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Monthly Archives
October 2008
Sovereign Bancorp: Santander looking to buy regional bank
Spanish banking giant Banco Santander has pulled through the credit crisis with a much higher profile than ever before. I was initially skeptical that the firm was hiding huge losses at it had exposure in Spain, the UK and the US, all…
Action in Asia portends a strong open in Europe and North America
Looking at the action in overnight trading, I see a very strong move to the upside in the offing in equity markets worldwide. All of the data is looking bullish. In Australia, the All Ordinaries is up five percent led by banking shares.…
The EU agrees to guarantee bank borrowing
The European Union has finally shown that it can get Europe-wide crisis initiatives of significance passed. Not only many EU countries guarantee bank deposits, but now bank borrowing has been backstopped as well. At first blush, this…
Pro-cyclical and pro-secular
You have probably heard people bandy about the term pro-cyclical as it has become a key concept for economists as we enter a downturn. The crux of pro-cyclicality is that some things rise with an upswing, but fall with downswings --…
Flooding the system with money?
Marshall Auerback here:
I am somewhat simplistic about this, but if the issue is one of a drive for dollar liquidity, the Fed should be able to address that problem. Before the week ending September 17th, the Fed was not, in fact,…
Australia guarantees bank deposits for three years
This comes from the Sydney Morning Herald. I will have a comment on this post later today.UPDATE: combined with the news out of the EU regarding bank backstops and interbank guarantees, the news from Australia is now being greeted quite…
Quote of the day: Michael Douglas as Gordon Gekko
Ben Bernanke and Alan Greenspan have been the worst monetary stewards in U.S. Federal Reserve history. A former Fed Chairman William McChesney Martin Jr. once said it was the Fed's job "to take away the punch bowl just as the party gets…
Lehman Brothers: a primer on Credit Default Swaps
Given the historic nature of the Lehman Brothers bankruptcy, it bears explaining how the credit default swaps market work and why it matters.
Where is the global economy headed?
At this stage in the financial crisis, it is difficult to discern exactly where things are headed. However, let me give a general road map of how I see things shaping up.The credit crisis started in August 2007 as a result of the dual…