'll see that Alt-A plus Option ARM resets will be hitting at a rate of around $25-30 billion per MONTH.

    Also, nobody has mentioned the fact that, unlike most 'subprime' borrowers, Alt-A and Option ARM borrowers also typically carry high levels of credit card debt, of car loan debt, of home equity loan debt etc. that is ALSO going to go belly up as a result of 'unaffordable' mortgage resets triggering new bankruptcies.


    and while this is admittedly 'tap dancing' on the very edge of Dollar Den legitimacy, I feel it is important to post another piece from the same author as your link in order to truly explain the scope of the economic situation / bailout / future choices that we are now confronted with ...

    (snip)"As I write this, the markets in Japan are down nearly 10%. Several of the markets in Asia are closed in hope of shuttering themselves against the raging storm that they helped create. The Yen carry trade is at long last unwinding like the tightly wound spring it was. There is not enough money in existence to stop what has been going on this past week. No bail out from the Fed, Treasury, the UK, the EU or even Saudi sovereign wealth can stop it, they never could All of the leverage that funds in the US, UK and EU borrowed at near 0% interest in Japan in order to speculate in long term debt is being called in. As a result the Yen is rocketing higher as suddenly everyone needs to buy Yen to repay these loans.

    The hammer will fall hardest on countries like India and Brazil, who have borrowed heavily to build infrastructure to lift their population out of poverty. The fight for them will be to find a way to survive as the altruistic world bankers adopt a bunker mentality, and it’s every currency for itself.

    We will soon face a moment of decision - is the future a regulated socialist world, forever painted in washes of gray colored by rampant government regulation and controls? Or will we let the facade of the rotten corrupt system burn to the ground, therefore sowing the seeds of the next golden age?"(snip)

    from

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    Default Re: In the news this weekend

    2012.

    Year of many changes.

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    Default Re: In the news this weekend

    Up 5% today. I'm desperately hoping for a quiet day sometime soon so I can get some peace...

    Now Morgan Stanley Needs "$60 Billion" Of New Equity
    http://www.clusterstock.com/2008/10/...-of-new-equity

    NEW YORK (MarketWatch) -- Fred Goodwin, chief executive officer of Royal Bank of Scotland Group, is expected to leave the struggling bank, according to a published report.
    http://www.marketwatch.com/news/stor...%7D&siteid=rss

    Australia will guarantee all bank deposits for three years and guarantee wholesale funding to Australian banks in an attempt to combat the global credit crisis, Australian Prime Minister Kevin Rudd said.
    http://business.smh.com.au/business/...e#contentSwap2

    NEW YORK (MarketWatch) -- The U.K. government is finalizing plans to invest billions of pounds in four of the country's largest banks, according to media reports.
    http://www.marketwatch.com/news/stor...%7D&siteid=rss

    Google Employees Watch In Horror As 60 Percent Of Their Stock Options Drown
    http://www.techcrunch.com/2008/10/10...options-drown/

    The collapse in Morgan Stanley's shares late last week has led to a wave of bets being taken on the blue-chip investment bank failing to meet its financial obligations. Investors fear that the bank's debt would return only a fraction of its face value in the event of a bankruptcy filing and are pushing up the cost of insuring its bonds against default.
    http://www.guardian.co.uk/business/2...tanley-banking

    Royal Bank of Scotland, HBOS Set to Be Taken Over by Government.
    http://globaleconomicanalysis.blogsp...land-hbos.html

    Europe shares surge 5 pct on bank revival moves
    http://www.reuters.com/article/marke...0081013?rpc=44

    HONG KONG - Most Asian stock markets recovered Monday after last week's historic sell-off as governments around the world intensified efforts to boost the ailing financial system.
    http://www.msnbc.msn.com/id/27154736/

    Nassim Nicholas Taleb Angry
    http://www.youtube.com/watch?v=ABXPICWjFIo

    WASHINGTON (Reuters) - The global economy is drawing closer to a dangerous downward spiral and time may be running out for world leaders to find a way to stop it before it inflicts lasting damage.
    http://news.yahoo.com/s/nm/20081012/...kahead_outlook
    Once again, the conservative, sandwich-heavy portfolio pays off for the hungry investor
    - Dr John Zoidberg

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