Common Ground Common Sense > Economic and Financial News

Fed Doubles TAF Sales to $900 Billion, Mulls Other Steps to Unlock Markets The Federal Reserve will double its auctions of cash to banks to as much as $900 billion and is considering further steps to unfreeze short-term lending markets as the credit crunch deepens.

Deflation Threats Mount as Commodities Tumble by the Most in Half-Century As Federal Reserve Chairman Ben S. Bernanke and his global colleagues fight the worst financial crisis since the 1930s, one danger is looming larger by the day: deflation.

U.K. Treasury Under Pressure to Take Stakes in Banks, Increase Guarantee Chancellor of the Exchequer Alistair Darling is under increasing pressure to take equity stakes in British banks and to extend a guarantee on deposits to stem the impact of the worldwide credit crisis.

Bank of England Will Drain Reserves to Bring Overnight Rate Back in Line The Bank of England will drain excess bank reserves from money markets in order to bring overnight interest rates in line with its benchmark and quell financial- market tensions.

Bernanke May See Lending to Companies, States as Next Credit-Crisis Fronts Federal Reserve Chairman Ben S. Bernanke may find the next fronts of the financial crisis to be just as chilling as last month's downfall of Wall Street titans: its spread to corporate America and state and local governments.

Global Economy Slides Into Recession as Crisis Deepens, UBS, JPMorgan Say The world economy is sliding into its first recession since 2001 as the credit crisis hammers consumers and companies, said economists at JPMorgan Chase & Co. and UBS AG.

Indonesia's September Inflation Accelerates to Fastest Pace in Two Years Indonesia's inflation accelerated to the fastest pace in two years in September, sustaining pressure on the central bank to increase borrowing costs. The rupiah and the benchmark stock index fell.

Paulson to Name Kashkari to Oversee $700 Billion Bailout Plan, WSJ Reports Treasury Secretary Henry Paulson is expected to name Neel Kashkari to oversee the U.S. government's $700 billion financial stabilization program, the Wall Street Journal reported, citing people familiar with the matter.

Yen Unbeatable as Credit-Market Seizure Proves the `Carry Trade Is Dead' The same credit market collapse that drove Lehman Brothers Holdings Inc. into bankruptcy and sent bank borrowing costs in Europe to record highs is making the yen unbeatable.

European Investor Confidence Falls More Than Expected: Table of the Day Following is a summary of October German investors' optimism for the eurozone from Sentix in Limburg, Germany:

Snuffysmith

Oct 6 2008, 07:58 AM

Fed Doubles TAF Sales to $900 Billion, Mulls Other Steps to Unlock Markets The Federal Reserve will double its auctions of cash to banks to as much as $900 billion and is considering further steps to unfreeze short-term lending markets as the credit crunch deepens.

Fed Loans to Banks, Dealers, AIG Climb to $410 Billion as Crunch Deepens Commercial banks and bond dealers borrowed $348.2 billion from the Federal Reserve as of yesterday, an increase of 60 percent from the prior week amid a worsening credit freeze.

Snuffysmith

Oct 6 2008, 08:26 AM

Financial Crisis Turning into a Real Economic Crisis - 6th Oct 08

Credit Crisis Worse to Come as U.S. Mortgage Resets Continue - 6th Oct 08

Bailout Bill Will Do Nothing for the Real Economy - 6th Oct 08

Stock Market Investing Safety Over 5year and 10year Periods? - 6th Oct 08

Euro and British Pound Come Crashing Down to Earth - 6th Oct 08

Nasdaq Break Below 2000 Confirms Severe Collapse of the Economy - 6th Oct 08

European Banking Crisis Deepens as Germany Guarantees Savings - 6th Oct 08

The Deepening Economic Depression - 5th Oct 08

Stock Market Approaching Significant Low for a Counter-trend Rally - 5th Oct 08

$700 Billion Printing of Bailout Monopoly Money, Hedge Your Wealth! - 5th Oct 08

Credit Chaos Next– The Mother of all Bank Runs? - 5th Oct 08

Snuffysmith

Oct 6 2008, 08:54 AM

Global Stocks, U.S. Index Futures Fall as Credit Crisis Widens

Bloomberg
10/06/2008 08:05 AM

Wall Street tumbles amid global sell-off

AP
10/06/2008 08:38 AM

Gold rises first day in three on safe-haven buying

Market Watch from Dow Jones
10/06/2008 08:03 AM

Money-Market Rates Climb as Banks Hoard Cash, Crisis Deepens

Bloomberg
10/06/2008 07:50 AM

Crude futures tumble 4% on economic worries

Market Watch from Dow Jones
10/06/2008 08:03 AM

Snuffysmith

Oct 6 2008, 08:56 AM

Fed Boosts Cash Auctions to $900 Billion, May Do More

Bloomberg
10/06/2008 07:49 AM

Nervous Days as Consumers Tighten Belts

NY Times
10/05/2008 08:59 PM

Full of Doubts, U.S. Shoppers Cut Spending

NY Times
10/06/2008 05:52 AM

Fed May See Lending to Companies, States as Next Crisis Fronts

Bloomberg
10/06/2008 05:14 AM

Crisis hits home as consumers curb their spending

Boston Globe
10/06/2008 05:28 AM

New Jersey Offers a Preview of Possible Economic Woes to Come

NY Times
10/05/2008 09:16 PM

Snuffysmith

Oct 6 2008, 08:56 AM

Three-Month Euro Money Market Rate Reaches Record a Seventh Day

Bloomberg
10/06/2008 05:12 AM

Investors to Commercial Paper: No Thanks

CFO.com
10/06/2008 08:36 AM

Non-banks join banks in scramble for deposits

Financial Week
10/06/2008 08:34 AM

Money fund rescue smacks banks

Financial Week
10/06/2008 08:33 AM

When banks find it hard to borrow, so do the rest of us

Economist
10/06/2008 08:31 AM

Meltdown highlights our own failings

Houston Chronicle
Steffy
10/06/2008 08:23 AM

Yen Unbeatable as Credit Seizure Kills Carry Trades

Bloomberg
10/06/2008 05:28 AM

Smaller Hedge Funds Struggle

WSJ ($)
10/05/2008 06:04 PM

Short shrift

FT ($)
10/05/2008 05:49 PM

Snuffysmith

Oct 6 2008, 08:57 AM

Big Discounts Fail to Lure Shoppers

WSJ ($)
10/06/2008 05:36 AM

Mall Vacancies Grow as Retailers Pack Up Shop

WSJ ($)
10/06/2008 05:34 AM

Countrywide to Set Aside $8.4 Billion in Loan Aid

NY Times
Morgenson
10/06/2008 05:12 AM

Glut of retail failures forecast

FT ($)
10/05/2008 05:46 PM

BNP to take control of Fortis

FT ($)
10/05/2008 05:43 PM

Rising finance costs threaten to put the brakes on car dealers struggling to stay profitable

Chicago Tribune
10/06/2008 05:26 AM

'Unbundling' of airline fees gaining speed in U.S.

LA Times
10/06/2008 05:19 AM

Gambling industry holds weak hand as downturn bites

FT ($)
10/05/2008 05:46 PM

Private-jet use, sales nose dive with economy

Chicago Tribune
10/06/2008 05:22 AM

Kraft to cut several hundred jobs

Chicago Tribune
10/06/2008 05:21 AM

Snuffysmith

Oct 6 2008, 01:53 PM

Stocks Plunge, Dollar Surges on Oct 06, 2008 | by Grace Cheng
Response of Global Markets Indicates Crisis of Confidence on Oct 06, 2008 | by Kathy Lien | about UUP, DIA, UDN
Financial Crisis Hits Europe: Coordinated Response May Be Hard to Come by on Oct 06, 2008 | by Joseph Trevisani | about FXE
Rising Gold and Silver: Essential to Any Investment Strategy on Oct 06, 2008 | by Jonathan Cavuoto | about QQQQ, SPY, GLD
Last Weekend's Treasury-Eurodollar Spread on Oct 06, 2008 | by Brad DeLong
Inflation, Deflation and the U.S.-China Relationship on Oct 05, 2008 | by Thomas Wagner
What the Retail Layoffs Are Telling Us on Oct 05, 2008 | by Ashraf Laidi | about FXB, FXY, FXE

Snuffysmith

Oct 6 2008, 01:54 PM

Today's Market

The Cramer Crash? on Oct 06, 2008 | by Bespoke Investment Group | about DIA, SPY, IVV
Dow Changes Since Last Time at 10,000 on Oct 06, 2008 | by Bespoke Investment Group | about AA, AXP, AIG
Options Trader: Anticipating Monday Carnage on Oct 06, 2008 | by Philip Davis | about C, BAC, CVX
SPY Down Gaps During the Current Bear Market on Oct 06, 2008 | by Bespoke Investment Group | about SPY
Wall Street Breakfast: Must-Know News on Oct 06, 2008 | by SA Editor Eli Hoffmann | about BMY, BAC, BNPQY.PK
Gaming Stocks Still a Poor Bet - Barron's on Oct 05, 2008 | by SA Editor Eli Hoffmann | about WYNN, MGM, LVS
Take a Look at Junk - Barron's on Oct 05, 2008 | by SA Editor Eli Hoffmann | about HIX, BLW, DHF

Snuffysmith

Oct 6 2008, 01:55 PM

We'd Better Brace for Massive Layoffs on Oct 06, 2008 by Michael Shedlock about NWL, HPQ

Snuffysmith

Oct 6 2008, 09:50 PM

Financial crisis: Stock market suffers its worst fall in history: The UK stock market has suffered its worst one-day fall in history as the banking crisis intensified.

Global markets in meltdown as London and New York shares plunge to four-year low: London shares had £100bn wiped off their value today in the biggest ever fall as the bank crisis swept around the world. The FTSE-100, which had at one point collapsed by 430 points or nearly 9%, closed 391.1 down at 4,589.2.

Worst-case scenario is approaching rapidly: The credit crisis, which has been building slowly for the past year, is now moving so fast that governments around the world are finding it impossible to keep pace.

Credit doors are closing : A crucial source of financing for companies and banks is making some ominous grinding sounds. The market for commercial paper, which is high-quality, short-term debt, shrank by a record $95 billion last week, to $1.6 trillion, according to the U.S. Federal Reserve. That's down from nearly $2 trillion before the credit crunch.

Full of Doubts, U.S. Shoppers Cut Spending: Cowed by the financial crisis, American consumers are pulling back on their spending, all but guaranteeing that the economic situation will get worse before it gets better.

Snuffysmith

Oct 7 2008, 08:38 AM

Stocks Fluctuate After Fed Plan- APWall Street fluctuated in early trading after the Federal Reserve announced a plan to buy massive amounts of short-term debt from companies. The plan unveiled Tuesday calls for the Fed to buy the short-term debt that companies use to finance their day-to-day operations. That would help create demand in the credit market and make it easier for companies to raise money.

Fed to buy massive amounts of short-term debt- AP
Fed lays out details for bank loans- AP
Oil rises to $91 after steep slide- Reuters
European markets recover on rate cut hopes- AP
Global fears of a recession grow stronger- NYTimes.com
EU raises banking guarantee to euro50,000- AP
Australia rate cut stuns, markets thirst for more- Reuters
Medvedev pledges $36B cash for banks- AP
Buffett vs. Cramer: Time to Buy or Sell?- Tech Ticker

Snuffysmith

Oct 7 2008, 09:16 AM

Assumptions of a Bottom are False by Michael Kahn While some sentiment indicators are at extreme levels, they may not signal an end to the bear market.

Snuffysmith

Oct 7 2008, 09:17 AM

Fed Jumps Into Commercial Paper Market; Cash? Credit? Neither?; Rio Tinto Thaws
by Bob O'Brien

Snuffysmith

Oct 7 2008, 09:18 AM

U.S. Economy Rapidly Sinking Into Economic Depression / Economics / Economic Depression
By: Money_and_Markets

This is the crisis that will change the course of history. Even before ivory-tower theorists have gotten around to officially calling it a "recession," the U.S. economy is already sinking rapidly into depression.

And even as the government has vowed to embark on a $700 billion spending spree to avert financial panic, over $1 trillion in wealth has been wiped out in just five days of stock and bond market declines.

Read full article...

Snuffysmith

Oct 7 2008, 09:21 AM

Fixing the U.S. Housing Market and House Prices - 7th Oct 08

U.S. Economy Rapidly Sinking Into Economic Depression - 7th Oct 08

LIBOR OIS Spread Signals Credit Crisis Earthquake - 7th Oct 08

Stock Market Elliott Wave Analysis and Silver Recessions - 7th Oct 08

European Government's Panic Triggers Stock Market Crash - 6th Oct 08

Credit Crisis Actions Risk Collapse of European Monetary Union - 6th Oct 08

Bailout Plan Continuation of a Corrupt Banking - 6th Oct 08

Impending U.S. Economic Collapse And Death Of Democracy - 6th Oct 08

The Big Bailout of 2008 Will FAIL to Rescue Crashing Financial Markets - 6th Oct 08

Financial Crisis Turning into a Real Economic Crisis - 6th Oct 08

Credit Crisis Worse to Come as U.S. Mortgage Resets Continue - 6th Oct 08

Bailout Bill Will Do Nothing for the Real Economy - 6th Oct 08

Stock Market Investing Safety Over 5year and 10year Periods? - 6th Oct 08

Euro and British Pound Come Crashing Down to Earth - 6th Oct 08

Nasdaq Break Below 2000 Confirms Severe Collapse of the Economy - 6th Oct 08

Snuffysmith

Oct 7 2008, 09:24 AM

The Deepening Economic Depression / Economics / Economic Depression
By: David_Vaughn

We definitely live in interesting times, huh?

I believe future historians will allocate Monday, September 29, 2008 as the start of the second Great Depression. That is not to say we may yet see exciting corrections and even occasionally a stronger US dollar. Still, the ultimate trend is down, down, down.

Read full article...

Snuffysmith

Oct 7 2008, 09:25 AM

Economic Forecasts and Analysis For U.S. Financial Markets (Oct 6-10) / Economics / US Economy
By: Joseph_Brusuelas

The week of October 6-10 will see a light week of economic data that will be dominated by the Tuesday FOMC minutes from the September 16 meeting and Fed Chair Ben Bernanke speech that same day. Other data to be released during the week will be the Wednesday pending home sales report for August and the weekly initial claims data on Thursday. The week will close with the publication of the August trade balance and the September import price estimate. Depending on events over the weekend out of the US Congress and perhaps the Fed, the market conditions may see a bit of volatility during the early part of next week over economic concerns and redemptions in the hedge fund community.

Read full article...

Snuffysmith

Oct 7 2008, 09:26 AM

Fed Will Purchase U.S. Commercial Paper in Attempt to Ease Credit Crunch The Federal Reserve will create a special fund to purchase U.S. commercial paper after the credit crunch threatened to cut off a key source of funding for corporations.

Australia Slashes Rates, Central Banks Inject More Funds as Crisis Worsens Australia slashed its benchmark interest rate by the most since 1992 and central banks pumped more than $480 billion into money markets as policy makers tried to staunch the worsening financial crisis.

Fed Cuts Borrowing Costs in `Stealth Easing' Through New Bank Reserve Rate The Federal Reserve may have trimmed borrowing costs yesterday without actually saying so.

Bank of England Should Cut Rate by Half Point This Week, Lobby Group Says The Bank of England should cut the key interest rate by a half point to 4.5 percent this week after U.K. business confidence had an ``alarming'' drop in the past quarter, the British Chambers of Commerce said.

Europe Fails to Agree on Bank-Crisis Plan Beyond Higher Deposit Guarantee European Union finance ministers failed to find a solution to the frozen credit markets that created the biggest financial crisis since the Great Depression, reaching accord on an increase in consumers' deposit insurance.

Indonesia Raises Key Rate; Inflation Poses Bigger Threat Than Stock Slump Indonesia's central bank raised its policy rate to slow inflation and boost the rupiah after the nation's stock index plunged 10 percent yesterday amid a global credit crisis.

U.K. Factory Output Drops 0.4% in Worst Streak Since 1980 as Economy Slows U.K. factory production contracted for a sixth month in August in the worst streak for almost three decades, bringing the British economy closer to a recession.

BOJ's Shirakawa Plays Down Speculation for Coordinated Interest-Rate Cut Bank of Japan Governor Masaaki Shirakawa downplayed speculation that the central bank may cut interest rates in concert with its overseas counterparts.

German Factory Orders Jumped in August, Breaking Longest Losing Streak German factory orders rose for the first time in nine months in August, ending their longest-ever losing streak.

U.K. Industrial Production Declines More Than Expected: Table of the Day Following is a summary of U.K. industrial production figures for August from the Office for National Statistics in London:

Snuffysmith

Oct 7 2008, 09:27 AM

Fed Doubles TAF Sales to $900 Billion, Mulls Other Steps to Unlock Markets The Federal Reserve will double its auctions of cash to banks to as much as $900 billion and is considering further steps to unfreeze short-term lending markets as the credit crunch deepens.

Fed Cuts Borrowing Costs in `Stealth Easing' Through New Bank Reserve Rate The Federal Reserve may have cut borrowing costs today without actually saying so.

Federal Reserve's Evans Says Economy `Quite Sluggish,' Inflation a Risk U.S. economic growth will probably remain anemic into next year because of financial market turmoil, while inflation continues to pose a risk, Federal Reserve Bank of Chicago President Charles Evans said.

Snuffysmith

Oct 7 2008, 09:28 AM

Fed Will Purchase U.S. Commercial Paper in Attempt to Ease Credit Crunch The Federal Reserve will create a special fund to purchase U.S. commercial paper after the credit crunch threatened to cut off a key source of funding for corporations.

Overnight Commercial Paper Yields Fall on Fed Plan; Seven-Day Rates Climb U.S. overnight corporate borrowing costs fell as the Federal Reserve invoked emergency powers to create a special fund to backstop the commercial paper market. Seven-day rates soared to the highest since January.

U.S. Reduces Oil, Fuel Price Forecasts as Demand Slumps on Weaker Economy The U.S. government cut its forecasts for the prices of crude oil, gasoline and winter heating fuels as global demand slows with the staggering economy. Prices will be significantly higher than last year.

Greenberg Blames Successors for AIG's Downfall in Congressional Testimony Maurice ``Hank'' Greenberg, former chief executive officer of American International Group Inc., said his successors' actions led to record losses that forced the insurer into an $85 billion U.S. bailout.

Snuffysmith

Oct 7 2008, 09:28 AM

S&P 500 Drop Makes Decade Worst Ever; Granville Says `Market Is Crashing' Even the 1930s are looking better for U.S. stock investors after the credit crisis wiped out more than $6 trillion from equities in the past year.

Snuffysmith

Oct 7 2008, 09:29 AM

Lenders Squeeze Fees from Corporate Borrowers After $112 Billion of Losses McClatchy Co., Building Materials Holding Corp. and almost 100 other companies across the U.S. are suffering payback from lenders stung by at least $112 billion of losses in the loan market.

Christopher Cox Fiddled as Bear Stearns Burned, SEC's Censored Paper Shows U.S. Securities and Exchange Commission Chairman Christopher Cox's regulators stood by as shrinking capital ratios and growing subprime holdings led to the collapse of Bear Stearns Cos., according to an unedited version of a study by the agency's inspector general.

Snuffysmith

Oct 7 2008, 09:40 AM

Fed to Purchase US Commercial Paper to Ease Crunch (Update2) Bloomberg - ‎ 44 minutes ago ‎
Reuters By Craig Torres Oct. 7 (Bloomberg) -- The Federal Reserve will create a special fund to purchase US commercial paper after the credit crunch threatened to cut off a key source of funding for corporations. The Treasury will make a deposit with the Fed's ... Fed creates commercial paper-buying facility Reuters US Stocks Seesaw on Fed Move Wall Street Journal

Snuffysmith

Oct 7 2008, 09:41 AM

IMF Urges Coordinated Action, Sees US Losses at $1.4 Trillion
Wall Street Journal -
BBC News By TOM BARKLEY WASHINGTON -- With losses on bad US assets alone expected to top $1.4 trillion, the International Monetary Fund urged global policy makers Tuesday to coordinate a response to an unprecedented financial crisis that continues to spread. ... As credit losses mount, IMF warns of deeper slowdown Reuters IMF in 'severe downturn' warning BBC News

Snuffysmith

Oct 7 2008, 09:44 AM

India's outsourcing bubble is bursting ZDNet
Pressured to Take More Risk, Fannie Reached Tipping Point New York Times
Lawmaker Accused of Conflict of Interest at Fannie Mae FOXNews
Goodbye to All That New York Times
Financial and Corporate System is in Cardiac Arrest: The Risk of ... RGE Monitor

Snuffysmith

Oct 7 2008, 10:01 AM

Snuffysmith

Oct 7 2008, 10:21 AM

10/7/2008
Fed to Buy Massive Amounts of Short-Term Debts
- Associated Press 10/7/2008
Fed Moves to Thaw Credit Markets
- Washington Post 10/7/2008
Deals: Creatures of the Credit Crisis
- CFO 10/7/2008
Crisis: The Latest Blow to Free-Market 'Dogma'
- Christian Science Monitor 10/7/2008
Is Now a Good Time to Panic?
- Los Angeles Times 10/7/2008
"Mad Money's" Cramer: Get Out of Market Now
- Newsday 10/7/2008
Lenders Squeeze Borrowers Amid $112B of Losses
- Bloomberg 10/7/2008
States' Q2 Revenues Dropped
- Chicago Tribune 10/7/2008
Falling Behind: More See Utilities Cut Off
- Los Angeles Times 10/7/2008
September Consumer Sales Drop Sharply
- Reuters 10/7/2008
Thrift Stores: Seeing More Middle-Class Shoppers
- CNN 10/7/2008
Travel Industry Shaken by Economic Downturn
- New York Times

Snuffysmith

Oct 7 2008, 10:37 AM

SEC busts $60 million Ponzi scheme

Tax INsight
1031 exchanges allow flexibility, defer taxes Lehman's
Fuld roasted at House hearing

Earnings Report
BofA books 68% profit decline
FundQuest and New Frontier offer ETF
European markets feel bailout fallout
Dow closes below 10,000
Market rout even has bears screaming

Snuffysmith

Oct 7 2008, 10:54 AM

Stocks take turn for worse

Investors initially cheer latest Fed liquidity step, but the equity-market rebound fails to hold sway. Dilution fears tug Bank of America lower.

FINANCIALS
• B. of A.'s bad news comes early | Analysts fret over B. of A. credit
• Financial stocks react to news of Fed commercial-paper action
• Lehman's Dick Fuld a classic Street bully, says David Weidner
• Blame game plays out before Congress as Fuld testifies
• Legal timeout called in the battle over Wachovia (WSJ.com)
• Outside the Box: Israel atones — but not for fiscal irresponsibility
• A call for new bank charters from Washington (BloggingStocks)

Snuffysmith

Oct 7 2008, 10:55 AM

Retailers brace for an ugly September, holiday season: analysts
U.S. stocks turn lower as cheer over Fed moves ebbs

Snuffysmith

Oct 7 2008, 11:07 AM

Wall St volatile after Fed liquidity plan

FT
10/07/2008 10:26 AM

Oil Rises for First Time in Five Days on Rate Cut Speculation

Bloomberg
10/07/2008 08:00 AM

Treasuries Fall on Speculation U.K. Preparing to Bail Out Banks

Bloomberg
10/07/2008 08:00 AM

Snuffysmith

Oct 7 2008, 11:08 AM

Fed to Purchase U.S. Commercial Paper to Ease Crunch

Bloomberg
10/07/2008 11:24 AM

Fed Considers Plan to Buy Companies’ Unsecured Debt

NY Times
10/07/2008 05:01 AM

Pension-plan Funding Levels Slide

CFO.com
10/07/2008 08:26 AM

September consumer sales drop sharply: MasterCard

Reuters
10/07/2008 07:09 AM

Global Fears of a Recession Grow Stronger

NY Times
Landler
10/07/2008 05:20 AM

Fed eyes plan to fund short-term business loans

AP
10/07/2008 05:20 AM

Lenders Squeeze Corporate Borrowers Amid $112 Billion of Losses

Bloomberg
10/07/2008 05:13 AM

Fed Sets Floor Below Rate Target, Engineering `Stealth' Cut

Bloomberg
10/07/2008 04:57 AM

Unfolding Worldwide Turmoil Could Reverse Years of Prosperity

Washington Post
10/07/2008 05:25 AM

As economy slowed, states' Q2 revenues from sales, fuel and property taxes dropped

Chicago Tribune
10/07/2008 05:22 AM

Falling behind: More Americans see utilities cut off

LA Times
10/07/2008 05:19 AM

Snuffysmith

Oct 7 2008, 11:12 AM

Federal report said to question SEC's impartiality

Financial Week
10/07/2008 08:33 AM

Massachusetts Delays $750 Million Note Amid Turmoil

Bloomberg
10/07/2008 11:25 AM

Deals: Creatures of the Credit Crisis

CFO.com
10/07/2008 08:35 AM

Lehman exposes credit default swap faults

FT ($)
10/07/2008 05:40 AM

Banks prepare for CDS pay-outs

FT
10/07/2008 05:33 AM

Hedge Fund Finds Itself on Defense

NY Times
10/07/2008 05:12 AM

Snuffysmith

Oct 7 2008, 11:13 AM

Financial crisis: the latest blow to free-market 'dogma'

CSM
10/07/2008 05:29 AM

With Bubbles Popping Worldwide, No Wonder the Economy's Gone Flat

Washington Post
Pearlstein
10/07/2008 05:11 AM

Snuffysmith

Oct 7 2008, 11:25 AM

Global Money and Credit Markets Seize Up: The Fire Is Still Spreading

G7

Oct 6: The Crossover index of junk rated borrowers’ credit default swaps, often used as a barometer for sentiment toward the credit markets, was quoted at 635bp versus a closing level Friday 606.7bp. And the HiVol index of the most volatile investment grade borrowers’ CDS was quoted at 255.5bp Monday morning having been quoted at 237.9bp Friday.
cont.: five year credit default swaps written against banks stretching from the US, Iceland, Belgium, India and Korea have widened sharply.
RGE: Interbank rates in Hong Kong and Singapore also shot up, leading their monetary authorities to inject liquidity and expand the allowable collateral. Australia and Japan continued to inject liquidity into the domestic markets – over $20bn in a day.
cont.: The central banks of several oil exporters are trying to avoid a sharp contraction of credit growth, now that foreign roll-over credit is not available. The Russian government has stepped in to provide another $50bn to its corporate and financial borrowers whose external financing is maturing and it is encouraging bank consolidation. So far, the UAE’s new liquidity facility has done little to ease interbank rates, with Eibor above 4% ahead of the Eid Holiday, likely because the banks are unwilling to avail themselves of the conditions. And other GCC countries, led by Kuwait, are reportedly loaning directly to the banking sector.
Money-market rates climbed worldwide as banks hoarded cash on speculation the seizure in credit markets is deepening and may prompt more financial institutions to collapse. The squeeze is in many cases just as severe for Emerging Markets contries. The Reserve Bank of India reduced its so-called cash reserve ratio to 8.5 percent from 9 percent effective Oct. 11, according to a statement in Mumbai

Snuffysmith

Oct 7 2008, 11:35 AM

Consider Bonds As Part of a Diversification Strategy on Oct 07, 2008 | by Joe Ponzio |
Why You Should Keep an Eye on the Credit Markets on Oct 07, 2008 | by Vinny Catalano
Have We Learned Anything Yet? on Oct 07, 2008 | by James Picerno
It's the Capital, Not Liquidity, Stupid on Oct 07, 2008 | by Stockastician |
Seven Thoughts on Capitulation on Oct 07, 2008 | by Jason Kelly
That Promising Market Outlook Didn't Last Long on Oct 07, 2008 | by Macro Man |
Advice for Investing in Turbulent Times on Oct 07, 2008 | by Shiv Kapoor |

Snuffysmith

Oct 7 2008, 01:27 PM

Poll: 60% say depression 'likely'
Take the garbage out on Wall Street
Investor Jim Rogers predicts lost decade to USA
Russia and Brazil crumble as commodity prices crash
Full of Doubts, U.S. Shoppers Cut Spending
New Jersey Offers a Preview of Possible Economic Woes to Come
U.S. calls for united front as crisis wrecks markets
Germany takes hot seat as Europe falls into the abyss

Snuffysmith

Oct 7 2008, 11:35 PM

Asian stocks plunge on unabated credit market woes- APAsian stock markets plunged Wednesday as recent steps by the world's major economies to fortify credit markets failed to stem escalating fears that the spreading financial crisis could spawn a global recession.

Snuffysmith

Oct 8 2008, 09:26 AM

Financial Meltdown Too Large for Free Market to Fix, Bernanke Says - Government had to intervene!

Fed Will Lend Directly to Corporations

U.S. May Help Private Funds Purchase Troubled Assets

U.S. Rewrites Financial Playbook

We're Not Headed for a Depression

Financial Fallout: Workers May Be Forced to Delay Retirement

Dow's Damage: 13% loss in Five Days

About That Middle-Class Tax Cut . . .

The GOP Peddles Economic Snake Oil : Suddenly Republicans are against market values

California, States Seek Relief With U.S. Commercial Paper Plan

British Banks Get Unprecedented Government Bailout

Bernanke’s Remarks Signal Rate Cut

Snuffysmith

Oct 8 2008, 09:40 AM

Subprime Devastation Tracks Path of S&L Crisis Across California, Florida The $700 billion bailout of Wall Street's subprime-tainted securities harkens back to the real- estate bets that sparked the savings and loan crisis in the 1980s. The geography's the same, too.

Venture Investors Hold `Come to Jesus' Meetings as Credit Crunch Hits Home Venture capital investments will probably fall this year for the first time since 2003 as the financial crisis cripples the markets for acquisitions and initial public offerings.

Stumpf's Quest for Deposits Brings Wells Fargo Into Battle With Citigroup When Wells Fargo & Co.'s John Stumpf was promoted to chief executive officer last year, he said a big East Coast acquisition was ``highly, highly unlikely.'' Back then, Wachovia Corp. was selling for more than $50 a share.

Buffett's Paper Profit on GE, Goldman Sachs Erased by Stock Market Plunge Billionaire investor Warren Buffett's instant paper profits on Goldman Sachs Group Inc. and General Electric Co. have been wiped out amid the stock market's worst yearly slump since 1937.

`Biggest Threat' to U.S. in Afghanistan Is Former Ally Aided by Pakistanis When Jalaluddin Haqqani fought Soviet troops in Afghanistan in the 1980s, the U.S. showered him with praise, guns and money. The congressman celebrated in ``Charlie Wilson's War,'' the movie and book about that conflict, called him ``goodness personified.''

George Washington's Whiskey Legacy in Virginia Gets Boost From Lobbyists You can now buy whiskey at George Washington's Mount Vernon home. All it took was 208 years, two new laws and the liquor lobbyists.

Lebanon Seeks to Reclaim Hummus From Israel in New Middle East Trade Tiff Middle East peace negotiators may need to be careful what they serve with their pita next time they break bread.

Lithuania Voters May Urge Leaders to Break EU Pledge to Shut Nuclear Plant When Lithuania joined the European Union in 2004, it promised to shut down its Ignalina nuclear plant, a Soviet-era relic powered by the type of reactor that caught fire in Ukraine's Chernobyl plant in 1986.

Lenders Squeeze Fees from Corporate Borrowers After $112 Billion of Losses McClatchy Co., Building Materials Holding Corp. and almost 100 other companies across the U.S. are suffering payback from lenders stung by at least $112 billion of losses in the loan market.

Christopher Cox Fiddled as Bear Stearns Burned, SEC's Censored Paper Shows U.S. Securities and Exchange Commission Chairman Christopher Cox's regulators stood by as shrinking capital ratios and growing subprime holdings led to the collapse of Bear Stearns Cos., according to an unedited version of a study by the agency's inspector general.

Yahoo's Yang Missed Opportunity to Get Premium Price for Asian Web Assets Yahoo! Inc. Chief Executive Officer Jerry Yang missed his chance to get top dollar for the company's stakes in Asian Internet firms.

Bollywood's Shah Rukh Khan Hopes Glamour Will Rub Off on Gulf Properties Shah Rukh Khan, the star of Bollywood hits such as ``Om Shanti Om'' and ``Chak De India,'' hopes his glamour will rub off on the real-estate fortunes of a little-known Gulf emirate.

Vienna Hoteliers Say U.S. Visitors Decline on Collapse of Lehman, Markets Oscar del Campo, the manager of Vienna's five-star Hotel Imperial, says that when he heard Lehman Brothers Holdings Inc. had collapsed last month, he immediately started counting the cost to the business.

Broken Wall Street Means Merrill Brokerage Model Gives Way to Independents John Krambeer left Merrill Lynch & Co. in 2003 after 16 years to start his own investment advisory firm in El Segundo, California. Now he says the turmoil on Wall Street may bring him $200 million from wealthy clients abandoning top- tier brokerages, including his former employer.

FHA Takes on Subprime Mortgages, Alt-A Home Loans From Battered U.S. Bank The Federal Housing Administration has grown so large that by the end of the year it will guarantee mortgages for three in 10 U.S. borrowers, many of whom have bad credit or loans that required no verification of income.

As `Biggest Crisis' Spread, Congress Held Its Nose and Approved Bailout U.S. Representative Elijah Cummings was shopping at a Safeway supermarket in Baltimore on Tuesday, Sept. 30, when an elderly woman stopped him. She was frightened, she said, because her daughter had called to tell her that her retirement account was in danger.

Bringing Goldman to Heel Makes Options Traders Rich in Year of Discontent The same credit-market rout that sent stocks to the steepest loss in two decades is also making it the best year ever for options traders.

Russia's Nuclear Test Purges Chernobyl Ghost, Pads $80 Billion of Orders ``All zones, fire at the nuclear power plant,'' booms a loudspeaker at 9:00 a.m. near the Volgodonsk station deep in southwest Russia.

Chavez's Cheap Oil Buys Off U.S. Allies, Gives Him Sway Over Aid Projects President Hugo Chavez has figured out how to use Venezuela's vast oil reserves to increase his regional influence while diminishing U.S. clout: He all but gives it away.

Lehman Creditors Say JPMorgan Caused Liquidity Crisis by Grabbing Assets Lehman Brothers Holdings Inc.'s main lender and clearing agent, JPMorgan Chase & Co., caused the liquidity crisis that led to Lehman's collapse, creditors said.