More bank writedowns?
Moodys thinks so.
It is the money supply stupid
In the times, Tim Congden explains why inflation is rising rapidly; the BoE allowed the money supply to rise rapidly. "But by mid-2006 the Bank of England ought to have realised that something was wrong. It ought to have known that underlying money growth had accelerated to a double-digit rate and posed an inflationary threat."
Today, the money supply continues to grow rapidly, with much of this additional money being held by households and the financial sector. At the same time, liquidity is being cut off to the corporate sector and potential homebuyers. In short, a simultaneous credit crunch and a huge overhang of money due to the housing bubble. It adds up to a nasty mix of inflation and recession.
A shock interest rate hike this week?
The UK inflation numbers are not getting any better. The so called MPC "balancing act" has only served to weaken the BoE's anti-inflation credibility. Will the bank surprise us with a rate hike?
Saudi inflation hits a 30-year high
Back to the 1970s.
Spain: inflated home valued helped bond sales
Now that the Spanish bubble is collapsing, crashing home values debases Spanish mortgage backed securities. What a mess; how could regulators let banks get away with this kind of behaviour?
Another one bits the dust
"..and another one gone, another one bits the dust". Another US bank is no more, this time in Florida. It is the eighth one this year.
Private equity firms to the rescue
The US banking system is dying, but can private equity firms come flying in like the cavalry to save the day. Private equity firms say they are ready to invest huge amounts in ailing banks — provided the Fed eases up on the regulations that would otherwise apply to such large investments. The New York Times think it is a bad idea.
In case you haven't seen this..
Sit back, relax and watch