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Tag Archives: Bear

Is the next global crisis beginning?

It’s very helpful to see this chart. Data points like this show the extra risk that investors believe Greek debt represents. In September, 2008 when Lehman failed the global credit markets froze. Note how that impacted the the risk premium for Greek debt. FT Alphaville pointed to comments made by the Bank of France governor, […]

Liquidity risk is the risk that a given security or asset cannot be traded quickly enough in the market to prevent a loss (or make the required profit).

Money Market Black Swan Liquidity risk is the risk that a given security or asset cannot be traded quickly enough in the market to prevent a loss (or make the required profit).  Learn lots more about liquidity and financial markets reform here at Riski … (Hattip ZeroHedge)

Waiting for the light

The SEC approved additional rules for credit rating agencies yesterday. This follows on numerous rulemakings over the past several years… Kudos to the Commission and staff for their effort to shape rules for this space. Credit rating agencies lie at the nexus of credit markets. Their “opinions” determine pricing and credit availability  for all rated entities. […]

Regulating derivatives

I attended the House Committee on Financial Services Capital Markets Subcommittee hearing today… the topic was the oversight of derivatives… lots of discussion about the failure of AIG and what happened there too… It is more clear to me than before that legislators need systems to share information to effectively  legislate regulation for financial markets … yes […]

Vigilante silencioso

From Chicago Public Radio… This American Life… ~~~~ Since Congress hasn’t held 1930’s-style hearings into the causes of the financial crisis, we stage one of our own.  The subject? The regulators and watchdogs who were supposed to be overseeing the banks and the finance industry—to make sure things wouldn’t blow up like they have.  Clearly […]

The silent CDS wreckage

The aftermath of the Credit Panic of 2007-2009 includes the destruction of large swaths of the global financial system. Good riddance to excessive leverage, the structured finance market and the shadow banking system… you brought us nothing and left us with an expensive pile of too-big-too-fail wreckage… A war to establish the contours of the […]

Conflict supposition

~~~~”McDaniel this month defended the credit raters’ issuer-pay model at an SEC roundtable in Washington, saying that investors can pressure ratings companies just as easily as underwriters….”*~~~~ This will become the central argument in defense of the “issuer pay” model for credit ratings agencies…. The SEC receives information from credit rating agencies as part of […]

ra ra ra rating shopping

Everyone has missed the main point of the problem of the Federal Reserve mandating the use of ratings from Moody’s, S&P and Fitch for the TALF program … the problem is rating shopping… Which means that issuers of the securities that the Federal Reserve is buying have shopped around for the best ratings… selectively disclosed […]

TARP for Dummies

TARP for Dummies View more presentations from catelong. (tags: tarp us treasusry)

Wall Street meltdown

PBS broadcasted a Frontline special called “Inside the Meltdown” that retells the story behind the current credit meltdown we are experiencing. As with many Frontline pieces, this is well done. Here is the video (60 minutes long):