Fiscal Cliff, Slope, or Obstacle Course?

The financial media is filled with year-end dire warnings of catastrophic consequences of the U.S. economy falling over the “fiscal cliff”. Could this really happen? It could, but probably not. We and most market watchers are hopeful for a last minute compromise with more details to come in 2013. Is the fiscal cliff real? Yes-.. read more →

Happy Anniversary!

A year ago today, on September 15, 2008, Lehman Brothers, one of the largest and oldest investment banks in the U.S. filed for bankruptcy, and set off a financial collapse that was felt across the globe. It seems like a long-time ago, but it was only one year, but what a year it was! Lets.. read more →

Banks are Gradually Healing

Wells Fargo kicked off earnings season last week with a preannouncement shocker – a $3 billion profit, double what analysts had forecast. Details on credit quality and trends were lacking and bad loan reserve levels were smaller than expected. Earnings results were driven by mortgage volume, which was up 40% overall, with a 64% increase in.. read more →

Pieces Falling into Place

Since the beginning of the year, we talked about how the shape of a recovery in the markets might look. We mentioned that stocks would recover before the economy does, and credit markets may recover before stocks. During this six-month credit crisis Treasury bonds held up well, but AAA corporate bonds lost 15% to 20%. Much.. read more →

FINALLY!!!

Yesterday the Treasury Department finally released details of their Public-Private Investment Program designed to create a market for the “toxic” assets that have been weighing down our banking system. The stock market liked what it saw, and Bill Gross of PIMCO called it the first win-win-win proposal during this crisis. Taxpayers leverage their dollars with.. read more →