Subprime
-
Three Ways to Profit From the Next Phase of the Subprime Mortgage Mess
By Keith Fitz-Gerald Contributing Editor I've been telling you for months, now, that the subprime mess isn't over. But contrary to what you might be hearing in the mainstream news, the Four Horsemen of the Financial Apocalypse aren't thundering their way to our homes right now, either. In fact, savvy investors will have the chance [...] -
The Merrill Lynch "Surprise" Fuels More Subprime Uncertainty
By Jason Simpkins Associate Editor Just one day after Merrill Lynch & Co. Inc. (MER) wrote off billions in bad mortgage loans and reported its biggest quarterly loss in 93 years, Wall Street analysts yesterday (Thursday) predicted there was still more bad news to come. Although it wrote off $8.4 billion of subprime mortgages and [...]
-
The Three Investments to Avoid and the One Stock to Buy to Profit from the Lousy Mortgage Market
By Martin Hutchinson Director of Global Investing Research The U.S. banking trio of Citigroup Inc. (C), J.P. Morgan Chase & Co. (JPM) and Bank of America Corp. (BAC) yesterday (Monday) announced that they were setting up a new fund – perhaps as large as $100 billion – to buy mortgage debt held in "Securitized Investment [...]
-
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 [...]
-
Firms Issue Mea Culpa for Botched Hedge Fund Markets Report
From Staff Reports A research report that concluded that $32 billion flowed out of hedge funds in July – leading analysts to think the controversial investment vehicles were a major cause of the global credit crisis that started in August – was wrong, the two firms that issued the report admitted yesterday (Wednesday). TrimTabs Investment [...]
-
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 [...]
-
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 [...]
-
Dropping Housing Prices, Rising Foreclosures Could Confirm Our Worst Fears
By Jason Simpkins Staff Writer In an interview that conveyed a deep sense of economic gloom last week, former Federal Reserve Chairman Alan Greenspan told Bloomberg News that the odds of a U.S. recession remain "somewhat more" than one in three. Home prices will likely drop further, disrupting consumer spending and undermining investor confidence, Greenspan [...]
-
What Nobody Will Say About The Subprime Mess
By Keith Fitz-Gerald Contributing Editor I've been waiting for a few weeks to see if anybody will say it – and, not surprisingly, nobody has. So I will. The truth about who caused the subprime mess. In my humble opinion, it was the Fed. Sure there were contributing parties, so I’m not pointing the [...]
-
German Bank SachsenLB, Buffeted in Subprime Crisis, to Be Taken Over by Larger State Bank
From Staff Reports Germany's Landesbank Baden-Wuerttemberg will take over SachsenLB, the smaller public-sector German bank that helped the subprime LBBW will pay $342 million as an initial measure, said Guenther Oettinger, the governor of Baden-Wuerttemberg. He said SachsenLB's owners would transfer their holdings to LBBW. SachsenLB will be part of the state-run bank in early [...]
