April 7, 2008
A Weak Residential Mortgage Capitalization and a "Recession" - Liquidity is Obsolete
Analysis of:
Moody's cuts Countrywide Bank rating to "D" | www.reuters.comAuthor: GLG Expert ContributorImplications: 1.The issue , at hand, will impair the Bank's Franchise and the Parent Firm - Countrywide Financial Corp. 2.A Material affect on a proposed acquisition by Bank of America. 3.The salient issue - " Does Countrywide have the Lquidity and Capitalization" to entice Bank of America to move forward...
April 7, 2008
RBI's Policies towards 'Inflation' and the effects on Indian Economy
Analysis of:
Rupee Volatility to Rise After RBI Meeting, Morgan Stanley Says | www.bloomberg.comAuthor: GLG Expert ContributorInflation in India has crossed 7 % mark , and the Government of India is very worried about it's political survival of the UPI's ' Amadmi's' agenda. It has correctly taken some steps to correct the high rise in ' foodgrain prices' and' energy intensive...
April 4, 2008
The Question at Hand: Is the US Economy Slowing or Failing.
Analysis of:
Overdue Consumer Debts Highest Since 1992, ABA Says | www.bloomberg.comAuthor: GLG Expert ContributorImplications: 1.The American Consumer is beginning to fail on their management of life style and debt.Education and proper advice is the answer. 2.The matter outstanding is the issue of an overextension , relating to credit. 3. The rise and fall of housing prices is the striking criteria,...
April 1, 2008
New Mortgage Rules: Government Intimidating Capitalism?
Analysis of:
Fidelity National critiques new mortgage rules | www.marketwatch.comAuthor: GLG Expert Contributor1.Government intervention and scrutiny May have an adverse affect on the mortgage business, at an inappropriate/critical juncture in the Business Cycle. 2.The issue at hand - inflated appraisal values of homes. It is not to the advantage of the loan processor to overstate a basis of capitalization....
April 1, 2008
The Role Of Federal Banks in Mortgage backed credits
Analysis of:
Federal banks can buy more mortgage-backed debt | www.latimes.comAuthor: GLG Expert ContributorThis issue is important to policy makers, economists, financial institutions, and finally to the US economy and the world economies.During the economic boom, financial institutions expanded their balance sheet and found due to the increasing housing prices that their leverage...
April 1, 2008
Indian Economy after the budet presentation.
Analysis of:
Budget Highlights (India) | www.thehindubusinessline.comAuthor: GLG Expert ContributorIn spite of a budget presented , which has pleased the farmers for the big loan wavers, and the income tax payers for the big relief in the form of reduction of the tax rates , the Indian economy is now facing serious challenges in the form of a slow down in economic growth , falling stock prices, increasing...
March 27, 2008
The Downside of ATM's: High Fees
Analysis of:
Are rising credit card interchange fees hurting ATM usage? | www.atmmarketplace.comAuthor: GLG Expert ContributorImplications: 1.Merchantability - interchange fees may , likely, be forced by Regulatory Authorities to control fees and a limitation of credit card company power to control the same. 2.The alternative - swipe the plastic Debit card rather than a credit transaction. 3.There appears to be a contradiction...
March 25, 2008
Repurchase Agreements: A Struggle to Find Acceptable Capital Financing.
Analysis of:
Repo market strains in credit storm | www.financialnews-us.comAuthor: GLG Expert ContributorImplications: 1.Financial Insitutions will be Demanding Higher Standards on Collateral:Expectation of restictive Due Diligence. 2.The Financial Marketplace may not accept asset-backed securities of sub-investment grade. 3.The basis of Decision-Making: the valuation basis of the underlying assets...
March 24, 2008
A Cracked Foundation: Market Sentiment or Expectation of Government Bailout.
Analysis of:
Gold Plummets by Record $59 on Fed's Interest-Rate Decision | www.bloomberg.comAuthor: GLG Expert ContributorImplications: 1.Expectations - "Awareness of a Correction", which MAY lead to a sharp price downside for a prolonged period of time. 2.The role of the U.S. Central Bank - a reduction of the Federal Funds Rate,credit market losses and Sub-Prime Mortgage market are , indeed, viable indicators of the Financial...
March 20, 2008
Morgan Chase Bailout: A Bargain and A Hugh Capitalization of Assets.
Analysis of:
Did JPMorgan overpay? | dailybriefing.blogs.fortune.cnn.comAuthor: GLG Expert ContributorImplications: 1.A MATERIAL Gain for the firm by the ability to acquire a solid Securities Clearing business and a more than adequate Headquarters' Building for less than fair - market value. 2. A Time period will have to pass before a clear assessment of the transaction can be a quantified. 3....