JPM had great profits but its loan losses are still knee deep in....But the stock market will likely hit 10,000 and then some this week regardless. I should start writing my creditors and clue them in on the fact that they can get their money back when I have a better year, which will likely be five years from now, so until then....
Intel earnings, Chinese data boost Asian markets
Markets in Asia mostly were higher Wednesday after Intel announced better-than-expected results for the third quarter and China reported an increase in exports. South Korea's Kospi Composite and China's Shanghai Composite rose 1.2%. Australia's S&P/ASX 200 gained 1%, Hong Kong's Hang Seng Index climbed 2% and Taiwan's Taiex advanced 1.3%. Japan's Nikkei 225 slipped 0.2%, New Zealand's NZX 50 went up 0.5% and shares in the Philippines were little changed. The Wall Street Journal (14 Oct.)
*unfortunately so true. Too many people in a global world marketplace. There has to be weapons of mass destruction in finance. Get used to it. It is what makes the world go round for all time. Like love. And with it in all its glory, both good and bad.
Commentary: Revival of securitization market is necessary
Columnist Emily Barrett writes that government officials and central bankers worldwide are in a delicate balancing act to ensure economic recovery. In the U.K., Europe and the U.S., the securitization market needs to make a comeback for lending to consumers and companies to return to normal. However, reform in the market is necessary for long-term health of the industry, Barrett writes. The Wall Street Journal/Dow Jones Newswires (10/13)
*I told you we would bebailing out the commercial mortgage market next. After that will be the soon to be escalading defaulting of the municipal bond markets for all fifty states. Ijiots have no idea what monster they have created. Imagine a Trillion dollars having no value. Peter Cooper Stuvesant(spelling) is about to implode. they all better hurry up. And on the heels of CIT no less. Thank god for CDS is all I have to say.
Regulators aim to help banks modify commercial mortgages
U.S. banking regulators plan to issue guidelines to help lenders modify loan agreements on commercial real estate as losses on souring mortgages pose a threat to the financial institutions. Leaders of the Federal Deposit Insurance Corp., the Office of Thrift Supervision and the Office of the Comptroller of the Currency will explain the situation to the Senate banking committee. "The most prominent area of risk for rising credit losses at FDIC-insured institutions during the next several quarters is in [commercial real estate] lending," said FDIC Chairwoman Sheila Bair. "Prudent loan workouts are often in the best interest of financial institutions and borrowers." Bloomberg (14 Oct.)
*China wants a seat at the IMF table. Remember when China was the world trader supreme? History does have a way of repeating itself. Rosetta Stone hear I come?
China bolsters dominant position in world tradeChina is making effective use of the economic downturn to overtake competitors and lock in a dominant position in world trade, economists said. This year, China replaced Germany as the world's biggest exporter. About the same time, China swept past Canada as the No. 1 supplier of imported goods to the U.S. Of imports entering the U.S. during the first seven months of this year, 19% originated in China. For the comparable period last year, the figure was slightly less than 15%. The New York Times (13 Oct.)
*people better wake up to the fact that we will need more of these not less for the future. Like it or not.
Carlyle's Rubenstein: Private equity helped make financial bubble
Private-equity funds definitely contributed to the financial bubble that eventually triggered the collapse of credit markets, said David Rubenstein, co-founder of The Carlyle Group. "Private equity contributed to the problem," he said. "I think we made some mistakes ourself." Rubenstein told a private-equity conference in Dubai, United Arab Emirates, that the sector will rebound but in a different form, with smaller funds and greater transparency. The Washington Post (14 Oct.)
*have you learned nothing? When everyone else is buying YOU SELL SELL SELL!
Investors afraid of inflation in U.S. snap up TIPS
Anticipating inflation, investors are increasingly pouring money into U.S. Treasury Inflation-Protected Securities. Overall, Treasuries have lost 2.8% this year, but TIPS have gained 7.9%, according to data from Merrill Lynch. "Investors are really taking the long view and trying to hedge inflation risk," said Mihir Worah of Pacific Investment Management Co. "That's the biggest reason why we're seeing the flows." Bloomberg (13 Oct.)
*what will this do to mortgage rates and ARMs?
Libor's dramatic fall prompts questions about its rise
Most market observers agree that the London Interbank Offered Rate, which is at a record low for sterling, euro and U.S. dollar, cannot drop much more, prompting speculation on when it will start increasing and what that means to the broader economy. "If there is any weakening in confidence in the market and we see higher levels of risk aversion, Libor rates could well move higher again," said Don Smith, an economist at Icap. "That wouldn't be very helpful for the economic outlook. It may become necessary for the Bank of England and European Central Bank to cut official rates still further." Financial Times (tiered subscription model) (14 Oct.)
Moody's says Spanish banks are not recognizing scale of losses
Moody's Investors Service said Spanish financial institutions are failing to set aside enough capital to cover mounting losses, which could hinder growth in the sector. The credit rating agency estimated that loan losses will reach €108 billion, and banks are not provisioning enough. "We remain concerned that many banks appear to be avoiding recognizing the true scale of the asset-quality deterioration in their books, which could result in the banking sector remaining weak unless this is addressed more decisively," said Maria Cabanyes, lead Spanish banking analyst at Moody's. The Wall Street Journal (14 Oct.)