Interview with an investment banker

Just in case you missed it. Investment bankers bet and speculate. In other words they are making money with money. When the banking world was about to collapse because the bet on packets of junk bonds, and were about to be caught out on it they changed their tack. They now bet and speculate on […]

Why the attacks on 9/11 should still matter to New Zealanders today?

On 13 January 2008 in the first session of the year of the Japanese Defense and Foreign Affairs Committee  Senator  Yukihisa Fujita leader of the opposition who might very well one day become the prime minister of Japan made a presentation of evidence casting doubt on the official US version of the attacks on New York […]

Udate: US recession fears wipe £77bn from London shares

London’s FTSE 100 fell to an 18-month low as markets took a dim view of President Bush’s plan to fight off a US downturn Patrick Hosking and Leo Lewis About £77 billion was wiped from UK blue chip share values this morning as fears of a US recession reverberated around the globe, sending the FTSE […]

Chinese shares close more than 5% lower

    BEIJING, Jan. 21 (Xinhua) — Chinese shares plunged more than 5percent on Monday, as investors dumped stocks amid liquidity concerns sparked by the huge share sale plan of Ping An Insurance.     The benchmark Shanghai Composite Index, which covers both A and B shares, tumbled 266.08 points, or 5.14 percent, to 4,914.44, while the Shenzhen Component […]

Terror raids suspect beaten in jail

A man arrested in the terror raids has been badly beaten in prison but is refusing to name his attacker. The Corrections Department confirmed that a prisoner – understood to be Jamie Lockett, who faces three Firearms Act charges – was taken to hospital after an assault but was now back in prison. He had […]

Geneva investor repayments stopped

Geneva Finance has stopped repaying investors, owed more than $112 million, as it struggles to remain afloat. The Auckland-based company plans to ask its 4500 investors to agree to a repayment moratorium of 612 months, as it tries to stabilise its position. International credit rating agency Standard and Poor’s immediately dropped its long-term rating of […]

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 […]

From Prime to Subprime, America’s Home-Mortgage Meltdown Has Just Begun

by Eric Englund Inflation is an immoral tax that leads to immoral values ~ Anonymous South American banker Having been in the credit profession for the past 23 years, I have observed several cycles involving the loosening and then the inevitable tightening of credit-underwriting standards. Of course, the Federal Reserve stands at the epicenter of […]

CREDIT WRAPUP-Credit fears spread, Australia quashes rumours

By Ian Chua HONG KONG, Sept 18 (Reuters) – Credit fears flared in Asia on Tuesday prompting Australia’s central bank to quash speculation that one or more regional banks had asked for emergency funding, a day after savers rushed to withdraw deposits from a British lender. Japan’s finance minister provided soothing words to investors, saying […]

Black day for shares as €4.5bn lost

By Brian O’Mahony, Chief Business Correspondent ON a black day for Irish shares a total of €4.5 billion was wiped off the value of the Irish Stock Exchange yesterday. Market sentiment was certainly not helped by fears that investors in one of Britain’s biggest mortgage lenders, Northern Rock, might lose their life’s savings as the […]

Failed Lender Makes Grab for Employee Funds

Bankrupt American Home Mortgage is attempting to seize as much as $27 million that former employees set aside from paychecks for retirement, according to an attorney representing them. Employees say Melville, N.Y.-based American Home Mortgage Investment wants to release retirement money from a trust fund to pay off large creditors. The attorney for a group […]

Real estate market ‘extremely quiet’

y Anne Gibson    A bank survey of residential real estate sector sentiment has presented a pessimistic picture, with many professionals saying the market has turned down fast. BNZ chief economist Tony Alexander released the monthly confidence survey this week. The survey went to 11,500 people, who were asked how their sector was going and […]

Interest rate increases have ‘gone too far’

The Reserve Bank has “definitely overdone” interest rate rises this year and should slash the rates in line with Australia, economic forecasting group Berl says. Instead of being on “perpetual inflation alert”, rates should be lowered to encourage investment, productivity improvements or business expansion, Berl says. “The psychotic fear of inflation is clouding the need […]

Investor panic takes toll on Speirs Group

Palmerston North-based loss-making finance company Speirs Group says its investor roll has plummeted 35% in the past three months, its secured stock funding has reduced and it is grappling with the collapse of its rental car client. Speirs Group, made up of Speirs Finance, Speirs Nutritionals and Spiers Foods, posted a loss of $1.9 million […]

Prepare for prolonged turmoil, says US Treasury Secretary

From The Times September 18, 2007 Suzy Jagger and Gabriel Rozenberg Investors should brace themselves for a prolonged period of market turmoil, Henry Paulson, the US Treasury Secretary, said yesterday as he held emergency meetings with the Chancellor and the French Finance Minister. Mr Paulson flew to London to discuss the financial crisis with Alistair […]

Rising Energy Costs Could Affect BHP Billiton, Rio Tinto Share Prices

Posted by Dan Denning on May 25th, 2007 Finding the lowest-cost producer is becoming increasingly important in the mining industry. Prices for base metals are high. Some of this comes from supply/demand dynamics. And some is the result of inflation (a deteriorating U.S. dollar.) Either way, the price signals in the resource market are telling […]

Rising Commodity Prices More Bad News for US Dollar

Posted by Dan Denning on Sep 14th, 2007 The moves in oil, gold, and even wheat are all telling us something. First, they’re telling us that the U.S. dollar is headed for the black pit of currency hell, where poorly managed fiat currencies go to suffer and die. And here’s a question for you: how […]

Investors to blame for not assessing the risks

The United States is not the only nation confronting a household debt crisis. We, too, have a subprime lending market and it is managed by our collective bag of finance companies. The collective sum of savings at risk in this sector is reported to be $16 billion. Put another way, that’s nearly a third of […]

Failing banks, toxic bonds and mortgage laundering

The Triumph of Structured Finance By Mike Whitney  The entire global financial structure is becoming uncontrollable in crucial ways that its nominal leaders never expected, and instability is its hallmark. The scope and operation of international financial markets, their “architecture”, as establishment experts describe it, has evolved haphazardly and its regulation is inefficient — indeed, […]

Greenspan on 60 Minutes: It was all Bush’s fault

By Mike Whitney 09/17/07 “ICH” — – Alan Greenspan’s appearance on 60 Minutes was preceded with all the pomp and ceremony of a royal wedding. The public relations blitz dragged out for a whole week. What profound truisms would the elusive former-fed master divulge to the News Magazine’s withered-coquette, Leslie Stahl? Would he produce his […]

Greenspan: era of low inflation is over

Graeme Wearden and Ashley Seager Monday September 17, 2007 Guardian Unlimited Photograph: AP   Britain faces the prospect of falling house prices and rising inflation within a few years, according to Alan Greenspan, the former chairman of the Federal Reserve.In a series of interviews to promote his memoirs, the respected US economist warned that the […]

Cullen planned $1 billion in tax cuts

The Government planned to deliver $1 billion in personal tax cuts at the last budget, but shelved the plan due to fears it would fuel inflation, official papers show. The papers, issued under the Official Information Act, show the Government last year considered a package of personal tax cuts that would have equalled the $1 […]

Fed to meet for US rate decision

The Federal Reserve is preparing to meet to decide whether US interest rates should be reduced from 5.25%. Most analysts believe the Fed will cut rates to try and prevent a housing market downturn and the credit crunch from severely denting the economy. By making money cheaper to borrow, people would spend and invest more, […]

Families feel pinch as basic costs rise

By PAUL EASTON – The Dominion Post | Tuesday, 18 September 2007AdvertisementHouseholds are being squeezed by price increases on basic foods and petrol, even before higher power prices and a sliding Kiwi dollar begin to take effect. Budgeting agencies fear the increase in staple food prices, including butter’s 23 per cent increase yesterday and milk’s […]

Credit crisis: Meltdown!

In the past 100 years, the rollercoaster ride that is the world of high finance has seen some spectacular lows. Sean O’Grady looks back at four episodes that not only came to define their times but also served as lessons for the future Published: 15 September 2007 1907: The Bankers’ Panic Sometimes, all that is necessary […]

‘Housing boom over’ as UK bank chaos grows

Economist warns of sharp downturn · Tory leader attacks Brown over crisis Heather Stewart and Lisa Bachelor Sunday September 16, 2007 The Observer Britain’s house price growth will be halved next year as the global financial crisis exacerbates the impact of rising mortgage rates, according to Nationwide, the biggest mortgage lender.After the dramatic bail-out of […]

House prices surge ahead of pay

The cost of buying a home has blown out to a record high. In August it took 81.6 per cent of a median weekly income to pay the mortgage on a median-priced house. That is more than twice the amount considered affordable, according to the latest Fairfax Media home loan affordability report. That makes the […]

Bank of England in dramatic intervention

 Northern Rock forced to seek emergency funding · Savers are assured that their money is secure Ashley Seager Friday September 14, 2007 The Guardian The Bank of England was last night forced to hand emergency funding to one of Britain’s biggest mortgage providers – Northern Rock – as it became the first major financial institution […]

US Economy Headed for Recession as Housing Bubble Bursts

Posted by Dr. Kurt Richebacher on Sep 14th, 2007 “America’s income-short, consumer-led recovery is the aberration – not the norm – in this Brave New World. It is all about ever-declining saving rates, ever-widening current account deficits, mounting debt burdens and increasingly wealth-dependent consumers. It personifies what I believe is one of the most precarious […]

More Mortgage Lenders to Close as Impact of Real Estate Slump Hits

Posted by Bill Bonner on Sep 13th, 2007 The Dow bounced right back – up 180 points Tuesday. Gold soared over US$721. What do you think, dear reader? Both went up…but which is the surer bet? We have our opinion. What bothers us is that it is too obvious. Central banks and financial intermediaries have […]