Monthly Archive:: December 2007

Nouriel Roubini Break Up

Nouriel Roubini Professor of Economics at New York University’s Stern School of Business, breaks it up for us as to how ugly it is out there. Initial claims for unemployment benefits now at their recession level signaling the beginning of a serious slack in the labor market. Durable goods order falling –

Is This The Bottom For Housing Stocks ?

The housing market is definitely in deep recession. Every now and then pumpers try to convince retail investors that housing has bottomed, and this is the time to start buying housing stocks. CNN Money covers an article stating how experts completely got housing wrong. Another interesting article about the bottom can be

Drawing Attention: A Weak Dollar

A weak dollar could draw more attention in the coming year. The dollar’s slide against other major currencies in recent years has helped drive up prices for energy and food and in turn contributed to the economic hardship some consumers face. A further drop in the dollar in 2008 could spell more

Consumer Spending Up, But Is It Good Or Bad

Consumer spending is closely watched because it accounts for two-thirds of total economic activity. Consumers put aside worries about slumping home sales and soaring gasoline prices and headed to the malls in November, pushing spending up by the largest amount in 3 1/2 years. Consumer spending surged by 1.1% last month, nearly

All Signs Point To A Recession

The index of leading economic indicators fell for the third time in four months in November, signaling an increasing risk of a U.S. recession. The deepest housing slump in 16 years is likely to worsen as foreclosures mount and banks restrict lending, economists said. Declining property values and rising energy costs may

Why Its Time To Be A Bear

Financials SlideGoldman Sachs Group (GS). on Tuesday gave a cautious outlook for Wall Street in 2008 because of the ongoing credit crisis, even as the world’s largest investment bank chalked up another record-breaking year. During Q4, Goldman’s $3.17 billion profit was fueled by higher investment banking fees, one-time asset sales, and surprisingly

More Trouble Ahead For Financials

Bank of America said its provisions against loan losses would come to $3.3 billion in the fourth quarter amid deterioration in consumer real estate and small business loans. Bank of America’s capital ratios continue to decline, and the bank may not resume stock buybacks until 2009. Wachovia, the fifth-largest U.S. bank by

We’re Heading Toward Financial Chaos

We are only at the beginning of the financial world coming to its senses after the bursting of the biggest credit bubble the world has seen. Everyone seems to acknowledge now that there will be lots of mortgage foreclosures and that house prices will fall nationally for the first time since the

The Power of Rate-Cut

Swiss banking giant UBS warned today that it will write down the value of its subprime mortgage holdings by a further $10 billion, leading to a loss in the fourth quarter and potentially wiping out all its profits for the year. Bank of America Corp. said today that it’s shutting a $12