Banks

First Use is Best Use

The Bank of America has recently granted itself a 1.3 billion dollar mortgage. The amount is $325 million more than the original amount of financing for the building’s construction. We used to call that a “cash out Refi”. Regular people cant do those anymore unless they qualify. The B of [...]

Credit CRUNCH?

As much as I appreciate the recent flurry of activity in auditing the FED, someone needs to look at the banks that own the FRBNY. These institutions have the ability to make the books look like whatever they want. One of the key tools they use to accomplish this goal is the derivatives market. As [...]

THE END IS NOT NEAR

  The release of this 2008 1st Quarter newsletter is actually emerging into the 2nd Quarter. Without waiting to see how the Fed played out its hand – well, it would have been imprudent to attempt broader comment. As of now (beginning of April), the path has been chosen and we are once [...]

Banks are in Trouble

As we revisit May of 1933, if only in a nostalgic sense, we must remember the origin of the banking problems that surround us. We have been there, done that, in the modern parlance. The idea of banks gathering working depositors money and then using that money to engineer the prior equivalent of [...]

THE OTHER SHOE…

The recent pullback in the prices of many commodities has led a great many pundits to declare that the boom has run its course. I could not disagree more. While it is true that general commodity prices have retreated somewhat from a heavily over bought position achieved in the first quarter, the [...]

THE BANK WARS?

In light of the current bloodshed in the Middle East, it is difficult to characterize this earlier period in history as a ‘war’. It comes closer to construing the inherent properties of a battle. There were two opposing sides, and each waged a fierce struggle over who would be empowered to [...]

Fannie, Ginnie and Friends

Fannie Mae (FNMA) and Ginnie Mae (GNMA) are private corporations with a unique advantage. The largest, FNMA has become a $4.5 trillion company that pumps cheap money to primary market lenders by paying cash for the mortgages which these companies originate. Once a large quantity has been [...]

Demand for gold continues unabated

Demand for gold continues unabated The world’s demand for gold will continue to pressure gold’s price in the years ahead according to the World Gold Council. An official source is quoted as saying, “No devaluation of gold will occur since there is an estimated steady rise in demand [...]

At least Microsoft is American

  Hong Kong-Shanghai Bank Co. (HBC), Europe’s biggest bank, has offered $10.5 billion for one of Europe’s most profitable banks, Credit Commercial de France. This acquisition is a great example of global monetary consolidation. Money center banks like HSBC, Citigroup, Chase [...]
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