A Short History of the Credit Boom & Bust

Run don’t walk to read the WSJ page one article on How Credit Got So Easy And Why It’s Tightening.

>

Kudos to Jon and Hilsenrath, and Greg Ip, who has on occasion been on the receiving end of TBP criticism.

>

WSJ: Cheap Money Extends Credit and Risk Expands to Match Charts
click for public WSJ

Wsj_chart_hilsen_2

>

Source:

How Credit Got So Easy And Why It’s Tightening
GREG IP and JON E. HILSENRATH
WSJ, August 7, 2007; Page A1
http://online.wsj.com/article/SB118643226865289581.html

Category: Credit, Derivatives, Finance, Markets, Psychology, Real Estate

Notice to Loan Officers/Brokers

Category: Credit, Derivatives, Psychology, Real Estate

The “Chutzpah” of Bear Stearns

Category: Credit, Derivatives, Economy, Markets, Psychology

Wild Pre-Fed Day: Open Thread

Category: Federal Reserve, Markets, Trading

Giuliani’s Daughter for Obama . . .

Category: Politics

Understanding Credit’s Alphabet Soup

There were a couple of great graphics in the New York Times recently, explaining in some degree of detail, the machinations of the RMBS, CDO and CLO markets.

These are the packaged (and repackaged) holdings that are based upon the sub-prime mortgages that have been defaulting in such large numbers, and have been leading to hedge fund blow ups.

First up: todays front page article by Gretchen Morgenson: Mortgage Maze May Increase Foreclosures.

>

06homegraphic550

Graphic courtesy of NYTimes

>

Next up, the accompanying graphics to Floyd Norris’ The Loan Comes Due:

>

Read More

Category: Credit, Data Analysis, Derivatives, Real Estate

A Closer Look at July NFP (or, true UR = 5.4%)

Category: Data Analysis, Economy, Employment

August Linkfest: Week-in- Preview

Category: Financial Press

Disciplined Investor Podcast: The Stock Market In Disarray

Category: Economy, Financial Press, Media, Podcast

Mashup: Cramer/Fatboy Slim – Right Here, Right Now (No Idea Mix)

Category: Digital Media, Financial Press