Is The Next Victim In The United Kingdom?

March 18, 2008 | Leave a Comment

Wow, what a day Monday was, fears of a meltdown, talk of intervention, the dollar getting pounded, Bear Stearns trading above the offer price, whatever next? Read more

Pre-emptive warning of a major banking crisis

March 17, 2008 | Leave a Comment

When asked what represented the greatest challenge for a statesman, British Prime Minister Harold Macmillan responded in his typically languid fashion, “Events, my dear boy, events.” Read more

Dollar plummets under weight of oil, gold, and currencies

March 17, 2008 | Leave a Comment

The dollar plummeted significantly again this week under renewed economic concerns.  Many forecasters have projected that the US recession is no longer pending, but might be in progress.  Financial markets will be watching closely after the end of the first quarter to see if growth has stalled. Read more

Corporate Bonds, Stocks and the Federal Reserve

March 11, 2008 | Leave a Comment

We start off with an update to last week’s piece on corporate bonds (CB). It looks like I am not the only writer who has spotted the possible turmoil in store for CB’s. This is a small snippet from an article on Bloomberg which highlights the problem at a corporate level: Read more

Housing market hope dashed

March 7, 2008 | Leave a Comment

Home owners, investors, and others hopeful of a US housing market turnaround in the near future, got plenty of negative news Thursday (March 6) to dash their hopes.  Various records of the negative variety continue to fall on many home fronts.  Foreclosures finished the worst year on record with a record number of foreclosed properties during the fourth quarter of 2007, according to the Mortgage Bankers Association. Read more

They Said It Wouldn’t “Spread”

March 6, 2008 | 1 Comment

Not that long ago we had the soothing words of “containment” and “no spill-over” thrown at us daily, keeping the financial masses calm as the turmoil in the sub-prime derivative markets grew. We know how false those words were as we look around today and survey the damage across the whole credit system. Read more

Bernanke warns mortgage trouble could persist

March 5, 2008 | Leave a Comment

Federal Reserve Chairman Ben Bernanke warned Americans on Tuesday (March 4th) that the current mortgage crisis would likely continue for a while.  This was obviously not welcome news to home owners, businesses, or financial markets.  Americans are already overwhelmed with negative financial news given fears of an existing or pending recession and the impact of housing and credit burdens already being felt. Read more

An Occasional Letter From The Collection Agency

March 4, 2008 | Leave a Comment

It’s been sometime since the last Occasional Letter and with more than a few questions about the macro-economic situation being posed by Livechart members recently, I thought it would be a good time for an update.A recap of the scenario:bubble, easy money, inflation in fiat money supply, inflation in commodities and hard assets, inflation, fear of inflation, rising rates, YC inverting, flattening, rising and inverting again, tightening, withdrawal of liquidity, corrections, crashes, talk of stagflation, FEAR, withdrawal of speculative funds, further corrections and crashes, demand collapse…….Deflation.” Read more

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