Wednesday, August 20, 2008

European money market faces similar problems as the U.S

Bank Lending Survey of the Euro Area
underscores the current stress situation for banks and points to a
tighter credit environment for consumers and corporations alike.


Tuesday, August 19, 2008

Dr. Doom - Two years ago, Nouriel Roubini predicted the current economic crisis. Now he sees things becoming far worse.

Published: August 15, 2008, New York Times Sunday Magazine


On Sept. 7, 2006, Nouriel Roubini, an economics professor at New York University, stood before an audience of economists at the International Monetary Fund
and announced that a crisis was brewing. In the coming months and
years, he warned, the United States was likely to face a
once-in-a-lifetime housing bust, an oil shock, sharply declining
consumer confidence and, ultimately, a deep recession. He laid out a
bleak sequence of events: homeowners defaulting on mortgages, trillions
of dollars of mortgage-backed securities unraveling worldwide and the
global financial system shuddering to a halt. These developments, he
went on, could cripple or destroy hedge funds, investment banks and
other major financial institutions like Fannie Mae and Freddie Mac.


Read on...

Thursday, August 07, 2008