Jul 16
Merrill Lynch has warned that the United States could face a foreign “financing crisis” within months as the full consequences of the Fannie Mae and Freddie Mac mortgage debacle spread through the world.
Draining away: The US may struggle to plug its capital gap
The country depends on Asian, Russian and Middle Eastern investors to fund much of its $700bn (£350bn) current account deficit, leaving it far more vulnerable to a collapse of confidence than Japan in the early 1990s after the Nikkei bubble burst. Britain and other Anglo-Saxon deficit states could face a similar retreat by foreign investors.
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Tags: China, Dollar, Economy, euro, Fannie Mae, financial crisis, Freddie Mac, Goldman Sachs, Hank Paulson, HSBC, IndyMac, Inflation, Japan, Merrill Lynch, Middle East, mortgage crisis, Mortgages, Politics, Russia, Treasury, U.S., Vladimir Putin
Apr 03
THE BAILOUT BOYS: S.E.C. Chairman Christopher Cox (left) with Paulson, President Bush and Bernanke.
The big banks’ fear of big losses is threatening to bring down the entire system, with dire consequences for all of us. Here’s what’s going on, and what we can do about it.
(Fortune Magazine) — What in the world is going on here? Why is Washington spending billions to bail out Wall Street titans while leaving struggling homeowners to fend for themselves? Why are the Federal Reserve and the Treasury acting as if they’re afraid the world may come to an end, while the stock market seems much less concerned? And finally, what does all this mean to those of us who aren’t financial professionals?
Okay, take a few breaths, pour yourself a beverage of your choice, and I’ll tell you what’s happening - and what I think is going to happen. Although I expect these problems will resolve themselves without a catastrophic meltdown, I’ll also tell you why I’m more nervous about the world financial system now than I’ve ever been in my 40 years of covering business and markets. Continue reading »
Tags: Alan Greenspan, Banks, Bear Stearns, Ben Bernanke, Chaos, Depression, Federal Reserve, Fortune Magazine, Goldman Sachs, Hank Paulson, Meltdown, Recession, Stock Market, Treasury Secretary, Wall Street
