Next time around, though, we reckon the losses – when they come – will be on domestic real estate assets. And with so much exposure to domestic real estate (mortgage loans), the assets could face a world of hurt. But even if bank asset quality doesn’t crash (housing prices don’t crash), an external shock affects Aussie bank liabilities.
October 28th, 2009 | Dan Denning | 2 comments | ContinuedAll Posts Tagged With: "Nouriel Roubini"
Big Difference Between Stark News in Job Market and Behaviour of Stock Market
There have been jobless recoveries from recession before. But you still have to wonder how there can be such a big difference between the stark news in the job market and the behaviour of the stock market. True, economists will tell you that jobs are the last thing to recover from a recession. Businesses don’t hire until they are sure everything is in the clear.
October 5th, 2009 | Dan Denning | 4 comments | Continued
US Dollar Declining as China’s Currency Rises
“We may now be entering the Asian century, dominated by a rising China and its currency. This decline of the dollar might take more than a decade, but it could happen even sooner…
September 23rd, 2009 | Bill Bonner | 5 comments | Continued
Roubini Says United States Will Climb Out of Recession Towards End of Year
Maybe he will be right. Maybe this downturn will resemble Japan’s multiple recessions over the last two decades. Or maybe it will be a single, deeper and longer lasting slump – like the one in the early ’30s. We don’t know. Either way, it should be thought of as a depression…
August 19th, 2009 | Bill Bonner | 0 comments | Continued
U.S. Dollar Index Showing All Sorts of Weakness
The U.S. dollar taketh…and the U.S. dollar giveth away. That’s one way of looking at the flurry of activity in markets right now. The Aussie dollar is at a ten-month high. Oil is up 75% since January, with crude trading at $74/barrel. Copper is at a ten-month high. The S&P 500 has cracked 1,000 again.
August 4th, 2009 | Dan Denning | 5 comments | Continued
Roubini Says Recession Will Continue Through End of Year
“I have said on numerous occasions that the recession would last roughly 24 months. Therefore, we are 19 months into that recession. If as I predicted the recession is over by year end, it will have lasted 24 months with a recovery only beginning in 2010. Simply put I am not forecasting economic growth before year’s end.”
July 20th, 2009 | Dan Denning | 0 comments | Continued
Fed’s Projections Show U.S. Economy Will Grow Quickly in 2010
The only negative note in the Fed’s forecast is that it reckons U.S. unemployment will keep growing to over 10%. That, presumably, is a drag on the economy. But if credit conditions improve, maybe all the people who’ve lost jobs because the U.S. economy is not producing and not competitive can, you know, get a credit card and live off of that
July 17th, 2009 | Dan Denning | 4 comments | Continued
The Greenback Dollar Decline
“We may now be entering the Asian century, dominated by a rising China and its currency,” Roubini contends. “This decline of the dollar might take more than a decade, but it could happen even sooner if we do not get our financial house in order.
May 21st, 2009 | Bill Bonner | 7 comments | Continued
Krugman Warns That the Run-up in Stocks Can’t Be Justified By the Fundamentals
“The market seems to be looking as if this is going to be an average recession, but it’s not,” said Paul Krugman, Princeton University’s Nobel Prize-winning economist.
May 15th, 2009 | Bill Bonner | 0 comments | Continued