By Mike Caggeso Staff Writer Countrywide Financial Corp. CEO Angelo Mozilo said yesterday (Thursday) that the housing market isn’t improving and could sink the United States into a recession. In answering questions on cable-TV channel CNBC, Mozilo said there is a “very serious situation going on” in the U.S. housing market. “This environment is certainly […]
Category
U.S. Economy
Commercial Paper Continues Plunge, Pressures Mount on Fed to Cut Rates
From Staff Reports The level of outstanding commercial paper underwent its biggest weekly drop in at least seven years in the period that ended Wednesday, further evidence of how the credit crunch has shaken the financial markets. Commercial paper is a highly flexible, unsecured, short-term loan obligation with a maturity term that typically ranges between […]
Dubai's Investment Arm Grabs Stake in MGM
By Mike Caggeso Staff Writer Dubai's extended its state-funded global reach a bit further yesterday (Wednesday) when its Dubai World investment arm agreed to pay $5.1 billion for a 9.5% stake in investor Kirk Kerkorian's MGM Mirage (NYSE:MGM). Dubai World is a holding company for the Persian Gulf state. News of the deal sent MGM […]
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 […]
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 […]
Where are the subprime bodies buried?
By Martin HutchinsonDirector of Global Investing Research When the subprime mortgage crisis broke in February, I assumed (like most others) that its ill effects would be confined to obscure housing finance companies within the United States – a niche of the financial sector in which I had no interest in investing anyway. But the recent […]
Countrywide and SunTrust to Start Layoffs
Three more major U.S. mortgage lenders announced major job reductions yesterday.
Dow Rallies After Early Concerns Subside
By Jason Simpkins Staff Writer U.S. stocks posted moderate gains yesterday (Monday) – rebounding from early setbacks – as still-fretting investors get ready to navigate a stretch that will be largely bereft of corporate earnings reports or critical economic reports. The Dow Jones Industrial Average climbed 42.27 points, or 0.32%, yesterday to close at 13,125.35, […]
Fed Cuts Discount Rate; Stocks Rebound
By Jason Simpkins The U.S. Federal Reserve cut the discount rate to 5.75% Friday, and in a statement indicated that it is "prepared to act as needed to mitigate the adverse effects on the economy arising from the disruptions in financial markets." The Fed kept the benchmark Federal Funds rate at 5.25%. Discount window borrowing, […]
Analyst: U.S. Commercial Printing Could Offer Refuge From A Volatile Market
By Jason Simpkins If you’re looking for a safe haven in today’s volatile U.S. stock market, Piyush Sharma, a senior equity research analyst for Longbow Research, has suggested the commercial printing industry might be a good place to seek shelter. Markets have been extremely sensitive recently as credit problems continue to escalate. The Dow Jones Industrial […]