Credit Crisis

I spent most of 2008 and early 2009 completely obsessed with the credit crisis (evidenced by this index of the best crisis coverage I created just over a year ago). Reading this Andrew Ross Sorkin piece in tomorrow’s New York Times got me all riled up again: What the Financial Crisis Commission Should Ask NYTimes’ […]

{ 0 comments }

If there is a silver lining to the credit crisis and resulting economic woes, it is renewed energy in the supplier financing space. As a B2B e-payment evangelizer, I’ve long considered dynamic supplier financing a potential “killer app” to drive broad adoption of electronic invoicing and B2B e-payment. Supply chain financing is not a new […]

{ 0 comments }

In case you’ve been wondering where things stand with government bailout funds the WSJ has an interactive graphic. You can sort by program (Automotive Industry Financing Program, etc.), by recipient company, by date, by amount, etc. (hat tip to Barry Ritholtz)

{ 0 comments }

I‘ve been trying to enjoy the little culture skirmish that surfaced last week as media watchdog Jon Stewart of the Comedy Central took comedian Jim Cramer of CNBC to task for failing to warn the public that the valuation of  houses, equities, municipal bonds, commodities, and every other financial asset in the global economy had […]

{ 2 comments }

In his New Yorker column this week titled “House of Cards“, James Surowiecki writes about how some US credit card issuers are trying to shed some of their existing customers. In effect, they’re trying to follow the advice given by Larry Selden and Geoffrey Colvin in a book called “Angel Customers and Demon Customers.” Not […]

{ 0 comments }

Late last week, Thomas M. Hoenig, President and Chief Executive Officer of the Federal Reserve Bank of Kansas City, gave a speech in Omaha titled “Too Big Has Failed“. A lesson to be drawn from Continental is that even large banks can be dealt with in a manner that imposes market discipline on management and […]

{ 0 comments }

This week NPR’s This American Life adds to it’s excellent series of podcasts explaining the credit crisis in every day lay terms with an hour long program on bad banks: The collapse of the banking system explained, in just 59 minutes. Our crack economics team—the guys who explained the mortgage crisis, Alex Blumberg and NPR’s […]

{ 0 comments }

Amid increased government ownership of Citibank, persistent rumors that BofA is next, and announcement of the Obama administration’s budget, there has been increasingly loud debate over bank nationalization. The media pundits and blogosphere are a cry with claims of pending socialism and the “Europeanizaton of America” – which, while provocative, aren’t necessarily true.

{ 0 comments }

The Economist observes that the downfall of the telecom industry (1997-2003) offers foreboding lessons for today’s bankers. Just like banks, telecoms had imperial bosses, kamikaze deals and incomprehensible jargon—if collateralised-debt obligations troubled you, try gigabit Ethernet routers. In telecoms leading firms were reduced to indebted objects of ridicule. The consequences were bankruptcies, huge job losses, […]

{ 0 comments }

Today’s Globe and Mail has an interview by its economics reporter, Heather Scoffield, with Harvard Professor Niall Ferguson regarding the current financial crisis. In what is frankly a pretty depressing assessment of the crisis, Ferguson suggests: It is bound to destabilize some countries. It will cause civil wars to break out, that have been dormant. […]

{ 0 comments }

Today at The Huffington Post Tim Berry shares the results of a survey conducted last week to explore the availability of business credit via bank loans, commercial credit, SBA loans, etc. The results are not surprising: there’s precious little credit available. We’ve been reading those headlines and statistics for weeks now. But what struck me […]

{ 0 comments }

Jonathan Jarvis, as part of his thesis work in the Media Design Program at the Art Center College of Design in Pasadena, California, has done a masterful video titled “The Crisis of Credit” that explains the interconnections between housing, mortgages, banks and lenders in a delightful way – even if the subject itself is most […]

{ 1 comment }

These perilous economic times lead all of us outside of our comfort zone, and these thoughts certainly don’t fall directly into my current sphere of expertise as a payments industry consultant. But I did start my business career as a corporate lending officer – trained at Bank of America and Citibank in the late ‘70’s […]

{ 2 comments }

Tonight CNBC airs a program on the origins of the economic crisis, including an interview with Greenspan who claims that the Federal Reserve could have taken steps to prevent the housing bubble, but doing so would have prevented the economic boom and dramatically increased unemployment. Clearly you cannot diffuse these things unless you hit them […]

{ 0 comments }

This week's Economist includes a Special Report on The Future of Finance (and it's not pretty): Contents: The collapse of finance Why is finance so unstable? Fallible mathematical models When markets turn Playing financial chicken Regulating finance Fixing finance

{ 0 comments }

Clicky Web Analytics