The stock markets are heading downwards again. Guess there’ll be oolated squiggs for lunch rather than eating out until christmas. Western indexes are down typically 35-50 % this year, in other words expectations are for a grand recession. However, even though most macro indicators point towards recession, we have to expect deep sh*t in the near future to justify [...]
Entries Tagged as ‘Finance’
November 18, 2008
Teutonic Auto Action
Auto Maker Opel wants a credit guarantee of € 1.3 bn (Frankfurter Allgemeine Zeitung), and gets it (Financial Times). The guarantee is to make sure the present and future endowments of Opel can be paid for regardless of owner GM’s financial situation.
Is this right? Should Opel recieve this guarantee? A possible credit to Opel might [...]
October 21, 2008
Le Bloody Idiot
President Nicolas Sarkozy of France has come up with a very stupid idea. How stupid? It might not be the most stupid idea from France ever (after all they came up with the French Revolution and the idea of moving the European Parliament between Brussels and Strasbourg) but is certainly the most ambitiously stupid idea [...]
October 17, 2008
The Cost of Capital
How will the financial picture look like in the near future? The price of money is higher than in a long time and it´s getting harder to lend. The voluntary debt in companies will and probably also have decreased the last year and probably will keep on moving in that direction for some years.
How will [...]
October 13, 2008
Some Sunshine at Last
In most times, one good day on Wall Street is nothing to be happy for. This due to the well known “Random Walk Theory” accepted by most people. But, 11.1 % (Fox) however, in the middle/or end of i financial crisis, is a big deal. An injection of confidence may not directly affect the values [...]
October 13, 2008
The Crown Takes Over The Royal Bank
The Royal Bank of Scotland is to raise £20 billion through a share issue. The British government is underwriting the issue – if it takes all the shares it would own almost 60 % of the bank (The Financial Times).
Sounds scary. But Sir Tom McKillop, chairman, said this was unlikely:
“I believe this is an excellent [...]
October 9, 2008
It’s The End Of The World As We Know It
The Dow Jones closed down 7.3 % (The Financial Times). Clearly the Bailout has had no short-term effect. But now the federal government is considering taking equity stakes in banks (The New York Times). I repeat that: the United States government is considering part-nationalising the banking system.
Iceland has now nationalised its third bank, Kaupthing (FT). [...]
October 9, 2008
History
House prices continue to fall in the UK. They have fallen so much that prices have not been this low since… since… since January 2006 (The Financial Times).
January 2006 is not 1929, is it?
JDR
October 8, 2008
Who’ll Stop The Rain?
This morning British Chancellor Alistair Darling unveiled a bank rescue package. The deal in effect part-nationalises the sector at a potential cost of £50 billion (The Financial Times). The ‘Conservative’ Party seems to support the move (ConservativeHome).
The Zanzibar Gazette has featured a great deal of debate on the American Bailout. Both Mr Glomgold and I [...]
