Archive for October, 2008
Consumer Squeeze, Charlie Gasparino, Election Trades, FDIC Loan Modifications, Consumer Capitulation, Deflation/Reflation Whipsaw
Consumer Squeeze is On
Minyanville does a nice analysis, using the Star Wars Death Star garbage masher analogy, of the consumer conundrum–damned for credit, and damned if you save.
Consumers are certainly being pinched at both ends as the US government keeps trying to unfreeze credit by driving down interest rates. The result? Lenders are getting more [...]
GDP, Mortgage Bonds, Zero Interest Policy, Renters for Obama, Stop Being Bearish
GDP Swings Low, Sweet …
Well it is official, we’re contracting. Consumers are hoarding their cash (taking queues from the banking sector). Unlike the recession of 2001 consumers will not be borrowing their way through hard time–try to find a home equity line of credit these days.
They’re calling it a recession:
“This is the first of a [...]
Fed Lowers Rate 0.5% to 1%, But is There More?
Aaron Task presents a great Fed premonition. The Fed might not be done. In fact, it seems pretty clear they are locked into a recessionary outlook and few ideas for a short-term recovery.
Recent policy actions, including today’s rate reduction, coordinated interest rate cuts by central banks, extraordinary liquidity measures, and official steps to strengthen financial [...]
Mortgage Rates, Misery Index, Foreclosures, Case Shiller, OPEC, Credit Default Swaps
Mortgage Rates Rise as US Market Soars
We get a big, even historic, upward bounce in the US stock market. Meanwhile mortgage rates are taking a negative bounce. The interesting part is that one of the stated US government bailout objectives was to preserve or even increase mortgage affordability. However, these same interventions into markets are [...]
Yields Spread Mortgage Rates Rise, Homebuilders Housing Fix, Soros on Denmark Mortgage Market, Your $700 Billion at Work
Yields Spread and Mortgage Rates Rise
Fannie, Freddie, and Ginnie mortgage bonds continue to pull away from US Treasuries.
The difference between yields on Washington-based Fannie’s current-coupon 30-year fixed-rate bonds and 10-year U.S. Treasuries rose about 21 basis points to 224 basis points as of 4:30 p.m. in New York, data compiled by Bloomberg show. That’s up [...]
Asian Markets Down, Where is the Bottom, Rethinking Capitalism, and JP Morgan Will Not Lend
Asian Markets Take Another Dip
Asian markets continue to tumble on real fears of global recession. Compounded by the already tightly intertwined system of banking and commercial equity positions. Much of these riskier equity positions, unlike US Banks are counted toward their regulatory capital requirements.
This latest Asian market plunge is signalling another dangerous day on Wall [...]
Weekend Notes
Why loan modification plans have an uphill battle? Investors on Loan Modifications
Here come the insurance bailouts
Peter Lynch on finding/timing the market bottom
Lindzon is shorting fluff–I think a lot of investors and CONSUMERS will be, we have been sufficiently shocked
China sees opportunity to get superpower respect. In financial currency markets?
Banking innovation slowly unwinding–back to brick and [...]
OPEC, Pending Market Crash, Credit Cards, AIG Collapse, Keynesian?, Todd Carpenter for NAR Social Media
OPEC Orders Cut in Production
Just in case you had any doubt that we need immediate energy independence or have a Middle East that has the least bit of concern for the global economy–OPEC orders a cut in oil production. Is Russia the answer?
Futures Off 6.5%, Watch for a Big Ride Today
Asian and European markets tumbled [...]
Congress Gathering More Information on Mortgage Crisis
Not sure all this testimony is going to make Congress any smarter, but it might keep them busy so they don’t mess anything up worse:
Former Federal Reserve Chairman Alan Greenspan’s prepared statement
FDIC Chairman Sheila Bair’s prepared statement (Still amazes me that the most innovative, practical solutions are coming out of the FDIC)
US Treasury Interim Secretary [...]
