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Jim Jubak joins the inflation made in Asia crowd

Yesterday, I posted a blog entry detailing how Stephen Roach sees inflation as a concern, not because of food and oil, but because of Asian manufacturers. I find his argument compelling. Don’t get me wrong, I think deflation is the longer-term worry. But, right now an inflationary spiral is of greater concern. Jim Jubak has jumped on this bandwagon as […]

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Argentina faces potential collapse

Argentina faces potential collapse

Argentina is on the brink again. Earlier today, I wrote about doubts regarding the country’s official inflation statistics. The official statistics showed 9.1% inflation when many believe inflation is running 25% and more. Now, it emerges that the country is on the verge of a cataclysmic debt default. In 2001, Argentina had a massive default and was forced to de-link […]

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KeyCorp craters after dividend cut

KeyCorp craters after dividend cut

This morning, I posted a blog entry regarding KeyCorp’s wise decision to cut its dividend and to raise capital. They paid the price in the market today, sinking to a 17-year low below $12.00 a share and down 24% on the day. Shares of KeyCorp sank to the lowest level in almost 17 years, following news that the Cleveland-based financial […]

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What’s happening at Fifth Third?

What’s happening at Fifth Third?

Fifth Third, the Cincinnati-based regional lender, has been tanking of late. Today, it was down another 4% to close at a 12-year low. “Shares of Fifth Third Bancorp touched a 12-year low Thursday as capital concerns continued to swirl around the banking sector. The stock fell 65 cents, or 4.2 percent, to close at $14.69, after trading as low as […]

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Stephen Roach: Asia is source of stagflation

Stephen Roach is one of the best financial commentators in the business. In the aftermath of the bubble in the late 1990s, as Chief Economist of Morgan Stanley, he was quite bearish and warned of the downside risks for the global economy. But, as Alan Greenspan’s elixir of easy money seduced most market participants, his warnings went unheeded. Now, as […]

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Crude oil interactive map

The website immobilienblasen has a good entry today that alerted me to an interactive map about oil-related issues on the FT website. It’s a great resource.

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KeyCorp to raise $1.5 billion, cut dividend 50%

The latest move by a regional bank comes from KeyCorp, based in Cleveland. In order to preserve capital ahead of the impending troubles headed for the regionals, KeyCorp has taken the prudent step of both raising capital and cutting its dividend. KeyCorp on Thursday said it would raise about $1.5 billion in new equity and slash its dividend to offset […]

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We’re not the only ones who don’t believe the statistics

Argentina too has a government statistics problem. Their new inflation index is seen as unbelievable.(see FT article here.)

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MBIA pulls the plug on its insurance arm

In the wake of downgrades from AAA to AA status, MBIA has pulled support for its bond insurance subsidiary. In a letter to shareholders, CEO Jay Brown said: “We confirmed to the market today that we will not be making capital contributions to MBIA Insurance Corporation given the changes in ratings status last week, especially since that additional capital would […]

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Chart of the day: Continuing Claims

Chart of the day: Continuing Claims

The U.S. Department of Labor just released the weekly report for unemployment insurance claims. Initial claims were 384,000, while continuing claims rose to 3.139 million. The 4-week average moved up to 3,099,250. This is 593,000 more than one year ago. Below is the chart for the last two years of continuing claims. This post is part of my chart of […]

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I got my answer on homebuilder bankruptcy

On Monday, I asked, “which homebuilder will go bankrupt next?” The answer came on the very next day: Legend Homes, an Oregon-based homebuilder. The Oregonian newspaper reports: “Legend Homes, one of Oregon’s largest home builders, filed Chapter 11 bankruptcy today after its parent company made three ill-timed land investments in once hot housing markets. David Oringdulph, Legend’s chief executive officer, […]

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Recent additions to Credit Crisis Timeline

The following are the links regarding the global credit crunch that have been recently added to the Credit Crisis Timeline. The full timeline is accessible here Latest Additions2008 06 02 Wall Street May Face $460 Bln in Losses, Goldman Says2008 06 02 Washington Mutual’s Killinger Steps Down as Chairman2008 06 02 Morgan Stanley, Merrill, Lehman Ratings Cut by S&P2008 06 […]

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