Dead bank borrowing.
http://news.independent.co.uk/business/new...icle3331371.ece
Saudi prince ready to invest $2bn in Citigroup
By Our City Staff
Published: 12 January 2008
Saudi Prince Alwaleed bin Talal, the Citigroup shareholder who came to the bank's rescue during the credit crisis of the early 1990s, might do so again now, the Wall Street Journal reported on its website last night, citing people familiar with the matter.
The billionaire from Saudi Arabia, along with China Development Bank, is expected to invest about $2bn (£1bn) in Citigroup, one person said, according to the Journal.
...
The cash-strapped Citigroup, hurt by the mortgage crisis that boiled up last year, has already got $7.5bn from the Abu Dhabi Investment Authority. On 26 November, the ADIA bought a 4.9 per cent stake in Citi, becoming its largest shareholder. Alwaleed may take back that title if he makes another investment in Citi-group, though the report said his total stake is likely to remain below 5 per cent to avoid regulatory scrutiny.
Full Version: Credit Derivative Meltdown In Progress
Pages: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47
QUOTE
How can a company retain its AAA rating when it is troubled to the point of needing to issue debt at distressed premiums?
That's exactly what I thought. This is a dead man walking.
QUOTE (cgnao @ Jan 12 2008, 11:39 AM) 
Dead bank borrowing.
http://news.independent.co.uk/business/new...icle3331371.ece
Saudi prince ready to invest $2bn in Citigroup
By Our City Staff
Published: 12 January 2008
Saudi Prince Alwaleed bin Talal, the Citigroup shareholder who came to the bank's rescue during the credit crisis of the early 1990s, might do so again now, the Wall Street Journal reported on its website last night, citing people familiar with the matter.
The billionaire from Saudi Arabia, along with China Development Bank, is expected to invest about $2bn (£1bn) in Citigroup, one person said, according to the Journal.
...
The cash-strapped Citigroup, hurt by the mortgage crisis that boiled up last year, has already got $7.5bn from the Abu Dhabi Investment Authority. On 26 November, the ADIA bought a 4.9 per cent stake in Citi, becoming its largest shareholder. Alwaleed may take back that title if he makes another investment in Citi-group, though the report said his total stake is likely to remain below 5 per cent to avoid regulatory scrutiny.
http://news.independent.co.uk/business/new...icle3331371.ece
Saudi prince ready to invest $2bn in Citigroup
By Our City Staff
Published: 12 January 2008
Saudi Prince Alwaleed bin Talal, the Citigroup shareholder who came to the bank's rescue during the credit crisis of the early 1990s, might do so again now, the Wall Street Journal reported on its website last night, citing people familiar with the matter.
The billionaire from Saudi Arabia, along with China Development Bank, is expected to invest about $2bn (£1bn) in Citigroup, one person said, according to the Journal.
...
The cash-strapped Citigroup, hurt by the mortgage crisis that boiled up last year, has already got $7.5bn from the Abu Dhabi Investment Authority. On 26 November, the ADIA bought a 4.9 per cent stake in Citi, becoming its largest shareholder. Alwaleed may take back that title if he makes another investment in Citi-group, though the report said his total stake is likely to remain below 5 per cent to avoid regulatory scrutiny.
The interesting thing for me here is that in the past during such banking problems, conservative and well run highly capitalised banks could take over their weaker brethren. HSBC built its business over many many decades this way. Don't do anything too spectacular...just bide your time and wait for the opportunity to pick up assets on the cheap.
Well this time, there doesn't seem to be too much of this going on.
QUOTE (hotairmail @ Jan 12 2008, 12:55 PM)
Well this time, there doesn't seem to be too much of this going on.
It's because there is no longer any conservative and well run highly capitalised bank in the world.
UBS admits that it still cannot quantify its exposure to sub-prime crisis
January 12, 2008
The cloud of uncertainty hanging over the credit markets was thrown into sharp relief yesterday as UBS told investors that it still could not be sure about the full financial impact of the credit crunch.
UBS is preparing for writedowns of $13.4 billion (£6.8 billion) against its exposure to the downturn in American sub-prime mortgages.
The Swiss bank wrote to investors yesterday telling them that it could not rule out having to record further losses. “We cannot, at this time, accurately predict the future development of US residential mortgage markets and therefore the ultimate impact on our positions in sub-prime mortgage related securities,” the bank told investors in a letter signed by Marcel Ospel, the chairman, and Marcel Rohner, the chief executive.
Analysts said that UBS’s uncertainty about its financial position underscored the wider nervousness about the credit markets, amid predictions of a fresh round of losses when banks begin to report full-year results in coming weeks.
Link
January 12, 2008
The cloud of uncertainty hanging over the credit markets was thrown into sharp relief yesterday as UBS told investors that it still could not be sure about the full financial impact of the credit crunch.
UBS is preparing for writedowns of $13.4 billion (£6.8 billion) against its exposure to the downturn in American sub-prime mortgages.
The Swiss bank wrote to investors yesterday telling them that it could not rule out having to record further losses. “We cannot, at this time, accurately predict the future development of US residential mortgage markets and therefore the ultimate impact on our positions in sub-prime mortgage related securities,” the bank told investors in a letter signed by Marcel Ospel, the chairman, and Marcel Rohner, the chief executive.
Analysts said that UBS’s uncertainty about its financial position underscored the wider nervousness about the credit markets, amid predictions of a fresh round of losses when banks begin to report full-year results in coming weeks.
Link
GEAB N°20 is available! LEAP/E2020 Alert: Breaking phase ahead for the global financial system in 2008
The rapid aggravation of the global systemic crisis as its phase of impact unfolds [1] has brought our researchers to estimate that the contemporary global financial system will reach a breaking phase in the course of 2008.
Crisis follow-up indicators now show that we should no longer only fear the failure of some large financial institution (and of many small ones) in the US first and the in the rest of the world (cf. GEAB N°19), but that the global financial system itself is structurally hit.
The network of global central banks’ repeated incapacity to control the « credit crunch » when the two historical pillars of the contemporary global financial system (a US economy in recession and a US dollar in decay), reflects the growing surge of centrifugal forces within this very system.
Indeed it is no more a matter of competence or of magnitude of the corrective actions implemented by central bankers. These times are over since summer 2007 and, according to LEAP/E2020, we are now witnessing an increasing divergence in economic interests among the different components of the global financial system.
The expected failure of the Fed’s most recent attempt to coordinate a joint action of the main central banks in order to feed the banks in US dollars [2] , is particularly revealing. This action meant to restore confidence in the financial system by two means:
More follows ...
The rapid aggravation of the global systemic crisis as its phase of impact unfolds [1] has brought our researchers to estimate that the contemporary global financial system will reach a breaking phase in the course of 2008.
Crisis follow-up indicators now show that we should no longer only fear the failure of some large financial institution (and of many small ones) in the US first and the in the rest of the world (cf. GEAB N°19), but that the global financial system itself is structurally hit.
The network of global central banks’ repeated incapacity to control the « credit crunch » when the two historical pillars of the contemporary global financial system (a US economy in recession and a US dollar in decay), reflects the growing surge of centrifugal forces within this very system.
Indeed it is no more a matter of competence or of magnitude of the corrective actions implemented by central bankers. These times are over since summer 2007 and, according to LEAP/E2020, we are now witnessing an increasing divergence in economic interests among the different components of the global financial system.
The expected failure of the Fed’s most recent attempt to coordinate a joint action of the main central banks in order to feed the banks in US dollars [2] , is particularly revealing. This action meant to restore confidence in the financial system by two means:
More follows ...
Rogers Says U.S. to Have Worst Recession `in a While'
Jan. 7 (Bloomberg) -- The U.S. economy is heading for a recession that will be the worst ``in a while'' and investors should sell the dollar as global currencies weaken, investor Jim Rogers said.
``It's going to be one of the worst recessions we've had in a while because we had so many excesses going into it,'' Rogers, chairman of New York-based Rogers Holdings, said in a Bloomberg Television interview today from Singapore. ``It's going to be bad for all of us as currencies come under more and more stress and we have more inflation in the world.''
The U.S. and U.K. governments have been ``lying'' about inflation, Rogers said, adding that he's has been selling their respective currencies.
The dollar dropped for a second straight year in 2007, falling 8.3 percent on a trade-weighted basis as the collapse of the U.S. subprime-mortgage market prompted the Federal Reserve to cut interest rates three times. Rising energy and food prices have pushed up inflation in the U.S. and Europe.
``I hope by the end of this year all of my assets will be out of the U.S. dollar,'' Rogers said. ``The dollar is a currency that's terribly flawed and it's going to be under duress for many years to come.''
Link
Jan. 7 (Bloomberg) -- The U.S. economy is heading for a recession that will be the worst ``in a while'' and investors should sell the dollar as global currencies weaken, investor Jim Rogers said.
``It's going to be one of the worst recessions we've had in a while because we had so many excesses going into it,'' Rogers, chairman of New York-based Rogers Holdings, said in a Bloomberg Television interview today from Singapore. ``It's going to be bad for all of us as currencies come under more and more stress and we have more inflation in the world.''
The U.S. and U.K. governments have been ``lying'' about inflation, Rogers said, adding that he's has been selling their respective currencies.
The dollar dropped for a second straight year in 2007, falling 8.3 percent on a trade-weighted basis as the collapse of the U.S. subprime-mortgage market prompted the Federal Reserve to cut interest rates three times. Rising energy and food prices have pushed up inflation in the U.S. and Europe.
``I hope by the end of this year all of my assets will be out of the U.S. dollar,'' Rogers said. ``The dollar is a currency that's terribly flawed and it's going to be under duress for many years to come.''
Link
QUOTE (Goldfinger @ Jan 11 2008, 06:36 PM)
Not necessarily. I quote Zapata George here: "Liquidity breeds stupidity."
I will remember that - I have only seen him in a few you tube clips but he impresses me.
I guess you think the easy liquidity will make the bankers even more arrogant and daft.
Will help me with the wall of worry with Au.
It is a wall of worry - it should be safe money perhaps it is - just seem my head says safe with Au and my emotions say with my luck it will drop like a stone.
QUOTE (Compounded @ Jan 12 2008, 10:43 PM)
I will remember that - I have only seen him in a few you tube clips but he impresses me.
I guess you think the easy liquidity will make the bankers even more arrogant and daft.
Will help me with the wall of worry with Au.
It is a wall of worry - it should be safe money perhaps it is - just seem my head says safe with Au and my emotions say with my luck it will drop like a stone.
I guess you think the easy liquidity will make the bankers even more arrogant and daft.
Will help me with the wall of worry with Au.
It is a wall of worry - it should be safe money perhaps it is - just seem my head says safe with Au and my emotions say with my luck it will drop like a stone.
Zapata George is a character. Called the bottom in natural gas recently. He might have been spot on.
Wall of worry - people like FreeTrader, dom, RB are useful to test your convictions regarding gold. If their arguments make you sell, then you definitely were not convinced for the right reasons or right kind of information. They represent the wall of worry to me. I listen to people like Jim Puplava, Jim Sinclair, Peter Schiff - so far they have been spot on with the mortgage/financial mess and gold. Their argument make sense to me. The situation of the financial markets will further deteriorate, but it's going in waves - up, then deeper down, a little up, then deeper down. The up parts are the 'wall of worry' for gold. Bretton Woods 2 is coming to an end. This can't be good for almost anything, except for gold. Jim Sinclair was there in the 70s/80s as the biggest gold trader, so they say. He has seen it all before. He says it's bad this time, and all the talk that a weakening economy ('deflation') was bad for gold was rubbish and will be rubbish again. I think so too.
This is every banker's nightmare.
http://www.bloomberg.com/apps/news?pid=206...&refer=bond
UBS Faces Soaring Borrowing Costs in Sale of Bonds
By Steve Rothwell
Jan. 14 (Bloomberg) -- UBS AG, Europe's biggest bank by assets, faces soaring interest costs when it sells bonds in euros today.
UBS is offering investors a yield premium of about 70 basis points more than the benchmark midswap rate to sell five-year notes, said a banker involved who declined to be identified. That's seven times the spread of 10 basis points on 750 million euros ($1.1 billion) of 10-year bonds issued by the Zurich-based bank in May.
http://www.bloomberg.com/apps/news?pid=206...&refer=bond
UBS Faces Soaring Borrowing Costs in Sale of Bonds
By Steve Rothwell
Jan. 14 (Bloomberg) -- UBS AG, Europe's biggest bank by assets, faces soaring interest costs when it sells bonds in euros today.
UBS is offering investors a yield premium of about 70 basis points more than the benchmark midswap rate to sell five-year notes, said a banker involved who declined to be identified. That's seven times the spread of 10 basis points on 750 million euros ($1.1 billion) of 10-year bonds issued by the Zurich-based bank in May.
The Chinese will be fooled no more.
http://www.forbes.com/markets/feeds/ap/200.../ap4526793.html
HONG KONG - Opposition from the Chinese government may stop Citigroup Inc.'s plan to raise capital by selling a stake worth $2 billion (1.3 billion euros) to a Chinese bank, the Wall Street Journal reported on its Web site Monday.
http://www.forbes.com/markets/feeds/ap/200.../ap4526793.html
HONG KONG - Opposition from the Chinese government may stop Citigroup Inc.'s plan to raise capital by selling a stake worth $2 billion (1.3 billion euros) to a Chinese bank, the Wall Street Journal reported on its Web site Monday.
QUOTE (Goldfinger @ Jan 11 2008, 12:24 AM)
I think one day some SWFs and sheiks wake up and say: 'Hey, wait a minute. I gave you $200bn, and now you want another load? What do I get in return?'
They'll say: 'Shares, your Royal Highness, shares'.
He goes: 'Your shares have plunged 80%. You suck. You get no billions no more. Go, burn in hell.'
And that's when it'll be GAME OVER.
They'll say: 'Shares, your Royal Highness, shares'.
He goes: 'Your shares have plunged 80%. You suck. You get no billions no more. Go, burn in hell.'
And that's when it'll be GAME OVER.
I URGE you all to protect yourselves NOW.
http://www.reuters.com/article/bondsNews/i...14?rpc=401&
CDO defaults, liquidations rising -Morgan Stanley
Mon Jan 14, 2008 12:02pm EST
NEW YORK, Jan 14 (Reuters) - The amount of collateralized debt obligations suffering technical defaults and liquidations has surged, raising the threat of further losses for Wall Street banks and bond insurers, Morgan Stanley said on Monday.
A total of 63 CDOs have received "Event of Default" notices, affecting $70 billion of debt, versus 43 deals a month ago representing $47 billion. Rating companies first started reporting the technical defaults late last year. CDOs created as recently as August are receiving the default notices.
"We are hearing more and more that significant chunks of CDO portfolios are being liquidated," Vishwanath Tirupattur, a CDO analyst at Morgan Stanley in New York, said in an interview. "The liquidations have a big significance to the lower tranche holders and for what the securities are worth to the super senior holders."
CDOs have caused billions of dollars worth of bank write-downs due to rating company downgrades of deteriorating U.S. mortgage debt.
Wall Street banks, bond insurers and so-called Structured Investment Vehicles are the biggest holders of the highest-rated debt known as super senior tranches, Morgan Stanley said.
http://www.reuters.com/article/bondsNews/i...14?rpc=401&
CDO defaults, liquidations rising -Morgan Stanley
Mon Jan 14, 2008 12:02pm EST
NEW YORK, Jan 14 (Reuters) - The amount of collateralized debt obligations suffering technical defaults and liquidations has surged, raising the threat of further losses for Wall Street banks and bond insurers, Morgan Stanley said on Monday.
A total of 63 CDOs have received "Event of Default" notices, affecting $70 billion of debt, versus 43 deals a month ago representing $47 billion. Rating companies first started reporting the technical defaults late last year. CDOs created as recently as August are receiving the default notices.
"We are hearing more and more that significant chunks of CDO portfolios are being liquidated," Vishwanath Tirupattur, a CDO analyst at Morgan Stanley in New York, said in an interview. "The liquidations have a big significance to the lower tranche holders and for what the securities are worth to the super senior holders."
CDOs have caused billions of dollars worth of bank write-downs due to rating company downgrades of deteriorating U.S. mortgage debt.
Wall Street banks, bond insurers and so-called Structured Investment Vehicles are the biggest holders of the highest-rated debt known as super senior tranches, Morgan Stanley said.
QUOTE (cgnao @ Jan 14 2008, 05:41 PM)
I URGE you all to protect yourselves NOW.
http://www.reuters.com/article/bondsNews/i...14?rpc=401&
CDO defaults, liquidations rising -Morgan Stanley
Mon Jan 14, 2008 12:02pm EST
NEW YORK, Jan 14 (Reuters) - The amount of collateralized debt obligations suffering technical defaults and liquidations has surged, raising the threat of further losses for Wall Street banks and bond insurers, Morgan Stanley said on Monday.
A total of 63 CDOs have received "Event of Default" notices, affecting $70 billion of debt, versus 43 deals a month ago representing $47 billion. Rating companies first started reporting the technical defaults late last year. CDOs created as recently as August are receiving the default notices.
"We are hearing more and more that significant chunks of CDO portfolios are being liquidated," Vishwanath Tirupattur, a CDO analyst at Morgan Stanley in New York, said in an interview. "The liquidations have a big significance to the lower tranche holders and for what the securities are worth to the super senior holders."
CDOs have caused billions of dollars worth of bank write-downs due to rating company downgrades of deteriorating U.S. mortgage debt.
Wall Street banks, bond insurers and so-called Structured Investment Vehicles are the biggest holders of the highest-rated debt known as super senior tranches, Morgan Stanley said.
http://www.reuters.com/article/bondsNews/i...14?rpc=401&
CDO defaults, liquidations rising -Morgan Stanley
Mon Jan 14, 2008 12:02pm EST
NEW YORK, Jan 14 (Reuters) - The amount of collateralized debt obligations suffering technical defaults and liquidations has surged, raising the threat of further losses for Wall Street banks and bond insurers, Morgan Stanley said on Monday.
A total of 63 CDOs have received "Event of Default" notices, affecting $70 billion of debt, versus 43 deals a month ago representing $47 billion. Rating companies first started reporting the technical defaults late last year. CDOs created as recently as August are receiving the default notices.
"We are hearing more and more that significant chunks of CDO portfolios are being liquidated," Vishwanath Tirupattur, a CDO analyst at Morgan Stanley in New York, said in an interview. "The liquidations have a big significance to the lower tranche holders and for what the securities are worth to the super senior holders."
CDOs have caused billions of dollars worth of bank write-downs due to rating company downgrades of deteriorating U.S. mortgage debt.
Wall Street banks, bond insurers and so-called Structured Investment Vehicles are the biggest holders of the highest-rated debt known as super senior tranches, Morgan Stanley said.
Wait till UK and Australasia defaults start to kick off. We aint seen nuttin yet
This is a default, not a writedown or redemption freeze.
What are you waiting for before you decide to protect yorselves?
http://www.bloomberg.com/apps/news?pid=206...&refer=bond
Victoria Finance Credit Ratings Cut to D by Standard & Poor's
By Alan Goldstein
Jan. 14 (Bloomberg) -- Victoria Finance Ltd., the $6 billion structured investment vehicle run by Ceres Capital Partners LLC, had its credit ratings cut to D, the lowest level on the Standard & Poor's scale.
Rankings were also lowered on Victoria's commercial paper, medium-term notes and junior subordinated notes, the New York- based ratings company said today in a statement.
The downgrade results from a ``technical default'' by Victoria for failing to pay commercial paper that matured on Jan. 10, S&P said.
S&P said Jan. 8 that Victoria Finance may have to sell assets or default after an agreement with creditors expired. S&P had assigned its highest AAA ratings to Victoria Finance's long- term debt until October, when it lowered the rating to AA.
What are you waiting for before you decide to protect yorselves?
http://www.bloomberg.com/apps/news?pid=206...&refer=bond
Victoria Finance Credit Ratings Cut to D by Standard & Poor's
By Alan Goldstein
Jan. 14 (Bloomberg) -- Victoria Finance Ltd., the $6 billion structured investment vehicle run by Ceres Capital Partners LLC, had its credit ratings cut to D, the lowest level on the Standard & Poor's scale.
Rankings were also lowered on Victoria's commercial paper, medium-term notes and junior subordinated notes, the New York- based ratings company said today in a statement.
The downgrade results from a ``technical default'' by Victoria for failing to pay commercial paper that matured on Jan. 10, S&P said.
S&P said Jan. 8 that Victoria Finance may have to sell assets or default after an agreement with creditors expired. S&P had assigned its highest AAA ratings to Victoria Finance's long- term debt until October, when it lowered the rating to AA.
QUOTE (cgnao @ Jan 14 2008, 08:11 PM)
The downgrade results from a ``technical default'' by Victoria for failing to pay commercial paper that matured on Jan. 10, S&P said.
S&P said Jan. 8 that Victoria Finance may have to sell assets or default after an agreement with creditors expired. S&P had assigned its highest AAA ratings to Victoria Finance's long- term debt until October, when it lowered the rating to AA.
S&P said Jan. 8 that Victoria Finance may have to sell assets or default after an agreement with creditors expired. S&P had assigned its highest AAA ratings to Victoria Finance's long- term debt until October, when it lowered the rating to AA.
so lots of firesales very soon then.
QUOTE (grumpy-old-man @ Jan 14 2008, 08:15 PM)
so lots of firesales very soon then.
And then we wait for the domino effect.
But - wife said she heard BBC today saying that the subprime crisis is over with banks lending to each other again.
You moaning minnies! Come on - THe BBC say it's alright to go back into the water!
You moaning minnies! Come on - THe BBC say it's alright to go back into the water!
QUOTE (29929BlackTuesday @ Jan 14 2008, 10:54 PM)
But - wife said she heard BBC today saying that the subprime crisis is over with banks lending to each other again.
You moaning minnies! Come on - THe BBC say it's alright to go back into the water!
You moaning minnies! Come on - THe BBC say it's alright to go back into the water!
http://www.pbs.org/wgbh/amex/crash/sfeatur..._headlines.html
Stock market news moved from the financial pages to the front pages as the number of first-time investors grew in the 1920s. Throughout 1929 daily papers reported that the future looked bright for investors -- even after the devastating market crash in October.
....
Brokers Believe Worst Is Over and Recommend Buying of Real Bargains
Wall Street in looking over the wreckage of the week, has come generally to the opinion that high grade investment issues can be bought now, without fear of a drastic decline. There is some difference of opinion as to whether not the correction must go further, but everyone realizes that the worst is over, and that there are bargains for those who are willing to buy conservatively and live through the immediate irregularity.
-- New York Herald Tribune, October 27, 1929
Banks in real trouble selling valuable assets in a hurry to raise capital. This will become a flood and will devastate stock markets worldwide.
http://www.iht.com/articles/2008/01/14/business/ca.php
Credit Agricole to sell 2 percent of Suez
Reuters, Bloomberg News
Published: January 14, 2008
PARIS: Crédit Agricole of France said Monday that it would sell a 2.07 percent stake in the utility Suez, which could raise about $1.8 billion to help shore up the bank's capital position amid tough market conditions related to the credit crisis.
...
Valerie Cazaban, a fund manager for Stratege Finance, said that while the deal would yield Credit Agricole some cash, it appeared to have been done in a hurry.
"It's a mixed bag, it seems like a slightly rushed deal," she said.
http://www.iht.com/articles/2008/01/14/business/ca.php
Credit Agricole to sell 2 percent of Suez
Reuters, Bloomberg News
Published: January 14, 2008
PARIS: Crédit Agricole of France said Monday that it would sell a 2.07 percent stake in the utility Suez, which could raise about $1.8 billion to help shore up the bank's capital position amid tough market conditions related to the credit crisis.
...
Valerie Cazaban, a fund manager for Stratege Finance, said that while the deal would yield Credit Agricole some cash, it appeared to have been done in a hurry.
"It's a mixed bag, it seems like a slightly rushed deal," she said.
QUOTE
You moaning minnies! Come on - THe BBC say it's alright to go back into the water!
Not with that Subprime beast lurking out there
, rumors are that it has eaten 214 U.S lending operations... and its coming for us !
What if find so strange is the FTSE still manages to go up now and then under these condition or is it possible that the FTSE is as relaiable as the offical inflation figures.
Talk that we have reached the bottom is shear stupid and fools that beleive this are going to be easily parted with their cash.
Keep some food put by just in case it sends th economy into a meltdown.
Talk that we have reached the bottom is shear stupid and fools that beleive this are going to be easily parted with their cash.
Keep some food put by just in case it sends th economy into a meltdown.
QUOTE (Justice @ Jan 15 2008, 08:45 AM)
What if find so strange is the FTSE still manages to go up now and then under these condition or is it possible that the FTSE is as relaiable as the offical inflation figures.
Talk that we have reached the bottom is shear stupid and fools that beleive this are going to be easily parted with their cash.
Keep some food put by just in case it sends th economy into a meltdown.
Talk that we have reached the bottom is shear stupid and fools that beleive this are going to be easily parted with their cash.
Keep some food put by just in case it sends th economy into a meltdown.
Commodities.
Lot of companies in FTSE 100 now are mining/commodity stocks.
Don't really have a lot to do with the UK. They are the financial scandal of the future. LSE gets foreign miners to list so they can earn listing fees with relatively 'light touch' regulatory framework. Investors inadvertently invest via their trackers, endowments, pensions etc. Commodity bubble blows, financial frauds unearthed in far flung places. Looks great right now though.
I'll fill in for cgnao.
Ahemm. Clears throat.
THIS IS THE MARK OF THE CREDIT DERIVATIVE BEAST.
PROTECT YOURSELVES.
100% CORRECT GUARANTEED.
(I feel better now).
http://www.ft.com/cms/s/0/486fb178-c2b9-11...00779fd2ac.html
Ahemm. Clears throat.
THIS IS THE MARK OF THE CREDIT DERIVATIVE BEAST.
PROTECT YOURSELVES.
100% CORRECT GUARANTEED.
(I feel better now).
http://www.ft.com/cms/s/0/486fb178-c2b9-11...00779fd2ac.html
QUOTE (hotairmail @ Jan 14 2008, 09:05 PM)
Commodities.
Lot of companies in FTSE 100 now are mining/commodity stocks.
Don't really have a lot to do with the UK. They are the financial scandal of the future. LSE gets foreign miners to list so they can earn listing fees with relatively 'light touch' regulatory framework. Investors inadvertently invest via their trackers, endowments, pensions etc. Commodity bubble blows, financial frauds unearthed in far flung places. Looks great right now though.
Lot of companies in FTSE 100 now are mining/commodity stocks.
Don't really have a lot to do with the UK. They are the financial scandal of the future. LSE gets foreign miners to list so they can earn listing fees with relatively 'light touch' regulatory framework. Investors inadvertently invest via their trackers, endowments, pensions etc. Commodity bubble blows, financial frauds unearthed in far flung places. Looks great right now though.
Ah nice one, thanks for that, I've been meaning to ask why every ftse 100 company I look up appears to have had it share price practically halved in the past 52 weeks, yet the ftse is up YoY.
This from jsmineset.com :
• Believe me please that the FORMULA is 100% correct. The FORMULA will support the rise in the price of gold from its recent high at $913 to $1050 and then to $1650. As I see it, there is NO question about it.
• This is it, Trust me.
• The melt-down is not billions - it is trillions. Central Banks will seek to hold off the deluge by standard operating means that will only feed the INFLATION side of the STAGFLATION equation. Be assured it is happening as we speak, right here and right now, today.
• The recent drop in equities markets has the Bush administration extremely worried. At present the White House holds Bernanke’s strings.
• The Bernanke Federal Reserve will not fail to serve its Masters and in fact will exceed any such effort in the past.
• The disinformation that a major slow down in business is negative to gold is totally incorrect. Rather it is the foundation of the next major move to the upside.
• Those of you overcome by fear are operating on your emotions, while gold continues to hold above $900 as of 3:37 EDT.
• Sometimes I have to ask why I try so hard top help you.
• Some people have said my mission is impossible because only the few will listen and less will learn.
• Because of today the PPT will demand the Federal Reserve takes EMERGENCY ACTION and act prior to its scheduled next meeting.
• Today you are throwing gold bullion and gold shares into the trash can and running like scared cats motivated by JUST THAT WHICH WILL BE THE CAUSE OF GOLD going to and probably through $1650.
• Believe me please that the FORMULA is 100% correct. The FORMULA will support the rise in the price of gold from its recent high at $913 to $1050 and then to $1650. As I see it, there is NO question about it.
• This is it, Trust me.
• The melt-down is not billions - it is trillions. Central Banks will seek to hold off the deluge by standard operating means that will only feed the INFLATION side of the STAGFLATION equation. Be assured it is happening as we speak, right here and right now, today.
• The recent drop in equities markets has the Bush administration extremely worried. At present the White House holds Bernanke’s strings.
• The Bernanke Federal Reserve will not fail to serve its Masters and in fact will exceed any such effort in the past.
• The disinformation that a major slow down in business is negative to gold is totally incorrect. Rather it is the foundation of the next major move to the upside.
• Those of you overcome by fear are operating on your emotions, while gold continues to hold above $900 as of 3:37 EDT.
• Sometimes I have to ask why I try so hard top help you.
• Some people have said my mission is impossible because only the few will listen and less will learn.
• Because of today the PPT will demand the Federal Reserve takes EMERGENCY ACTION and act prior to its scheduled next meeting.
• Today you are throwing gold bullion and gold shares into the trash can and running like scared cats motivated by JUST THAT WHICH WILL BE THE CAUSE OF GOLD going to and probably through $1650.
QUOTE (cgnao @ Jan 14 2008, 10:33 PM)
Brokers Believe Worst Is Over and Recommend Buying of Real Bargains
Wall Street in looking over the wreckage of the week, has come generally to the opinion that high grade investment issues can be bought now, without fear of a drastic decline. There is some difference of opinion as to whether not the correction must go further, but everyone realizes that the worst is over, and that there are bargains for those who are willing to buy conservatively and live through the immediate irregularity.
-- New York Herald Tribune, October 27, 1929
Wall Street in looking over the wreckage of the week, has come generally to the opinion that high grade investment issues can be bought now, without fear of a drastic decline. There is some difference of opinion as to whether not the correction must go further, but everyone realizes that the worst is over, and that there are bargains for those who are willing to buy conservatively and live through the immediate irregularity.
-- New York Herald Tribune, October 27, 1929
Nice one
Another nail in the coffin of the international banking, credit and monetary system.
I URGE you to protect yourselves NOW.
http://www.bloomberg.com/apps/news?pid=206...&refer=bond
S&P Changes Assumptions for Mortgage Bonds, to Boost Downgrades
By Jody Shenn
Jan. 15 (Bloomberg) -- Standard & Poor's is changing the assumptions it uses when assessing U.S. residential mortgage bonds outstanding, a step that will likely lead to more downgrades.
``These revisions reflect the growing economic consensus that U.S. home price declines will be larger than previously forecasted and that the slump in the U.S. housing market is expected to last far longer than previously anticipated,'' the New York-based ratings firm said in a statement today.
I URGE you to protect yourselves NOW.
http://www.bloomberg.com/apps/news?pid=206...&refer=bond
S&P Changes Assumptions for Mortgage Bonds, to Boost Downgrades
By Jody Shenn
Jan. 15 (Bloomberg) -- Standard & Poor's is changing the assumptions it uses when assessing U.S. residential mortgage bonds outstanding, a step that will likely lead to more downgrades.
``These revisions reflect the growing economic consensus that U.S. home price declines will be larger than previously forecasted and that the slump in the U.S. housing market is expected to last far longer than previously anticipated,'' the New York-based ratings firm said in a statement today.
http://www.jsmineset.com/
QUOTE
Like Liberty, gold never stays where it is undervalued. -- J.S. Morrill
Posted On: Tuesday, January 15, 2008, 6:52:00 PM EST
The System is Broken and All Derivatives are at Risk
Author: Jim Sinclair
The system has gone BROKE on credit derivatives of all categories, placing the entire host of OTC derivatives in question.
The money being raised by various financial entities from Country Funds are nothing but an attempt by bankrupt entities to plug holes in sinking ships. And the recession we are in is going to significantly multiply these problems.
The US dollar is going to take a big hit on the downside from these developments. Gold is the only means of insurance against these conditions.
The Carry Trade has very little to do with gold as the margin required to purchase paper gold for professionals is below the expenses of carry.
All arguments I hear against gold are strictly emotional and unfounded.
After you finish throwing your valuable gold insurance away, gold will rise to $1050 and thence to $1650.
Posted On: Tuesday, January 15, 2008, 6:52:00 PM EST
The System is Broken and All Derivatives are at Risk
Author: Jim Sinclair
The system has gone BROKE on credit derivatives of all categories, placing the entire host of OTC derivatives in question.
The money being raised by various financial entities from Country Funds are nothing but an attempt by bankrupt entities to plug holes in sinking ships. And the recession we are in is going to significantly multiply these problems.
The US dollar is going to take a big hit on the downside from these developments. Gold is the only means of insurance against these conditions.
The Carry Trade has very little to do with gold as the margin required to purchase paper gold for professionals is below the expenses of carry.
All arguments I hear against gold are strictly emotional and unfounded.
After you finish throwing your valuable gold insurance away, gold will rise to $1050 and thence to $1650.
Silver is much better than gold as an investment.
Personally I stick to mining shares
Personally I stick to mining shares
QUOTE (bambam @ Jan 16 2008, 12:28 AM)
Silver is much better than gold as an investment.
Personally I stick to mining shares
Personally I stick to mining shares
Shares in an umbrella factory won't stop you getting wet when it rains.
What are you waiting for?
Will the coming worldwide bank run convince you? At that point it'll be too late to protect yourselves.
http://www.bloomberg.com/apps/news?pid=206...&refer=bond
SIV Asset Values Fall to 53% of Capital, Moody's Says
Jan. 16 (Bloomberg) -- The net asset value of structured investment vehicles fell to 53 percent of capital, the lowest on record, as they sold assets to repay debt, Moody's Investors Service said.
The amount that would be left after selling SIV assets and repaying debt declined to as little as 27.6 percent, the New York-based ratings company said in a report today. The highest net value for the 25 SIVs rated by Moody's was 80.3 percent.
SIVs, or companies that raise money in the commercial paper and medium-term note markets to buy higher-yielding assets, were unable to borrow in the last five months of 2007 as the collapse of the U.S. subprime mortgage market caused investors to shun all except the safest government debt. With little access to capital, SIVs sold $55.6 billion of investments between June and November, reducing their assets to about $300 billion, Moody's said.
SIVs with high net asset values may ``see sharp declines as contagion spreads across different segments of the credit markets,'' Moody's analysts led by Henry Tabe in London wrote in the report.
Will the coming worldwide bank run convince you? At that point it'll be too late to protect yourselves.
http://www.bloomberg.com/apps/news?pid=206...&refer=bond
SIV Asset Values Fall to 53% of Capital, Moody's Says
Jan. 16 (Bloomberg) -- The net asset value of structured investment vehicles fell to 53 percent of capital, the lowest on record, as they sold assets to repay debt, Moody's Investors Service said.
The amount that would be left after selling SIV assets and repaying debt declined to as little as 27.6 percent, the New York-based ratings company said in a report today. The highest net value for the 25 SIVs rated by Moody's was 80.3 percent.
SIVs, or companies that raise money in the commercial paper and medium-term note markets to buy higher-yielding assets, were unable to borrow in the last five months of 2007 as the collapse of the U.S. subprime mortgage market caused investors to shun all except the safest government debt. With little access to capital, SIVs sold $55.6 billion of investments between June and November, reducing their assets to about $300 billion, Moody's said.
SIVs with high net asset values may ``see sharp declines as contagion spreads across different segments of the credit markets,'' Moody's analysts led by Henry Tabe in London wrote in the report.
Sovereign wealth funds, pension funds and many others have been had massively by the banks and now can't sue them.
The crooks in power know what's coming very well.
Protect yourselves now or regret it forever.
http://www.latimes.com/news/nationworld/po...1&cset=true
High court shields bankers in stock fraud cases
Secondary players cannot be held liable for participating in a scheme to inflate a company's value, the U.S. Supreme Court rules.
By David G. Savage, Los Angeles Times Staff Writer
9:22 AM PST, January 15, 2008
WASHINGTON -- The U.S. Supreme Court sharply limited the reach of stock fraud cases today and shielded bankers and other businesses from being held liable for participating in a scheme to inflate a company's stock.
The crooks in power know what's coming very well.
Protect yourselves now or regret it forever.
http://www.latimes.com/news/nationworld/po...1&cset=true
High court shields bankers in stock fraud cases
Secondary players cannot be held liable for participating in a scheme to inflate a company's value, the U.S. Supreme Court rules.
By David G. Savage, Los Angeles Times Staff Writer
9:22 AM PST, January 15, 2008
WASHINGTON -- The U.S. Supreme Court sharply limited the reach of stock fraud cases today and shielded bankers and other businesses from being held liable for participating in a scheme to inflate a company's stock.
QUOTE (cgnao @ Jan 16 2008, 08:23 AM)
WASHINGTON -- The U.S. Supreme Court sharply limited the reach of stock fraud cases today and shielded bankers and other businesses from being held liable for participating in a scheme to inflate a company's stock.
Good for the banksters!
QUOTE (Goldfinger @ Jan 16 2008, 09:43 AM)
Good for the banksters!
It's terrible for the banksters, they are going to die on the back of this. Tens of millions of golden handshakes dont do you much good when you are stone cold dead in the footings of some motorway somewhere.
http://ftalphaville.ft.com/blog/2008/01/16...meltdown-ahead/
This looks as if it could have far reaching ramifications. Another round of write downs at the least.
QUOTE
BRACE YOURSELVES: S $ P adjusts rate models
Late last night, rating agency Standard & Poor’s did some quiet housekeeping.
In a late press release, S&P announced it was adjusting its cumulative loss measure on 2006 subprime collateral to 19 per cent - up from 14 per cent:
We revised our expected losses for the 2006 vintage subprime collateral to 19% from 14%, as delinquencies continue to rise, and we will recalculate lifetime loss expectations for all vintages of U.S. RMBS. Additional losses are projected to result directly for the additional delinquencies and defaults.
The press release is somewhat anodyne, but the implications of that tweak are disturbing:
It will mean huge new downgrades on CDO tranches from the 2005 vintage through to 2007.
We suspect this will push hundreds more CDOs through “events of default” and a significant number into liquidation - a likely repeat of the disastrous events in November and December, when CDOs went into meltdown and banks were forced to admit further humiliating writedowns. The last time S&P tweaked their loss-curves was at the end of October.
S&P are also altering their metrics; RMBS rating models will now apply the adjusted cumulative loss measure over the lifetime of the structures they rate - not just (as has hitherto been the case) over a 36-month period. That will likely make senior CDO investors more keen to liquidate deals: super senior swap holders, or AAA note holders in many CDOs have thus far been keen to accelerate but not liquidate the transactions on the basis that things will inevitably improve. The new model suggests they wont: controlling note holders now have every incentive to exit fast.
The crisis won’t just be restricted to CDOs - or subprime. Any structure containing RMBS will suffer; SIVs, ABCP conduits, even plain old securitisations.
And it might be the final nail in the coffin for the monolines - MBIA and Ambac. Both have maintained their crucial AAA issuer ratings by the skin of their teeth, having raised $2bn each in emergency capital to act as collateral. S&P’s metric readjustment means that the monoline stress-test they performed is now outmoded and over-optimistic. More defaults mean more insurance calls.
What remains to be seen now is when those calculations will feed through into a cataract of rating actions.
.
Late last night, rating agency Standard & Poor’s did some quiet housekeeping.
In a late press release, S&P announced it was adjusting its cumulative loss measure on 2006 subprime collateral to 19 per cent - up from 14 per cent:
We revised our expected losses for the 2006 vintage subprime collateral to 19% from 14%, as delinquencies continue to rise, and we will recalculate lifetime loss expectations for all vintages of U.S. RMBS. Additional losses are projected to result directly for the additional delinquencies and defaults.
The press release is somewhat anodyne, but the implications of that tweak are disturbing:
It will mean huge new downgrades on CDO tranches from the 2005 vintage through to 2007.
We suspect this will push hundreds more CDOs through “events of default” and a significant number into liquidation - a likely repeat of the disastrous events in November and December, when CDOs went into meltdown and banks were forced to admit further humiliating writedowns. The last time S&P tweaked their loss-curves was at the end of October.
S&P are also altering their metrics; RMBS rating models will now apply the adjusted cumulative loss measure over the lifetime of the structures they rate - not just (as has hitherto been the case) over a 36-month period. That will likely make senior CDO investors more keen to liquidate deals: super senior swap holders, or AAA note holders in many CDOs have thus far been keen to accelerate but not liquidate the transactions on the basis that things will inevitably improve. The new model suggests they wont: controlling note holders now have every incentive to exit fast.
The crisis won’t just be restricted to CDOs - or subprime. Any structure containing RMBS will suffer; SIVs, ABCP conduits, even plain old securitisations.
And it might be the final nail in the coffin for the monolines - MBIA and Ambac. Both have maintained their crucial AAA issuer ratings by the skin of their teeth, having raised $2bn each in emergency capital to act as collateral. S&P’s metric readjustment means that the monoline stress-test they performed is now outmoded and over-optimistic. More defaults mean more insurance calls.
What remains to be seen now is when those calculations will feed through into a cataract of rating actions.
.
This looks as if it could have far reaching ramifications. Another round of write downs at the least.
QUOTE (bleakhouse @ Jan 16 2008, 12:34 PM)
http://ftalphaville.ft.com/blog/2008/01/16...meltdown-ahead/
This looks as if it could have far reaching ramifications. Another round of write downs at the least.
This looks as if it could have far reaching ramifications. Another round of write downs at the least.
The timing is suspect to say the least.
Announced after further massive losses for the fourth quarter and further infusions of SWF capital.
Need to re-add your stock response re SWF funds being ripped off GF.
Central bank interest rate manipulation is now so intense that it is causing further trouble.
Protect yourselves NOW, before bank runs start, or regret not doing so forever.
http://www.bloomberg.com/apps/news?pid=206...mp;refer=canada
Canadian Banks May Defy Central Bank Rate Cut, Globe Reports
By Kevin Bell
Jan. 16 (Bloomberg) -- Canadian banks are considering holding interest rates steady after an expected rate reduction by the Bank of Canada next week, a move that could destabilize monetary policy, the Globe and Mail reported.
Some commercial bank executives say they may not be able to match a central bank rate cut because of an increase in borrowing costs from the global credit crunch, the newspaper said today, citing unidentified people.
Economists expect the Bank of Canada to reduce its key interest rate by a quarter of a percentage point, to 4 percent, on Jan. 22. The central bank declined to comment on what would happen if banks refused to lower rates, the Globe said.
Protect yourselves NOW, before bank runs start, or regret not doing so forever.
http://www.bloomberg.com/apps/news?pid=206...mp;refer=canada
Canadian Banks May Defy Central Bank Rate Cut, Globe Reports
By Kevin Bell
Jan. 16 (Bloomberg) -- Canadian banks are considering holding interest rates steady after an expected rate reduction by the Bank of Canada next week, a move that could destabilize monetary policy, the Globe and Mail reported.
Some commercial bank executives say they may not be able to match a central bank rate cut because of an increase in borrowing costs from the global credit crunch, the newspaper said today, citing unidentified people.
Economists expect the Bank of Canada to reduce its key interest rate by a quarter of a percentage point, to 4 percent, on Jan. 22. The central bank declined to comment on what would happen if banks refused to lower rates, the Globe said.
JP Morgan's exposure to derivatives exceeds $80 trillion.
The 800-pound gorilla is wounded and will bleed to death.
Protect yourselves NOW.
http://online.wsj.com/article/SB1200473732...ews_us_business
J.P. Morgan Posts 34% Fall in Net On Subprime-Related Write-Downs
By Andrew Edwards
J.P. Morgan Chase & Co.'s fourth-quarter net income fell 34% as the company recorded $1.3 billion in markdowns on subprime positions and saw sharply higher credit costs.
The 800-pound gorilla is wounded and will bleed to death.
Protect yourselves NOW.
http://online.wsj.com/article/SB1200473732...ews_us_business
J.P. Morgan Posts 34% Fall in Net On Subprime-Related Write-Downs
By Andrew Edwards
J.P. Morgan Chase & Co.'s fourth-quarter net income fell 34% as the company recorded $1.3 billion in markdowns on subprime positions and saw sharply higher credit costs.
http://www.youtube.com/watch?v=79sJ1bMR6VQ
http://www.ft.com/cms/s/0/2cdb2218-c42f-11...?nclick_check=1
JPMorgan hit by consumer loan losses
Published: January 16 2008 13:03 | Last updated: January 16 2008 13:03
JPMorgan Chase on Wednesday became the latest bank to disclose the rising toll from the US mortgage crisis and increasing consumer loan losses, saying fourth-quarter earnings sank 21 per cent following a $1.3bn subprime-related writedown.
http://www.ft.com/cms/s/0/2cdb2218-c42f-11...?nclick_check=1
JPMorgan hit by consumer loan losses
Published: January 16 2008 13:03 | Last updated: January 16 2008 13:03
JPMorgan Chase on Wednesday became the latest bank to disclose the rising toll from the US mortgage crisis and increasing consumer loan losses, saying fourth-quarter earnings sank 21 per cent following a $1.3bn subprime-related writedown.
QUOTE
JP Morgan's exposure to derivatives exceeds $80 trillion.
source?
From the FT article earlier this week, things look pretty good at JP?
QUOTE
But JPMorgan’s fourth-quarter figures next week are expected to confirm that it has steered through the credit market turmoil much better than some of its rivals.
The figures will not be pretty, with analysts expecting heavy credit-related writedowns. But JPMorgan will have suffered much less damage than rivals such as Citigroup, Merrill Lynch, UBS and Morgan Stanley
Bill Winters, co-chief executive of JPMorgan’s investment bank, says that is down to judgment, not luck. The bank did not have big exposures in the worst-hit areas “because we chose not to”.
In 2003, when JPMorgan acquired Bank One, the Chicago-based bank run by Mr Dimon, it inherited a London-based SIV.
“We looked at it. We tried to work out why it was a good idea and couldn’t,” Mr Winters says. So in 2005, JPMorgan sold it to Standard Chartered, which is now being forced to unwind it.
JPMorgan’s relatively good performance during the credit squeeze has surprised many observers who presumed it would live up to its accident-prone reputation.
The banks lost talent after the bubble burst, then again in 2004 when heavy litigation payments slashed the bonus pool. Learning another lesson, the investment bank is expected to pay healthy bonuses for last year, in spite of the downturn.
JPMorgan can claim to be the world’s leading corporate finance bank, generating investment banking revenue of $6bn last year, according to Dealogic, ahead of Goldman Sachs, Citi and Morgan Stanley.
Mr Winters and Mr Black argue that the investment bank is well-placed to thrive in these more challenging times. It has an enviable client list, a strong brand, and thanks to Mr Dimon’s pursuit of a “fortress balance sheet”, it is part of a very well capitalised group. Some of its rivals are not in such a happy position.
The figures will not be pretty, with analysts expecting heavy credit-related writedowns. But JPMorgan will have suffered much less damage than rivals such as Citigroup, Merrill Lynch, UBS and Morgan Stanley
Bill Winters, co-chief executive of JPMorgan’s investment bank, says that is down to judgment, not luck. The bank did not have big exposures in the worst-hit areas “because we chose not to”.
In 2003, when JPMorgan acquired Bank One, the Chicago-based bank run by Mr Dimon, it inherited a London-based SIV.
“We looked at it. We tried to work out why it was a good idea and couldn’t,” Mr Winters says. So in 2005, JPMorgan sold it to Standard Chartered, which is now being forced to unwind it.
JPMorgan’s relatively good performance during the credit squeeze has surprised many observers who presumed it would live up to its accident-prone reputation.
The banks lost talent after the bubble burst, then again in 2004 when heavy litigation payments slashed the bonus pool. Learning another lesson, the investment bank is expected to pay healthy bonuses for last year, in spite of the downturn.
JPMorgan can claim to be the world’s leading corporate finance bank, generating investment banking revenue of $6bn last year, according to Dealogic, ahead of Goldman Sachs, Citi and Morgan Stanley.
Mr Winters and Mr Black argue that the investment bank is well-placed to thrive in these more challenging times. It has an enviable client list, a strong brand, and thanks to Mr Dimon’s pursuit of a “fortress balance sheet”, it is part of a very well capitalised group. Some of its rivals are not in such a happy position.
QUOTE (MattyNeth @ Jan 16 2008, 04:41 PM)
source?
From the FT article earlier this week, things look pretty good at JP?
From the FT article earlier this week, things look pretty good at JP?
See PDF linked in original post.
Things looked pretty good at New Century, Countrywide, etc. one year ago.
Protect yourselves, as the panic has begun and the stampede will start soon.
http://www.forbes.com/afxnewslimited/feeds...afx4538113.html
Greek shares close sharply lower for second consecutive session on panic selling
01.16.08, 10:12 AM ET
ATHENS (Thomson Financial) - Greek shares widened their already steep losses -- the ASE general index shed 4.1 pct yesterday -- in panic selling as investors reacted to global fears of a US recession and earlier falls on Asian markets.
Seems there is more emotion in the Club Med markets. 
This is it, right here and right now.
100% correct, guaranteed.
http://www.bloomberg.com/apps/news?pid=206...&refer=bond
MBIA's Capital Need Grows, Credit-Default Swaps Show
Jan. 16 (Bloomberg) -- The worst may still be ahead for the world's biggest financial companies, trading in credit-default swaps shows.
Prices for contracts tied to the bonds of MBIA Inc., Bear Stearns Cos. and Washington Mutual Inc., which protect lenders and creditors against the possibility that debt payments won't be made, are higher for one year than for five, according to data compiled by Bloomberg. Longer-term protection is usually more expensive because the risk of nonpayment is greater.
It still costs more to take out insurance against default for one year even after New York-based Citigroup Inc., the largest U.S. bank, obtained $14.5 billion yesterday to shore up depleted capital. Lenders hold more than $200 billion of bonds and loans used to finance leveraged buyouts that they can't sell and are falling in value, based on data compiled by JPMorgan Chase & Co.
``It's very dangerous for some of these big institutions,'' said Doug Noland, a credit analyst in Dallas at David W. Tice & Associates. The firm's $924 million Prudent Bear Fund has returned 23 percent in the past year. ``We're going into an acute liquidity crisis for corporate borrowers.''
100% correct, guaranteed.
http://www.bloomberg.com/apps/news?pid=206...&refer=bond
MBIA's Capital Need Grows, Credit-Default Swaps Show
Jan. 16 (Bloomberg) -- The worst may still be ahead for the world's biggest financial companies, trading in credit-default swaps shows.
Prices for contracts tied to the bonds of MBIA Inc., Bear Stearns Cos. and Washington Mutual Inc., which protect lenders and creditors against the possibility that debt payments won't be made, are higher for one year than for five, according to data compiled by Bloomberg. Longer-term protection is usually more expensive because the risk of nonpayment is greater.
It still costs more to take out insurance against default for one year even after New York-based Citigroup Inc., the largest U.S. bank, obtained $14.5 billion yesterday to shore up depleted capital. Lenders hold more than $200 billion of bonds and loans used to finance leveraged buyouts that they can't sell and are falling in value, based on data compiled by JPMorgan Chase & Co.
``It's very dangerous for some of these big institutions,'' said Doug Noland, a credit analyst in Dallas at David W. Tice & Associates. The firm's $924 million Prudent Bear Fund has returned 23 percent in the past year. ``We're going into an acute liquidity crisis for corporate borrowers.''
From the above article:
Seems the unknown uknowns are the problem here.
QUOTE
``Investors don't know what they don't know about the exposures and how bad they could get,'' Backshall said.
Seems the unknown uknowns are the problem here.
QUOTE
Lehman Brothers Holdings Inc., the largest U.S. underwriter of mortgage-backed bonds, bought credit-default swaps on bond insurers to protect its holdings in the event the insurers' credit ratings were cut, the New York-based firm's head of risk management, Christopher O'Meara, said on a conference call in December.
WHERE do they buy it? From the very same insurer?QUOTE
``The longer you have these unusual credit conditions, the more likely it is for some accidents to happen,'' McKoan said.
Right.
More central bank shenanigans. Can you see the good cop/bad cop tactics?
Meanwhile, they keep monetizing bad debt. This can't and won't save the system, only delay the unavoidable and make it worse.
Protect yourselves NOW or forever live to regret not doing so.
http://www.forbes.com/afxnewslimited/feeds...afx4539427.html
ECB's Trichet says he still sees eurozone economic growth at potential
01.16.08, 2:22 PM ET
FRANKFURT (Thomson Financial) - European Central Bank president Jean-Claude Trichet said he still sees eurozone economic growth at its potential rate, brushing off comments board member Yves Mersch made earlier.
'You know the position of the (ECB's) governing council, and of course last week's statement is still valid,' Trichet told journalists on the sidelines of an event.
Dovish comments in an interview with Yves Mersch, Luxembourg central bank chief and member of the ECB, earlier suggested the European Central Bank may change tack and start considering rate cuts -- in stark contrast with its previously transmitted view. The euro fell sharply in response.
Meanwhile, they keep monetizing bad debt. This can't and won't save the system, only delay the unavoidable and make it worse.
Protect yourselves NOW or forever live to regret not doing so.
http://www.forbes.com/afxnewslimited/feeds...afx4539427.html
ECB's Trichet says he still sees eurozone economic growth at potential
01.16.08, 2:22 PM ET
FRANKFURT (Thomson Financial) - European Central Bank president Jean-Claude Trichet said he still sees eurozone economic growth at its potential rate, brushing off comments board member Yves Mersch made earlier.
'You know the position of the (ECB's) governing council, and of course last week's statement is still valid,' Trichet told journalists on the sidelines of an event.
Dovish comments in an interview with Yves Mersch, Luxembourg central bank chief and member of the ECB, earlier suggested the European Central Bank may change tack and start considering rate cuts -- in stark contrast with its previously transmitted view. The euro fell sharply in response.
QUOTE (cgnao @ Jan 16 2008, 09:12 PM)
Protect yourselves NOW or forever live to regret not doing so.
I've already protected myself, but can i swap it for the immortality option, please?
MBIA is the largest bond insurer in the world. It insures much more than subprime bonds. For example municipal bonds, etc. etc.
Higher than 14% yield? Only bonds from defaulted companies have such spreads over treasuries.
This is it, here and now, 100% correct, guaranteed.
All else is noise, spin, lies and desperate co-ordinated market and media manipulation.
http://www.reuters.com/article/marketsNews...20080116?rpc=44
MBIA's surplus notes plunge on investor worries
Wed Jan 16, 2008 3:22pm EST
NEW YORK, Jan 16 (Reuters) - Mounting concerns that MBIA Insurance Corp lacks enough capital to cover subprime bonds it insures have pushed $1 billion of surplus notes recently issued by the company down about 10 cents on the dollar in the last two days, portfolio managers said on Wednesday.
The notes, issued by the embattled bond insurer to shore up capital and preserve its crucial triple-A credit rating, fell 5 cents on the dollar to about 89.5 cents on Wednesday and are now yielding 17 percent, said Wayne Schmidt, senior portfolio manager at AXA Investment Management.
MBIA's notes yielded 14 percent when they were first sold on Jan. 11. A higher yield suggests that sellers of MBIA's notes in the secondary market are having to sweeten the deal to entice potential buyers.
Higher than 14% yield? Only bonds from defaulted companies have such spreads over treasuries.
This is it, here and now, 100% correct, guaranteed.
All else is noise, spin, lies and desperate co-ordinated market and media manipulation.
http://www.reuters.com/article/marketsNews...20080116?rpc=44
MBIA's surplus notes plunge on investor worries
Wed Jan 16, 2008 3:22pm EST
NEW YORK, Jan 16 (Reuters) - Mounting concerns that MBIA Insurance Corp lacks enough capital to cover subprime bonds it insures have pushed $1 billion of surplus notes recently issued by the company down about 10 cents on the dollar in the last two days, portfolio managers said on Wednesday.
The notes, issued by the embattled bond insurer to shore up capital and preserve its crucial triple-A credit rating, fell 5 cents on the dollar to about 89.5 cents on Wednesday and are now yielding 17 percent, said Wayne Schmidt, senior portfolio manager at AXA Investment Management.
MBIA's notes yielded 14 percent when they were first sold on Jan. 11. A higher yield suggests that sellers of MBIA's notes in the secondary market are having to sweeten the deal to entice potential buyers.
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