Monetary System

With the earnings season only halfway done, it is clear who the big losers are: Merrill Lynch and Citigroup. They have reported over $15 billion in additional writedowns for the quarter. What is increasingly clear is that those who had…

Merrill Lynch reported abysmal financial results yesterday, in marked contrast to JP Morgan Chase. The company was forced to take $9.5 billion in writedowns, leading to a loss in excess of $4.5 billion. The writedowns also forced Merrill…

Below are the latest writedown stories from the web. For the full timeline of news, visit my credit crisis timeline.Also see my list of Bankrupt Global Financial Institutions.2008 07 08 IndyMac Falls After Regulators Say It Isn't `Well…

Remember the money center banks' ludicrous attempt to pretty up those off-balance sheet vehicles via the 'Super SIV?' Well, that was a clear bust. But, the toxic waste in those vehicles is still there. Some of these vehicles have been…

This is just a step en route to nationalization. We are seeing a spiral down that will mean the U.S. Government will eventually step in. These organizations will fail without government support and they are too big to fail.Fannie Mae and…

Back in June, I wrote about financial investors in bank shares having lost $10 billion. Then, I predicted that losses would mount and bank shares will fall. It seems that one part of that equation is true already as bank shares have…

As financial shares take a beating, it is a good opportunity to highlight the differential treatment of accounting for loans and for debentures and securities because this bodes ill for regional banks. FAS 157 The crux of the difference…

This comes from the LA Times: October 7, 2003, Simi Valley In Simi Valley, in 2003, people camped out for the chance to buy a yet-unbuilt condo for about $300,000. Photo Credit: Bob Carey, L.A.Times July 14, 2008, Pasadena…

With IndyMac having gone bust, bank shares tanking, and speculation rampant about who's next, it's time to consider what and how much the FDIC actually insures. This information is available at the FDIC website and I have added a blurb and…

Looking at today's selling wave, a number of bank shares are down over 10% including Washington Mutual (WM), National City (NCC), Wachovia (WB), Zion (ZION). Many other shares are trading well into negative territory with share prices…