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  • Just How Many Muni Defaults Are There?
    there were 84 defaults last year This is surprising because Standard Poor s says there were just three defaults last year Fitch says there was just one What the heck is going on Very clearly it s not easy to obtain reliable information on the condition of muni bonds The markets generally rely on credit rating agencies for these numbers The major raters employ hundreds of municipal analysts so I

    Original URL path: http://www.911omissionreport.com/muni_defaults.html (2016-02-14)
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  • Whitney Defends Her Prediction of ‘Hundreds of Billions’ in Muni Defaults
    she said The states then are cutting off aid to their local governments which rely on them for over a third of their monies The local municipalities have nowhere to go and their bias is to save their constituents before they save their bondholders Whitney who heads New York based Meredith Whitney Advisory Group LLC told CBS Corp s 60 Minutes on Dec 19 that municipal bond investors could see 50 sizable defaults 50 to 100 sizable defaults more that will amount to hundreds of billions of dollars worth of defaults Her prediction accelerated the flight of investors from municipal bond funds and a decline in bond prices There s nothing controversial about that call if you look at the numbers she said today later adding This municipal issue you can criticize me for anything you want I m numb to it because I have more conviction on this than I ve had on any single thing in my career Solomon Disagrees David Solomon co head of investment banking at Goldman Sachs Group Inc speaking on the same panel as Whitney said he disagreed I don t think we re doomed he said I d be more balanced on it

    Original URL path: http://www.911omissionreport.com/muni_defaults2.html (2016-02-14)
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  • America is going broke! Federal Reserve official's fear as Libya missiles cost $100 million in just ONE day
    seen by economists as one of the most hawkish policymakers within the Fed told CNBC that he believes the central bank has done enough to pour liquidity into the markets He said Our job is done Now the pressure and the job is in the hands of our elected representatives who have the only power to tax and spend Mr Fisher warned there were signs that the speculative style of trading that had helped fuel the financial crisis was beginning to resurface We are seeing speculative activity that may be exacerbating price rises in key commodities such as oil he said Oil prices hung near 105 a barrel this morning Oil has jumped 24 per cent since February 14 as violent protests rock the Middle East and North Africa Mr Fisher added that it was too early to gauge the impact Japan s disasters and the rising tensions in the Middle East would have on the U S economy Last night it was estimated that the Japan disaster would cost in excess of 300billion Todd Harrison a senior fellow at the Center for Strategic and Budgetary Assessments was reported yesterday as saying that the U S cost in Libya could easily pass the 1 billion mark on this operation regardless of how well things go He calculates the initial cost of taking out the Libyan regime s coastal air defences could cost coalition forces between 400 million and 800 million He believes that maintaining a no fly zone in the country would cost between 30 million to 100 million a week The Pentagon has contingency reserves to deal with military emergencies but critics claim they will only be robbing Peter to pay Paul The Pentagon already has plans to cut 78billion in defence spending over five years and is delaying

    Original URL path: http://www.911omissionreport.com/america_is_broke.html (2016-02-14)
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  • Banks' $4 trillion debts are 'Achilles’ heel of the economic recovery', warns IMF
    facing a looming funding shock that will need state support Nearly 4 trillion of bank debt will need to be rolled over in the next 24 months the report says Planned exit strategies from unconventional monetary and financial support may need to be delayed until the situation is more robust especially in Europe With the situation still fragile some of the public support that has been given to banks in recent years will have to be continued Although the IMF does not mention individual countries it is clear it has concerns about the UK According to the Bank of England British banks need to refinance 750bn 800bn of funding by the end of 2012 285bn of which is emergency support that expires in the same period The IMF adds Without further bolstering of balance sheets banking systems remain susceptible to funding shocks that could intensify deleveraging pressures and place a further drag on public finances and the recovery The report welcomed banks efforts to recapitalise noting that the average tier one ratio rose above 10pc in 2009 but cautioned that despite these improvements banking system risks are more elevated today Europe s financial system in particular remains vulnerable to downside risks and further funding strains if capital buffers are not strengthened the IMF said naming the regional Cajas of Spain and Landesbanken in Germany Even US banks may need an extra 13bn of capital if real estate prices fell significantly The research shows that the UK has been relatively prudent on bad debts and capital having wirtten off all but 50bn of the bad debts identified by the IMF just 10pc of the total The IMF also called for urgent global co ordination of banking reforms chiding regulators for having failed to agree on the details The sooner reforms can

    Original URL path: http://www.911omissionreport.com/banks_4trln_debts.html (2016-02-14)
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  • Number of the Week: $10.2 Trillion in Global Borrowing
    according to estimates from the International Monetary Fund That s up 7 from this year and equals 27 of their combined annual economic output Aside from Japan which has a huge debt hangover from decades of anemic growth the U S is the most extreme case Next year the U S government will have to find 4 2 trillion That s 27 8 of its annual economic output up from 26 5 this year By comparison crisis addled Greece needs 69 billion or 23 8 of its annual GDP So far with the notable exception of Greece major advanced nations haven t had too much trouble raising the money they need Japan s domestic investors have consistently bought its government bonds despite their low yield Foreign investors have been snapping up U S Treasury bonds which remain the world s premier safe haven investment Still there s reason to be concerned that governments appetite for borrowing could ultimately push up interest rates or worse For one government borrowers are tapping into smaller international capital flows The total amount of foreign portfolio investment sloshing in across advanced countries borders averaged about 3 8 of global GDP in the twelve months ended June compared to an average 9 5 in the eight years leading up to the recession Beyond that the U S and other advanced nations are putting pressure on China to allow its currency to appreciate against the dollar All else equal such a move would curb demand for dollar denominated debt from a country that is the largest foreign holder of U S Treasurys In the U S domestic investors could pick up the slack The Federal Reserve has committed to buy an added 600 billion in U S government debt over the next eight months Demand from households

    Original URL path: http://www.911omissionreport.com/10trillion.html (2016-02-14)
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  • World needs $100 trillion more credit, says World Economic Forum
    credit hotspots where too much lending takes place as the world emerges from a financial catastrophe blamed in large part to the failure of the financial system to detect and constrain these areas of unsustainable debt Pockets of credit grew rapidly to excess and brought the entire financial system to the brink of collapse said the report written in conjunction with consulting firm McKinsey Yet credit is the lifeblood of

    Original URL path: http://www.911omissionreport.com/100trln_more.html (2016-02-14)
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  • Now we know the truth. The financial meltdown wasn't a mistake – it was a con
    favoured If the Securities and Exchange Commission s case is proved and it is aggressively rebutted by Goldman the charge is that Goldman s vice president Fabrice Tourre created a dud financial instrument packed with valueless sub prime mortgages at the instruction of hedge fund client Paulson sold it to investors knowing it was valueless and then allowed Paulson to profit from the dud financial instrument Goldman says the buyers were among the most sophisticated mortgage investors in the world But this is a used car salesman flogging a broken car he s got from some wide boy pal to some driver who can t get access to the log book Except it was lionised as financial innovation The investors who bought the collateralised debt obligation CDO were not complete innocents They had asked for the bond to be validated by an independent expert into residential mortgage backed securities a company called ACA management ACA gave the bond the thumbs up on the understanding from Fabrice Tourre that the hedge fund Paulson were investing in it But the SEC says Tourre misled them a pivotal claim that Goldman denies The reality was that Paulson was frantically buying credit default swaps in the CDO that would go up in price the more valueless it became a trade that would make more than 1 billion Worse Paulson had identified some of the dud sub prime mortgages that he wanted Tourre to put into the CDO If the SEC case is true this was a scam nothing more nothing less Tourre could see what was coming In one email in January 2007 he wrote More and more leverage in the system The whole building is about to collapse anytime now only potential survivor the fabulous Fab rice Tourre standing in the middle of all these complex highly leveraged exotic trades he created without necessarily understanding all of the implications of those monstrosities Fabulous Fab like his boss will not be feeling very fab today The cases not only have a lot in common using financial complexity allegedly to deceive and then using so called independent experts to validate the deception lawyers accountants credit rating agencies portfolio selection agents etc etc but they also show how interconnected the financial system is In Iceland Citigroup and Deutsche Bank covered the margin calls of distressed Icelandic business borrowers deepening the crisis Lehman uses the lightly regulated London markets and two independent British experts to validate that their Repo 105s were genuine trades and not their own in house liability The American authorities pursued a Swiss bank over aiding and abetting US nationals to evade tax Bankers will complain these cases all involve one or two misguided individuals but that most banking is above board and was just the victim of irrational exuberance misguided belief in free market economics and faulty risk management techniques Obviously that is true but sadly there is much more to the crisis Andrew Haldane executive director of the Bank of England highlights

    Original URL path: http://www.911omissionreport.com/meltdown_wasnt_mistake.html (2016-02-14)
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  • Apollo Swoops In On Bank's Fire Sale
    in the marketplace at more realistic prices said Paul Fuhrman an executive at private equity firm Colony Capital LLC which has been buying distressed loan portfolios We are definitely seeing the banks loosen up Major loan sale advisers say they also have seen a large uptick in business A CB Richard Ellis Group Inc executive Brian Stoffers said at a November conference that the real estate brokerage s loan sale activity was up nearly 90 through the third quarter compared with the same period last year Loan sale advisory firm Debt Exchange Inc has sold commercial real estate loans on behalf of 38 different financial institutions since early October compared with 19 in the last three months of 2009 according to Chief Executive Kingsley Greenland Many banks are getting more aggressive Mr Greenland said Not only are they marking the assets appropriately but they re actually moving to dispose of the assets Small banks which have heavy commercial real estate exposure across the U S are also seeing the market for their bad loans open up Sun Bancorp Inc based in Vineland N J with 3 6 billion in assets announced last week that it sold an 87 million portfolio of commercial real estate loans to a group of investors for 55 million Private equity firms such as Apollo Colony Lone Star Funds and Starwood Capital Group have raised billions of dollars from pension plans college endowments and sovereign wealth funds to buy souring real estate loans on the cheap One strategy acquire a large portfolio and then rework each loan individually profiting after taking over the property or restructuring the loan Some of these firms have been buying portfolios from the Federal Deposit Insurance Corp which has been taking over failed banks and has sold more than 22 billion

    Original URL path: http://www.911omissionreport.com/fire_sale.html (2016-02-14)
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