Posts filed under “Credit”

Combined Value of Leading Credit Sources

Today’s chart-porn is this depiction of the tightening credit cycle from a front page NYT article.  The chart itself was too salacious for the front page, and had to be buried deeper into the paper . . .



chart courtesy of NYT


As Lenders Tighten Flow of Credit, Growth at Risk
NYT, November 29, 2007

Category: Credit, Derivatives, Finance, Financial Press, Technical Analysis

Inflation? What Inflation?

A tale of two headlines:

Inflation Fears Hit Eurozone


Goldman Sees Funds Rate Cut to 3%

Won’t someone please explain this to me?

How is it possible that the regions of the world with strong currencies — like Europe, U.K., Australia, and Canada — are having inflation problems. And yet at the same time, the nation having a record low currency — i.e., the United States and our Dollar — doesn’t seem to either inflationary pressures (At least according to official CPI data). And we seem to have little concern about further currency induced price increases.

Am I the only person who finds this incongruent?

If Goldman Sachs is correct, and the Fed does eventually cut rates to 3% — what might that mean for various dollar priced commodities like Oil & Gold?

Probably very little — if (and this is a big IF) we are in the throes of a recession. But what if the Bulls are right, and this is merely a mild mid cycle correction?

A 3% Fed rate could mean Oil at $150 and Gold at $1200.

Excerpts after the jump . . .



Inflation fears hit eurozone

By Ralph Atkins in Frankfurt and Krishna Guha in Washington
FT, November 27 2007 18:02

Goldman Sees Funds Rate Cut to 3%
Greg Ip
WSJ, November 27, 2007, 9:26 am


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Category: Commodities, Credit, Derivatives, Economy, Energy, Inflation

Prices Fall, Inventories Rise, NAR Spins

Category: Credit, Data Analysis, Psychology, Real Estate

More Off-Balance Sheet Risks: Conduits

Category: Corporate Management, Credit, Derivatives, Earnings

Citibank Receives Emergency Cash Injection

Category: Contrary Indicators, Corporate Management, Credit, Derivatives, Earnings, Finance, Markets, Technical Analysis, Trading

Subpar Scorecard

Category: Credit, Derivatives, Earnings, Valuation

2008 Housing: Increased Defaults, Decreased Prices

Category: Credit, Derivatives, Real Estate

David Einhorn on Credit Agencies

Category: Corporate Management, Credit, Derivatives, Real Estate

The Abysmal Track Records of Moody’s, Fitch and S&P

Category: Credit, Derivatives, Real Estate, Taxes and Policy

Quote of the Day: Dick Green

Category: Credit, Economy, Financial Press