London hedge fund Peloton liquidates $2bn flagship fund

By Nikhil Kumar and Stephen Foley Friday, 29 February 2008 One of London’s highest-profile hedge fund managers, fêted just last month as the most promising newcomer of recent years, is to wind up one of its funds – blaming the credit crisis for a major squeeze across the hedge-fund industry. Peloton Partners, co-founded by the […]

The fall of a financial model

Recent changes in the world economy and financial markets mark the end of the present standard model of financial capitalism, built up over the last decade or so. In this model, financial stability is mainly based on the self-regulation of the financial sector, which alone assesses the risks produced by its financial innovations. Moreover, the […]

Who is John Key?

Special report on National leader John Key By GILLIAN TETT and RUTH LAUGESEN – Sunday Star Times | Sunday, 03 February 2008 FIRST LIFE: As a money trader in London it’s speculated John Key was earning $5 million a year – that’s $96,000 a week. AdvertisementHe used to work hand in glove with the foreign […]

Stagflation is Here

War—after all, what is it that the people get? Why—widows, taxes, wooden legs and debt. Samuel B. Pettengill “Armies, and debts, and taxes are the known instruments for bringing the many under the domination of the few. James Madison, 4th U.S. President (April 20, 1795) “Let me issue and control a nation’s currency and I […]

FBI quizzes companies over sub-prime collapse

The FBI is investigating 14 corporations for possible accounting fraud and other crimes related to the sub-prime lending crisis. Neil Power, chief of the bureau’s economic crimes unit, would not identify the companies, though he said the cases involved “valuation-type stuff”. The probes included reviews of sub-prime lenders, housing developers and Wall St banks that […]

Corporate Default Risk Soars to Record on Ambac Ratings Cut

By Hamish Risk and Abigail Moses Jan. 21 (Bloomberg) — The risk of European companies defaulting soared to a record on concern credit ratings cuts at bond insurers Ambac Financial Group Inc. and MBIA Inc. may trigger forced asset sales and worsen credit market turmoil. Credit-default swaps on the Markit iTraxx Europe index of 125 […]

Calm MFS NZ ‘unfazed’

MFS New Zealand has substantial amounts both borrowed from and loaned to entities associated with its troubled parent company. Queensland-based MFS had about A$1 billion (NZ$1.16 billion), or 70 per cent of the company’s value, shorn from it on Friday over worries about its debt levels. Yesterday MFS chief executive Michael King resigned, replaced by […]

The Fraud of Bushenomics: They’re Looting the Country.

The New York Times made it official. The Economy is a problem! So, now, at last we can discuss it. Not just discuss it, in rapid order “recession” became the word of the day, from White House, Congress, the Fed and the media. It’s blamed, mostly, on the subprime crisis. But that’s not the problem. […]

Shares suffer biggest fall since 9/11

The FTSE 100 on Monday suffered its biggest one-day fall since the attacks on the World Trade Centre more than six years ago as the worst fears about the prospects for the global economy took hold. In a tumultuous session, the index was down as much as 5.7 per cent to 5,571.0 as dealers capitulated […]

Crunch day for Bridgecorp’s Australian investors

Rod Petricevic’s attempt to stave off the liquidation of Bridgecorp’s Australian group today rests on the hope of extracting yet more cash from his failed New Zealand business, already owed more than $70 million by the Australian operation. Creditors of Bridgecorp’s Australian companies are to vote on a Deed of Company Arrangement (DOCA) in a […]

“A Generalized Meltdown of Financial Institutions”

By Mike Whitney  Reality has finally caught up to the stock market. The American consumer is underwater, the banks are buried in debt, and the housing market is in terminal distress. The Dow is now below its 200-Day Moving Average — the first big “sell” signal. Anything below 12,500 could trigger program-trading and crash the […]

‘Definite end’ to housing boom

The housing market boom will come to a “definite end” next year and the Kiwi dollar may rise back to US81c because of higher interest rates, economists predict. Independent economics group Infometrics’ latest forecast picks the Reserve Bank to raise official interest rates twice, to 8.75 per cent, within the next six months to hold […]

Why the US Central Bank Wants to Create Inflation, Destroy US Dollar

It’s the end of the world as we know it…and we feel fine! India is booming. China is booming. The latest news from the Middle Kingdom tells us that its trade surplus is rising at a 56% annual rate. Heck, even Argentina is booming. Its economy has been growing about three times faster than the […]

Millions of Americans in Economic Battle to Make Ends Meet

The Bush recovery has been good for Wall Street, but not Main Street. The economic recovery that began in 2001 has brought slow job growth, limited wage gains, and continued rising inequality. While families at the top of the income ladder have seen their incomes rise faster than inflation, those in the middle and bottom […]

Income-Inequality Gap Widens

The richest Americans’ share of national income has hit a postwar record, surpassing the highs reached in the 1990s bull market, and underlining the divergence of economic fortunes blamed for fueling anxiety among American workers. The wealthiest 1% of Americans earned 21.2% of all income in 2005, according to new data from the Internal Revenue […]

Weak dollar prompts record foreign buyouts of U.S. companies

The jobs are outsourced, the infrastructure is collapsing, every American family lives on their credit cards, and their mortgages, and still they are spurred on to buy, buy, buy. And now that the housing bubble is busting and the dollar is collapsing the vultures move in for the kill. America is on it way to a […]