Showing posts with label Debt. Show all posts
Showing posts with label Debt. Show all posts
Monday, November 9, 2009
Monday, April 14, 2008
Don't dare explain the national debt to anyone...
Source: Natural News
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'The Forbidden Financial Topic: U.S. National DebtDon't dare explain the national debt to anyone
But try to explain the simple workings of finance, debt and economics to the uninformed, and you'll be accused of being a doomsayer, a pessimist, or -- the worst insult in today's fear-based society -- unpatriotic! How dare you point out the economic truths that will soon bring this country's federal government to its knees! Such blatant truths shall not be tolerated... especially not in a country whose entire financial system is based on a cascade of fictional financial instruments propped up by nothing more than wishful thinking and Enron-style accounting fraud...'
Friday, March 14, 2008
Carlyle Capital in default, on brink of collapse
Source: The Gardian
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"Reuters, Thursday March 13 2008
By Reed Stevenson
AMSTERDAM, March 13 (Reuters) - Carlyle Capital Corp, an affiliate of private equity firm Carlyle Group, is in default on about $16.6 billion of debt and said its lenders would likely take possession of its remaining assets.
The news provided a new sign of stress in global credit markets and affected asset prices and sentiment worldwide.
Bund futures in Europe, where Carlyle Capital shares are listed in Amsterdam, rose back to levels they traded at before the U.S. Federal Reserve and other central banks coordinated on Tuesday to inject liquidity into credit markets.
"The credit angst is back," said Tim Condon, head of Asia research with investment bank ING..."
Saturday, February 16, 2008
America's problem isn't liquidity, it's insolvency
"We continue to read articles in the financial press and elsewhere by widely-respected mainstream economists who have a tendency to quote mindlessly from Keynes’ masterpiece “The General Theory of Employment, Interest and Money”.
They couldn’t be further from the truth, however, when they claim that the current credit cycle liquidity problems can be corrected with a little fiscal stimulus and cheap money to jumpstart the ailing economy. It is not liquidity that is preventing the money from flowing; it’s insolvency! The banks won’t lend to deadbeats anymore! HELLO! Sure, cheaper money helps high credit score borrowers refinance and pay less in interest charges, but cheaper money does nothing for the existing bad loans backed by No Income, No Collateral, and No Character..."
Wednesday, January 23, 2008
Tuesday, December 11, 2007
America faces day of reckoning with debt
Source: Telegraph.co.uk
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For now, the consensus view is that sub-prime losses will total $500bn and crimp lending by $2 trillion as bank multiples kick into reverse.
This assumes there are no more shoes to drop. Yet shoes are dangling precariously across the global credit system. We may soon have to add the terms HELOCs and "monoline insurers" to our crunch lexicon.
Sunday, December 9, 2007
The Mortgage Mess
Source: Townhall.com
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"Like obnoxious relatives, the mortgage mess won’t go away. Some two million adjustable-rate mortgages (ARMs) will reset over the next two years, and analysts say that within the coming year alone, $362 billion in subprime home mortgages will experience rising interest rates. This will lead to ever more payment defaults and foreclosures, a horrible state of affairs not only for the affected homeowners and lenders, but also for the financial markets in general..."
Monday, December 3, 2007
Minsky... moment?
Μήπως είμαστε σε ένα Minsky moment? :
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"Minsky moment is the point in a market cycle when investors have cash flow problems due to spiraling debt they have incurred in order to finance speculative investments. At this point, a major selloff begins, leading to a collapse of asset values. Named after economist Hyman Minsky, the Minsky moment comes after a long period of prosperity and increasing values of investments, which has encouraged increasing amounts of speculation using borrowed money"
At its core, the Minsky view was straightforward: When times are good, investors take on risk; the longer times stay good, the more risk they take on, until they've taken on too much. Eventually, they reach a point where the cash generated by their assets no longer is sufficient to pay off the mountains of debt they took on to acquire them. Losses on such speculative assets prompt lenders to call in their loans. "This is likely to lead to a collapse of asset values," Mr. Minsky wrote.When investors are forced to sell even their less-speculative positions to make good on their loans, markets spiral lower and create a severe demand for cash [that can force central bankers to lend a hand]. At that point, the Minsky moment has arrived.
Το 2008 θα δείξει σίγουρα...
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