The Stage Has Been Set For Another Credit Crisis
If you think yesterday's market action was something to worry about, you ain't seen nothing yet.
President Barack Obama getting re-elected sets the stage for another credit crisis.
When the president came into office in 2008 he had a mandate to fix the banking system, which consisted of too-big-to-fail banks holding America and its economy hostage to their greedy schemes.
He swept that mandate under the door of Congress and the Federal Reserve.
The president has no position on the big...
Covered Bonds: An Investing Stalwart Through the Centuries
So-called "covered bonds" are debt securities that are backed by the cash flows from public-sector loans or from real-estate mortgages. Covered bonds resemble other asset-backed securities (ABS) created through the process known as "securitization." But there's one big difference: Covered-bond assets must remain on the issuer's consolidated balance sheet.
Created in Prussia in 1769 by
Covered Bonds: The Solution to America's Economic Ills
When it comes to the global financial crisis and the Great Recession that followed, this could well be the ultimate irony: The Wall Street invention that got us into this mess may well be the only thing that can get us out.
I'm talking about securitization, a masterstroke of financial engineering in which assets are aggregated in order to reduce risk. Once heralded as the greatest financial innovation of modern times, abusive securitization practices...
Is There an Ulterior Motive for Bailing Out Greece?
Since back in December, when Fitch Ratings Inc. slashed its credit rating on Greece's debt to below investment grade for the first time in 10 years, there's been a mind-numbing flood of media coverage of that European country's debt crisis.
And yet, despite high-volume of high-level media coverage, none of the stories have picked up on a very basic - yet very key -...
Money Morning Mailbag: How the Demise of Glass-Steagall Helped Spawn the Credit Crisis
Question: Please address why the removal of the Glass-Steagall Act in 1999 caused the financial meltdown of 2007 and why its reinstatement is the only way to stop the financially risky behavior allowed after it's removal. Address why we will very likely have another meltdown (probably in 2010) unless reinstated.
Answer: Mr. Scott: While the overturning of what remained of
U.S. Economy Forecast: What You Need to Know in 2010
2009 was a wild year for the economy. The stock market soared, but the U.S. economy was hampered by rising unemployment and tight credit markets. What will 2010 bring? Find out the four major trends to watch for in the next 12 months... and where to look for real...
The High Cost of Greed …
Money Morning subscriber Ted Kubichek wrote and asked if one of our experts could comment on the underlying cause of the financial crisis whose fallout will affect the U.S. economy for years. Here's an edited version of that question, as well as the reply by Money Morning's Shah Gilani, an internationally recognized expert on the global credit crisis.
Credit Crisis Expert Shah Gilani Details Financial Crisis Investment Strategies on Free Video
Money Morning Staff Reports Is Citigroup Inc. (C) worth a look as a low-priced stock? Why are U.S. Treasury bonds right now not the safe haven most investors believe them to be? What's the next sector that's destined to crash? Investors who want the answers to these and other questions, and who want to understand...