SubscribeEuro Basis Swaps Nearing Crisis Levels (Chart)
August 15, 2011
Bloomberg had a very interesting story and a target to watch as the EuroZone crisis continues to roll along…
Aug. 15 (Bloomberg) — The premium European banks are paying to borrow in dollars through the swaps market is at the most extreme level since the credit crisis of 2008, signaling the rout in equities may have further to go, according to Christopher Street Capital. The CHART OF THE DAY shows the cost of converting euro-based payments into dollars as measured by the three-month cross-currency basis swap, which CSC’s Conor Howell said is key for measuring the “true euro-zone liquidity crunch.” It last week fell Read more
EuroBanks – Have You Seen The Carnage?
August 10, 2011
European banks are in bad shape – and this is being VERY kind. With all of the problems that the sovereign nations are facing, the stress on the banks has been increased. Austerity is by far not a good solution for the banking industry. A sovereign default is definitely not beneficial. Cuts to credit ratings is unhelpful. High unemployment cuts into their profits. Basel rule implementation hurts profitability…and so on.
If you have not seen the actual losses for investors in many of the banks within the EuroZone, here it is. Not a pretty sight.
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The average return, year to date is NEGATIVE 26%. Amazing that markets have just started to correct over the past month or so and banks have been in a correction since the beginning of 2011. That in itself was a nice clue that something was not right under the surface.
TDI Podcast 220: Bunker Drill! Post QE Armageddon Alert with Jeff Cox
July 13, 2011
Guest: Jeff Cox will tell us why there there is a host of ugliness that will appear once the QE is completed. He tells us that the US is 
heading toward an unavoidable financial catastrophe that will paralyze the markets and the overall economy. Some call this impending economic catastrophe a double-dip recession, others a financial Armageddon. Regardless of what it’s called, it is too late to stop it. BUNKER DRILL! Really?
Read more
Housing Double Dip…Or Triple…Or…
January 25, 2010
There were few reports out this morning which is probably why markets felt the need to rise. Of course the relief that investors felt as the confirmation of Fed Chairman Bernanke was back on track. (Note: the latest naysayer is reported to be Senator John McCain)
Whatever the cause of the market’s jubilation, it was definitely not the housing numbers that were released. These confirm what we had been seeing in the construction numbers earlier in the month. Even though there is some evidence that prices have moved higher on a year-over-year basis, it is from the low-point.
Until we see Read more
Video: Neel Kashkari on Charlie Rose
May 13, 2009
It as back in the spring of 2007 that the Treasury knew we were in a housing bubble. Seems the Treasury watched the market to see how bad it was going to get before anyone was informed that there was something BIG brewing.
Key comment by Kashkari …”This crisis has always longer and deeper than we expected”
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