Monday, Jul 14, 2008
Don't Get Carried Away With A&L
CNNMoney.com: Bad week ahead for banks
Analysts expect more writedowns from Citi and Merrill. The IndyMac failure and problems with Fannie and Freddie could further darken the outlook for banks.
NEW YORK (CNNMoney.com) -- If this weekend's news about Fannie Mae and Freddie Mac and Friday's IndyMac failure weren't scary enough, now Wall Street will have to contend with what is likely to be dismal quarterly results from many top financial firms.
Two more weeks of writedowns coming up. Stocks are looking more and more fragile.
Posted by plato @ 08:19 PM (266 views) Add Comment
1 Comment
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1. wiltshire said...
There was an interesting article on Newsnight tonight about Credit Derivatives which would be worth catching on iPlayer - especially if like me, you're not fully up to speed on such things.
The situation we have found ourselves in is absolutely shocking. It seems to me that if Fannie Mae and/or Freddie Mac failed then the domino effect would have lead to the USA and probably the West (if not the world) being bankrupted. That seems to be the only conclusion I can draw - but I am very lightweight on this area.
We're still a long way from any resolution to this "credit crunch" ("credit apocalypse" more like!) and I think we're going to see a complete redrawing of the financial world before it's over. A tiny handful of bankers are making unimaginable and truly obscene amounts of money because they've got themselves into a position where their schemes are now so deeply entwined into practically every area of finance that they'll never lose out because one collapse (like a Freddie Mac) could create shockwaves which will destroy the livelihoods and savings of hundreds of millions of people. I can see the pensions of almost all being destroyed before this situation is finished.