NorthEast

Following last write-up, they have been so much going on with the credit issues which led to unprecendented corporate activities such as Jamie Diamond checkmates the once mighty Bear Stearns at humiliating price of slightly above USD2 a share, comparing to its all-time high of USD160 a share during its hayday which was not a distant past. Is the end near for financial institutions with credit crisis? My simple reading is far from it. Expect more. Here goes the prediction: a) The next follow-up credit crisis will be foreclosures. When too many assets to be auction off, expect bargain-hunting to come in along with deep scepticism on whether the dust has finally settled down. The expected verdict of this conviction is harsher punishments in term of uncertainty and quick deteriotation of asset quality. b) Next, another type of credit-related crisis is expected to be unfold, but may not be of the same scale as sub-prime but enough to further derail the already ill-economy of US an...

Heard of these: The famous tale of a janitor in a large corporation telling one of the senior staff at pantry that she just bought a house in anticipation of selling it at higher price soon; a tell tale sign of lack of thorough credit evaluation in US You have numerous writings by shrewdest real estate investors to promote minimum- or zero-down concept to ride on of one of the longest waves of economic expansion in America since 1929, with the aim to generate serious wealth, only to be followed by (in majority) those half-baked real estate investors; this is a time-bomb Smart financiers re-packaged what seem to be, on its own merits, a low grade financial papers, into somewhat an attractive instrument called CDOs, and sold it to refinance their portfolio for greater leverage power, has helped expose many global financial players to this genuis investment-marketing breakthrough; the results need no special mention here, if you do read financial news for the past 3 months My take: The ro...