From Singapore, Jim is interpreting the fed cut as a big positive for commodities.
video <-have to search for the flash on the front page
Tuesday, September 25, 2007
Wednesday, September 19, 2007
The Demise of the Dollar
I think the Fed's latest cut showed his hand. Ben is more concerned with Wall Street than with our currency.
Other countries seem to get it -- including Saudi Arabia (article).
Other countries seem to get it -- including Saudi Arabia (article).
Thursday, September 13, 2007
Hot Central Bank Action
From somewhere in the UK: Bank of England to bail out British lender (by way of CalculatedRisk)
So the BoE Governor Mervyn King speaks loudly but carries a big check! Just yesterday, readers of vitually every news source except the WSJ, perused some tough talk from the British Bernanke about central banks providing liquidity. (His Dear John letter is here ).
Now the news is all over the British press that King more or less reversed course. Maybe he is using his "penalty rate" clause as an escape - the full details of the deal are not available yet. The FTSE open tomorrow could be fun...& the Dow after hours is already stressed.
While on the subject of central bank liquidity infusions, I'd like to update a previous report of mine noting US banks' reluctance to use the Discount Window. The Fed reported today that US banks are in fact availing themselves of the Discount Window in larger numbers & larger sums:
I stand corrected...but I'm going to sit down now...
So the BoE Governor Mervyn King speaks loudly but carries a big check! Just yesterday, readers of vitually every news source except the WSJ, perused some tough talk from the British Bernanke about central banks providing liquidity. (His Dear John letter is here ).
Now the news is all over the British press that King more or less reversed course. Maybe he is using his "penalty rate" clause as an escape - the full details of the deal are not available yet. The FTSE open tomorrow could be fun...& the Dow after hours is already stressed.
While on the subject of central bank liquidity infusions, I'd like to update a previous report of mine noting US banks' reluctance to use the Discount Window. The Fed reported today that US banks are in fact availing themselves of the Discount Window in larger numbers & larger sums:
Banks more than doubled their requests for cash at the Federal Reserve's discount window in the latest week, according to central bank data published on Thursday.
Financial institutions borrowed an average $3.16 billion per day in the week ending Sept. 12, compared with a $1.34 billion daily average for the prior week.
Primary credit borrowings on the day of Wednesday Sept. 12 were $7.152 billion, the biggest for any single day since the aftermath of the Sept. 11 2001 attacks on New York and Washington.
I stand corrected...but I'm going to sit down now...
Buried in the Headlines
Article here.
Orleans Homebuilders Inc., suffering from a cooling housing market and mortgage turmoil, swung to a loss for fiscal 2007 and had a 34 percent drop in revenues.The Bensalem, Pa., homebuilder is predicting a continued "unfavorable" market that will impact new orders.
Credit Lines Lift Countrywide
The article is here.
The shorts are running for the hills, but basically this is a press statement that says:
"Business is really bad, but we've found some more people (40 banks!) to help us fund operations."
It's interesting that they released so much bad news (cockroaches) with the financing deal.
I don't anticipate them having much more good news for the rest of the year or next year, but they have bought themselves some time.
What should they be valued at?
The shorts are running for the hills, but basically this is a press statement that says:
"Business is really bad, but we've found some more people (40 banks!) to help us fund operations."
It's interesting that they released so much bad news (cockroaches) with the financing deal.
I don't anticipate them having much more good news for the rest of the year or next year, but they have bought themselves some time.
What should they be valued at?
Wednesday, September 12, 2007
Tuesday, September 11, 2007
Using Their IRAs to Make Home Loans
From the Walleye: Using Their IRAs to Make Home Loans
The rise of hard-money lending has begun. This is the first MSM hit on the issue I've seen, but I've come across people touting these type of schemes in more grassroots ways starting a few months ago. I expect to see more.
The pitch goes like this: Got some spare cash? Sick of settling for a measly 4% and change guaranteed return? Why not try your hand at lending money to people who need it & get 10% returns - guaranteed by that most solid of assets: real estate!
How can you lose?
(btw - I guess what makes it newsworthy to the WSJ is that these innovative folks are tapping their IRAs. I find it strange how blithe everyone - WSJ & the investors they interview - is about the foreclosure process. Sounds pretty easy: 1. borrower doesn't pay. 2. foreclose 3. own property 4. sell property. Okay - who can spot a step there where the average truck-stop manager might run into some trouble?)
In the midst of the mortgage meltdown, some lenders are actually rooting for foreclosures: investors who make mortgage loans with their IRAs.
Through a little-known tool known as a self-directed individual retirement account, individuals can pursue a wide variety of investments, from real estate to businesses. Now, at least several thousand people are trying to goose their retirement savings by using self-directed IRAs to invest in mortgages, according to companies that promote the strategy.
The rise of hard-money lending has begun. This is the first MSM hit on the issue I've seen, but I've come across people touting these type of schemes in more grassroots ways starting a few months ago. I expect to see more.
The pitch goes like this: Got some spare cash? Sick of settling for a measly 4% and change guaranteed return? Why not try your hand at lending money to people who need it & get 10% returns - guaranteed by that most solid of assets: real estate!
How can you lose?
(btw - I guess what makes it newsworthy to the WSJ is that these innovative folks are tapping their IRAs. I find it strange how blithe everyone - WSJ & the investors they interview - is about the foreclosure process. Sounds pretty easy: 1. borrower doesn't pay. 2. foreclose 3. own property 4. sell property. Okay - who can spot a step there where the average truck-stop manager might run into some trouble?)
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