The Financial Tsunami: Sub-Prime Mortgage Debt is but the Tip of the Iceberg

Part 1: Deutsche Bank’s painful lesson                  Even experienced banker friends tell me that they think the worst of the US banking troubles are over and that things are slowly getting back to normal. What is lacking in their rosy optimism is the realization of the scale of the ongoing deterioration in credit markets globally, centered in […]

“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 […]

Billion-dollar blow stings Credit Agricole

French banking group Credit Agricole, which wants to raise $400 million from the Kiwi public, has taken an 850 million euro (NZ$1.67 billion) hit from the American subprime mortgage market this year and retains exposure to the troubled sector. The New Zealand debt offer from France’s biggest banking group opened yesterday and closes on December […]

Bank loan funding costs at 10 year peak

The Good Returns mortgage rate table is awash with red this week as lenders push rates up even though there has been no change in the official cost of borrowing in New Zealand. A general re-pricing of home loan rates appears to be underway, with increases from some banks of up to 30 basis points, […]

Nats query funding for Chinese miners

The National Party is questioning why taxpayer funding is apparently being used to train coal miners in China on safety issues. The party’s industrial relations spokeswoman Kate Wilkinson said Labour Department officials confirmed to MPs on Parliament’s transport and industrial relations select committee that $84,711 had been granted to the Council of Trade Unions (CTU) […]

Dollar Crash: The Real Challenge For OPEC

At its recent summit in Riyadh, the Organization of Petroleum Exporting Countries faced an unprecedented crisis: the price of oil was edging up towards the $100 per barrel mark, as the dollar itself was continuing its inexorable slide on all financial markets. Although the Saudi hosts were eager to keep the dollar’s agony out of […]

Property overtakes manufacturing as biggest employer

New Zealanders not only spend most of their money on property, but looking after it has now outstripped manufacturing as the country’s biggest employer. Statistics New Zealand’s Linked Employer-Employee Data (LEED) series showed 238,200 people were employed in property and business services during the September 2006 year, up 3 percent from 2005. The manufacturing industry […]

Citigroup faces $15 billion writeoff: GS

By Jonathan Stempel NEW YORK (Reuters) – Goldman Sachs & Co on Monday downgraded Citigroup Inc (C.N: Quote, Profile, Research) to “sell” from “neutral,” and said the largest U.S. bank may have to write off $15 billion over the next two quarters as mortgage losses reduce earnings. The downgrade sent Citigroup’s shares down as much […]

Money talks, lot’s of money talks a lot. Or do we want the best “Democracy”money can buy?

Where were  all these folks when Maori folk and ecoactivists and political leftwing activists were curbed in their cicil liberties? Money in politics onley serves one tiny group. That of the very rich. Limited funding by the people trough taxpayers moeny and enough time to set out your political goals whould be sufficient. Expensice pRP […]

Big business turns to long-time UK climate sceptic

Auckland 15 November 2007 – Greenpeace visibly demonstrated today that the New Zealand Business Roundtable, Greenhouse Policy Coalition and other business groups have their heads in the sand over climate change. (1). The organisation hung a banner reading ‘NZ business climate change solution’ behind several mannequins rested upside down with their heads buried in sand […]

Goldman Sachs Was Wrong & 2 Million Families May Lose Their Homes

What’s going wrong in the financial sector is not so unusual after all. One of the funniest moments in the great credit crunch of 2007 came in the summer. “We are seeing things that were 25-standard deviation events, several days in a row,” said David Viniar, CFO of the smartest financial firm in the world, […]

Saudi minister warns of dollar collapse

The dollar could collapse if Opec officially admits considering changing the pricing of oil into alternative currencies such as the euro, the Saudi Arabian foreign minister has warned. Will Opec pour oil on troubles? Prince Saud Al-Faisal was overheard ruling out a proposal from Iran and Venezuela to discuss pricing crude in a private meeting […]

Climate change sceptic addresses NZ business

The collapse of communism and the decline of conventional western religions are among reasons for the growth of global warming fears and “eco-fundamentalism”, Britain’s former chancellor of the exchequer Nigel Lawson says. Baron Lawson of Blaby is visiting New Zealand, for the first time, as a guest of lobby group the Business Roundtable. Since retiring […]

Terrorism bill passed into law

A Black day For Aotearoa! (Travellerev) LATEST: Parliament today voted 108-13 to strengthen terrorism suppression laws, but was told the bill had no relevance to last month’s police raids and the Solicitor-General’s ruling against charges under the Terrorism Suppression Act. We may need new domestic terrorism laws – Nats The Terrorism Suppression Amendment Bill was […]

Wider phone tapping considered

The trial run for the anti-terror law showed up deficient, next time just saying something that might indicate that maybe your thinking about doing something will get you arrested and convicted. What’s next?(travellerev)  Prime Minister Helen Clark says allowing intercepted telephone conversations to be used as evidence in a wider range of crimes is one possibility to […]

Oil discovery rocks Brazil

RIO DE JANEIRO, Brazil (AP) — A huge offshore oil discovery could raise Brazil’s petroleum reserves by a whopping 40 percent and boost this country into the ranks of the world’s major exporters, officials said. A gas station worker refuels a taxi with natural gas at a Petrobras gas station Thursday in Rio de Janeiro, […]

$100 Oil May Mean Recession as U.S. Economy Hits `Danger Zone’

By Simon Kennedy and Joe Richter Nov. 12 (Bloomberg) — Rising fuel prices that businesses and consumers took in stride earlier this year may now be near the point of pushing the weakened U.S. economy into recession. “We are in a danger zone,” says Nariman Behravesh, chief economist at Global Insight Inc. and a former […]

Last ‘terror raid’ accused freed as hikoi starts

The last four people held in custody after police anti-terror raids last month were released on bail today. Jamie Beattie Lockett, 46, of Takanini, in south Auckland; Tuhoe Francis Lambert, 58, of Manurewa, in south Auckland; Rawiri Kiyomi Iti, 29, of Hamilton; and Watene Paul McClutchie, 33, of Poroporo, near Whakatane, all face firearm charges. […]

Dollar Crisis: None dare call it ‘conspiracy’

Crude oil prices hit an all-time high this week, closing above $98 a barrel for the first time in history. According to the AAA, many drivers in my home state of California are already paying more than $4 a gallon for regular unleaded gas. And in one town south of Big Sur, unleaded gas topped […]