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Financial shares now diving

I am listening to C-Span where the House of Representatives is debating whether to pass the deeply flawed bailout bill that has been crafted on the heels of major disturbances in financial services. Unfortunately, this bill is not going to…

Subprime, Alt-A Delinquencies Rise

Connecticut-based Clayton Homes, now owned by Berkshire Hathaway and called Clayton Holdings, (not to be confused with Clayton Homes, a subsidiary of Berkshire Hathaway)*, has warned that Subprime and Alt-A delinquencies in the U.S. are…

Jim Chanos: short sellers are heroes

I just watched a great clip of an interview Jim Chanos, the famous head of hedge fund Kynikos Associates, did with the FT's Gillian Tett (Hat tip FT Alphaville). Chanos does a very good job of arguing hat short sellers are being unfairly…

Libor-OIS spread at an all-time high

Further proof that the credit markets are on the brink of systemic collapse is the fact that the widely followed risk spread Libor-OIS is at a record high. In the year before August 2007 when the credit crisis began, this spread averaged 8…

Canadian housing crisis warning

Canada, along with Australia, ranks as one of the two last major bubble markets to remain relatively immune to the types of house price falls we have seen in the UK, Ireland, the U.S. and Spain. Yes, there has been some damage in Alberta,…

Dollar weakness

The serial bailouts by the U.S. government and Hank Paulson's $700 billion bailout proposal have had very negative repercussions for the U.S. Dollar. The dollar is down against all major currencies, as well as gold, silver and oil. It…

The TED spread through the roof

Risk in the financial markets is high. I know, that's an obvious point. But, seriously, risk is very high. The TED spread is now at its highest since October 1987. And you remember October 1987, right?The TED in TED spread stands for…

After a 500 point loss, where next?

It's 8AM on the morning after a 500 point loss on the Dow. It could have been a lot worse, honestly. So I'm happy to have gotten away with that. Nevertheless, trading in Asia was not exactly confidence building with the Nikkei 225 down…

Brace yourself!

In case you missed it, the financial system in the U.S. is near collapse. This weekend was unbelievable. Lehman Brothers filed for bankruptcy. The world's largest insurer AIG is looking for the Fed to help it avoid collapse and Merrill…

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