Why This Crisis is Still Far from Finished

Why this crisis is still far from finished
By Mohamed El-Erian
Published: April 24 2008

During the past few weeks we have seen a growing number of market participants predict an end to the dislocations that erupted last summer and claimed victims throughout the financial system and beyond. While their predictions are understandable, they are premature. The dynamics [...]

U.S. Stocks Drop to 18-Month Low After Foreclosures Hit Record

By Michael Patterson
March 6 (Bloomberg) — U.S. stocks fell to an 18-month low, led by banks, after home foreclosures climbed to a record and loan defaults by Thornburg Mortgage Inc. and a Carlyle Group bond fund spurred concern that credit losses are deepening.
Citigroup Inc., Bank of America Corp. and JPMorgan Chase & Co. led [...]

Do You Think The Stock Market Could Fall to 11,000?

This is a Chart of the Stock Market (The Dow Jones Avg.) since the most recent market bottom in early 2003.
The stock market has risen every year for the past 5 years.
If the stock market would fall to 11,000 - that would be 2,806 points down or 20.3% - If that happened most people would [...]

Cheap Credit Caused the Crunch

Consumers and Investors can measure the current economic problems by counting the number of times they hear the term “credit crunch.”
We are being told that it is very difficult to get a big mortgage, that deals are falling through, that innocent home buyers are in a sorry state.  A big bank has raised its rate [...]

Fed will print Money!

A Little Economic History
Why the Fed has no other Alternative but to print Money!
The entire economic expansion of the US in the 19th century was a deflationary boom. Declining prices led to strong real income gains. As time went by, workers could buy with their incomes a larger and larger basket of goods [...]