Oil closes above $100 for first time ever - February 20, 2008 10:48

Oil futures closed above $100 per barrel for the first time ever today (February 19).  US equities gave up huge early gains in large part because of heightening inflation concerns.  While much of the government and Central Bank efforts have been focused on stimulating the stale economy, several members of the Fed have recently expressed […]

If it’s February then it must be the bank sector reporting season - February 19, 2008 10:54

We all know the talk about Banks exposure to toxic debt and the possible damage to the balance sheets to the point that its becoming a “normal” item on the newsfeeds. So, rather than bore you with the more of the same I thought it was time to look at the charts of banks due […]

The Collection Agency – Weekly Report - February 19, 2008 10:50

Welcome to the weekly report. As another bond market fails due to a dearth of buyers and a lack of support from Market Makers, I want to have a look at the inner workings to see who is displaying signs of distress. Is the Municipal Bond market the right place for investment and have PIMCO […]

AIG Get Caught By The Auditors - February 14, 2008 9:47

Boy you could here the squeals of pain all the way down Wall St. Getting caught by the auditors is the risk you take when you start playing with exotic instruments and “forget” to let the accountants know things may have changed. PricewaterhouseCoopers applied the pressure, uncovering “material weakness” in the way AIG accounted for […]

US credit markets get huge boost - February 13, 2008 9:32

Tuesday (February 12) was a big day for a couple of credit markets suffering from the year long credit slump.  The mortgage industry, the leading catalyst of the credit trouble, was boosted by a Bush administration announcement that it was working with major mortgage lenders to freeze the foreclosure process for thirty days.  Warren Buffet […]

The Collection Agency – Weekly Report - February 11, 2008 19:35

Evidence from the US Federal Reserve shows lending standards have tightened appreciably in the past 3 months. Although this is lagging information it is of great importance as it shows the level of liquidity available to consumers and business. Whilst it can be risky to extrapolate a forward outlook from past data in this circumstance […]

Inflation concerns may limit Fed rate cuts - February 8, 2008 10:28

The US government and Federal Reserve have responded aggressively to combat recession concerns that stem from ongoing housing and mortgage struggles and new concerns over a tightening service sector and slowing business growth.  The combined 1.25% Fed rate cuts the last week of January, brought the Fed fund rate to 3%.  While it will take […]

Wachovia, IAC and Falling Out Of The Lending Tree - February 7, 2008 9:59

The banks continue to struggle as they attempt to rebuild capital after losses incurred in the credit derivative markets continue to climb. With the Basel 2 regulations now in full flow banks can no longer gloss over such issues and wait for profits to make up a shortfall. Action is required immediately to repair the […]

Oil falls below $89 per barrel encouraging recession fears - February 6, 2008 10:03

Oil futures fell below $89 per barrel Tuesday (February 5) as concerns over recession gripped Wall Street.  Many economists believe that oil saw its peak after a brief stint over $100 early last month.  The major catalyst for Tuesday’s drop was a surprising report that showed the generally strong service sector may be weakening, indicating […]