Items of interest:
The crunch bites deeper in the US -- The credit crunch has hit the US economy hard. From Wall Street to Main Street, loans that looked rock-solid a year ago now look shaky.
And the US central bank, the Federal Reserve, is throwing away the rule book to contain the effects.
Kevin Logan of Dresdner Kleinwort, one of the less gloomy New York economists, summarises the state of play as the credit crunch has spread to different types of assets as follows: "We're all sub-prime now". . .
Can’t Grasp Credit Crisis? Join the Club -- Raise your hand if you don’t quite understand this whole financial crisis.
It has been going on for seven months now, and many people probably feel as if they should understand it. But they don’t, not really. The part about the housing crash seems simple enough. With banks whispering sweet encouragement, people bought homes they couldn’t afford, and now they are falling behind on their mortgages.
But the overwhelming majority of homeowners are doing just fine. So how is it that a mess concentrated in one part of the mortgage business — subprime loans — has frozen the credit markets, sent stock markets gyrating, caused the collapse of Bear Stearns, left the economy on the brink of the worst recession in a generation and forced the Federal Reserve to take its boldest action since the Depression? [...]
- The Bad Bear Precedent - Nicole Gelinas, Wall Street Journal
- Why the Bear Rally Can't Last - Roddy Boyd, Fortune
- Bear Stearns Wasn't Bailed Out - James Hamilton, Econbrowser
- Thoughts on the Credit Crisis - David Leonhardt, New York Times
- Fed Actions Don't Constitute a Bailout - Editorial, Investor's Bus. Daily
- California "Mortgage Fraud Scam" May Be Tip Of The Iceberg, Says State Attorney General Jerry Brown - Bigger Pockets / Charles Feldman
- America Finally Got Its Northern Rock - Holman Jenkins, Wall St. Journal
- Housing Bust Blame Game - The Big Picture
- Great News! Housing Starts and Permits Plummet! - Barry Ritholtz
- Fannie, Freddie to get lending boost - CNNMoney
- Fannie And Freddie: Helping Them Doesn't Really "Help" Us - Realty Check
- Bear Skyscraper Looks Like Bargain on Paper - WSJ
- The Rich Keep Buying Despite Housing Slowdown - WSJ