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Tag Archives: credit

Extend and pretend round II

Ross Levine and Glenn Loury of Brown University argue that the 2007-2009 financial crisis is repeat of the S&L crisis  “extend and pretend” treatment of bank solvency. Expect this to become a meme soon… cause it’s true… And another important critique of extend and pretend at ZeroHedge… a comparison to the Latin debt crisis and […]

Banqueros en acción

From the IMF’s World Economic Outlook… “A Policy-Driven, Multispeed Recovery“… ~~~ “Driving the global rebound was the extraordinary amount of policy stimulus. Monetary policy has been highly expansionary, with interest rates down to record lows in most advanced and in many emerging economies, while central bank balance sheets expanded to unprecedented levels in key advanced […]

good indicator of the extent of stress in the credit markets

  Mr. Robert Barro, a Harvard economist, makes many interesting observations about the current economic crisis, the Great Depression, fiscal policy, the role of the Federal Reserve and conventional wisdom… But my attention was drawn to his analysis of credit spreads as an indicator of economic stress… I think the Fed now uses other more sophisticated […]

Feel the healthy “bankerness”

Approximately 8,000 banks in our country are healthy, solvent and in a position to fulfill their role in the economy and lend… We have framed the debate about the “credit crisis” in a way that overlooks the fact that the vast majority of financial institutions are well capitalized… toxicity and insolvency are concentrated in a […]

Angels hide their faces…

The credit markets flow into 2009… many issues are rolling over from 2008… There is general agreement that the major credit rating agencies misrated entire classes of securities leading up to the Credit Crisis of 2007-2008… CDOs were overrated and municipals were generally underrated… The raters have undertaken some reforms and the SEC has issued […]

Ready comparisons

   I attended the Securities and Exchange Commission (SEC) open meeting for adoption  of the Final Rules for credit rating agencies in Washington yesterday … these are the rules which regulate Standard & Poors (MHP) , Moody’s (MCO) and Fitch. I’ve been writing comments to the SEC on this issue since 2003 and it’s amazing to […]

Bringing light to dark markets…

Creating transparency in the fixed income markets View SlideShare presentation or Upload your own. (tags: fixed income)

Lending algos…

eBay is acquiring BillMeLater for $ 945 million… that is a healthy price… especially given current market conditions… what is the business model? From Techcrunch… ~~~~ ” The problem is people who can’t afford to pay for things are financing things. If you have the proper controls, you don’t allow that to happen. We don’t […]

Rich yields…

I borrowed this chart from EconomPicData to mention the investor paid credit rating agencies… remember those raters who are not paid by the issuers? This should be the glory days for Creditsigts and other credit rating agencies (NRSROs) who are paid by investors to be neutral parties to the analyze the creditiworthiness of bonds… If […]

Turmoil in US Credit Markets…

Title: Turmoil in US Credit Markets: Recent Actions Regarding Government Sponsored Entities, Investment Banks and Other Financial Institutions Date: 9/23/08 Time: 9:30 AM Place: SD-G50 Dirksen Senate Office Building