Yal, we are seeing rising unemployment, up about half a percent over last year at this time. That is the same increase from June 2000 to June 2001. Based on continuing claims, I'd guess the unemployment rate will continue to rise all year.
Eh, Window, that only matters in terms of which is worth more today.
Contained?
I don't think so. I can hardly wait to see how much worse the credit markets are going to get when real estate continues to fall, and DC has no solutions that make any sense.
I believe the Fed's fingers in the dyke are beginning to be overwhelmed by solvency issues.
After all, you may be illiquid and bailed out by the Fed, but insolvent, and you are not going to be bailed out.
CR,
Can't we have your beautiful old mast head picture of a hiking trail in Yoho Park to go with this Canadian story, preferably with a grizzly bear added at the end of the path.
Can anyone put these write-downs in context for us? Are these expected and part of the $1 trillion or whatever the consensus is? Are these new? Are they expected but the amounts are higher than thought?
"...The company, as part of its annual investor presentation, said it is now targeting annual net income growth of 20% to 30%..."
"...spending on MasterCard-branded cards, increased 13% to $555 billion."
"...Since the onset of the credit crisis last year, credit-card processors such as MasterCard and Visa Inc. (V) have been one of the lone bright spots among financial-services firms. Unlike lenders and banks, MasterCard and Visa don't actually issue lines of credit to consumers. Instead, they issue cards and process transactions on behalf of lenders large and small - collecting a fee for their services, but leaving all the credit risk to the lenders. "
Strange...I guess we really do live and die by the service economy now...Course...dryfly is the fly on the wall of that one.
btw, can someone explain to me why we are not seeing higher unemployment
I wonder how much is really under-employment. e.g., CR has posted just a few articles prior to this one how broker commisions are down almost half from the peak. I'd have to imagine quite a few Realtors (tm) are going hungry. Heck, they're independent contractors, so even if they quit... they are not counted.
Mostly the hit so far has been in overtime. You can cut the "equivalent employment" 12% to 20% without laying a single person off. I'm also hearing about 40 hour/week personel being 'demoted' to 32 hour/week and having to kick in a fraction of the benifits. A lot? No. But enough to explain the slowing of the economy without the similar spike in unemployment.
Consumers should be wary of new 401(k) debit cards that make it easy to swipe away money from a retirement fund, a securities industry regulator said on Thursday
I've worked for a small nonprofit and have saved for year to get a home. Just when things were looking good here in the Inland Empire....the interest rates goes UP and now the lender says no one will buy without paying POINTS.
I have a strong FICO score and have saved so I can put down 10% but now the interest rates and points are once again closing the door.
No home in my future....at least here in the Southland.
CIBC has a long history of misadventures from playing fast and loose. Every time they get caught people just roll their eyes. About the worst that can be said about the other major Canadian banks, RY, TD, BNS, BMO, is that this year they might not increase their profits YOY. But actually lose money? Not likely. It is difficult to compare US and Canadian banks b/c of the special position Canadian banks hold.
Can someone explain why so many financial institutions keep dribbling out more losses every quarter? Wouldn't these institutions have just sold any assets they felt were risky (e.g. mortgage securities, CDOs, etc), months ago as the credit crisis became apparent?
Once you sell every credit asset other than sovereign debt (e.g. US treasuries, CDN government bonds, etc), then how could you possibly keep reporting even MORE losses?
This is the same CIBC that was fined $2.4 billion (yes billion) for abetting Enron's shenanigans, and that admitted last year to losing $3 billion (so far) on US mortgage debt.
A recent article in the Globe and Mail quoted an insider as describing CIBC's management style as "big swinging dick", but perhaps "big swinging dickhead" would be more on the mark.
Can someone explain why so many financial institutions keep dribbling out more losses every quarter? Wouldn't these institutions have just sold any assets they felt were risky (e.g. mortgage securities, CDOs, etc), months ago as the credit crisis became apparent?
Who are you going to sell to(or more appropriate, who would buy) and at what price?
In certain areas, a buyer who perhaps purchased simply 6 or 8 months ago with 10% down may have lost the downpayment already. No wonder the banks are tightening.
Catching knives can hurt in a major credit reversal.
You have higher employment, it's just not reported.
Currently I have a former girlfriend living with me while she works temp and finds a job. She has been more or less unemployed for four years, she fell off BLS statistics a long time ago and my guess is there are millions like her.
Can someone explain why so many financial institutions keep dribbling out more losses every quarter? Wouldn't these institutions have just sold any assets they felt were risky (e.g. mortgage securities, CDOs, etc), months ago as the credit crisis became apparent?
FASB 133 requires that FMV of certain derivatives be reflected on the balance sheet, even if the losses are unrealized. The problem gets magnified if the losses/gains wouldn't be recognized for a long time. e.g. Berkshire's 1.2 Billion in losses for certain options that wouldn't be exercised for 15-20 years.
The big 6 Canadian banks have a very special status as all feoreign competition has been kept out. Three of them, TD, RBC, and BNS are very well run, have reported minimal writedowns and their shares are within about 10% of where they were last year.
CIBC has been named "the bank most likely to walk into sharp objects". Despite that, they will survive. Anyone in Canada with an RRSP (the Canadian version of 401ks) very likely owns shares in one of more of these banks.
Furst?
Another wave of write downs ?
btw, can someone explain to me why we are not seeing higher unemployment ?
Is that CAD or USD?
Yal, we are seeing rising unemployment, up about half a percent over last year at this time. That is the same increase from June 2000 to June 2001. Based on continuing claims, I'd guess the unemployment rate will continue to rise all year.
Best Wishes.
Eh, Window, that only matters in terms of which is worth more today.
Contained?
I don't think so. I can hardly wait to see how much worse the credit markets are going to get when real estate continues to fall, and DC has no solutions that make any sense.
I believe the Fed's fingers in the dyke are beginning to be overwhelmed by solvency issues.
After all, you may be illiquid and bailed out by the Fed, but insolvent, and you are not going to be bailed out.
Someday this war's gonna end...
Windowdog, the article isn't clear, but we are basically at parity - so it doesn't matter much.
Best to all.
Windowdog | 05.29.08 - 2:04 pm |
Is that CAD or USD?
Does it really matter. Its a 32K difference
1 USD = 0.987 CAD
The Canadians need greasy hair Sheila Bair to bust their bank's chops. She's got it going on in the USA!
CR,
Can't we have your beautiful old mast head picture of a hiking trail in Yoho Park to go with this Canadian story, preferably with a grizzly bear added at the end of the path.
I miss the levity of the spamfest....
Pretty soon, eh, you're talking about real money, eh?
hoser
Does anyone think that the CDS market will eventually implode and create the ultimately finger pointing / bagholder game?
How much longer?
A billion is massive? Sniff, here in the US, a measly billion doesn't even get you a headline...
Can anyone put these write-downs in context for us? Are these expected and part of the $1 trillion or whatever the consensus is? Are these new? Are they expected but the amounts are higher than thought?
But meanwhile, the market is up on this news:
"...The company, as part of its annual investor presentation, said it is now targeting annual net income growth of 20% to 30%..."
"...spending on MasterCard-branded cards, increased 13% to $555 billion."
"...Since the onset of the credit crisis last year, credit-card processors such as MasterCard and Visa Inc. (V) have been one of the lone bright spots among financial-services firms. Unlike lenders and banks, MasterCard and Visa don't actually issue lines of credit to consumers. Instead, they issue cards and process transactions on behalf of lenders large and small - collecting a fee for their services, but leaving all the credit risk to the lenders. "
Strange...I guess we really do live and die by the service economy now...Course...dryfly is the fly on the wall of that one.
Regards,
btw, can someone explain to me why we are not seeing higher unemployment
I wonder how much is really under-employment. e.g., CR has posted just a few articles prior to this one how broker commisions are down almost half from the peak. I'd have to imagine quite a few Realtors (tm) are going hungry. Heck, they're independent contractors, so even if they quit... they are not counted.
Mostly the hit so far has been in overtime. You can cut the "equivalent employment" 12% to 20% without laying a single person off. I'm also hearing about 40 hour/week personel being 'demoted' to 32 hour/week and having to kick in a fraction of the benifits. A lot? No. But enough to explain the slowing of the economy without the similar spike in unemployment.
Got Popcorn?
Neil
the source is The Canadian Press, so it is likely in CAD...
Consumers should be wary of new 401(k) debit cards that make it easy to swipe away money from a retirement fund, a securities industry regulator said on Thursday
Workers warned about 401(k) debit card perils
| Reuters
You have to love these c*cksuckers on Wall Street. These bastards would sell their mother for a buck.
Regarding 401k debit card:
Who's worse, the crack dealer or crack user?
IMO, they deserve each other.
Just when I thought this country coulnd't shirk any more responsibility, they cook up a way to do it.
Anonymous said: "Consumers should be wary of new 401(k) debit cards...."
Thanks for the link, I guess. I've not seen anything quite as revolting in quite a while.
I would totally use my 401k debit card down at my local coin shop to buy some gold....
I'm tossing in the towel.
I've worked for a small nonprofit and have saved for year to get a home. Just when things were looking good here in the Inland Empire....the interest rates goes UP and now the lender says no one will buy without paying POINTS.
I have a strong FICO score and have saved so I can put down 10% but now the interest rates and points are once again closing the door.
No home in my future....at least here in the Southland.
CIBC has a long history of misadventures from playing fast and loose. Every time they get caught people just roll their eyes. About the worst that can be said about the other major Canadian banks, RY, TD, BNS, BMO, is that this year they might not increase their profits YOY. But actually lose money? Not likely. It is difficult to compare US and Canadian banks b/c of the special position Canadian banks hold.
Can someone explain why so many financial institutions keep dribbling out more losses every quarter? Wouldn't these institutions have just sold any assets they felt were risky (e.g. mortgage securities, CDOs, etc), months ago as the credit crisis became apparent?
Once you sell every credit asset other than sovereign debt (e.g. US treasuries, CDN government bonds, etc), then how could you possibly keep reporting even MORE losses?
This is the same CIBC that was fined $2.4 billion (yes billion) for abetting Enron's shenanigans, and that admitted last year to losing $3 billion (so far) on US mortgage debt.
A recent article in the Globe and Mail quoted an insider as describing CIBC's management style as "big swinging dick", but perhaps "big swinging dickhead" would be more on the mark.
Can someone explain why so many financial institutions keep dribbling out more losses every quarter? Wouldn't these institutions have just sold any assets they felt were risky (e.g. mortgage securities, CDOs, etc), months ago as the credit crisis became apparent?
Who are you going to sell to(or more appropriate, who would buy) and at what price?
In certain areas, a buyer who perhaps purchased simply 6 or 8 months ago with 10% down may have lost the downpayment already. No wonder the banks are tightening.
Catching knives can hurt in a major credit reversal.
Who are you going to sell to(or more appropriate, who would buy) and at what price?
Just take what you can get, from whoever will buy it, since it will only be worth less later.
I'll borrow a style from another blog user.
CIBC is toast.
They are dead meat.
Book it down. Period.
I have a strong FICO score and have saved so I can put down 10% but now the interest rates and points are once again closing the door.
It's best to buy with high interest rates. They tend to push prices down.
At any rate I'd rather buy when rates have been high than when they've been low.
As everyone used to say, you can re-fi to a lower rate but you can't refi to a lower principal (or so we all thought).
Fed to make fresh batch of bank loans
Fed to keep making bank loans available to ease credit stresses
Expired
Just take what you can get, from whoever will buy it, since it will only be worth less later.
Sniglet | 05.29.08 - 4:05 pm | #
Sniglet - you play poker much? If so where...
I suppose 2.48 Billion hurts more when the Loonie is strong.
You have higher employment, it's just not reported.
Currently I have a former girlfriend living with me while she works temp and finds a job. She has been more or less unemployed for four years, she fell off BLS statistics a long time ago and my guess is there are millions like her.
Can someone explain why so many financial institutions keep dribbling out more losses every quarter? Wouldn't these institutions have just sold any assets they felt were risky (e.g. mortgage securities, CDOs, etc), months ago as the credit crisis became apparent?
FASB 133 requires that FMV of certain derivatives be reflected on the balance sheet, even if the losses are unrealized. The problem gets magnified if the losses/gains wouldn't be recognized for a long time. e.g. Berkshire's 1.2 Billion in losses for certain options that wouldn't be exercised for 15-20 years.
The big 6 Canadian banks have a very special status as all feoreign competition has been kept out. Three of them, TD, RBC, and BNS are very well run, have reported minimal writedowns and their shares are within about 10% of where they were last year.
CIBC has been named "the bank most likely to walk into sharp objects". Despite that, they will survive. Anyone in Canada with an RRSP (the Canadian version of 401ks) very likely owns shares in one of more of these banks.