Moving to a New Site: Subprime Insight

To all the readers of this new blog:

I’m writing to inform you that this blog will no longer be updated and will be transfered to: www.subprimeinsight.com

Same people, same thoughts, just a different brand. Apparently some people can’t read disclaimers so we’re moving to a more lax environment.

Jim Cramer: Fed will cut because it has to

 Maybe people will listen to Jim:

“So for the millionth time, I will spell it out: The easings have everything to do with crisis and nothing to do with growth. Of course they are inflationary. But the crisis has to be averted. I would also argue, unlike the people on the Fed, that we are in a “deflationary” spiral not an inflationary one, because a deflationary spiral is what happens when your most important asset, your home, declines in value.”

Source: Bloggingstocks

Read the post.  

Dawn Bennett Sees `Treacherous Battle’ in Credit Market

Feb. 4 (Bloomberg) — Dawn Bennett, who oversees $1 billion as chief executive officer of Bennett Group Financial Services, talks with Bloomberg’s Rhonda Schaffler in New York about the U.S. economy, fiscal and monetary policy, the U.S. credit market and her equity and commodity investment strategy. President George W. Bush sent Congress a $3.1 trillion federal budget today that trims Medicare and health care programs, boosts military spending and projects the deficit this year and next will hit near-record levels. (Source: Bloomberg)

Dawn Bennett recommends some common sense economic solutions: Like a sound currency.

Watch the video by clicking the link on the left.

“Euros Accepted” signs pop up in New York City

As if the dollar didn’t need any more downward pressure: Reuters is reporting that New York shops are now accepting Euro’s. This after Dawn Bennett, a couple of days ago on Bloomberg, mentioned talk of dual currencies in the future.

 Actual Article

The US is Turning Japanese

The Financial Times is beginning to see the light. Watch The Financial Times talk about the markets recent activity.

The Short View

The US is not worried about inflation. It’s worried that it does not have enough tools to stave off deflation.

Kleintop of LPL Expects Stocks to Rally `Fairly Quickly’

February 6 (Bloomberg) — Jeffrey Kleintop, who helps manage $237 billion as chief market strategist at LPL Financial Group, talks with Bloomberg’s Brian Sullivan from Boston about the outlook for the U.S. stock market, comparisons between the current environment and the market situation in 1998, and some of Kleintop’s industry picks. (Source: Bloomberg)

Watch the Video.

Summary:

Kleintop sees a turnaround in the market in as soon as 6 weeks. He compares today’s problems to 1998 when we had LTCM (Long Term Capital Management) blow up and the Asian currency crisis.  He says this is a “mid-cycle” slow down. Any thoughts?

Wilbur Ross Speaks out on the Economy

In a video on Bloomberg labeled under Senator, “Dodd Says Bernanke Committed to Use `Tools Available,” Bloomberg actually features Wilbert Ross Chairman, WL Ross & Company.

 

Notable Quotes:

Wilbur Ross:

“Half of all new property listings in California are now foreclosures.”

Bloomberg Anchor:

“Wow, that’s scary.”

 

Wilbur Ross:

“People were using there home as an ATMs but they were really using it as a borrowing type ATM to consolidate debt… but now that’s gone.”

 

Bloomberg Anchor: “Can Fed Cuts help?”

Wilbur Ross: It helps in lowering borrowing costs for banks and lowering the resetting interest rates on mortgages. It does not help in liquidity. Liquidity is a physiological phenomenon. For years, every lender was lending to everyone. Now, every lender is lending to no one. Even able borrowers.

 

 

Watch the Video.

Marta of RBC Sees Need for `Bailout’ in Credit Markets

Moving to www.subprimeinsight.com  Watch the video.

David Tice Sees `Dramatically Lower’ Stocks in 5 Years

Moved to www.subprimeinsight.com. Come check us out.

One Reason this Recession will be a “Whammy”

Yesterday, I pointed out the dwindling power of the Fed to stop recessions and deflation. The day before, I pointed out the financial industries inability to capture the upside of the Fed cuts in the short term since they have a severe funding crises. Today we’ll take a closer look at the unintended consequences of the Fed’s rate cuts for the past decade. Disclaimer: This is more of an opinion based on research, that won’t be discussed here, than a true analysis.