30
May
2008
Will another large securities firm fail?
Posted by John as economy
A new report from Moody’s Investors Service explains that the biggest systemic risk to the $62 trillion credit-derivatives market is not its size and complexity but the potential failure of a large securities firm or investment bank which is acting as a counterparty. A bank collapse could damage the operational integrity and pricing in the [...]
03
May
2008
Buffet says Fed did the right thing…
Posted by John as Market Action
It’s probably because he benefits so much from the boom-bust cycles and bailouts that the Fed creates, but Warren Buffet is not bothered by the moral hazard, inflation, and debasement of the dollar
11
Apr
2008
New clouds on horizon for hedge funds
Posted by John as Market Action
Hedge funds are still reeling after banks unexpectedly pulled credit lines and demanded more security against loans, forcing firesales and heavy losses.
By James Mackintosh, Financial Times
Now they face a new threat: investors are abandoning them, raising the risk that the funds will have to sell assets at any price to raise the cash to meet [...]