The NYT reported recently that New York prosecutors are investigating whether Wall Street banks withheld information about the risks stemming from subprime loan-linked investments:Citing people with knowledge of the matter, the newspaper said the inquiry, begun last summer by state Attorney General Andrew Cuomo, was focusing on how banks bundled billions of dollars of exception loans and other subprime debt …
Market Thoughts
With some of the largest troubled financial companies (Citibank, Merrill Lynch) hunting the world for investment dollars, you’re probably wondering what terms they need to offer to get someone to come aboard and part with many billions. Apparently, learning from BofAs ill-timed original investment in Countrywide, the rules of the game seem to have changed. Mish Shedlock at Economic Trend …
Out Of Bubbles
Yesterday’s market rebound had the bullish crowd finally doing some chest pounding after the downturn of the past 2 weeks. Does this mark a turn in the market place or will the bulls remains in hibernation? Bill Fleckenstein had this to say in his article titled “We’ve run out of bubbles:” I’ll begin the New Year with this comment: There …
The BofA And Countrywide Marriage
I was just as surprised as anybody else when BofA announced an agreement to take over troubled mortgage lender Countrywide. As you may recall, BofA had made a $2 billion investment last year, when the stock price hovered around $18. Why would they now throw good money after bad? Some analysis I read offered the thought that maybe the Fed …
Sunday Musings: Dr. Housing Bubble
Some time ago, I came across an interesting website dealing with the analysis of the California, and at times nationwide, housing market. The site is appropriately named Dr. Housing Bubble and, in a recent article (12/26/07) it featured a special edition titled “Real State of Genius: Today we Salute you California with Our Real Home of Genius Award! 10 Homes …
Definition: Debt Crisis Vs. Liquidity Crisis
Several readers have asked if we are currently in a debt or liquidity crisis, or both. Minyanville’s Kevin Depew had an excellent write-up explaining the differences. Here is an excerpt: Here is an interesting data point that many may not have noticed. Since the Federal Reserve Open Market Committee began lowering interest rates on Sep. 18, the S&P; 500 has …