credit crunch

  • News

    Germany Looks To Stamp Out Antisocial Elements

    Credit mediator-designate Hans-Joachim MetternichGermany is appointing a “credit mediator.” And he will be obeyed. The goal? To get German banks to lend to the kind of companies they probably shouldn’t lend to. Why? It is their duty to society, according to Rainer Brüderle, the Republik’s economics minister. And if they refuse? Well, Germany has a […]

    / Dec 3, 2009 at 10:42 AM
  • News

    Recovery Even Slower Than Thought Earlier Today

    The most oft-heard description of the current economic recovery is “slow.” (Nonexistent is a distant second.) And hot on the heels of another disappointing jobs report, which put unemployment about 10% for the first time in 26 years, here’s some more evidence that the economy may eventually recover fully at some point in the next […]

    / Nov 9, 2009 at 3:36 PM
  • News

    The Ending Left An Obvious Sequel Opening

    We think Credit Crisis II or Credit Crisis 2.0 has a much nicer ring to it than “W recovery” or some other charting nonsense. (We’re partial to the “M recovery”). Whatever we call it, we may get the chance to revisit old themes. Everything new is old and suchlike. Or so says Reuters: The global […]

    / May 29, 2009 at 5:15 PM
  • News

    Credit Crisis? Not My Kid!

    Furthering the U.S. Euro divide on financial crisis (non)response, the ECB is not having any more of this private asset buying crap. And, you will be happy to know, the incident many refer to as a “credit crunch” or “credit crisis” is absolutely, positively over. Got it? Over. Done. Finished. Ceased to be. European Central […]

    / May 12, 2009 at 11:53 AM
  • News

    Second Verse, Same As The First

    We had to check the date on this Bloomberg post very, very carefully to make sure it wasn’t off by a year. It is not: Fannie Mae, the mortgage-finance company under U.S. government control, will loosen rules for homeowners seeking to lower their loan payments by refinancing. Fannie Mae will drop some credit-score requirements, reduce […]

    / Feb 5, 2009 at 3:52 PM
  • News

    The Credit Perspective

    The Across the Curve blog often has insightful and potent analysis, with a focus on credit markets that reveals some real expertise in the area. Today, however, its author, originally a weak supporter of government intervention, has made a rather public about-face. We are forced to agree with him. Matters are quickly getting out of […]

    / Jan 16, 2009 at 11:57 AM
  • News

    Where Do Those Laid Off Bankers End Up?

    Treasury Official: “Man is paying these debt instruments off painful.” New Analyst: “Well, you know I used to work with new homeowners to get their payments down to levels they could afford.” TO: “Oh?” NA: “Yes, you know lots of first-time buyers would be surprised at the homes they could afford. Homes which originally seemed […]

    / Dec 3, 2008 at 11:24 AM
  • News

    We’re Having A Special On Recession Release Denial Right Now

    There are clearly two constants in the new epoch of American poli-finance. Daily Obama press conferences and monthly admonitions from financial dominatrix Meredith Whitney. The latest target: the U.S. credit card industry, which, with a crack of the whip and a biting string of verbal abuse (can be ordered a la carte, or with the […]

    / Dec 1, 2008 at 12:33 PM
  • News

    No… No… Anything But Big Sky

    Ok, that’s enough. We are mad as hell and we are not going to take it anymore. Mess with interest prices, fine. Mess with short selling, whatever. But when you take away the only chance a member of the Y-Generation has to connect with the American West complete with perpetual blue skies, millions of snowflakes […]

    / Nov 11, 2008 at 1:08 PM
  • News

    Naughty And Nice

    At 2pm eastern, the Federal Housing Finance Agency is expected to announce a plethora of mortgage gifts to homeowners with Fannie Mae and Freddie Mac loans. This year, gifts will follow the increasingly popular “Reverse Santa” list (not to be confused with the “Double Lehman” formula) which provides relief in the form of federally mandated […]

    / Nov 11, 2008 at 10:34 AM
  • News

    The Dangers Of Lists: Someone’s NOT On Them

    So has your local bank announced an infusion by the Treasury yet? No? Then the Treasury might not think it is going to survive the crisis. That’s how the New York Times plays it, anyhow. There is a certain bitter smell to the article. I strongly suspect that some of the people involved in the […]

    / Oct 28, 2008 at 1:51 PM
  • News

    WSJ: Despite Best Efforts, Financial Failure Still Not Criminal

    Those looking for retribution against the executives of failed companies will quickly see that prosecutions won’t come easy. The law gives executives wide latitude to run their business, no matter how terrible their decisions. And even convictions would seem an incomplete conclusion given that a system — political and regulatory — also failed the public. […]

    / Oct 28, 2008 at 10:05 AM
  • News

    No-one Expects A Fallen Master of the Universe to Say Sorry.

    But it would be oh-so warm and fuzzy if they did. Why not, indeed. Reuters, do tell: …academics say an apology — for all the litigation risk it entails — can be the basis of revitalized confidence and trust. With global markets paralyzed by the inability to rely on a counterparty, and as trust and […]

    / Oct 20, 2008 at 8:11 AM
  • News

    Housing: An Unparalleled Success Story

    Aleablog is worth visiting. Several times a day. Today they point out a study (The Future of Securitization by Günter Franke and Jan Pieter Krahnen) linking incentives, particularly bonuses, to the collapse in securitized products. There’s a danger here of linking this sort of study to initiatives to reduce senior manager pay, or rattle sabers […]

    / Oct 14, 2008 at 3:18 PM

    Japan To Crisis: “Been There, Done That”

    Maybe it is because we are in “the biz,” but lately it seems that we’ve been hearing a lot of analogies thrown around comparing the credit crunch with Japan’s banking (and general) crisis. There almost is an undertone of smug amusement to the entire thing. Trust the New York Times to press that angle not […]

    / Oct 2, 2008 at 10:54 AM
  • ABN Amro

    Premium Disequilibrium

    I’m sure you can imagine exactly what would happen if State Farm suddenly decided that they would cover wind, water/flood and fire on every homeowner’s policy that, up to this point, had excluded recovery in these categories. Since State Farm had been carefully collecting actuary data and setting rates (in those states that didn’t impose […]

    / Oct 1, 2008 at 8:50 AM
  • News

    Excellent News From The Ministry Of Price Control!

    At least if the Wall Street Journal is to be believed, the short sale ban will be extended for at least a week or two after the original October 2nd sunset date. Doubtless the incredible success of the plan (see attached chart after the jump), put into place on September 19th, and its immense popularity […]

    / Sep 30, 2008 at 5:24 PM
  • News

    Presented Without Comment: 48 Hours of Crisis Photography

    After the jump.

    / Sep 30, 2008 at 2:38 PM
  • News

    When Is “Price Discovery” Not Price Discovery?

    Hidden in the middle of a Wall Street Journal article on vulture investors is a small observation that suggests, perhaps unwittingly, that the Treasury might be on the eve of complicity in one of the largest cases of accounting fraud in recent memory. Other opportunistic investors, though, say they likely will stick to the sidelines […]

    / Sep 29, 2008 at 11:19 AM
  • News

    It’s Not A Shot In The Arm. It’s A Shot In The Ass.

    You know, one of those really thick, syrupy, brownish antibiotic infusions that takes 25 seconds to pull into the syringe. The Fed and the European Central Bank doubled to $240 billion the amount of dollars being made available to banks hungry for cash. In an announcement Monday by the ECB — the central bank to […]

    / Sep 29, 2008 at 10:33 AM
  • News

    Let’s Do The Time Warp Again!

    When the country’s three largest banks reached agreement on Friday on how to structure a $75 billion fund to prop up distressed securities, an exhausted group of its top planners gathered in a Bank of America conference room to toast their success with 12-packs of Bud Light. But the celebration might have come too soon. […]

    / Sep 26, 2008 at 10:58 AM
  • News

    Perverse Incentives

    We’ve had a cautious eye on Clusterstock since our old friend John Carney went over there to do “mature work.” (It better pay better, because where’s the fun in that?) Seems voyeuristic of us though, doesn’t it? Spying on our old friend’s new digs? That’s why we only read Henry Blodget’s pieces. (We kid, we […]

    / Sep 25, 2008 at 11:29 AM
  • News

    Media to Assist In Resolving Credit Crisis By Coloring Truth In Other Direction For Now

    Fortunately, the media, typically tasked with inflaming tense situations as much as possible, has agreed to shift the focus in the other direction for a while. Fresh on the heels of very serious and very determined corrections to avoid the wrath of Andrew Cuomo’s financial thought police, the New York Times covers the emergent phenomenon, […]

    / Sep 22, 2008 at 4:19 PM
  • News

    Bailout Blues

    It probably isn’t surprising that Wall Street initially focused on the figure rather than the text of The Bailout Plan (it being so large and broad in scope that proper noun capitals seem appropriate here). $700 billion looks almost comfortably close to the $1 trillion that everyone seems to think represents the amount of toxic […]

    / Sep 22, 2008 at 8:04 AM
  • News

    Credit Crisis Math: Report Sees $1.5 Trillion In Losses

    Over the weekend word began to leak out about a report from Europe predicting losses at financial companies would be twice as large as many had predicted and far larger than have been declared by banks and securities firms so far. In April the IMF had estimated that world wide losses from mortgages and other […]

    / Jul 7, 2008 at 7:49 AM
  • Business Media, Gretchen Morgenson, New York Times, Newspapers

    Big Rescues Must Work Because Smart People Care!

    It is well known that smart people—particularly the subset of the intelligent sometimes called intellectuals—tend to overrate the role of intelligence in providing solutions to social problems. This was on display in lurid colors in Gretchen Morgenson’s Sunday column in the New York Times lamenting the lack of “an intelligent and comprehensive plan for dealing […]

    / May 12, 2008 at 10:38 AM
  • News

    Wild And Crazy Predictions

    We love wildly irresponsible predictions. If they don’t come to pass, well, it was just comedy. If, however, they do…. So when RBS announces not just that they are writing down $12 billion, but that they are looking to raise $20+ billion in capital (the largest rights issue in British banking history), and there is […]

    / Apr 22, 2008 at 12:02 PM
  • News

    What The Hell Is Wrong With CIT?

    Clearly they did not get “The Memo.” When you start to sell off $5 – $7 billion in assets, tap credit lines to support liquidity needs, start shopping around for a “financial partner” and announce a severe dilution to shareholders to shore up flagging capital and pay dividends, your shares are supposed to appreciate. I […]

    / Apr 22, 2008 at 9:22 AM

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