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Durable goods orders down 4.5%, double expectations
Economists had expected the durable goods report for August 2008 to be weak, but the report showing durable goods orders down 4.5% was much weaker than expected.While I do believe that the United States is in recession and the durable goods…
Covered bonds are not the answer
As Hank Paulson looks to push through his Economic Patriot Act, it bears remembering that just a few months ago he saw Covered Bonds as a potential solution to U.S. problems with declining home prices.
They are not the solution. This…
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…
US unemployment claims way up: consistent with recession
U.S. jobless claims registered an increase to 493,000, bringing the widely followed 4-week average to 462,500, its highest level since just after 9/11. Recently, the jobless claims numbers have been creeping up indicating the labor market…
Congress does need to act on the Economic Patriot Act
If you hadn't been following it, credit markets are still seized up -- even more than when Paulson first presented his bailout plan the Economic Patriot Act for Congressional approval. The fact of the matter is Paulson has shown…
The Paulson plan is not going to make it
The uproar by American taxpayers about the Paulson Bailout plan is likely to torpedo this plan. Even amongst Republican lawmakers, the plan is looking like a complete bust.Just moments ago, President Bush was on TV asking for American…
The Dummy’s Guide to the US Banking Crisis
Whenever I wade into a new topic like digital photography, gardening or what have you, I visit the local bookstore and get a "For Dummies" book to guide me. I figure that it's the best way to get up-to-speed quickly without…
Warren Buffett backs Goldman
By now, you have probably heard that Warren Buffett has made his bet and invested billions of dollars in Goldman Sachs. The market reacted positively and Goldman is now trading at near $133 a share (up 6% on the day).
While I do see…
News round-up: 24 Sep 2008 – in other news
Because it seems like it's all bailout all the time in the news these days, I thought I'd use today's news round-up to highlight a few issues going on outside of the U.S. bailout plan. From my last two posts about the Canadian and Danish…
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,…