Banking
Are We Headed for a Globalized Recession?
By kigray at 8 April, 2008, 12:00 am
On February 14th, a manufactured day devoted to romantic love, Wall Street wasn’t interested or feeling any good vibes: The Dow, as well as most of the other major stock markets around the world, finished down on recession fears. Why so spooked? For one, Federal Reserve chairman Ben Bernanke elected to announce that, despite recent encouraging news on the market floor, the sub-prime crisis has not remained contained as he had previously predicted, but had spread to other sectors of the economy, in particular consumer spending. The recent contraction in new jobs (a loss of 17,000, the first such loss since 2001, was reported for the last quarter of 2007), coupled with the deflated housing market, seemed a bit distant until the Fed’s announcement. Fortunately, more rate cuts are sure to be on the way, but as news of rate cuts always implies that the economy is sicker than the average joe can tell, investors became more scared than reassured.
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Is the Superfund Capable of Restoring Confidence?
By kigray at 8 April, 2008, 12:00 am
The M-LEC, as it is called, has been created in order to restore investor confidence in some areas of the economy that are neccesary for credit to maintain its liquidity, or ease of transference from one entity (a bank) to another. This loss of liquidity comes in the wake of the discovery of high-risk, sickly subprime mortages that have been sold off in pieces, often in the form of supposedly secure money market funds to thousands of investors. Over the past several years, those funds have changed hands so many times that their spread is difficult to chart for the average investor, who therefore loses confidence investing in a potentially tainted company or financial institution, which, over time, results in a credit crunch, which is a surefire recipe for recession.
Read More >>Fed Restrictions Make Loans Tough
By kigray at 8 April, 2008, 12:00 am
As a result of the recent sub-prime mortgage scandal, the Federal Reserve has taken many actions to avoid a global credit crisis, which it now aims to further mitigate through tightening the standards that lenders use to determine whether a potential borrower is eligible to receive a mortgage loan. Chairman Ben Bernake has stated that more rigid restrictions would “promote responsible lending,” even as 2 million Americans with sub-prime predatory loans will likely default over the next year, furthering the housing slump.
Read More >>The Impending Subprime Interest Rate Freeze
By kigray at 8 April, 2008, 12:00 am
The White House has recently unveiled a plan to help mitigate the wave of foreclosures that have recently swept the US as reports continue to predict that an even greater number (some estimate as much as 2 million) of Americans are likely to default within the next year.
Read More >>The Banking World Is Changing
By AjeetK at 8 April, 2008, 12:00 am
You may not have known this, but the most popular method for paying for things used to be with checks and with it came a variety of different problems.
Read More >>Choosing The Right Credit Cards For Your Use
By AjeetK at 7 April, 2008, 12:00 am
If you are like most people you probably get dozens of offers for credit cards in the mail each year, if not more. These offers are all around us and while some of them are very appealing it doesn’t necessarily mean that they are the right choices for you.
Read More >>Get What You Need Right Now With Credit Cards
By AjeetK at 7 April, 2008, 12:00 am
When you don’t have cash to purchase things it doesn’t mean that you have to do without the things that you want or need. Instead, you can use credit cards to help you purchase the things that you want now and then when you have the cash you can pay off your card with those funds.
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