The funding model for the funds industry was seriously strained by the outflows. As we understand it, the funds have three sources of funding: deposits, bank credit facilities, and the mortgage payments it receives from mortgagees (commercial and residential). The bank credit facilities are exercised either to make new mortgage loans or pay out withdrawals that exceed what the fund takes in via mortgage payments.
January 14th, 2010 | Dan Denning | 109 comments | ContinuedAll Posts Tagged With: "bernie madoff"
The Biggest Financial Deception of the Decade
Enron? Bear Stearns? Bernie Madoff? They’re all big stories about big losses and have hurt a lot of employees and investors. But none come close to getting my vote for the decade’s most dastardly deception…
January 13th, 2010 | Jeff Clark | 4 comments | Continued
At a Time When We Are Drowning in Debt, We Are Also Out of Money
When a debtor is out of money, he has no ability to repay. And when a creditor has borrowers who are out of money, the creditor has no income. No earnings. No power to make better loans.
September 17th, 2009 | Bill Jenkins | 3 comments | Continued
Why Weren’t Economists On Top of This Thing?
Even Alan Greenspan admitted he had “found a flaw” in his own thinking. We will have to imagine the giggles from the back of the room – if anyone had been awake. It was as if Stalin had confessed to being rude to his mother…
August 10th, 2009 | Bill Bonner | 4 comments | Continued
Investors Teased and Tickled by Waves of Good News
And now comes the big American holiday – July 4th. Investors pack their suntan lotions and head off to the beach for Independence Day. With Jaws in a cage, they had judged it safe to go into the water. But then came Thursday’s news.
July 6th, 2009 | Bill Bonner | 0 comments | Continued
Bernie Madoff and the SEC
But all the papers seem delighted. “Locked up for Life!” says one of today’s headlines. The judge “threw the book at him,” says another. His victims wanted him to get no mercy. The judge gave him none, imposing the maximum sentence.
July 1st, 2009 | Bill Bonner | 2 comments | Continued
U.S. House of Representatives Passes Climate Change Bill
If the Senate bill is different than the House bill (and it almost always is, given the different agendas in both bodies and the need for more bribes), the two bills go to “reconciliation.” That’s where a committee made of members from both houses settles on a final compromise version of the two bills and sends them back to their respective bodies to be voted on. Then it gets sent to the President to become the law of the land.
June 30th, 2009 | Dan Denning | 21 comments | Continued
DMCC and their Precious Metals Vault
Because from that distant desert kingdom comes word that the Dubai Multi Commodities Centre (DMCC) has finished building a state-of-the-art precious metals vault, with world-class tracking and security systems.
May 28th, 2009 | Byron King | 0 comments | Continued
What is the Oil Price Telling Us?
Notable in yesterday’s move is the 11% rise in oil to US$47. Oil is certainly not up on the basis of a huge ecomic rebound in 2009. So what is it? China’s been stockpiling oil while prices are cheap. It’s straegic reserve is now all full. OPEC is meeting to discuss more production cuts.
March 13th, 2009 | Dan Denning | 0 comments | Continued
Capitalism and Capitalists
Here at The Daily Reckoning, we don’t particularly like capitalism or capitalists. We just don’t like anyone telling us what to do. So, doing unto others as we would have them do unto us, we make no effort to tell others what to do with their money.
February 25th, 2009 | Bill Bonner | 1 comment | Continued
