Search results for credit crisis
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Posted
Sep 25 2008, 03:14 PM
by
Charley Blaine
Rating:
Money Blog: Top Stocks Blog - MSN Money
Let me start by stating that CNBC's Jim Cramer can be loud, obnoxious, annoying and even -- as he would admit -- occasionally boorish.
His rant a year ago on how he thought the Federal Reserve was making a horrible mistake when it raised rates in the face of a global credit crunch is the stuff of legend. (Which is why CNBC plays it over and over and over again.)
But Cramer is a very smart guy, and he's offering the best explanation I've seen on why Congress and the White House should pass a financial rescue plan.
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Posted
Oct 21 2008, 08:28 AM
by
Charley Blaine
Rating:
Money Blog: Top Stocks Blog - MSN Money
Being a billionaire isn't as much fun as it used to be. Just ask investor Kirk Kerkorian, the investor and casino magnate.
Kerkorian plunked down $1 billion in Ford Motor in the spring, ending with a 6.4% stake in the automaker. In a bit more than four months, he's seen more than two thirds of the value of that investment vanish as Ford and all the automakers have struggled with high gas prices and the crummy economy.
Monday, he said "no mas." In a Securities and Exchange Commission filing, he said he sold 7.3 million shares of Ford at $2.43 a share. And he may sell the rest.
Here's how the math works.
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Posted
Apr 07 2009, 02:42 PM
by
James Dlugosch
Rating:
Money Blog: Top Stocks Blog - MSN Money
This post comes from partner site InvestorPlace.com.
Will Capital One (COF) receive the death penalty for past transgressions?
Given the fallout in the financial sector, such an outcome should be expected by investors. Like Countrywide in the mortgage market, Capital One was a leader in aggressive consumer credit lending.
We all know the outcome for that aggressiveness at Countrywide. Now it seems that many are predicting credit debt to be the next shoe to drop in this financial crisis. If so, the future of Capital One may be in jeopardy.
At the end of last year, I put Capital One on my list of Top 10 Stocks to Avoid in 2009 for just that reason. Considering shares started the year at $31.89 and now sit at $12.81, I would say that was a rather astute move.
Where does Capital One go from here?
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Posted
Apr 16 2009, 03:56 AM
by
Douglas McIntyre
Rating:
Money Blog: Top Stocks Blog - MSN Money
General Growth Properties (GGP), the second-largest mall operator in the country, has filed for bankruptcy, as many experts thought it would. The company has $27 billion in debt and, with real estate prices depressed, it may be impossible to raise even close to that amount of money through asset sales.
As would be expected with any large commercial real estate enterprise, General Growth is highly leveraged and was probably able to get mortgages with ease at the height of the real estate boom.
According to The Wall Street Journal, “The bankruptcy will have far-reaching implications for the mall industry, including putting pressure on already declining property values of U.S. malls, and subsequently mall mortgages.” Put another way, the commercial property business is about to be hit by a domino effect. Prices drop, defaults rise, and more properties have to be sold, so prices drop again.
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Posted
Dec 12 2008, 03:42 AM
by
Douglas McIntyre
Rating:
Money Blog: Top Stocks Blog - MSN Money
With Republicans in the Senate thwarting an auto company bailout bill, General Motors has decided to play its trump card. It has hired bankruptcy counsel.
According to The Wall Street Journal, "GM management recently tapped bankruptcy veteran Harvey Miller of the New York law firm, Weil Gotshal & Manges LP, to handle what would be one of the largest and most controversial filings in U.S. history."
With the bill to send the Big Three checks dead and in the process of being buried, getting advice for Chapter 11 is only prudent. GM should have done it weeks ago when the company's cash was not so low. It would have made operating under court protection much easier.
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Posted
Oct 03 2008, 07:45 AM
by
Andrew Horowitz
Rating:
Money Blog: Top Stocks Blog - MSN Money
 For the past several months there has been anecdotal evidence that the Manhattan real estate market was under siege. If you consider that New York has been the center of the financial universe and that every market eventually cycles, it's obvious that Big Apple real estate prices were in for a severe drop.
Yet, according to reports, average prices for apartments have actually moved higher while sales have dropped off a cliff. In fact, the average price for a Manhattan apartment increased approximately 10% from the third quarter 2007. Note that these prices were artificially pushed higher by a few deals that closed just this quarter but were under contract 12- 24 months ago.
The real problem now is that the heightened financial distress has not been factored into those statistics for this quarter's results. That spells more trouble as this cycle is set to be one of the worst ever in New York's history. (See Video: New York is Doomed, then it gets worse)
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Posted
Jun 16 2009, 02:40 PM
by
Catherine Holahan
Rating:
Money Blog: Top Stocks Blog - MSN Money
 The worst recession since the Great Depression will
officially end sometime in the next three months, according to economists at
the nation's biggest banks. The Economic Advisory Committee of the American
Bankers Association -- aka the chief economists for JPMorgan
Chase, Citigroup,
Bank of
America, and most other major banks -- announced today that they expect that
nation's GDP to grow in the third quarter of 2009.
But most Americans will still feel as though they are living
through a recession well into 2010.
"The economy will return to growth but not to
health," said Bruce Kasman, chief economist for JPMorgan Chase in a
statement. "Growth in the coming quarters is likely to gather momentum but
will not prove sufficiently robust to undo much of the severe damage to our
labor markets and public finances."
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Posted
Feb 02 2009, 08:50 AM
by
Minyanville
Rating:
Money Blog: Top Stocks Blog - MSN Money
As I recall from my college Greek mythology course, arrogant mortals ultimately learn -- and quite harshly -- the folly of excessive ego. The stories usually end with Zeus smiting with a few choice lightning bolts. Arrogance never escapes punishment from the gods.
For a modern-day example, we can turn to the automakers. They are the mortals; President Obama, the god. Except this is no myth.
Earlier this week, Obama instructed the EPA to reconsider the case of California’s existing proposal to raise fuel-efficiency standards. The automakers have been fighting California and other states in court for several years. Last week, they pledged to continue that fight - despite the president's instructions and, to a larger extent, his consistent and unequivocal insistence on a “green” auto industry. Except, as it stands now, the automakers are basically using their bailout money -- from taxpayers -- to turn around and sue…the taxpayers themselves.
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Posted
Nov 06 2008, 04:01 AM
by
Douglas McIntyre
Rating:
Money Blog: Top Stocks Blog - MSN Money
Every industry has its blue-chip think tank. In the case of cars it is the Center for Automotive Research, which has come out with a new and disturbing study.
Based on forecasts which look at The Big Three, the foreign competition making cars in the U.S., auto parts companies, and other related industries, a collapse of the U.S. auto industr
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Posted
Mar 02 2009, 09:23 AM
by
Kim Peterson
Rating:
Money Blog: Top Stocks Blog - MSN Money
American International Group (AIG) made it into record books Monday as it reported losing $61.7 billion in the last three months of 2008. That's the largest quarterly loss in the history of U.S. companies.
How did AIG, the world's biggest insurer, blow through that much money? Mostly, it came from big writedowns as the company paid the price for getting cozy with toxic assets and risky transactions like credit-default swaps. And yet the help keeps coming. AIG is getting another $30 billion bailout -- its fourth from the government -- because its failure would have a damaging impact across the world's financial system.
The taxpayers now own 80% of AIG, the most crippled of all the nation's financial institutions, writes the New York Times' Joe Nocera in a fascinating column on the company. To say AIG was shady doesn't come close. The company was reckless, exploiting loopholes and abusing the system for its own gain -- and, Nocera writes, it's being kept alive precisely because it behaved so badly.
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