Popular Tags
G20 Washington Summit Will Not Test President-elect Obama
Posted by Louis Navellier on 11/11/08 10:32 am
The summit of G20 leaders in Washington this Friday and Saturday will be crucial to helping restore confidence and will likely result in new international capital rules for banks and other financial institutions, possibly including hedge funds, which are responsible for triggering much of the recent panic selling in stocks.
President-elect Barack Obama was expected to attend the conference and meet some concerned allies, but his spokesman Robert Gibbs said Obama will stay away in protocol.
During Obama’s presidential campaign, he said that China’s huge trade surplus with the U.S. was due to “manipulation of its currency.” On Thursday, China’s foreign ministry spokesman Qin Gang responded by saying, “We hope that the policy of free trade will continue… We must prevent trade protectionism, which is no good for either side.” Over the weekend, China also said that it plans to spend four trillion yuan ($586 billion) by 2010 for stimulus measures, to combat slowing domestic and trade growth, and lower consumer spending.
On the foreign affairs front, China is not the only nation eager to test President-elect Obama. Afghanistan, Israel and Russia also want to “test” the new President-elect. In the case of Afghanistan, recent civilian casualties are prompting President Karzai to publicly ask Mr. Obama to change U.S. military tactics next year. Israel made it crystal clear that Obama should not open direct talks with Iran, since it would be a sign of weakness. Russia is piling on the young President-elect, asking him to reconsider the U.S. strategic missile shield in Poland. Otherwise, Russia said it would move to station new missiles near Poland’s border, in response.
To receive email updates from Navellier All Cap Blog, click here.
Bloomberg News Suing Federal Reserve
Posted by Patrick O'Connor on 11/10/08 1:59 pm
This is a good one. The Federal Reserve is refusing to disclose not only which companies will receive almost $2 trillion in emergency aid from U.S. taxpayers, but also the types of collateral it will accept on behalf of taxpayers. That’s right. Taxpayers have to pay-up, but they don’t get any transparency.
Bloomberg News is suing the Fed to release the information under the Freedom of Information Act. Read More.
To receive email updates from Navellier All Cap Blog, click here.
Hartford Announces Shocking Results
Posted by Patrick O'Connor on 10/30/08 10:30 am
Hartford Financial unleashed a $2.6 billion third-quarter loss, its worst result in nearly 200 years of business. Moreover, the company said it couldn’t accurately estimate the amount of extra capital it has because of market volatility. As a result, Hartford’s five-year credit default swaps jumped 42 basis points today to about 508 basis points, according to Markit Intraday, and its stock price collapsed more than 50%.
Not surprisingly, other big U.S. life insurers are realigning their investment portfolios.
To receive email updates from Navellier All Cap Blog, click here.
Treasury, FDIC Consider $500B Mortgage Guarantee
Posted by Patrick O'Connor on 10/30/08 10:12 am
The U.S. Treasury and FDIC are discussing a $500 billion mortgage guarantee plan to stem the flood of foreclosures in the housing market.
FDIC Chairman Sheila Bair is largely responsible for the creation of the plan. She is one of a handful of people in Washington who has been concentrating on the heart of the problem--subprime mortgages.
If you can’t stop the bleeding in the housing market, why use taxpayer money to invest in banks? Kudos to Ms. Bair for focusing on the root of the problem. Foreclosure prevention is a critical element for mending the credit crisis. If the government allocates $500 billion toward the foreclosure mess, its decision to recapitalize banks would make a lot more sense.
To receive email updates from Navellier All Cap Blog, click here.
Fed sets Deadline for CDS Clearinghouse Framework
Posted by Patrick O'Connor on 10/28/08 7:24 am
Better late than never…the Fed set an October 31 deadline for exchanges to craft guidelines for making the $55tn credit default swaps (CDS) market safer. The previously unregulated CDS market is largely responsible for the credit crisis. Read More.
To receive email updates from Navellier All Cap Blog, click here.
Fed and European Central Banks Make Historic Moves
Posted by Patrick O'Connor on 10/13/08 11:29 am
U.S. and European governments took unprecedented action during the weekend by pumping trillions of dollars into the global banking system. As a result, stocks soared around the world.
U.S. Treasury aims to help healthier banks
European governments pledge nearly $2 trillion
Unlimited dollars to be auctioned by European banks
Asia might not benefit from European and U.S. liquidity injections
To receive email updates from Navellier All Cap Blog, click here.
Buffett Investing $5B in Goldman Sachs
Posted by Patrick O'Connor on 9/23/08 2:43 pm
Financial stocks are rebounding in aftermarket trading after Warren Buffett announced that Berkshire Hathaway will purchase $5 billion worth of preferred Goldman shares and receive warrants to buy another $5 billion worth of common shares at $115 per share. Read More.
To receive email updates from Navellier All Cap Blog, click here.
Lehman Goes Bankrupt, Merrill Sold, AIG Desperate for Cash
Posted by Patrick O'Connor on 9/15/08 10:57 am
A wild weekend of deal making on Wall Street changed the financial landscape by historic proportions. Lehman Brothers could not raise capital to survive, Merrill Lynch read the writing on the wall and decided to sell itself to Bank of America before suffering a similar fate, and AIG is still in scramble mode to raise capital and avoid bankruptcy.
Lehman Brokerage Accounts Transferred to Other Firms
Merrill Lynch Sold to Bank of America
NY Allows AIG to Borrow from Subsidiaries
Some Economists Think Fed Will Cut Rates Tomorrow
To receive email updates from Navellier All Cap Blog, click here.
Lehman Shares Plummet on Capital Fears
Posted by Patrick O'Connor on 9/9/08 9:56 am
Shares of Lehman Brothers tanked today after rumors said the country’s fouth-largest investment bank was no longer discussing a deal with Korea Development Bank. Investors fear Lehman will not be able to raise capital, to survive, as a result. Read More.
Lehman talking to other investors...
Royal Bank of Canada not interested...
To receive email updates from Navellier All Cap Blog, click here.
U.S. Treasury Bails Out Fannie and Freddie
Posted by Patrick O'Connor on 9/8/08 11:43 am
The U.S. Treasury on Sunday moved swiftly to backstop the burgeoning credit crisis by seizing mortgage giants Fannie and Freddie. Read full reports from several sources at the Navellier All Cap Blog.
Read Timeline from The New York Times
Fannie, Freddie and You: What It Means to the Public
By Ron Lieber, The New York Times
Mortgage Bonds Backed by Fanny & Freddie Rally
Bloomberg
Mortgage bonds guaranteed by Fannie Mae and Freddie Mac rallied, potentially reducing home-loan rates, after the U.S. government seized control of the companies and vowed to shore up demand. Read More.
Dollar Rises to Nearly One-Year High
Bloomberg
The dollar rose to the highest level since October against the euro as the U.S. government's takeover of Fannie Mae and Freddie Mac boosted confidence in financial markets in the world's largest economy. Read More.
Fed Officials Considering Credit Card and Auto Loan Regulation
The Wall Street Journal
While the government takeover of Fannie Mae and Freddie Mac represents the most powerful federal intervention in financial markets in decades, there are likely to be further government moves ahead. Read More.
To receive email updates from Navellier All Cap Blog, click here.
All Cap Portfolios
View Top 10 Stock Holdings, News, Charts and Fundamentals
Quick Links
Subscribe to this Blog
Sign up to get updates by email
