Central banks make $250bn move to ease the credit crisis

Central banks make $250bn move to ease the credit crisisJoint action by US, UK, Europe and Canada; Dow Jones surges on news By Stephen Foley in New York Wednesday, 12 March 2008 Central banks around the world made a second co-ordinated attempt to ease the credit crisis, three months after their first efforts failed to […]

Fed Announces $60B March Auctions

This is not good. Just printing money causes inflation, inflation will make the poor and the middle class even poorer, and they promised they will keep on doing it until there is nothing left. (WASHINGTON) – The Federal Reserve announced Friday that it will auction another $60 billion in March as it continues to combat […]

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 […]

U.S. banking sector headed for meltdown, official says

Banks face massive loan losses because of defaults on debts and housing-price slide Duncan Mavin Toronto — The U.S. banking sector is headed for a credit downturn that will be “the worst in generations,” featuring widespread defaults on a range of debts and a national housing price slide not seen since the Great Depression, one […]

Thousands of investors hit hard

The investments of many of the 380,000 people who have joined the KiwiSaver scheme have taken a battering with the dramatic slump in sharemarkets. New Zealand and world sharemarkets have taken a dive in the past fortnight after falls in the United States. Fears of a recession there and massive losses in US housing markets […]

U.S. Subprime Meltdown Costs the World $8.6 Trillion

There’s something happening here. What it is ain’t exactly clear. There’s a man at the Fed who’s confused. And now investors, they feel quite abused. You get the idea. The Dow fell 173 points in New York when Ben Bernanke and Hank Paulson went to Capitol Hill to repeat how bad things are in the […]

House prices, sales numbers dive

As America is collapsing under the mortgage meltdown, the sub prime crisis and the costs of two illegal wars, New Zealand follows suit. 15 Finance institutions disappeared overnight due to the sub prime crisis which is not just an American phenomena but a world wide hidden disaster finally crawling out of the wood works, houseprices […]

Blue Chip rent collection companies in liquidation

Three companies which collect rent for investors in troubled property specialist Blue Chip have been placed in liquidation, a leading insolvency expert confirmed yesterday. Jeff Meltzer, an Auckland-based liquidator, has met with representatives of the companies but said he was still waiting for confirmation that he had been appointed liquidator of Bribanc Property Group, ART […]

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 […]

US recession could be worst in 20 years

WASHINGTON – The chances of the United States avoiding a recession appear to be growing dimmer by the day, and any contraction in the economy will likely last longer and be more severe than other downturns in the past 20 years. Recent reports have shown the US housing market slump and rising defaults in the […]

Massachusetts Accuses Merrill of Fraud

The top securities regulator in Massachusetts accused Merrill Lynch on Friday of defrauding the city of Springfield with subprime-linked investments, casting light on how Wall Street banks sold complex mortgage securities that are now plummeting in value as the housing slump deepens. Skip to next paragraph Stephan Savoia/Associated Press William Galvin, Massachusetts secretary of state, […]

MFS shambles as debts pile up

Confusion reigned on Friday as finance company MFS Pacific, with $289 million of debenture investors’ cash at risk, was preparing a stock exchange announcement on its bleak future. In a hurriedly organised conference call before the bulletin hit the stock exchange at 4.37pm, financial advisers were told the company was on its knees. Many would […]

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 […]

U.S. Housing Stocks Down $2 Trillion

A trillion here…a trillion there…pretty soon you’re talking real money. U.S. stocks are down about 10% so far this year…that’s about $1.5 trillion lost. U.S. housing stock is said to be down about $2 trillion. And losses from subprime, credit cards, home equity lines, rogue traders…and hanky panky…probably add up to another trillion or so. […]

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 […]

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 […]

Citigroup’s Layoffs Could Reach 24,000 This Year

Citigroup plans to announce a writedown of as much as $24 billion and layoffs that could total as much as 24,000 due to subprime and credit-related losses, CNBC has learned. Oliver Quillia for cnbc.com Citigroup plans to announce a $24 billion writedown and layoffs that could total as much as 24,000. The plans will be […]

US credit crisis pushes up NZ mortgages

The US credit crunch has finally hit New Zealand home-buyers directly in the form of rising mortgage rates. Westpac yesterday raised its fixed rate mortgages by 20 points, taking its two-year fixed rate from 9.4 per cent to 9.6 per cent. The increase matches moves by New Zealand’s largest bank, ANZ National, within the last […]