Bailout and Financial Crisis News

Note: This article originally appeared on the author’s blog. The market value of the high yield FINRA-BLP Active U.S. Corporate Bond Index relative to its investment grade counterpart has now exceeded the level seen in May 2007, at the peak of the credit bubble.   If you ask me, it looks like risk-taking is back [...]

(This guest post previously appeared at the author’s blog) The Chinese new year has only just started, and already trade tensions are ratcheting up. This is perhaps appropriate — astrologers tell us that the year of the Tiger is often a year of instability and conflict — and I suspect things will almost certainly get worse. [...]

(This guest post previously appeared at the author’s blog) China has been and remains the strongest leg of the economic recovery.  While most other countries remain entangled in a weak recovery or no recovery at all, China’s economy appears to have surged back to its pre-crisis growth rates.  But as the old saying goes, if it [...]

“Dick Fuld is going to be bankrupted and he’s going to spend the rest of his life in court fighting legal battles. There maybe others forced to do the same.” -Dick Bove of Rochedale Securities. Bove had  all nine volumes of the examiner’s report printed and bound. (Barrons) > As it turned out, Lehman Brothers was the firm [...]

This week we do some review on a very important topic, the velocity of money. If we don’t understand the basics, it is hard to make sense of the hash that our world economy is in, much less understand where we are headed. But before we jump into that, I want to let my Conversations subscribers [...]

(This guest post previously appeared at the author’s blog) Love ‘em or hate ‘em few have ridden the recovery rally as well as JP Morgan’s equity team.  They continue to trade the rally from the bullish side (and the correct side).  They say the strength of the recovery is underestimated and skeptical investors will slowly continue [...]

In January 2009, Malcolm Dorson’s boss at Deutsche Bank laid him off. Now he’s back on Wall Street, working in the private bank of a multi-national financial services firm. He’s also a (self) published author. “Everyone has a book in them,” he told Business Insider. Dorson’s first book, Octopus Summer, is about Callum Littlefield, a privileged young [...]

(This guest post previously appeared at the author’s blog) 1) Complacency – Complacency levels are getting extremely high as the fears of 4 weeks ago quickly shift to greed.  This has been most notable in the very bullish posturing of US portfolio managers (see here) and the Volatility Index.  Portfolio managers are now sitting on record [...]

(This post previously appeared at the author’s blog) The household balance sheet remains the primary concern with regards to the economic recovery.  The latest data from the Federal Reserve on consumer credit showed the first expansion in credit in 12 months.  While many view this as a positive I remain skeptical of the sustainability of the [...]

Is Wall Street Investment Bankers Inc. just a “straw man” real estate investment fraud? Yesterday, we noticed their ads on CNBC promising between $20,000 and $200,000 a month from real estate investments with “no upfront or investment cost.” That sounded too good to be true. A quick examination of the company’s website, address and contact phone only raised [...]

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