What Is A Credit Crunch?

Ulli Uncategorized 1 Comment

With all the talk about the Subprime crisis and the resulting credit debacle, you may have been wondering as to what exactly the definition of a “credit crunch” is. Minyanville’s Kevin Depew defines is as follows: “The simple answer is that a “credit crunch” is a general decline in the supply of, and demand for, credit. Under ordinary circumstances, the …

Sunday Musings: Downgraded To “Mean”

Ulli Uncategorized 1 Comment

Minyanville had a hilarious piece in Kevin Depew’s “Five Things You Need to Know.” This one was number five and it dealt with General Mills’ move back in June to raise the price of its cereal while decreasing the box size so that customers would hopefully be fooled by the cost increase. Some applauded the move, upgrading the stock from …

New Mortgage Rules

Ulli Uncategorized 3 Comments

With all of the hastily arranged government plans to resolve the credit crisis and/or solve the mortgage/housing debacle, there were bound to be some solutions offered that makes you wonder how somebody could actually have the guts to put some of the proposals in writing. I was reminded of that when I read the story “Fed proposes mortgage rules to …

No Load Fund/ETF Tracker updated through 12/20/2007

Ulli Uncategorized Contact

My latest No Load Fund/ETF Tracker has been posted at:http://www.successful-investment.com/newsletter-archive.phpToday’s rebound rally pulled the major indexes out of the doldrums and into positive territory for the week. Our Trend Tracking Index (TTI) for domestic funds/ETFs has moved to +4.81% above its long-term trend line (red) as the chart below shows: The international index dropped to -1.82% below its own trend …

Subprime Municipal Bond Fallout

Ulli Uncategorized 4 Comments

The Subprime/credit crisis of 2007 was bound to move into unexpected areas as well. MarketWatch’s feature “Moody’s warning ripples through municipal bond market” describes the unprecedented effect on the muni bond market. Moody’s put the triple-A ratings of Financial Guarantee Insurance Company (FGIC) and XL Capital Assurance on review for a possible downgrade after re-evaluating the companies’ exposure to potential …

More Subprime Slime

Ulli Uncategorized 1 Comment

Reader Nitin submitted another worthwhile article which was written by NYT columnist Paul Krugman a few days ago titled “After the Money’s Gone.” It’s a refreshing and very realistic view of the circumstances surrounding the latest Fed efforts to clean up the Subprime slime. Here’s what he said: On Wednesday, the Federal Reserve announced plans to lend $40 billion to …