Category Credit crisis

If the problem is that we off-shored our production away to China and became a nation of real-estate brokers that just borrow the money from China and sell homes and mortgages to each other then I think the fix of…

Schools have been parking funds in supposedly safe pools that got slightly higher rates than money market funds. Trouble is, the pools were goosing the yield with highly risky SIVs – and many of them have now defaulted, something which…

The European Interbank Covered Bond Council has halted trading until at least Monday, and possibly until the new year, citing instability, widening spreads, and illiquidity. “Covered bonds are debt securities backed by cashflows from mortgages or public sector loans” but…

The Economist mentions the “R” word while a noted economist says the landing will be hard, not soft. If you have financial hatches that can be battened down, I suggest you do so now.

This bad. The CEO of Wells Fargo said housing is at its worst since the Great Depression, while Goldman Sachs warned the credit crisis may force a $2 trillion cut in lending, triggering a ‘substantial recession.”