Trading Now

Trading Now

Friday, August 21, 2009


*yet the stock market goes up beyond the clouds and commodities continue to rise rise rise
Delinquent home mortgages in U.S. reach record high
The percentage of U.S. home mortgages either going through foreclosure or being classified as delinquent has reached the highest level since records began in 1972, the Mortgage Bankers Association said. In the second quarter, 9.24% of mortgages were delinquent, and 4.3% already were in the process of foreclosure. Prime loans, made to the most desirable borrowers and considered the least risky by lenders, accounted for more than half of the mortgages in foreclosure. Rising unemployment and the recession are driving forces behind the housing crisis, said Jay Brinkmann, chief economist for the Mortgage Bankers Association. The Washington Post (21 Aug.)

*and guess who will be stuck holding the bag on this? That's righhhhhht, YOU! Why do you think we are having our very own stock market bubble? To give the banks lots of your hard earned cash through your ijiot mutual funds dummy...that's who is buying right now, today. Banks get more of your cash to help write off more of their losses and you can thank the US Congress for all your trouble. They let them all get away with it with deregulation and Stock Options and the end to the chinese wall of conflicts.
Commentary: Commercial real estate remains threat
Columnist Steven Pearlstein explains that although the financial system no longer needs as much support as was necessary several months ago, the possible collapse of the commercial real estate market continues to threaten the sector's recovery. Policymakers are tackling the issue by extending emergency programs aimed at bolstering the commercial real estate market. "Hang on -- this financial crisis isn't over just yet," Pearlstein writes. The Washington Post (8/21)

*guess she realized no one but the gov would want to buy
FDIC poised to ease rules on taking over troubled banks
The Federal Deposit Insurance Corp. is striving to lure more buyers for collapsed lenders by easing up on its proposed rules for takeovers by private-equity firms, sources said. The U.S. agency is expected to forgo some parts of a recent proposal, such a provision that buyout firms must maintain substantially larger capital reserves to bid on failed banks. The Wall Street Journal (21 Aug.)

*and just what exactly does the FDIC consider complex? Gauranty Bank, which is expected to be be closed today, has a shitload of MBS on it's books. Thats not complex enough for ya Sheila?
Bank failures seem unconnected with complex derivatives: As more U.S. banks get shut down by the Federal Deposit Insurance Corp., it is becoming clear that most bank failures have nothing to do with investments in complex financial products that bear risks that are difficult for laymen to understand. Today, banks fail the old-fashioned way: They make loans but do not ever get the money back. These loans are going bad at a rate far beyond what banks and regulators imagined. The New York Times (20 Aug.)

*yeah, this I want to see happen
Geithner says White House to consider further stimulus
The Obama administration will look into extending subsidized bond programs and other efforts to spur the economy, said U.S. Treasury Secretary Timothy Geithner. "There's a range of things that we're going to look at as we get into the fall," Geithner said at the site of a school financed by qualified school construction bonds. "The important thing to note is that [the bonds] are really working, and people can see the difference. But we're not yet at the point where we need to make that judgment. We'll take a careful look at that as we get into the fall." Reuters (20 Aug.)

*suckers. So why are you managing my mother's pension money? Down with Corzine.
Pension funds' cash disappears into private-equity deals
After pouring $1.2 trillion into private-equity firms during the past 10 years, U.S. pension funds are growing alarmed at the small amount of cash they are getting back to meet obligations to pensioners. The recession has slashed the value of assets acquired by private-equity funds and closed the door to cashing out through public equity markets. Pension-fund managers increasingly are unimpressed with calculations of internal rate of return that private-equity managers offer to show show successful they have been. "I work for over 400,000 employees, and they can't eat IRRs," said Gary Bruebaker, chief investment officer of the Washington State Investment Board. Bloomberg (20 Aug.)


*is it any wonder why Shanghai stock market going down down down. If Timmy and Helicopter Ben take away our banks cashola flow, you can expect same
Asian markets fall on report that China might tighten lending
Share markets across the Asian-Pacific region fell Friday after a report came out that China is considering tightening capital requirements for domestic banks. Japan's Nikkei 225 dropped 1.4%, Australia's S&P/ASX 200 fell 2% and South Korea's Kospi Composite inched up 0.3%. Hong Kong's Hang Seng Index slid 0.6%, Taiwan's Taiex lost 1.2% and China's Shanghai Composite gained 1.7%. The Wall Street Journal (21 Aug.)

*all the big players have left, why haven't you
Outflows of emerging-market equity funds hit 2009 high
This week, emerging-market equity funds worldwide recorded their biggest outflows of the year, according to EPFR Global. Equity funds in China posted their worst week since early 2008. "China's resilient growth has been a key driver of flows into emerging-markets equity funds in recent months," EPFR said. "During the third week of August, however, doubts about the quality of the loans doled out at breakneck speed by Chinese banks during the first half of 2009 prompted investors to book profits and take some of their recent gains off the table." Bloomberg (21 Aug.)

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