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Credit

Citigroup and UBS Brace For Losses, but Dow Jones Sets Record Above 14,000

By Jason Simpkins Staff Writer On a day that two huge banks took major profit hits because of the subprime market crisis, stocks soared to record highs yesterday (Monday) on the belief that the worst of the ensuing credit crisis had passed. Citigroup (C) and UBS AG (UBS), the largest banks in the United States […]

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Warren Buffett and Berkshire Hathaway Rumored as Bear Stearns Investors

From Staff Reports Bear Stearns Cos. Inc. (BSC) shares jumped almost 7.5% yesterday (Wednesday) after the New York Times reported that the investment bank is in talks to sell a minority stake to investors including Warren Buffett. The firm is in "serious" talks with several outside investors and could sell as much as 20% of […]

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Will Fed Rate Cuts Have an Inflationary Impact?

When Federal Reserve policymakers announced the half-a-point cut in interest rates last Tuesday, I was almost at a loss for words. As all of you know, I had projected reduction of 25 basis points, and by the time Tuesday’s meeting of the central bank’s Federal Open Market Committee (FOMC) rolled around, the market supported my […]

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How to Play Today's FOMC Meeting

By Martin Hutchinson Director of Global Investing Research Wall Street has firmly got it into its tiny overpaid noggin that the Fed Chairman Ben S. Bernanke and the central bank's Federal Open Market Committee will slash interest rates today. I'm not so sure. Whatever Bernanke & Co. does will indicate the medium-term future of Federal […]

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Euro Debt Market Faces 'Pivotal' Test With $140 Billion Maturing

From Staff Reports Companies in Europe face a situation in which they need to refinance nearly $140 billion worth of commercial by the end of next week, according to Deutsche Bank AG, Germany's biggest bank. This will increase corporate borrowing costs. According to Bloomberg News, Deutsche Bank Credit Strategist Jim Reid wrote in a research […]

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Billionaire's Plans for Macau Casino Resort Stung by Global Credit Crunch

By William Patalon III Managing Editor The Money Map Report Even billionaires aren’t immune to the subprime-mortgage crisis and the accompanying global credit crunch. Only a week after the Las Vegas Sands Corp. opened its luxurious Venetian Macao hotel and resort just off the China coast, the Macau casino plans of Australian billionaire media mogul […]

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Canada's Unchanged Interest Rate Signals its Concern for U.S. Credit Crunch

By Mike Caggeso Staff writer The Bank of Canada announced Wednesday that it will keep its target for its overnight lending rate at 4.5%, and indicated that previous hints at a rate increase are economically rational, but premature. The economy of our northern neighbor is growing at a faster clip than expected. Its total and […]

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It's Not Just The Credit Market Weighing On Bernanke's Decision

By Mike Caggeso Staff Writer In spite of the market turmoil of recent weeks, global economist Jay Bryson has a message for investors and consumers alike. Calm down, folks: It’s not as bad as it seems. In fact, Bryson even says the odds of a full-blown recession are unlikely. With the strong recovery in stocks […]

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Bad Credit Replaces Terrorism as America's Boogeyman

By Mike Caggeso Staff Writer Credit defaults have overtaken terrorism as the U.S. economy’s Public Enemy No. 1, a key national research group reported Monday. The National Association of Business Economics, a Washington-based association, surveyed 258 NABE panel members in the survey: Of that total, 32% cited loan defaults and excessive debt as their biggest […]

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Lehman Shutters BNC Mortgage Unit, Cuts 1,200 jobs

From Staff Reports Lehman Brothers Holdings Inc. (NYSE: LEH) yesterday (Wednesday) announced that it is shutting down its subprime-mortgage unit, BNC Mortgage LLC, becoming the latest company to stop offering home loans to borrowers with risky credit ratings. The move will result in 1,200 employees being fired. BNC was a top-20 subprime mortgage lender in […]

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