fbpx

subprime mortgages

Collateral Reserves: What Is Behind Record Low and Negative Yields

By |2019-08-19T19:27:11-04:00August 19th, 2019|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

It was truly startling when it was announced. The second and more dangerous phase of the Global Financial Crisis had begun on July 15, 2008. Within two weeks, Merrill Lynch had etched its name on the growing list of “troubled” institutions. On July 28, 2008, Merrill Lynch agreed to sell $30.6 billion gross notional amount of U.S. super senior ABS [...]

Lagarde and Germany, How It Keeps Getting Worse

By |2019-07-08T12:17:36-04:00July 8th, 2019|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Maybe this was inevitable. After all, it is how things work in a lot of other places. When all is lost, that last thing that happens is the lawyers come in and pick through the bones. Christine Lagarde has been nominated to replace Mario Draghi as the next head of Europe’s central bank. She has a very long and distinguished [...]

Trade Wars Will Be The New Subprime

By |2019-05-31T16:29:11-04:00May 31st, 2019|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Trade wars are rapidly turning into subprime mortgages. A few billion in tariffs will have wrecked the entire global economy, they’ll claim. Just like all that toxic waste subprime mortgage fiasco led inevitably to the Great “Recession” and global panic. Neither will be true, except insofar as both were symptoms of the far greater cause. The other thing actually responsible [...]

Frozen In Time, The Wrong S-Curve

By |2018-11-05T17:26:29-05:00November 5th, 2018|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

As usual, Paul Krugman starts out with a serious attempt at answers before detouring into his current profession. Dr. Krugman used to be an Economist, and a pretty good one too (for whatever that’s worth). Nowadays, he employs his New York Times column as a mouthpiece for really blatant politicking. It isn’t even so much an arm of the Democratic [...]

BOND ROUT!!!! (Now With Additional Exclamations)

By |2018-03-12T17:50:13-04:00March 12th, 2018|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Ten years ago today, one of Carlyle Group’s mortgage funds, Carlyle Capital Corp (CCC), was seized by creditors. Precipitated by dwindling liquidity, the fund’s effective insolvency would amplify those global “dollar” pressures and lead to Bear Stearns’ untimely demise mere days later. The fund’s corporate parent issued a statement on March 6, 2008, that read: The last few days have [...]

It Starts: Junk Bonds ‘Contained’

By |2016-02-01T18:31:02-05:00February 1st, 2016|Currencies, Economy, Federal Reserve/Monetary Policy, Markets, Stocks|

To an economist, the economy can bear no recession. In times of heavy central bank activity, an economy can never be in recession. Those appear to be the only dynamic factors that drive economic interpretation in the mainstream. And they become circular in the trap of just these kinds of circumstances – the economy looks like it might fall into [...]

Go to Top