In a recent report, the Federal Reserve Bank of San Francisco said low interest rates, lax lending standards, the proliferation of exotic mortgage products, and the growth of a global market for securitized loans promoted increased U.S. household leverage (as measured by the ratio of debt to disposable income) to an all-time high of 130% [...]
Archive for the ‘Derivatives’ Category
How much is U.S. government’s monthly payment on its debt?
Monthly Payments on U.S. Debt Since early October, the 10-year US Treasury yield has gone up about 85 basis points (from 2.4% to 3.35%). The crisis in Europe and the Fed’s $600 billion bond-buying program (QE2) in theory would move rates lower. But a pick-up in world economic indicators, along with concern over a growing [...]
Area man creates ‘Mortgage Securitization Made Simple’ FLOWCHART
An area man created this flowchart to figure out how is mortgage was securitized. No he’s not Rube Goldberg, and this isn’t from The Onion. He’s a securitization auditor named Dan Edstrom and ZeroHedge has more. Click chart for full size.
Fed’s Conflicting Recovery Agenda. Wells, Morgan Earnings. Derivatives 101.
Fed’s Conflicting Recovery Agenda The Federal Reserve Bank of New York has joined forces with BlackRock, PIMCO and other major bond investors in trying to force Bank of America to repurchase $47b of mortgages that were packaged into securities. Bank of America defended its position. “We’re not responsible for the poor performance of loans as [...]
Everyone Hates Their Bookie Sooner Or Later (A Primer On Goldman’s Troubles)
This guest post from a hedge fund exec does a good job of explaining Goldman’s regulatory/legal issues in terms we can all understand…
The Legend of Bond Trader & Pop Artist Eddie Rincon
Displayed below are three pictures of the same velvet painting entitled Ride The Storm.
Ritholtz: Top 10 Things You Don’t Know About SEC’s Goldman Case. Also Soros Weighs In.
Anyone who’s got hardline opinions on the SEC’s case against Goldman Sachs should read The Big Picture’s “10 Things You Don’t Know (or were misinformed) About The GS Case.” As usual, Barry Ritholtz’s hardline opinions are better supported than most of the other chatter out there.
Michael Lewis Says SEC’s Goldman Suit Is Soul-Changing For Bond Markets
Michael Lewis just published his take on the SEC suit against Goldman. Normally Lewis’ unique ability is to discuss complex market topics in a way that presents both sides of the story even when it’s clear which side he’s taking. This piece feels like more of a populist take, and that was the same impression [...]
Bank Failure Update, Citi Revenue $25b, Countrywide Investigation, .25% Fed Funds Through August?
Citi Revenue $25b in Quarter Citgroup announced earnings this morning with earnings per share of 15 cents versus a $0 expected. Revenue was $25 billion versus $21 billion anticipated. Like BofA’s, and Chase’s, these are solid results, but unfortunately overshadowed.
bTunes Tribute To SEC For Goldman Suit: One Day As A Lion
Today was the the SEC’s One Day As A Lion as they filed the first big claim against Wall Street—a subprime MBS fraud suit against Goldman Sachs—since the great recession began in 2007. So this installment of bTunes is for the SEC from Zach De La Rocha. The former Rage front man named his new [...]
