Credit Writedowns

Recently, I have started to shift my focus out of the U.S. and abroad as the subprime crisis has become a global credit crisis. The myth of global de-coupling (assumption that other economies could thrive without the help of the American…

I am wading into this debate over whether or not the U.S. government should temporarily suspend the federal tax on gasoline this summer. I come down on the side against the tax break. Here's why?In a post about Windfall taxes on Tuesday, I…

Updated throughout the dayUSU.S. Loses 20,000 Jobs in April; Unemployment Rate Falls to 5% (Bloomberg, 5/2/2008) Dollar Reserve Status Is Tale of Fading Glory (Bloomberg, 5/2/2008)Bank of America May Not Guarantee Countrywide's Debt…

Updated throughout the dayUSCorrection: Unemployment Insurance Weekly Claims up 35,000 (U.S. Government, 5/1/2008)Unemployment Benefit Rolls Climb to 4-Year High (Bloomberg, 5/1/2008)Recession's here, economist Kasriel says (Wilmette Life,…

Today, I read an article by Robert Samuelson in the Washington Post advising that the U.S. allow drilling for oil in previous no-go drilling zones because the cost of oil is rising. Originally, I agreed with his assessment. Today, I have…

The Lex column in Yesterday's FT highlights what many market players are thinking about the company's £4 billion ($8 billion) rights issue: the economic outlook in the UK is worse than feared."The main potential explanation for the apparent…

This blog entry will serve as a timeline to track housing prices over time as they are reported. US: S&P/Case-Shiller Index 2007 03 27 S&P/Case-Shiller Home Price Index Declined 0.2% 2007 04 24 S&P/Case-Shiller Home Price…

With oil prices edging up near $120 a barrel, isn't it time for a Windfall Profits tax on oil companies in order to alleviate the burden of the high cost of oil? The short answer is no. Let me explain why.

As I predicted on Saturday, HBOS has got caught up in the global mortgage meltdown. Bloomberg reports:HBOS Plc, the U.K.'s biggest mortgage lender, will sell 4 billion pounds ($8 billion) of shares to bolster capital depleted by asset…

Deutsche Bank released earnings that showed a loss for the first time in five years as they wrote down $4.2 billion in equity as a result of the global credit crisis. While Deutsche Bank has got off well because of reduced exposure to…