Leading article: A crisis that spread from Wall Street to the high street

Published: 13 September 2007   Have we reached the moment when the contagion in the rarefied world of the credit markets finally begins to infect the real economy? This week two well-known fashion retailers, French Connection and Next, warned that trading conditions are likely to become a lot more difficult in the coming months. And yesterday, […]

Fed can’t stop recession

Even if the central bank starts to cut rates aggressively, many of the risks for the U.S. economy are beyond its reach. By Chris Isidore, CNNMoney.com senior writer September 13 2007: 1:35 PM EDT NEW YORK (CNNMoney.com) — Problems in housing, the financial markets and the first job decline in four years have made a […]

Economic Crisis: The U.S. Political Leadership Has Failed

by Richard C. Cook Global Research, September 12, 2007 As the 2007 economic collapse picks up speed, it’s time to take a hard look at the performance of the U.S. national political leadership in meeting some of their most fundamental responsibilities. It’s time to face the fact of serious failure over the last quarter century. […]

Realtors Cut Forecast, Say Slump Will Extend to 2008

By Kathleen M. Howley Sept. 11 (Bloomberg) — The National Association of Realtors reduced its home sales forecast for the ninth time this year and said the housing slump will extend into 2008. Existing home sales will fall 8.6 percent in 2007, exceeding the 6.8 percent drop estimated a month ago. New-home sales probably will […]

Is China Dumping the U.S. Dollar?

« U.S. dollars change hands in Beijing, China. (STR/AFP/Getty Images) Is China Dumping the U.S. Dollar? September 10, 2007 | From theTrumpet.com Questions loom whether China is behind recent dollar sales—if it is, America’s way of life is about to change. The only question is how badly and how fast. By Robert Morley The U.S. […]

NZ Super Fund just grows and grows

By Graeme Hunt Adrian Orr says the fund is committed to ‘responsible investment’. Photo / Paul Estcourt It’s less than four years since the country’s most unusual Crown entity started investing with $2.4 billion of Government money. It received a further $7.7 billion from the state along the way and now has a fund worth […]

Nervous US investors start to fear recession

Friday’s news of a buckling United States job market sent stock investors running for the exits, and this week promises to be no less stressful as investors grapple with the increasing possibility of an economic recession. The weekend also gave investors time to reflect on news that US employers cut payrolls by 4000 jobs last […]

The Supply-Side Fraud: Republican Economics Don’t Work

By Hale Stewart, HuffingtonPost.com. Posted September 10, 2007.Supply-side economics is a great marketing concept, but in reality is a poor national policy. Tools Republicans are enamored by “supply-side” economics. Frankly, I have to admit it’s a very easy sell. Think about it. “Cutting tax rates stimulates the economy to such a high level that tax […]

Warning issued on Geneva Finance

By DAVID HARGREAVES – Fairfax Media | Tuesday, 11 September 2007Auckland-based consumer finance company Geneva Finance faces a possible future downgrade of its credit rating because of “increasing pressure” on its liquidity and funding, international credit ratings agency Standard & Poor’s said today. “We believe that there is a possibility that current financial market disruptions […]

Banks face 10-day debt timebomb

By Iain Dey, Sunday Telegraph Last Updated: 12:02am BST 10/09/2007 Britain’s biggest banks could be forced to cough up as much as £70bn over the next 10 days, as the credit crisis that has seized the global financial system sparks a fresh wave of chaos. The credit crunch is really hitting home Small businesses risk being […]

Central bankers warn housing crisis could hit whole US economy

BASEL, Switzerland (AFP) – The crisis in the US housing market risks spreading to the whole of the nation’s economy, European Central Bank chief Jean-Claude Trichet said Monday on behalf of world central bankers.Trichet was speaking in his capacity as head of the G10 group of central bankers from industrialised and emerging economies, who met […]

We’ll break US free trade barrier – Nats

National leader John Key today unveiled plans to negotiate a free trade agreement with the US, which the government is yet to succeed in doing since it came to power in 1999. National will soon release a foreign policy paper with the key objective of preparing the ground for negotiating a Free Trade Agreement (FTA) […]

American Economy: R.I.P.

Paul Craig Roberts was Assistant Secretary of the Treasury in the Reagan administration. He was Associate Editor of the Wall Street Journal editorial page and Contributing Editor of National Review. He is coauthor of The Tyranny of Good Intentions. A lifelong Republican.  By Paul Craig Roberts 09/10/07 “ICH’ — — The US economy continues its […]

Worst crisis for 20 years, say banks

LEADING bankers are warning of the worst crisis in the money markets for 20 years, which will come to a head this week when $113 billion (£57 billion) of commercial paper – market IOUs – comes up for refinancing. This huge refinancing, mainly through London, exceeds the $100 billion that became due in mid-August, and […]

Housing market still slowing despite shock figures – banks

Figures showing a surprisingly strong rise in house prices over the past year are being downplayed by two of the country’s major banks. ASB chief economist Nick Tuffley said the shock finding from Quotable Value’s monthly report – that national property values rose 13.3 per cent for the year ended August – was out of […]

Countrywide to cut up to 12,000 jobs

Fri Sep 7, 2007 7:39PM EDT NEW YORK (Reuters) – Countrywide Financial Corp, the largest U.S. mortgage lender, said on Friday it plans to cut 10,000 to 12,000 jobs to cope with weak housing demand, rising foreclosures and tightening credit markets. The cuts, which amount to as much as 20 percent of the lender’s work […]

Are The Banks In Trouble?

By Mike Whitney      “The new capitalist gods must love the poor – they are making so many more of them.” Bill Bonner, “The Daily Reckoning”   “The hope of every central bank is that the real problem can be kept from public view. The truth is that the public—even professionals on Wall Street—have no […]

US jobs data in shock fall

Fiona Walsh, business editor Friday September 7, 2007 Guardian Unlimited Shares in London, the rest of Europe and the United States went into sharp retreat this afternoon after shock US data showed the housing crisis and credit squeeze are starting to hit growth in the world’s biggest economy.The dollar also tumbled as the US government […]

Reserve Bank of Australia Plans Loans for Distressed Lenders

Posted by Dan Denning on Sep 6th, 2007 Who is knocking on the door of the Reserve Bank of Australia, looking for a handout? The Bank issued a press release this morning, telling anyone who would listen that, “it has decided to further widen the range of securities eligible for its repo operations.” As of […]

Homes entering foreclosure at record

The housing slump, Midwestern economic woes and resetting ARMs send late payments higher. By Les Christie, CNNMoney.com staff writer September 6 2007: 11:58 AM EDT NEW YORK (CNNMoney.com) — The delinquency rate for mortgage borrowers spiked higher in the second quarter and the number of homes entering the foreclosure process hit a record high, according […]

Domino effect as another finance firm goes under

By VANESSA PHILLIPS – The Nelson Mail | Thursday, 6 September 2007Email a Friend | Printable View | Have Your SayRelated Links • Subscribe to Archivestuff • Have your say Advertisement AdvertisementAnother Nelson finance company, with links to failed firm LDC Finance, has nosedived into receivership, owing $16 million to investors. Long-established Tahunanui-based Finance and […]

The New Zealand Economy is Sinking While Financial Assets Soar

At first glance, New Zealand appears to enjoy the same “hot money” problem as emerging economies such as Thailand. There, global investors have been driving the currency higher by flooding the country with money. But the problem for New Zealand is that its own investors and consumers refuse to hold cash over anything else. The Reserve Bank […]

House prices in some areas may fall as much as 50%

By Finfacts Team Sep 3, 2007, 07:01 US homes may lose as much as half their value in some US cities as the housing bust deepens, according to Yale University professor Robert Shiller. Meanwhile, Martin  Feldstein of Harvard University says that experience suggests that the dramatic decline in residential construction provides an early warning of […]

Fed warns of $100bn credit losses

  Ben Bernanke’s comments are closely watched Federal Reserve chairman Ben Bernanke has warned that the crisis in the US sub-prime lending market could cost up to $100bn.In a second day of testimony to Congress, Mr Bernanke said credit losses associated with sub-prime mortgage failures were “significant”. Wall Street is nervous about the exposure of […]

Another finance company falls without warning

By Adam Bennett The finance company carnage continued today with Nelson-based LDC Finance Ltd being placed in receivership by its trustee, owing 1000 investors almost $20 million. Perpetual Trust said it had appointed Malcolm Hollis and John Fisk of PricewaterhouseCoopers as receivers on the request of the company’s directors. It is the eighth finance company […]

The Predicted Financial Storm Has Arrived

By Gabriel KolkoContradictions now wrack the world’s financial system, and a growing consensus exists between those who endorse it and those who argue the status quo is both crisis-prone as well as immoral. If we are to believe the institutions and personalities who have been in the forefront of the defense of capitalism, we are […]

Indian shopkeepers force new supermarkets to close

By Andrew Buncombe Published: 27 August 2007   The authorities in India’s most populous state have ordered the closure of more than a dozen new supermarkets after demonstrations by activists who claim the stores will destroy the livelihoods of traditional farmers and shopkeepers. In a rare blow against the interests of big business in India, the […]

U.S. at risk of recession from housing

By Mark Felsenthal and Alister Bull JACKSON HOLE, Wyoming (Reuters) – The weak housing market could topple the country into a full-blown recession and the Federal Reserve should slash interest rates aggressively, one of the country’s most prominent economists warned on Saturday. “Lower interest rates now would help,” Martin Feldstein, president of the influential National […]

Insurers demand sensitive files from doctors

By MARY JANE BOLAND – Sunday Star Times | Sunday, 2 September 2007Email a Friend | Printable View | Have Your SayRelated Links • Subscribe to Archivestuff • Have your say Advertisement AdvertisementInsurence companies are demanding access to patients’ confidential medical records in a move which has alarmed doctors and prompted privacy complaints. The new […]

Economist eyes home value dive: Others skeptical of 50 percent decline

By Edward B. Colby Saturday, September 1, 2007 – Updated: 08:38 AM ESTThink the subprime mortgage meltdown was frightful? Now consider the prospect of your home losing half its value. An esteemed economist suggested yesterday that “real home prices” in some parts of the country could drop by as much as 50 percent, posing yet […]