Chart of the day: Case-Shiller 2005

Question: Could one see a bubble in housing back in 2005 when house prices were still rising? Well, to answer that question, I took the S&P/Case-Shiller Composite 10 Index and mapped it the rate of inflation. See, Robert Shiller, one…

RBC clients file lawsuit

Royal Bank of Canada joins the list of financial institutions sued by clients over the large losses associated with the credit crisis.The Globe & Mail reports:Royal Bank of Canada has been hit with a proposed class action lawsuit in New…

UBS legal dispute with Paramax

This is a story I caught over at Michael Panzner's site this morning. Apparently Paramax, a hedge fund, entered into a swap arrangement with UBS based on the value of a subprime CDO back in February 2007. Under the terms of the swap, the…

More warnings on regional banks

The President of the Boston Fed, Eric Rosengren, has in effect said that small and regional banks are at risk in the next wave of writedowns for U.S. financial institutions. He sites construction loan exposure in particular as a place to…

Irish property dam about to burst

Along with the residential housing bust in Ireland, a commercial real estate (CRE) bust is definitely on the table. According to the newspaper the Irish Independent up to 10 billion euros of writedowns are possible for the Irish property…

Spain: Week’s News Round-Up

This is a Spanish-language only News Round-Up on the economic situation in Spain from El Pais.Zapatero pisa el acelerador por la crisis¿Crisis? ¿Qué crisis? "Escenario de dificultad", "periodo de ajuste fuerte" o "desaceleración profunda de…

Chart of the day: Real GDP growth

I don't trust the U.S. government's inflation number for measuring real GDP. The annual rate of inflation in this measurement is only 2.2%, while the Consumer Price Index (CPI) is running at a 4.0% clip. That's as large a differential as…

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