Category

Credit

The Real Reason for the Global Financial Crisis…the Story No One's Talking About

[Part I of a three-part series looking at how so-called “credit default swap” derivatives could ignite a worldwide capital markets meltdown.] By Shah GilaniContributing Editor Are you shell-shocked? Are you wondering what's really going on in the market? The truth is probably more frightening than even your worst fears. And yet, you won't hear about […]

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Four Secrets That Will Help You Survive – and Even Profit From – the Whipsaw Stock Market

By Keith Fitz-Gerald Investment Director Money Morning/The Money Map Report After zooming about 7% from mid-July to mid-August, U.S. stocks have dropped about 5% – a whipsaw-pattern decline that was punctuated by the 2.99% sell-offs in both the Dow Jones Industrial Average and Standard & Poor’s 500 Index yesterday (Thursday). But none of that’s a […]

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The Three Signs That the Credit Crisis Has Yet to Hit Bottom

By Keith Fitz-GeraldInvestment DirectorMoney Morning/The Money Map Report "Have we seen the worst from the financial sector?" The question – a very good one – came from an audience member following my global investing presentation at the Agora Wealth Symposium in Vancouver, British Columbia. During my entire time there, the interest in the ongoing credit […]

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That Ticking Noise You Hear in Your Wallet is a Credit-Card Time Bomb

By Peter D. SchiffGuest Columnist For those holding out hope that the American economy can miraculously avoid a long and deep recession, consumer credit is often viewed as the wonder drug that can cure all manner of economic ills. As such, last week's report showing that consumer credit grew by $15 billion was widely heralded […]

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As the Write-Downs Wind Down, New Deals Appear in the CDO Market

By Jennifer YousfiManaging Editor With 80% of losses from the subprime crisis already reported according to a Fitch Ratings Inc. report released today (Wednesday), the collateralized debt obligation (CDO) market that many had written off for dead could be showing new signs of life. Many have laid the blame for the current credit crunch squarely […]

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Credit Default Swaps: A $50 Trillion Problem

By Martin Hutchinson Contributing Editor Of all the really bad ideas that have infested the finance business in the last 30 years, the most dangerous is probably the credit default swap (CDS). CDS is almost a brand new investment vehicle, but the market is already 20 times its size in 2000. The principal amount of […]

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More Writedowns Ahead as Credit Crisis Spreads

By Jennifer Yousfi Managing Editor A credit crisis that is no longer contained to just the subprime market may lead to an additional $203 billion in write-downs according to a recent research note from UBS AG (UBS) analyst, Philip Finch. "The problem is broadening from just subprime CDO write-downs to potentially a much bigger credit […]

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Chinese Inflation Continues Unabated, Reported at 6.2% for September

By Jason Simpkins Staff Writer China had a 6.2% inflation rate for September, and can expect inflation to continue at that high rate for “a few months,” – despite renewed efforts to hold down the general level of prices – the National Development and Reform Commission, China’s top agency for economic planning, has reported. The […]

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Banks Create Fund to Help to Fight Woeful Credit Market

From staff reports Three of the United States' biggest banks – Citigroup Inc. (C), Bank of America Corp. (BAC) and J.P. Morgan Chase & Co. (JPM)- announced yesterday (Monday) that they agreed to start a fund to enhance the liquidity of asset backed commercial paper (ABCP) and medium-term notes by structured investment vehicles (SIVs). The […]

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The Three Pathways to Profit as Investors Make it All About Earnings

By William Patalon III, MBA Managing Editor Money Morning/The Money Map Report In the weeks to come, it will be all about earnings. Stock prices soared to a new record high a week ago today (Monday), on a newfound belief that the subprime mortgage mess was contained. We predicted that belief would be short-lived, and […]

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