May 2008

MarketWatch is reporting today that Nationwide has said that UK home prices are down a record amount.House prices fell for the seventh consecutive month, dropping 2.5% from April, and were 4.4% lower than they were in May 2007, Nationwide…

I am wary of regional banks for good reason. KeyCorp came out with a disastrous earnings report yesterday and was promptly whacked by the market. The regionals have way to much exposure to commercial real estate (CRE) and construction…

The US regional banks are certainly the next set of financial institutions in the US that are going to get hit by the credit crisis. While these banks did not have significant exposure to the CDOs and RMBSs and other types of derivative…

The S and P/Case-Shiller Home Price Index for the U.S. housing market came out yesterday and the news was not good. MarketWatch said: Home prices in 20 major U.S. metropolitan areas have dropped a record 14.4% in the past year, Standard…

Although I prefer the S&P/Case-Shiller House Price Index to look at U.S. house prices (see residential property posts), the OFHEO index has more data, going back to 1975 (instead of 1987 as the 10-city Case-Shiller does). Ultimately,…

When looking at the 20 biggest markets in the US, home prices have risen at a rate far above the rate of inflation since Jan. 2000. Prices would need to fall 26% nationally to move back to the trendline. However, looking at the 10…

2008 05 19 Crédit Agricole boosts risk controls after writedowns hit €3.3bn2008 05 19 Subprime Losses Top $379 Billion on Balance-Sheet Marks: Table2008 05 19 Banks Keep $35 Billion Markdown Off Income Statements2008 05 19 AIG to raise…

Surprise, surprise. Consider this a holiday surprise as many are out in the U.S. for Memorial Day and in the UK for the Bank Holiday. Multiple sources were reporting that UBS warned in its 985-page capital raising prospectus late on Friday…

Dear Readers,In honor of Memorial Day and the Bank Holiday in the UK, I have given my blog a bit of a makeover. The look and feel is quite different. Hopefully, you find it easier on the eyes and better for navigation.The title has changed…

George Soros talked to the Telegraph, and in an article released today, sounded very downbeat about the prospects for the UK economy. M. Soros also said that their were many fundamental supports for the price of oil, including supply ad…