Tag: credit crisis
The Maestro’s latest prediction
Apparently Alan Greenspan wrote in an article for Emerging Markets Magazine that home prices would begin to stabilize in the early part of 2009. Specifically, “More conclusive signs of pending home price stability are likely to become visible in the first half of 2009.” Although many of the prophetic statements he has made in the [...]
Posted: October 14th, 2008 under Housing & Real Estate.
Tags: alan greenspan, credit crisis, home prices, housing, housing cycle, housing slump
Comments: none
Deleveraging is the word of the year
The Economist featured this great article today about the fact that not only financial firms but businesses and individual households will be forced to deleverage over the course of the next few years. Among the points that I found interest in: *In the near term delveraging of banks, hedge funds, and households will likely depress [...]
Posted: September 29th, 2008 under Credit, Credit Crisis.
Tags: credit, credit crisis, debt to GDP ratio, deleverage, economist article, unwinding of credit
Comments: 4
Main points of government intervention
Treasury Secretary Henry Paulson made it public this morning (this news had leaked yesterday afternoon causing stocks to rally in late trading) that the government would intervene in the financial markets to shore up confidence in the financial system. According the Wall Street Journal the government’s intervention could become “the largest intervention in the financial [...]
Posted: September 19th, 2008 under Credit Crisis.
Tags: credit crisis, government intervention, Henry Paulson, Mortgage backed bonds
Comments: none
Short-term treasuries move to negative return
In probably the most telling sign that the financial markets are a mess yields on short-term treasuries actually turned negative yesterday. WSJ.com reported on this phenomenon in this article. * “The desperation was especially striking in the market for U.S. government debt, long considered the safest of investments. At one point during the day, investors [...]
Posted: September 18th, 2008 under Credit Crisis, Economics & Interest Rates.
Tags: credit crisis, negative return, treasuries
Comments: none
WSJ.com-Worst crisis since Great Depression
WSJ.com featured a great article summarizing the problems we find ourselves in. You may access the article by clicking this link. Among the points that I found interesting- * “This has been the worst financial crisis since the Great Depression. There is no question about it,” said Mark Gertler, a New York University economist who [...]
Posted: September 18th, 2008 under Credit Crisis, Economics & Interest Rates, Housing & Real Estate.
Tags: credit crisis, credit default swaps, financial crisis, The Fed
Comments: none
Rate Update September 16, 2008
Rates are effectively unchanged this morning. There is A LOT to talk about this morning as crisis in the financial markets persists. Here is a summary of the major stories we’re falling that are likely to impact the direction of mortgage rates: → AIG: The nation’s largest insurer is close to insolvency. Analysts are suggesting [...]
Posted: September 16th, 2008 under Economics & Interest Rates, Rate Update, The Fed.
Tags: AIG, CPI, credit crisis, Fed, interest rates, mortgage rates
Comments: none