That "subprime" bone is getting quite well chewed, so they must be hungry. I suppose they want to scare the public some more and run some stops. They keep finding "new" items to try - the latest is rising credit cards delinquencies ... uh, what did they expect in a period of slower growth that began six months ago?
Richard Hoey on Babblevsion is talking about the need for a steeper yield curve to let the banks take on more paper - he's right. The Fed should quickly cut to 4 to 4.5% overnight rate with the discount rate equal to that rate, not higher. If that rate is a "sign of strength" as the Fed says, WHY is it higher? That's illogical. The Fed is really behind the curve - swinging at air.
Nothing new in yesterdays charts.
Uh ... since there are known to be billions in subprime loans out there, why is it a "surprise" when a bank or institution announces they have some? Where do people think those loans are? In the phantom zone?
Perhaps I've lived through so many real crises and panics, that I'm jaded. This one sure seems like a yawner to me.
So far it's still the "Rich Man's Panic of 2007"
PS: I did buy that iPhone yesterday. The sales demo was quite good - even a technological troglodyte like me might be able to use it. So this morning I'll activate it. More later.
PPS: Anyone who bought little, illiquid "slices & dices" of a MBS - whether residential or commercial - or of a CDO - and expected to be able to sell it before maturity is & was ... a fool.
P^3S: All this anguish about "subprime" and we haven't even had a moderate bank failure or other bankruptcy. One or two crummy mortgage "bankers". Sheesh. Whiners.
P^4S: The market is down a good bit, much after the Fed minutes came out showing the FOMC is a bunch of out-of-touch ivory tower dopes. Everyone was kissing their butts about that "genious" move. Not me. And now we see it proven to be a failure. The Fed is a very dangerous institution and really needs some adult supervision.