You are currently browsing the category archive for the ‘regular’ category.
The last six months have made it abundantly clear that voluntary regulation does not work
—Christopher Cox, Chairman of the SEC
Agency’s ’04 Rule Let Banks Pile Up New DebtBy STEPHEN LABATONPublished: October 3, 2008A Securities and Exchange Commission decision helps explain how the financial crisis spun out of control.
The MSCI World — down 28%, YTD — 13.2x the earnings, lowest since 1995
Europe’s Stoxx 600 — 10.4x earnings, the lowest since 2002
S&P 500 — down 34% since 10/2007 — 20.9x earnings, and 19.5x at the end of the day
Opening Comments from Across the Curve
Fund Sept. (%) YTD (%)
Maverick -19.5 -21.2
TCI -15 -26
Greenlight Capital -12.8 -16.4
Lone Cyprus -14.7 -26.5
Third Point -11 -18.4
Atticus European -15.8 -43.5
Atticus Global – 2.8 -27.2
Source: Investors
We are living through the type of wrenching financial crisis that comes along only once in a century. Financial markets freeze up as an excess of fear displaces a protracted period of what some might call irrational exuberance. Eventually the market freeze will thaw as frightened investors take tentative steps towards reengagement with risk.
Breaking the buck was the Rubicon. This was the first time in the crisis that you could see stories talking about how it was affecting real people.
—A federal official
We were saying to Treasury and the Fed, at a very high level: Pay attention to this issue. This will have an impact.
—Greg Ahern, chief communication officer, Investment Company Institute
As Credit Crisis Spiraled, Alarm Led to ActionBy JOE NOCERAPublished: October 2, 2008During a 36-hour period two weeks ago, the fissures opening in the worldwide financial system convinced policy makers that they needed to act quickly.
We look for U.S. businesses to pull back in the coming two quarters, with investment spending expected to reverse course at an 8 percent annualized pace. We also expect payroll losses to average 150,000 per month over this period, double the pace thus far this year.
—Bruce Kasman, Chief Economist, JPMorgan
The big question for Latin America is how long and deep is this cyclical downturn going to be, and how much is it going to reduce commodity prices
—Nicholas Field, who helps oversee about $18 billion in emerging-market equities at London- based Schroders
Commodities are falling because of the realization that the economic downturn is spreading to Europe and Japan. A spillover into Asia is becoming more likely, which means things will get even get worse.
—Adam Sieminski, Deutsche Bank’s chief energy economist, in Washington
The bleak economic picture is hitting equities and that’s having an impact on commodities. It looks like Europe’s economy is following ours lower and has further to drop, which is strengthening the dollar. The soaring dollar is leading to an unwinding of the commodity trade. That, coupled with deteriorating economic prospects, is putting pressure on commodities across the board.
—John Kilduff, senior vice president of risk management at MF Global
leaving the process of recovery entirely to the healing powers of the banking industry, as libertarians suggest, would be imprudent, even if the banks could manage it. Lacking much government intervention, Japan’s recovery took a decade. Sweden’s recovery, with state intervention, took hardly any time at all.
It’s almost inconceivable that there won’t be an enormous slowdown in the U.S. markets and with that, increased joblessness, lower employment and higher bankruptcy rates, both personal and corporate. Businesses are going to have to adapt.
—Michael Vogelzang, chief investment officer at Boston Advisors LLC
The cards are on the table and a recession is coming. Our focus is going to be on things like dividend yields, solid brand names, consumer staples, less cyclical exposure and those sorts of things. Broadly speaking, earnings estimates are coming down.
—Henry Herrmann, chief executive officer of Waddell & Reed, $70 billion AUM
More important than the bailout plan will be next year’s economy. I would rather sell on strength.
Manufacturing could be on the brink of a collapse. There are no orders, no jobs and there is really no incentive for businesses to invest. The credit crisis is compounding the problem.
—Lindsey Piegza, a market analyst at FTN Financial
It has to go, for the sake of the U.S. and for the sake of global finance. I am confident, but of course it is the decision of the U.S. Congress.
[The rescue bill] is not going to switch on a light, so to speak. I see more layoffs coming, and I see more business failures. You have to start thinking about Treasuries as a core holding going forward for the next year or so.
—Francis Mustaro, who heads a group managing about $500 million at J&W Seligman & Co. in New York
People are focusing on the fact that when you move beyond this vote, you get back to the data fundamentals, and we’re staring at what could be a very steep recession
—Martin Mitchell, head government bond trader at the Baltimore unit of Stifel Nicolaus & Co
And let us recognize above all the 228 who voted no — the authors of this revolt of the nihilists. They showed the world how much they detest their own leaders and the collected expertise of the Treasury and Fed. They did the momentarily popular thing, and if the country slides into a deep recession, they will have the time and leisure to watch public opinion shift against them.
Stilltitled 