All Content

Nationalization talk everywhere

Nationalization talk everywhere

Everybody is talking about nationalization. The latest trigger is the Citi discussions with the U.S. government to convert taxpayers’ preferred shares into common equity.

Below are a few Bloomberg video clips from just this morning where experts including Marc Faber, Peter Hahn and Bloomberg’s Tom Keene talk about nationalization. It is a very controversial issue. Hopefully, these clips will give you different viewpoints on the subject.

Read more ›

Spain: who is responsible for the property bubble?

As recession takes hold, European citizens are starting to ask questions about how they were led into this, the deepest downturn in three-quarters of a century. The leading Spanish daily El Pais published a very thoughtful article today asking how things had unravelled so quickly and so spectacularly in Spain, previously one of the fastest growing economies in Europe.

These are the same questions that one must ask in the United States, Britain and Ireland regarding their own property bubbles. And, in view of recent turmoil in astern Europe, I suspect similar answers will be sought there as well.

This first part in a series of articles lays out the statistics of bubble and bust, demonstrating the scale of the bubble in Spain and it also makes a number of suggestion as to how to prevent a recurrence. You should note that this article points out Spain’s helplessness due to its lack of control over interest rates as a key impediment to solving the problem. Below is my translation of the article:

Read more ›

Citi: looking for as much as a 40% stake from the government

This news is just in from the Wall Street Journal. Obviously, all of the activity we have seen with Citi’s foreign subsidiaries of late has been in preparation for sale or nationalization. I expect this to be the big news when markets open tomorrow. Note: this will mean massive dilution for shareholders, so it is unclear how the markets will […]

Read more ›

Dubai bailed out by Abu Dhabi after property bust

As a result of falling oil prices and the global financial crisis a considerable fear has developed that Dubai, which has led a very expansive building policy in recent years, would have problems servicing its debt.

Read more ›

Links: 2009-02-22

More on That Dirty Word “Nationalization” and Possible Approaches – Naked Capitalism In Northern They Trust – Barron’s ING’s Hommen May Consider Seeking U.S. Support After Review – Blomberg.com ‘Good Banks’ Are the Cost Effective Way Out of the Financial Crisis – Willem Buiter Nouriel Roubini – ‘Nationalize’ the Banks Latvia’s Government Is the Latest in Europe to Fail – […]

Read more ›

The Oscars are tonight

The link for the list of nominees for the 81st Academy Awards Ceremony is here. Here are my picks: Best Actress – Kate Winslet Best Actor – Mickey Rourke Best Supporting Actor – Heath Ledger Best Supporting Actress – Penelope Cruz Best Director – Gus Van Sant Best Foreign Film – The Baader Meinhof Complex Best Picture – Slumdog Millionaire […]

Read more ›

Manhattan real estate in freefall

This week’s Barron’s magazine highlights the abysmal state of the Manhattan real estate market. Manhattan was one of the last bubble markets to burst. Now, things are unraveling quickly, particularly at the high end. Some experts see another 30% down before the carnage is over. The trigger for the bubble’s bursting came in the form of Lehman Brothers, making the NY real estate market another reminder of how badly the Lehman situation was handled by Paulson, Bernanke and Geithner.

Read more ›
While Rome Burns

While Rome Burns

The following post is from John Mauldin, who is a Best-Selling author and recognized financial expert. He is also editor of the free Thoughts From the Frontline that goes to over 1 million readers each week. For more information on John or his FREE weekly economic letter go to: http://www.frontlinethoughts.com/learnmore

The Risk in Europe

Read more ›
Yves Smith: Nationalization is what the FDIC is doing every week

Yves Smith: Nationalization is what the FDIC is doing every week

Naked Capitalism’s Yves Smith was on Fast Money at CNBC yesterday. She made a number of good points regarding the discussion on nationalization. One that particularly resonated with me was her assertion that the United States is nationalizing one, two or three banks every Friday through the FDIC (see list here).

Read more ›

Links: 2009-02-21

Frustrated savers are turning their backs on banks – Irish, Business – Independent.ie UBS warns of dire consequences from U.S. tax battle | Reuters Soros sees no bottom for world financial collapse | Reuters German ‘bad bank’ in Dublin adds to Irish concerns – National Post FT.com – ECB warns Germany against EU bail-out BBC NEWS | Business | Stanford […]

Read more ›

Site Maintenance

We will be doing some minor site maintenance this wekend.  Site access will be interrupted briefly Saturday night/Sunday morning around midnight EST.

Read more ›
Bank stocks under $10 a share

Bank stocks under $10 a share

An ugly day in the markets has just ended with the financial services sector taking a beating in particular. Many shares in the sector trade for under $10. Bottom fishers might see this as a buying opportunity. Is it?

Read more ›