Category
Credit
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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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Blackstone Says Credit Crunch Won't Halt India Deals
From Staff Reports The Blackstone Group LP (NYSE: BX), the world's largest private-equity fund, said its buyout projects in India will not be deterred by the worldwide credit problems, the company told Bloomberg News this week. The New York-based Blackstone just agreed to buy a controlling interest in India's largest garment exporter, Gokaldas Exports Ltd., [...]
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U.S. Foreclosures Soar 93 Percent
From Staff Reports The number of U.S. foreclosure filings reported for July were up 93% over the same month last year, the latest sign that homeowners are having trouble making mortgage payments or selling their homes during this national housing downturn. Foreclosure reports were up only 9% from June, The Associated Press reported. This is [...]
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The Fed Has Learned Balance, as it Aids Market Recovery
All things considered, U.S. central bank chief Ben S. Bernanke and the Federal Reserve have so far demonstrated a tremendous amount of restraint amid the credit crunch. Market volatility, tightening credit conditions, and the collapse of the subprime-mortgage-stuffed Bear Stearns Cos. (NYSE: BSC) hedge funds – as well as several mortgage lenders operating at the [...]
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Countrywide and SunTrust to Start Layoffs
Three more major U.S. mortgage lenders announced major job reductions yesterday.
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Credit, Consumer Worries Slap Stocks
The credit crisis may get worse before it gets better in the coming months, as more than 2 million adjustable rate mortgages (ARMs) are ready to "re-set" – industry parlance for boosting their rates.
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Foreign Markets Thrive; U.S. Closes With A Thud
By Jason Simpkins Central banks continued funneling cash into the world’s wounded financial systems Monday, the latest in a series of liquidity infusions that began last week. The European Central Bank offered another $65 billion in emergency funds, while the Bank of Japan injected $5.1 billion. The Federal Reserve again came in on the low end [...]
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Global Crisis Investing and a Grandmother's Advice
By Keith Fitz-Gerald Contributing Editor Whenever I’m faced with a market like this one – rocky and volatile, with hidden wildcards just waiting to trip us up – I can’t help but think about my late grandmother, successful amateur investor Virginia Gruner, and the warning she would issue in just these situations: “Hold onto your [...]
