Silver as an investment

Category Archives: CDO

The Secret History Of The Banking Crisis

Authored by Adam Tooze via ProspectMagazine.co.uk, Accounts of the financial crisis leave out the story of the secretive deals between banks that kept the show on the road. How long can the system be propped up for? It is a decade since the first tremors of what would become the Great Financial Crisis began to […]

Goldman Issues First Warning On Q3 Results

Remember what Goldman said when it reported atrocious earnings two weeks ago, when it revealed that FICC revenues plunged by 40%? Here is a reminder: “During the quarter, Fixed Income, Currency and Commodities Client Execution operated in a challenging environment characterized by low levels of volatility, low client activity and generally difficult market-making conditions… During […]

Trump Concerned There Are Too Many “Goldman Guys” On His Team

Two days after democratic senators Elizabeth Warren and Tammy Baldwin sent a letter to Goldman CEO Lloyd Blankfein, asking if Goldman effectively runs the country through its extensive alumni links at the Trump administration, and requesting details on “lobbying” activities in the bank related to review of the Dodd-Frank Act and the Obama-era fiduciary rule […]

Goldman Launches ETF Replicating Top Hedge Fund Positions, There Is Just One Problem

Back in February we reported that despite its abysmal forecasting track record, Goldman was preparing to launch an ETF based on its proprietary tracker of the 50 most popular hedge fund positions, the Goldman Sachs Hedge Fund VIP (known internally as the GSTHHVIP). The proposed ETF was notable because It would mark the first time […]

Credit Card Delinquencies Creep Up To Highest Levels Since 2012 As Subprime Issuance Soars

As Obama’s “recovery” rolls along, the Wall Street Journal points out that the delinquency rates of subprime credit cards has surged to the highest levels recorded since 2012.  Moreover, per TransUnion data, delinquency rates on cards issued in 2015 are close to 3%, or roughly double the overall rate, indicating that consumers have grown increasingly […]

P2P Meltdown Continues: LoanDepot’s CDO Collapses Just 10 Months After Issuance

We first noted Wall Street’s misguided plan to feed its securitization machine with peer-to-peer (P2P) loans back in May 2015 (see “What Bubble? Wall Street To Turn P2P Loans Into CDOs“).  Obviously we warned then that the voracious demand for P2P loans was a direct product of central bank policies that had sent investors searching […]

US Corporate Debt Has Doubled To $6 Trillion Since The Crisis: This Is Who Bought It

Yesterday, in the FOMC notes, the Federal Reserve made a stark admission: “several expressed concern that an extended period of low interest rates risked intensifying incentives for investors to reach for yield and could lead to the misallocation of capital and mispricing of risk, with possible adverse consequences for financial stability.” To this, Bank of […]

Why Oil Prices Might Never Recover

Submitted by Arthur Berman via OilPrice.com, Two years into the global oil-price collapse, it seems unlikely that prices will return to sustained levels above $70 per barrel any time soon or perhaps, ever. That is because the global economy is exhausted. The current oil-price rally is over as I predicted several months ago and prices are […]

These SEC Insider Emails Reveal Why No Bankers Have Gone To Jail

Back In April 2010, the world was stunned when in what would be the first major case dealing with the fallout from the endemic fraud prevalent during the last housing and credit bubble, the SEC charged Goldman Sachs and Paulson with securities fraud over the infamous Abacus CDO, which was subsequently featured in Michael Lewis’ […]

“Nobody Is Making Money” – Hedge Fund “VIP Basket” Obliterated, Plunges To Record Low

Exactly one month ago, when we learned that Goldman was looking to package its Hedge Fund VIP basket of stocks into an ETF we said, half jokingly, that we have discovered a “guaranteed way to make money: Short Goldman’s “Hedge Fund VIP” ETF“, adding that “with 5 of their Top 6 trades for 2016 already […]