GLG News by Financial Advisors (US)

The LBO market appears to be settling down as the prices are market down and lending terms revised. But the SIV market has not reached bottom and basically remains frozen. The buyers have not materialized. CitiBanks bridge financing of $80 billion through year end only postpones the problem.

The excessive use of leverage and investment in complex products are at the root of the current global crisis. But, they alone do not explain the depth of the problem. Investors world wide thought they were safe because most of these new exotic products carried a AAA investment rating.

The article implies gold's recent price action qualifies it as an alternative investment.  However, short-term observations of price action and the relationship of the price of gold and the dollar are not convincing enough to cause one to invest in gold.  Trade gold, perhaps, but not invest....

U.S. economist continue to focus on the domestic economy. True, housing will continue to be a drag on our economy and GDP, but it isn't the entire economy. Exports continue to expand and together with our service economy produce the bulk of GDP. Most economist continue to be too US centric.

1.  Increased government regulation requiring the new calculations. 2.  Increased paperwork for the originators and the loan applicants that they don't understand. 3.  Even if we came up with the perfect disclosures, the people that need them the most will not use them.

Private forecasters said that worry is not misplaced, given that all but two of the housing downturns that have occurred since the end of World War II have been accompanied by recessions.

The only way to put a bubble behind the economy is to reduce the prices low enough to clear out the inventory. Only then, can we move forward. Japan didn't follow the US lead and suffered deflation for 15 years. Is helicopter Ben making the same mistake? The 50 basis point cut may help those with adjustable...

1. A hugh loan package Of over 16bn is EXPECTED to be sold to Investors. 2.Highly-leveraged Finanacial activity is exceptionally difficult with the marketplace in complete turmoil. 3.Covenants, Conditions and Concessions for the transaction appear to be unlikely. 3.Higher Interests rates and payments...

Bubbles always end by bursting and someone gets hurt. This is the self-regulating aspect of capitalism. The investment banks are not victims, unless it's victims of their own greed. They are going to take a major hit to their earnings and will have to bring a lot of the loans onto their books....

First, the Central Banks have to get the car out of the ditch. The level of interest rates isn't the problem. Rates are still low by historical standards. The liquidity problem in the U.S. is not at the banks; its at the investment banks and hedge funds. This is why cutting the Discount Rate by...