Subprime Peer Pressure

By |2014-09-03T17:20:47+00:00March 17th, 2008|Global Market Update, Uncategorized|

What is it about sub-prime mortgages that has everyone so entranced? Like the proverbial deer caught in the headlights, financial professionals can’t seem to get out of the way of an oncoming car. The latest news is the insurance industry. Analysts estimate that insurers will lose about 40 billion from investments in securities linked to substandard underwriting. That’s as big as the industry lost in the Katrina disaster.  And this disaster was self-inflicted. Pundits are all looking for someone to blame, but the real [...]

S&P to the Rescue!

By |2014-09-03T17:15:30+00:00March 14th, 2008|Global Market Update|

We started with a meltdown yesterday, but we didn’t finish there. Just when Wall Street was ready to throw in the towel, along came S&P to throw it a rope. When the day started overseas markets were down about 3%. There were concerns that a falling dollar would depress foreign economies. And a depressed world wouldn’t buy as many US exports. So US markets opened down as well. But in the middle of this pity party, S&P announced that they could see a light [...]