U.S. financial

Saturday, May 7, 2011

Subprime mortgage crisis and then expand the United States five credit unions being dragged into the water

United States-five largest Credit Union has announced a massive mortgage securities carrying losses, this means that the real tired Wednesday has spread to pay most attention to risk avoidance function in the financial field, this also indicates that in the subprime mortgage crisis swept through the commercial banks, securities, investment banks and bond insurers, and other agencies at the same time, there is almost no other financial institutions to immunization.

(http://finance.) According to federal regulatory documents show that the five published mortgage-related losses of the company are the United States Central Federal Credit Union, the Western corporate Federal Credit Union, the members of the joint enterprise Federal Credit Union, Southwest corporate Federal Credit Union and articles of Association of enterprises of the Federal Credit Union.

File display, at the end of may, the United States due to credit market turmoil that five Credit Union announced about 57 billion total carrying amount of the loss. The amount is sufficient to offset their net worth, add them after the total negative equity, total 29 billion, which means that in theory, their debt exceeded the market value of assets.

But five Credit Union said that their balance sheet than surface shows a lot of strong, because the existing accounting rules do not allow them to display a major capital sources — in formal credit Union serves under somebody's banner the transition of the investment fund companies.

According to the Credit Union, the federal supervisory authority – National Credit Union Department stated that, in the mortgage market stability, the related losses are likely to be filled, and agencies in good condition and capital adequacy. But some external observers are worried that the Credit Union underestimated its set foot in the mortgage market depth and severity.

United States Credit Union is a non-profit, cooperative financial institutions owned by its members and management, service, democratic control and management of the Credit Union, for its members to provide a security deposit and a reasonable interest rate to the borrower. According to statistics, as of the end of 1999, the entire US 84 a Credit Union, with more than $ 7750.

How the U.S. economy out of the woods.

Hong Kong "Ta Kung Pao," a comment on December 4 article, "How the U.S. economy out of the woods" that the United States to stabilize the financial institutions in the same time, the urgent need to strengthen the investment of financial institutions supervision of financial derivatives. .Face up to its virtual economy and real economy caused serious economic risks, after hanging upside down, reflect on its harm than good model of economic development, licking wounds, while in the clear treatment by doctors scraped the bone to create a healthy economic development to ensure that the financial system. .Meanwhile, the increase in real economic development investment, strengthen research and development, science and technology revolution, leading the world economy. .This is the key to the U.S. economy move out of the woods. . article summarized as follows: American scholar Albert Bell has sharply pointed out: "The more capitalist a short-term wealth creators, the more long-term social value will be the destroyer" .. .Recalling the past three decades evolutionary history of the U.S. economy, we find: in the U.S. dollar as the central payment system and the endless financial innovation and support the shield, the great prosperity of the U.S. financial industry to create an astounding wealth of reproduction rate at the same time, .also to economic development should be the most solid foundation of the real economy pushed to the side. .That Wall Street financial oligarchy and the U.S. government's economic officials believe that financial capital alone is sufficient to guide the global economy. . Originally, the manufacturing sector in the real economy, represented by the proportion of the U.S. economy has been over the financial industry. .However, in economic and financial logic arrangement, the center of U.S. economic activity, production of material goods deviated from, but rather focus on the financial asset management, mobile and value-added up. .Result, the financial services industry represented by the development of much faster than the real economy. .Under the clarion call of financial liberalization, to Goldman Sachs, Morgan Stanley, Citigroup represented the strength of financial institutions continue to expand, an endless stream of financial derivatives. .At the same time, the United States continue to shift to offshore manufacturing, leading to the U.S. economy greatly increased the degree of virtualization. .Market value of derivative financial products the United States has up to 400 trillion, 28 times the U.S. GDP is the total value of the stock market and real estate 15 times. .Even if that asset quality is generally high, Citibank, in its total assets of 2 trillion U.S. dollars, the table is only 600 billion U.S. dollars of assets, the other over 15,000 billion U.S. dollars in balance sheet assets are CDO and other derivative financial products. .The structure of the assets of Lehman Brothers, the overwhelming majority of high-risk real estate mortgage-backed securities assets. .It now appears that subprime mortgage loans this seemingly ordinary financial derivatives have become the detonating fuse of the U.S. financial crisis, both because the U.S. real estate bubble burst in the mortgage lead is cut off the source of the deterioration of economic growth is expected ., but also because the mathematics of financial derivatives under the support of a Wall Street launched a dazzling financial derivatives, making the risk assessment can not keep up with product development, leading to even more powerful financial institutions, but also increasingly vulnerable. .Moreover, this caused by the loss of financial derivatives is very difficult to find, until finally exposed when, in order to stop the bleeding time is too late. . visible, both economic and financial of the U.S. economy pushed the clouds, can also become a major force behind the U.S. economy went into hand. .If the virtual economy and real economy severely upside down, even a seemingly very common financial derivatives can also create a financial plague. .In this sense, the financial crisis in time, it should cause the United States on its path of economic development, a thorough reconsideration. . is well known that the development path of the U.S. economy in the 1980s has been distorted. .Double deficit continues to expand, making the United States must continue to find additional sources of recurrent deficit to ensure that capital account surplus. .Then in the 1990s, the United States to use its hegemony concept of the new economy hype, through the capital market to attract a large number of foreign capital entered the United States. . With the technology bubble burst and the "9? 11" incident, the U.S. capital markets attract investment function started to diminish. .Under such circumstances, the U.S. government monetary and fiscal policies both. .Federal Reserve Chairman Alan Greenspan when he was one continuous substantially lower interest rates, in 2001, the Federal Reserve cut interest rates 11 consecutive times, the federal funds rate fell to its lowest level in 40 years, with the media as saying that "opened the monetary tap." .The Fed released to the market through a lot of liquidity, and ultimately overcome the result of the stock market bubble burst in the market panic. .However, the U.S. real interest rates negative interest rates for several years, the dollar supply exceeds demand in the market, resulting in depreciation of the dollar. .On the other hand, the U.S. government tax cuts in the financial, tax cuts totaling 1.35 trillion U.S. dollars, and to encourage consumption and investment. .These measures to stabilize the market, the U.S. economy avoid a recession. .At the same time, the United States through the real estate market to maintain the upward trend in asset prices, excess liquidity through new lending instruments of the flow of the real estate market. .These measures in creating the surface prosperity of the U.S. economy after the U.S. housing bubble has led to the expansion, and ultimately led to the impact of the global subprime crisis. . History is a mirror of the best. .Britain was the reason why the world's super powers from the "empire the sun never sets" back to the end of the British Isles occupies a starting point, in addition to the use of excessive force beyond that because the British rulers indulge in the financial industry and prosperity to the neglect of the surface .the real economy. .USA Today is no exception. .Stabilize the U.S. financial institutions at the same time, urgent need to strengthen the investment of financial institutions supervision of financial derivatives. .Face up to its virtual economy and real economy caused serious economic risks, after hanging upside down, reflect on its harm than good model of economic development, licking wounds, while in the clear treatment by doctors scraped the bone to create a healthy economic development to ensure that the financial system. .Meanwhile, the increase in real economic development investment, strengthen research and development, science and technology revolution, leading the world economy. .This is the key to the U.S. economy move out of the woods. .(Zhang Yu you) .

Monday, April 25, 2011

Wal-Mart's bank might face a new abortion bill.

Never been a commercial organization like Wal-Mart industrial bank for concern, and even cause the U.S. political special financial institutions for this new understanding. . Monday, a co-sponsored by the U.S. bipartisan bill will probably completely ruin the American way commercial companies, banks, financial institutions and to rebuild the barriers between commercial enterprises and its impact comparable to 1956 .years, "Bank Holding Company Act." . the new bill by the Ohio Republican Congressman Paul Gillmor and Massachusetts Democrat Barney Frank jointly, under the Act, commercial enterprises will not be allowed to establish new industrial bank (ILC). .The effect of this bill will be retroactive to June 1, 2006. . addition to limiting the commercial sector to set up industrial banks, the bill also requires the current needs of the industrial banks in the U.S. Federal Deposit Insurance Corporation (FDIC) up, while the FDIC will be granted more rights, which can be as .The Fed's bank supervision, as supervision of industrial banks. . Financial Services Committee, U.S. Congress (House Financial Services) will hold a hearing Wednesday. .And as early as last month, 98 members of Congress sent a letter to FDIC had jointly concluded in Congress to persuade them to stop before the application for approval of new commercial banks. . Although the current United States federal law allowed commercial enterprises involved in banking, but the industry is not banking law in the United States was included in the bank category. .According to FDIC data as of 2004, the United States a total of 59 industrial banks, the total assets of 140 billion U.S. dollars. .It seems unfair for the bank because no bank can have a Wal-Mart or General Motors. . Gillmor and Frank said that this will lead to commercial enterprises and the blurred boundaries between the banking industry, while ILC itself, there are also problems of inadequate supervision. ."Congress and the FDIC must collaborate to develop legislation to maintain the banking sector and the line between commercial enterprises." Gillmor said in a statement on Monday. . the entire financial sector program for the new look mixed. .American Bankers Association (ABA) and the American Community Bankers Association (ICBA) endorsed the new program. .American Bankers Association President EdwardYingling even that "commercial enterprises that should not have a bank." . but the American Financial Services Association (ASFA) has said that industry will be able to help commercial enterprises to improve operational efficiency and reduce costs. . "Eventually, (with Industrial Bank) will mean that consumers can get cheaper prices and more choice." American Financial Services Association Vice President Lynne Strang also said in a statement Monday. ..

United States tens of thousands of GM workers nationwide strike.

: Http://finance. News, United Auto Workers union (UAW) labor negotiations with the representatives of enterprises, the largest U.S. car manufacturer General Motors, the negotiations between the companies before the deadline without an agreement, GM's .73,000 employees from 24 noon to hold a national strike began. .U.S. media said it was the United States since 1976, caused due to labor negotiations, the first nationwide strike. .According to the Canadian Auto Workers said the strike affected by the United States, Canada, a General Motors production line has been forced to close, and another four will be closed in the next few days. . GM's last major strike in 1998, when GM production in North America, almost to a standstill. .If the strike lasts too long, it is likely to operate to bring this to the general poor hit. . 】【contradictions layoff plans and health insurance fund problems U.S. Eastern Time at 11:00 on the 24th (GMT 23:00) just after the General Motors Corporation .In the Delta Township plant have more than 1,000 employees out of the workplace, hold high the "UAW strike" strike started the slogan. . "New York Times" reported that recent negotiations between employers and employees the principal contradiction in the work focused on the protection of employees and employee health insurance fund problems. .GM is currently underway until the 2008 plan to lay off 2 million people, while the union is opposed to cuts in order to maintain stable employment, the negotiations eventually broke down. . GM has been promoting the establishment of a "voluntary employee benefits association" (VEBA) trust fund, responsible for serving and retired employees and their families to provide medical insurance. .In this way, GM can not guarantee to its retired employees health care expenditure obligations of 51 billion U.S. dollars transferred to the trust fund. .U.S. media reported that nearly 339,000 existing GM retirees and their spouses. . last week, although both sides have already reached a framework agreement establishing the Trust Fund, but is difficult to bridge their differences on the details of the agreement, such as General should ask how much money the trust fund, and so on. . UAW strike the main 席罗恩格特尔 Finger told the media after the deadline, employees of job security issue is one of the main points of disagreement, he held between employers and employees complained about a "one-sided ."negotiations..格特尔芬格 said that the Federation will continue to strive for employee benefits. . "negotiations have been along the direction of GM, but at the expense of the cost of staff," 格特尔芬格 said, "when the company faced a deadline if it did not care." </ .P> 丹弗洛雷斯 after GM spokesman expressed regret for the strike and said the two sides will continue to seek to resolve the problem. . 【Background】 strike last 2.2 billion loss is unclear whether both sides will compromise future negotiations, but the two sides .the situation seems to have the strike are well prepared to work. . "New York Times" reported that, UAW now has nearly 9 billion dollars a strike fund. .Federation of the car if the employees are on strike, UAW will have to pay them 200 dollars per person per week to cover the strike caused economic losses to employees. .This means, UAW can afford a strike that lasted more than two months. . According to U.S. media quoted the National Automobile Dealers Association chief economist Paul Taylor as saying that while the company's staff held a nationwide general strike, but GM still has a reserve of 65 days of the finished car, .enough to withstand a short strike. . However, Taylor believes that even if the auto companies can support more than two months time, the cut-off situation, the economic losses caused by the strike is also very high for the company. .For example, GM's UAW workers in 1998 through the strike, the only two GM parts plant's strike gave the company 54 days caused loss of 2.2 billion U.S. dollars. . "In my opinion, we have no party won the negotiations," GM has been working 31 years for the employees participating in the strike, said, "come to this point, it is too bad .a. " .

American consumers tightening purse continued weakness of economic fear.

U.S. consumer spending last month, an increase of the smallest since last June, Jan. 26 in the week ended also the first time jobless claims surge by 6.9 million to 37.5 million, the highest since a record level since early October, and .Since the September 2005 record the largest increase since, that the economy may continue to weaken. . : http://finance. The American people face the moment of falling house prices, shares fell, oil prices and increased lending standards, a series hit, had to tighten the purse. .U.S. consumer spending accounts for 70% share of economic output, a significant reduction in the expenditure of hard to turn around the inevitable drag on the U.S. economy. .The weak job market, reduced consumer spending Gengrang, forming a vicious circle. .In order to boost the spending power of the people, the Federal Reserve (Fed) continued to reduce interest rates, the Government is discussing the public release of the 111 million tax rebate checks. .However, these measures may bear fruit slowly. . 31, the U.S. Commerce Department announced last month, consumer spending rose 0.2%, and 11 months of an increase of 1%. .Interview Bloomberg News economist adjusted median growth estimate of 0.1%. .Consumer spending rose 5.5% in 2007, an increase over the past 4 years minimum. . report showed that personal income in December rose 0.5% in November last year, revenues increased 0.4%. .Bloomberg's visit to transfer the results that rise economists expected value of 0.4%. .Personal consumption expenditures price index for the first 3 months rose 0.2%. . In addition, the same day the U.S. Labor Department said initial claims for unemployment benefits last week, the number of Jan to 27-month high, more than expected. .Increase in the number 69000 to 375000. .Analysts expected initial jobless claims last week rose to 32 million people is. . week before the initial jobless claims were revised to increase to 30.6 million in 6000, the original release is reduced to 30.1 million in 1000. .Over the past four weeks, the average increase in initial jobless claims to 325,750 people 10,250 people. .January 19 in the week ended, the total number of U.S. unemployment benefits rose by 4.7 million to 272 million. . released the report, the Beijing night 9:54,10 31-year U.S. Treasuries yield 3.62% from 30 down to 3.58%. .S & P 500 index futures fell 1.3% reported to 1333.70 points. ..

United States is now "cold" the.

Tired by the subprime mortgage crisis, the last 3 months last year, U.S. economic growth was slowing, negative 26 again came the bad news trend. .Which house price index, last December, more than 20 cities in the U.S. housing price index decreased by 9.1% a year earlier, higher than economists had expected 8.2% decline. .The slump in house prices, consumer confidence is low when no reduction in the momentum of U.S. inflation, prices continued to rise. . ■ Inflation momentum ferocious It http://finance. Hearing, house prices in the doldrums this is a sign of economic slowdown, but released the same day, the price index has shown, U.S. goods .prices continued to rise, inflation ferocious momentum. . U.S. Labor Department released data show that in January, the U.S. wholesale price index (PPI) rose 1%. .The index represents the prices do not include consumption tax and sales costs. .Over the past 12 months, the U.S. wholesale price index rose 7.4% in October 1981 was the biggest increase since. . food and energy price inflation in the United States the "culprit." .This year in January, the U.S. Food prices rose 1.7%, 8.3% higher than last year; energy prices rose 1.5%, 22.6% higher than the same period last year. . is worth noting that even excluding food and energy price factors, the United States in January this year, still higher than last year's commodity price index rose 2.3% last month by 2%. .Inflation that the U.S. inflation severe. .United States, "Business Week" on the 26th reported: "inflation figures increasingly reflect the change in overall economic impact from prescription drugs, soap, disinfectant, platinum and gold jewelry to the wide range of commodity prices." United States .housing slump, inflation data raises concerns, because it may indicate a recession and inflation, stagflation phenomenon occurs in parallel. . ■ recession and inflation parallel Typically, economic growth would increase inflation overheating, causing price increases; the other hand, the economic slowdown could act as a "cooling" effect, ease inflation .pressure. .Current trends show the U.S. economy is different from the above two cases. .Last summer, the subprime mortgage crisis, U.S. economic growth slowed down significantly. .26's housing price index fell, the unemployment rate and the recent downturn in consumer confidence and signs of further evidence to go higher, the U.S. economic slowdown has become a trend. .On the U.S. economic situation, White House spokeswoman Dana Perino said: "We are slowing." Although the U.S. economic slowdown, inflation, the situation has not improved, 26 reported the wholesale commodity price index can be proved. .Data show that the current U.S. economic slowdown and inflation in parallel exists. .70s in the 20th century, the U.S. economy and the similar but more extreme cases, is what economists call "stagflation." .26, after the release of economic data, the U.S. economy into stagflation once again become a hot topic. .United States, "Business Week" reported the same day entitled "looks like stagflation ... ...." .U.S. economic and financial information company, "economic decision-making company," chief economist Yilunsainai said: "Compared with the 70's, I'd say only considered mild form of stagflation, but still the same 'animal'." ■ dilemma at the macro-control the current situation that the U.S. economy in a macro-control dilemma. . the one hand, the recent slow growth of the U.S. economy nearly stalled, but to stimulate economic development in the macro-control inflation, the situation could deteriorate. .On the other hand, if the implementation of tight fiscal policy, although able to alleviate inflationary pressures, but not conducive to stimulating economic growth. . U.S. Federal Reserve Board in particular now face daunting challenges. .U.S. financial Web site Bankrate.com senior financial analyst Greg McBride said: "The Fed is now busy 'front door' occupied by the economic slowdown, it appears that inflation has crept into the 'back door'." < ./ P> last summer subprime mortgage crisis, the Fed has repeatedly macro-control measures taken since last September has been its benchmark interest rate from 5.25% to the current 3%. . Many analysts believe the Fed is unlikely to solve the economic slowdown and inflation, while the two issues. .Global financial research firm Economist Brian Betty satisfied that Federal Reserve Chairman Ben Bernanke can not be "two-war." .He believes that the most urgent task is to promote economic growth rather than inflation. .He said: "This is the will to fight battles, you can later fight against inflation." Market expectations in the March 18 Fed meeting may again cut rates. . ■ is "like a bad cold" Some analysts believe that the short term can not conclude that the U.S. economy, the stagflation of the prophecy is just unfounded. . Morgan Stanley economist Richard Berner believes that the continuing weakness of the U.S. economy, inflationary pressures will gradually dissipate sooner or later. .He said: "I believe that with rising costs, the company earnings will be affected soon, but is unlikely to pass to consumers." Richard, chief economist at Argus Research, Lung Amazon .is that, despite the poor performance of real estate and financial sector, the overall U.S. economy is not in recession, inflation is more worthy of concern. .For example, he said that the U.S. agriculture has signs of overheating. .Over the past 12 months, the United States eggs, macaroni and agricultural wholesale price index rose 60.1%, 30.4% and 2%. . Associated Press reported that the era of stagflation and 70 double-digit inflation rate when compared to the current U.S. inflation and unemployment data indicators still optimistic. .In 1975, the U.S. unemployment rate up to 8.5%, while the unemployment rate is now 4.6%. . economist Bettina global financial research firm, said that if that stagflation is a serious illness, and that the present situation the United States "like a bad cold." ..

U.S. stocks down financial stocks were particularly bleak.

U.S. stocks ended sharply lower Thursday, as investors in the credit and mortgage market worries; Annaly Capital Management, Washington Mutual and the Swiss Bank (UBS) down, Wal-Mart Stores Inc. (Wal-Mart Stores) and H & .; R Block is against the market trend. . It http://finance. News, Dow Jones Industrial Average index closed down 214.60 points to 12,040.39 points, down 1.75%; Standard & Poor's 500 index fell 29.36 points to 1304.34 points, down 2.2 .%; the Nasdaq composite index fell 52.31 points to 2220.50 points, down 2.3%. . steadily throughout the day today, the stock market lower on news that Carlyle Group (Carlyle Group) unit of Carlyle Capital and Thornburg Mortgage failed to meet margin requirements. .The news also dragged down other financial stocks, the stock of such a heavy blow. . ads Wells Capital Management's chief investment strategist at James • Paulson (James Paulsen) said the weakness in financial stocks was the catalyst behind the bank will write down people's concerns more assets, If so ., the credit crunch will worsen; today is really worried about the stock market decline caused economic reports released this week doing quite well. . mortgage-related shares were hit. .Thornburg Mortgage and a subsidiary of The Carlyle Group said they failed to meet the residential mortgage-backed securities related to additional margin requirements. .Banking, mortgage lending financial institutions, particularly mortgage real estate investment trust (REIT) suffered heavy losses. .Annaly Capital Management fell $ 3.47, to $ 15.81, down 18%. . government-sponsored mortgage finance agencies Federal National Mortgage Association (Fannie Mae, referred to as: Fannie Mae) or $ 2.57, to $ 21.70, down 11%. .Federal Home Loan Mortgage Corporation (Federal Home Loan Mortage Corporation, Freddie Mac) or $ 1.50, to $ 20.14, down 6.9%. . other financial stocks were also weak. .CIT Group tumbled $ 4.50, to $ 15.86, down 22%. .Keefe, Bruyette & Woods said, CIT Group could not be diminished in mind a large number of private student loan portfolio assets and the company expected first-quarter earnings per share down from 76 cents to 8 cents. . Swiss Bank fell $ 1.31, to $ 29.52, down 4%, due to market concerns about the bank again, the more massive write-downs of assets related to U.S. housing loans. . Merrill Lynch (Merrill Lynch) lost $ 3.46, to $ 45.86, down 7%. .The company on Thursday said it has more than 20 billion dollars of revenue options liquidity instruments (LYON) related articles were amended to increase the conversion rate of 17%. .Merrill Lynch said the bill would increase the redemption date for two days, respectively, September 13, 2010 and March 13, 2014; holders may require Merrill Lynch will redeem the notes. . Washington Mutual fell $ 1.04, to $ 11.76, down 8.1%. .Bear Stearns (Bear Stearns) Washington Mutual analysts cut profit forecasts. .Bear Stearns also lowered its National City, Wells Fargo (Wells Fargo) and SunTrust Banks of the fiscal year earnings forecasts. .National City fell 62 cents to $ 14.52, down 4.1%. .Wells Fargo fell $ 1.15, to $ 27.83, down 4%. .SunTrust fell $ 2.20, to $ 54.23, down 3.9%. . H & R Block rose 59 cents to $ 17.83, or 3.4%. .The company's third-quarter loss narrowed. . retailers report monthly sales release has also been a concern. .As Wal-Mart Stores Inc. in February same-store sales strong growth over the same period by 2.6%, an increase of 1.1% more than previously expected, thus the stock as the Dow Jones stock index on Thursday only a rising stock. .The stock rose 43 cents to $ 49.98, or 0.9%. ..