Economy

I f anyone doubted it, China's bubble has finally popped. The Shanghai Composite Index is down 50% from its highs in 2007. That is a massive downswing that must have broader consequences. Moreover, this is likely the result of a…

RBS, the second largest British bank behind HSBC, has finally come clean on the credit crisis. The price? An enormous $24 billion in new capital needed. This is a huge story because this does not even begin to discount the credit problems…

As the writedowns at global financial institutions near $300 billion in capital lost as a result of the sub-prime crisis, the question as to when we reach a bottom is ever more urgent. Market history tells us that the severity of the bust…

We are months into the credit crisis that began last summer, triggered by the meltdown in U.S. sub-prime lending. The crisis has been much deeper, much wider and longer than most market participants have expected. Yet, until the failure…

I am now updating the information on my Credit Crisis Timeline here:https://www.creditwritedowns.com/credit-crisis-timelineThere have been a tremendous number of economic dislocations during the present financial crisis. Initially written…

The banking crisis in the U.S. is taking on a significant turn for the worse as banks tighten the screws on consumers. With banks facing record writedowns to their equity capital, they are looking to limit their exposure to the mortgage…

Since the housing bubble created a global credit crunch in June 2007 after Bear Stearns announced the collapse of two funds it ran (its High-Grade Structured Credit Fund and its High Grade Structured Credit Enhanced Leveraged Fund), there…

Update: Also see my list of Bankrupt global financial institutions. Recently, the pace of writedowns by major money center banks has increased. UBS announced today it wrote down $19 billion. Deutsche Bank announced today it wrote down $4…

A few days ago Comstock Partners released a Special Report outlining how we got into the economic malaise that is hitting us right now. Their report is spot on in terms of the genesis of our problems being easy money. They also accurately…

Recently, on Mar. 18th, the Federal Reserve lowered the Fed Funds rate to 2.25%. In the accompanying statement, the Fed said the following: "Recent information indicates that the outlook for economic activity has weakened further. Growth…