Credit Crunch, Part Deux
June 26th, 2008 by 
reality
Calculated Risk reproduced Bill Fleckenstein’s comment today. The TED spread is creeping up, so is the iTraxx Europe Crossover which is as good a one-number index of credit market pain as there is. The ABX indices are horrible, the CMBX (commercial mortgage) spreads are rising quickly. The KDP daily high-yield index is very close to a new daily high. Default rates on the Alt-A, no-doc and low-doc, mortgage loans are rising rapidly. The bank stocks are just getting creamed. Oh, and by the way, American Express says that more folks aren’t paying their bills.
The Fed’s measures to restore order to the credit markets are clearly failing. Be careful out there. There was more to today’s selling than the price of crude.
Posted in Bill Fleckenstein, Fixed Income, The Fed | 
June 26th, 2008 at 8:36 pm
Today was just like the Thursday before Black Monday in Oct 1987. If there is more selling tomorrow, then baby look out on Monday.
There has been a huge number of recent unexplained outgoing wire transfers requested by foreigners out of US banks. So many that the wire depts couldn’t process them all. Wonder what they know - could it be the same kind of stuff that the PUT buyers on airline stocks knew right before 9/11?
Something is in the air. Everything is about to come crumbling down so fast it will make most sheeple’s heads spin.
June 26th, 2008 at 11:20 pm
Remnant,
may I ask, what are your sources of information about money withdrawal?
Vytas
June 27th, 2008 at 10:07 am
https://www.kitcomm.com/showthread.php?t=18917
http://www.waynemadsenreport.com/articles/20080624
WMR’s United Nations sources report that there has been a sudden rush in requests for foreign exchange wire transfer requests from New York City banks. The sudden demand for transferring funds abroad has resulted in a 24 to 48-hour processing delay due to the sheer volume of requests.
Foreign employees at the United Nations are transferring their money from accounts at the United Nations Federal Credit Union (UNFCU) and other New York City banks, both domestic and foreign-owned, and the move has been sudden.
There has been no explanation for the sudden wire transfer activity, although the rumor mill suggests fears of a sudden economic collapse and/or a U.S. and Israeli military attack on Iran, which could touch off a wider regional conflict.
June 27th, 2008 at 7:14 pm
Thanks Red Brian
June 28th, 2008 at 10:41 am
You are welcome :).
For extra credit check out this article detailing the IMF’s desire to do a Financial Sector Assessment of the United States. I thought that only happens to banana republics.
http://www.spiegel.de/international/world/0,1518,562291,00.html
Please fasten your seat belt and keep your arms and legs inside the vehicle during the ride.
June 28th, 2008 at 12:45 pm
Obviously foreign employees at the United Nations had a lot of money in New York banks, if transfers abroad created 48 hour load to process :)