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Observations Topic in The Credit Debacle Catalog

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naked capitalism Tue 2009-10-13 19:53 EDT

Central Banks Diversifying Away from Greenback

Sentiment on the dollar is very bearish, and its long-term outlook is not promising at all. But this could point to either another leg down (the beginning of a disorderly slide that many observers worry about) or could also produce a snapback rally if an unexpected rise led to short covering (particularly if equities markets rallies were to fade and lead investors to seek cover until the dust settled in Treasuries). [dollar losing reserve currency status]

Central Banks Diversifying; greenback; naked capitalism.

zero hedge Sat 2009-10-10 14:13 EDT

Albert Edwards On The Upcoming Economic "Abyss"

As always, Albert Edwards provides a solid dose of economic observations based on facts, not hope...unless you truly believe that the stock market is its own isolated bubble, which many do, at some point cash from assets will have to support equity and debt valuations. And once the government cash funding vacuum pops, the market-economy divergence will also collapse. At that point, every dollar used by the government via stimulus and Federal Reserve pumps will have an equal and opposite effect on stocks, thereby throwing America not just into a debt funding crisis, but a complete economic and capital market tailspin. Alas, it appears impossible to prevent this, as the administration and the Federal Reserve Chairman are dead set on executing their inherently flawed experiment...and the American middle class.

abyss; Albert Edwards; upcoming economic; Zero Hedge.

Tue 2009-10-06 21:14 EDT

TraderFeed: Featured Book Look: Dear Mr. Buffett by Janet Tavakoli

Only when the tide goes out do you discover who's been swimming naked," Warren Buffett once observed. Janet Tavakoli's book Dear Mr. Buffett is less about the Oracle From Omaha than the various naked swimmers in the recent financial markets. The essence of her argument is that the recent financial turmoil is not the result of unpredictable black swan events; rather, it is the consequence of out and out malfeasance on the part of those who take risk and those who are charged with regulating it.

Featured Book Look; Janet Tavakoli; Mr. Buffett; TraderFeed.

Tue 2009-09-29 11:10 EDT

Steeling for a Currency Deal in Pittsburgh? - Up and Down Wall Street Daily - Barrons.com

An options play suggests somebody expects the G20 to hatch a scheme to stabilize currencies. Duct tape for the dollar?...Reports John F. Brady, futures expert at MF Global, there was a big seller of "volatility" in the euro versus the dollar Thursday...What's curious, Brady explains, is that vols on the euro already are low, so it's hard to see them going much lower...Which got me to wondering if the volatility seller was thinking the G20 would do something to force volatility lower -- that is, stabilize exchange rates...Notwithstanding the calls for a replacement of the dollar as the main reserve currency, gold isn't it, according to long-time market observer David P. Goldman,..."Even a rather wobbly reserve currency is better than gold," he writes as his alter ego, Spengler, whom he "channels" for Asia Times (www.atimes.com.) "Gold is far less liquid than U.S. Treasury securities, costly to store and insure, and above all more volatile in price...gold isn't an investment but an insurance policy against a breakdown of the function of the world financial system."

Barrons; com; currency deal; Pittsburgh; steel; Wall Street Daily.

Mish's Global Economic Trend Analysis Fri 2009-09-11 18:10 EDT

How Many Rabbits Are Left In The Hat?

Dave Rosenberg observes simply awful employment details...65% of companies are still in the process of cutting their staff loads, manufacturing employment fell to its lowest level since April 1941, temp agency employment is still declining, flat workweek, and jobless claims stuck at 570,000 are all foreshadowing continued weakness in the labour market

hat; left; Mish's Global Economic Trend Analysis; rabbit.

Fri 2009-09-04 19:05 EDT

Lehman downfall triggered by UK and US mix-up

*** Communication breakdown revealed in first-hand accounts of bank collapse *** Blame game goes on as G20 ministers prepare for crucial London talks A breakdown in communications at the highest level between the US and the UK led to the shock collapse of the investment bank Lehman Brothers in September last year, a Guardian/Observer investigation has revealed. The downfall of Lehman, which triggered the biggest banking crisis since the Great Depression, came after a rescue bid by the high street bank Barclays failed to materialise. In London, the Treasury, the Bank of England and the Financial Services Authority all believed that the US government would step in with a financial guarantee for the troubled Wall Street bank.

Lehman downfall triggered; mixed; UK.

ClubOrlov Wed 2009-08-26 15:33 EDT

Welcome to Fuffland!

In the unfolding global financial collapse, it is not just our accounts and balance sheets that come up short, but our language as well. What do you call a bunch of liar loans packaged into toxic assets and placed on the balance sheet of the Federal Reserve as collateral for rescue loans? J,K. Galbraith has proposed the term ``Bezzle,'' taking it to mean the eternal ebb and flow of questionable transactions within an economic cycle. Rational actors cut corners during easy times when they know no-one is looking, and then play nice again when the times change and someone starts paying attention again. But I believe that the phenomenon we are observing is something different: we need a word that describes the artifacts generated in response to irrational actors... A fuffle is an artful fake, an artifact specifically made to fool, beguile, seduce, or intimidate people into paying for it. Examples include suburbans houses and associated mortgage financing, SUVs, debt-financed college education, privately funded 401k retirement plans, US Treasury securities.

ClubOrlov; Fuffland; welcome.

ClubOrlov Wed 2009-08-26 14:22 EDT

That Bastion of American Socialism...the United States military

Over the past few months the American mainstream chatter has experienced a sudden spike in the gratuitous use of the term "Socialist." It was prompted by the attempts of the federal government to resuscitate insolvent financial institutions. These attempts included offers of guarantees to their clients, injections of large sums of borrowed public money, and granting them access to almost-free credit that was magically summoned ex nihilo by the Federal Reserve. To some observers, these attempts looked like an emergency nationalization of the finance sector was underway, prompting them to cry "Socialism!" Their cries were not as strident as one would expect, bereft of the usual disdain that normally accompanies the use of this term. Rather, it was proffered with a wan smile, because the commentators could find nothing... ``Since the end of the Civil War, Americans have become accustomed to thinking of war as something that happens elsewhere, to other people. Thus, the news that the US is bombing this or that land, for no adequate reason, killing and maiming numerous civilians, produces in us neither the normal human reaction of revulsion, nausea and disgust, nor the conviction that we must take the fight to our own monstrous leaders, lest we too become monsters. Life under domestic military occupation might bring home some welcome realizations, and start Americans down the long road of atoning for the sins of their forefathers, who have run roughshod over much of the rest of the planet for far too long.''

American social; bastion; ClubOrlov; United States military.

Thu 2009-07-23 00:00 EDT

The Texas Observer > Commentary by James K. Galbraith -

The Texas Observer > Commentary by James K. Galbraith - Causes of the Crisis; ``The idea that capitalism...is inherently self-stabilizing'', former Texas Senator Phil Gramm, and ``abandonment of state responsibility for financial regulation''

commentary; James K. Galbraith; Texas Observer.

Tue 2009-06-16 00:00 EDT

US watchdog calls for bank executives to be sacked |

US watchdog calls for bank executives to be sacked | Business | The Observer; Elizabeth Warren seeks removal of top Citigroup, AIG executives

bank Executive; sacked; watchdog calls.

Fri 2009-01-16 00:00 EST

naked capitalism: Some Cautionary Observations from Marc Faber

``Everybody seems to think that, thanks to the government's monetary and fiscal interventions, this recession will come nowhere near the 1930s slump. However, I think it might be far worse and precisely because of the interventions.''

Cautionary Observations; Marc Faber; naked capitalism.

Sun 2008-11-23 00:00 EST

Winter (Economic & Market) Watch >> Observation on the Crack Up Boom Crash

Winter (Economic & Market) Watch >> Observation on the Crack Up Boom Crash; ``a Mad Max speculative boom created false demand, and now there is a Panic liquidation...the pieces will be picked up, and more sustainable, balanced and less speculative growth will be maintained.''

Boom Crash; crack; economic; Market; Observations; watch; winter.

Mon 2008-11-03 00:00 EST

Hussman Funds - Weekly Market Comment: Value Dinosaurs - November 3, 2008

capital gains tax treatments; ``bull markets and bear markets don't exist in observable reality only in hindsight''

2008; Hussman Funds; November 3; Value Dinosaurs; weekly market comments.

Sun 2008-03-23 00:00 EDT

Bear Stearns to axe 8,000 staff | Business | The Observer

Bear Stearns to axe 8,000 staff, by Richard Wachman | Business | The Observer

000 staff; Axes 8; Bear Stearns; business; Observations.

Wed 2007-12-19 00:00 EST

Money Matters: World Markets Struggle As China Tightens Credit

by Elaine Meinel Supkis; Bush v. Gore inside observation; 2000 presidential election stolen

China tighten credit; money matters; World Markets Struggle.

Wed 2007-09-12 00:00 EDT

Calculated Risk: Fleck on Structured Investment Vehicles

Bill Fleckenstein on SIVs; Fleck observed credit problems early

Calculated Risk; flecks; Structured Investment Vehicle.

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