subprime

With share prices having recovered from the subprime-related slump

October 31st, 2007|by Michael Ashley Schulman, Perspectives, The Big Picture, Writers|

With share prices having recovered from the subprime-related slump and in many cases making new highs, there are doubts as to whether the major central banks still have an incentive to drop rates. However, valid reasons remain for the G7 central banks in general and the Fed in particular to deliver more rate cuts:

  • Inflation is […]

August’s subprime mortgage contagion led to a widespread liquidation of

August 31st, 2007|by Michael Ashley Schulman, Perspectives, The Big Picture, Writers|

August’s subprime mortgage contagion led to a widespread liquidation of equities, commodities and low-grade credits. The sell off was exacerbated by the largest jump in overnight loan rates in six years. Correspondingly, inflation in China accelerated to the highest level in a decade, volatility soared, and U.S. consumer confidence reached a two year low. The […]

Half way through the year, markets appear very different

May 31st, 2007|by Michael Ashley Schulman, Perspectives, The Big Picture, Writers|

Nearly half way through the year, the markets appear very different to most observers than they did at year end:

  • Private Equity (PE) acquisitions are achieving new records
  • Foreign central banks and wealth coffers are refocusing their US investments
  • Domestic housing and subprime mortgage woes have worsened
  • Inflation concerns are more tangible

None-the-less, our outlook for relatively strong US and […]

The subprime tsunami has swallowed sixty-seven (67) US mortgage lenders

April 30th, 2007|by Michael Ashley Schulman, Perspectives, The Big Picture, Writers|

Shutdown, bankrupt or no longer operating independently, the subprime tsunami has swallowed sixty-seven (67) US mortgage lenders since late 2006. The tempest has hit home builders too; Toll-Brothers, Lennar, and Shea are stepping up promotions and discounts in the face of lower sales and a high numbers of customers walking away from their commitments. Banks […]

March 31st, 2007|by Michael Ashley Schulman, Perspectives, The Big Picture, Writers|

More volatility, fear, and bad news regarding subprime mortgages continued to rattle US markets. For much of the past three years, pundits had split opinions regarding whether rising home and oil prices would effect core inflation. They never did. Now, the question du jour is if housing and mortgage market problems will dampen the broad […]