The Libor rate shot through the roof and I believe people's variable rate mortgages are tied to it. [more]
I thought this piece was worth sharing.
The author is saying the bailout is to protect the mortgage backed paper and derivatives.
What a bunch of scatty junk I'm reading... [more]
As I have stated a few times, my game plan about a year ago was to be out of the market for a year and re-evaluate. [more]
I did a search on caps as I know I have written on shipping before and low and behold, I found someone else's blog, my comment, and an accusation that I'm an American who thinks the world revolves around me, I guess. [more]
No kidding Buffett is warning them. I've gone over and over who this mess hits the most and I've consistently come up with the wealth. They have no place to hide and their money is not guaranteed and their insurance was a fraud.
So, pass this bill and it will not be the wealthy that are hit, but the tax payer.
Along with the massive over building in housing was the massive over building of commerical space. Defaults on these loans are still in a much earlier stage then the mortgage market so their effects have only begun to be felt. [more]
This one got my attention because in order to help cover costs one of the things that is being looked at is to charge the recipients of the vehicles about 50c/mile for miles driven for personal use...
While I have expected all economies to slow down significantly for some time, I have been of the position that US will not fair so well because of the gross level of debt. I have no doubt that Canada will be hard hit and have serious economic problems but longer term we are in a much better financial position. [more]
Big Picture has a post on the sales spin for the bailout. History is going to look back on these guys as the biggest snake oil salesmen ever known. Now the question is, will popular media dig deep or will the snake oil sales media bite win the day?
In some ways I am amazed at what is happening in the markets and in other ways I wonder how come it didn't happen sooner. [more]
I always like reading Market Ticker. I particularly like his style of telling it like it is with the bailout. [more]
I can't remember if I actually posted somewhere how much worse I thought it was because the reserve capital of the banks was bubbled, worthless fluff, but Yves has a post directly related to how this fluff is causing more problems as in Fannie and Freddie write downs.
I pulled all my market investments last October/November with a plan that I would re-evaluate the market in a year. It is getting close to that year. [more]
Mish has a post that says how you can contact your congress person to file your complaint about the bailouts.
Financial Armageddon picked up an excellent piece from Dean Baker. [more]
Leverage terrifed me about the banking system and the amount of money governments, in particular the fed also is of grave concern to me as I know what was sacrificed getting Canadian debt under control. [more]
Who said you can't read a lot of drama when reading a "dreary" old news story...
Mish has a quote which I feel compelled to copy: [more]
I haven't read the news closely, but I got an email that stopped me cold.
Money markets are guaranteed? I had to catch my breath that they would consider something like that.
I have to look at this closer and think it through, but this may move me from the deflation camp...
Never mind answering that one. Now banks are going to be afraid to exchange funds with each other...Uproar Over German Bank’s Payout to Lehman
If I was to say the single biggest thing that made me the bear I am to the degree I am it can be summarized in one word "leverage." [more]
Is this just me or is this happening to everyone. I get "oops" bug frequently when trying to post a blog or comment and it has been happening for months. It took me 5 tries to get my last comment posted. Frequently I haven't had the time to try spend that much time trying to get a comment posted so I have to abandon comments. Oops. There's been an error. So now what? Click your browser's back button to try again. (We automatically recorded this error so we can find it and fix it.) If you'd like to report this error, please mention error code 01-82-99-77-41. [more]
The insolvency of AIG has been obvious for a long for anyone actually taking the time to look. But, I have to love the reasoning given that it might survive... [more]
According to Naked Capitalism the feds added $70 billion to the federal reserves.
So far what I've seen I put into reduced money supply through credit contraction.
Now, what I don't understand is where this $70 billion comes from. Do they print it?
This is one that I reported a story on once with a smaller bank, but here's how the financial unwinding can affect many of us. [more]
Since about last June I haven't followed the market as closely as I was following it. I am not completely sure what it is I am waiting for, but definitely things that people didn't think possible. [more]
I think Harper is one of Canada's worst Prime Ministers. He inherited a country with a surplus of over $10 billion per year and to me the numbers look like a $6 billion deficit for this year. Given that last year was a $13 billion surplus, that's in the range of a $20 billion regression. It is massive when you consider Canada has about 1/10th the population of the US. [more]
Life in the "classroom" is never boring... [more]
I lived in Britian in the fall of 2005 and it opened my eyes to level of opportunity that still existed in Canada and the US in comparison to Britian. It also opened my eyes to dire straights of their entire economy. I've been says the pound is a very bad place for your money ever since. I think the US dollar is in trouble by the level of debt, but I think Britian has out done the US in that department. Taxes were high, serves were low and the level of welfare or social services were enormous. I'd never seen so many 30 something year olds still living with mom and dad, and just renting a room in a home was exceptionally common. I went to teach there, but I went home early because I saw no opportunity for my students what-so-ever and education funding had been cut so lean, and for a long time, in many place there is a total break down of their education system. I have said it before, but it was like living in "Lord of the Flies." [more]
I see oil dropped to $108.86 today.
In July Bespoked did a pole on which oil would see first, $150 or $110.