No Roger, on that. You Copy Me?
Its a solvecy problem...
The ECB lent $5.5 billion at its penalty rate, the most in almost 3 years, suggesting credit markets are still unable to meet banks' borrowing needs.
The 3 month (LIBOR) London Inter Bank Offered Rate for euros rose to 4.79% today, a six-year high, from 4.73%.
Stuart Thomson, a bond fund manager at Resolution Investment Management:
"It's likely that money markets are going to be in a state of shock for some time to come. No one knows where the bodies are buried."
Lena Komileva, an economist in London at Tullett Prebon Plc, the world's 2nd biggest interdealer broker:
"There is no quick fix in the pipeline at least until the year end."
Debt falling or floating??? Last week, debt maturing in 270 days or less fell for a 7th straight week.
Declining by $13.6 billion to a seasonally adjusted $1.86 trillion, including a $17.3 billion decline in asset-backed commercial paper,
The amount outstanding has fallen by $368.1 billion, or 17% over seven straight weeks to the lowest since August 2006 as some issuers didn't pay back their debt on time.
The $13 Billion decline is smaller than the previous week's drop of $48.1 billion.
Asset-backed commercial paper has fallen $270.5 billion, or 23% since Aug. 8 and at $912 billion, is at its lowest since May 31, 2006.
Yields on overnight commercial paper dropped 16 bps to 5.12% today, a sign of demand. The yields have dropped from 6.18% on Aug. 31.
Christopher Low, chief economist at FTN Financial:
"The commercial paper market is not deteriorating as fast as it was in August, but as long as outstandings continue to fall, it is not out of the woods yet.
It's still more accurate to say the patient is less sick than to say the patient is recovering."
Buyback fogs bathroom mirror... Bed Bath & Beyond posted better than expected fiscal Q2 results.
A peek under the sheets, revealed the results weren't as solid as they 1st seemed since the 8.0% EPS growth was driven by a lower tax rate and fewer diluted shares outstanding.
Slo Cup O Joe... Starbucks downgraded to Sell from Neutral at Banc of America Securities.
The firm believes Starbucks's valuation will be under pressure due to slower growth in 2008.
Home Bleak Home... Fannie Mae FNMA CEO Daniel "I'm Not Roger" Mudd:
"We don't think we hit a bottom until the end of '08 and then we have some period of time to work our way back up again.
U.S. home prices will fall 2 to 4% this year, and more next year." OFHEO gave FNMA a 2% increase in the lending cap, Mudd had sought a 10% increase.
"Let's loosen this up a little bit and give us a chance to respond in a market where all the other investors have gone away."
The Nattering One muses... yeah, lets just underwrite all the flippers, 2nd homes and McMansions.
No Roger, on that. You copy me? No subprime or speculators. Greed is what got us into this mess. Stupid is, as stupid does, let em get what they deserve, nothing.
KB down... KB Home posted a Q3 net loss of $35.6 million vs year earlier profit of $153.2 million, The loss from continuing operations was $478.6 million...
Due largely to pretax noncash charges of $690.1 million for writing down the value of land and $107.9 million from goodwill impairment.
Revenue fell 32% as the swelling supply of homes and tighter mortgage standards kept potential buyers on the sidelines as the number of sales closed dropped 28%.
The cancellation rate for the quarter was 50%, compared with the prior quarter's 34%, KB CEO Jeffrey Mezger:
"At this time, we see no signs that the housing market is stabilizing and believe it will be some time before a recovery begins.
Rising foreclosure rates are intensifying the problem of surplus inventory and will likely drive further home-price reductions."
On the lighter side, a hilarious offering from Mark Gilbert at Bloomberg, Chuck Norris's Tears Might Solve Credit Crunch. A hap tip to Breifing.com and Bloomberg.
The ECB lent $5.5 billion at its penalty rate, the most in almost 3 years, suggesting credit markets are still unable to meet banks' borrowing needs.
The 3 month (LIBOR) London Inter Bank Offered Rate for euros rose to 4.79% today, a six-year high, from 4.73%.
Stuart Thomson, a bond fund manager at Resolution Investment Management:
"It's likely that money markets are going to be in a state of shock for some time to come. No one knows where the bodies are buried."
Lena Komileva, an economist in London at Tullett Prebon Plc, the world's 2nd biggest interdealer broker:
"There is no quick fix in the pipeline at least until the year end."
Debt falling or floating??? Last week, debt maturing in 270 days or less fell for a 7th straight week.
Declining by $13.6 billion to a seasonally adjusted $1.86 trillion, including a $17.3 billion decline in asset-backed commercial paper,
The amount outstanding has fallen by $368.1 billion, or 17% over seven straight weeks to the lowest since August 2006 as some issuers didn't pay back their debt on time.
The $13 Billion decline is smaller than the previous week's drop of $48.1 billion.
Asset-backed commercial paper has fallen $270.5 billion, or 23% since Aug. 8 and at $912 billion, is at its lowest since May 31, 2006.
Yields on overnight commercial paper dropped 16 bps to 5.12% today, a sign of demand. The yields have dropped from 6.18% on Aug. 31.
Christopher Low, chief economist at FTN Financial:
"The commercial paper market is not deteriorating as fast as it was in August, but as long as outstandings continue to fall, it is not out of the woods yet.
It's still more accurate to say the patient is less sick than to say the patient is recovering."
Buyback fogs bathroom mirror... Bed Bath & Beyond posted better than expected fiscal Q2 results.
A peek under the sheets, revealed the results weren't as solid as they 1st seemed since the 8.0% EPS growth was driven by a lower tax rate and fewer diluted shares outstanding.
Slo Cup O Joe... Starbucks downgraded to Sell from Neutral at Banc of America Securities.
The firm believes Starbucks's valuation will be under pressure due to slower growth in 2008.
Home Bleak Home... Fannie Mae FNMA CEO Daniel "I'm Not Roger" Mudd:
"We don't think we hit a bottom until the end of '08 and then we have some period of time to work our way back up again.
U.S. home prices will fall 2 to 4% this year, and more next year." OFHEO gave FNMA a 2% increase in the lending cap, Mudd had sought a 10% increase.
"Let's loosen this up a little bit and give us a chance to respond in a market where all the other investors have gone away."
The Nattering One muses... yeah, lets just underwrite all the flippers, 2nd homes and McMansions.
No Roger, on that. You copy me? No subprime or speculators. Greed is what got us into this mess. Stupid is, as stupid does, let em get what they deserve, nothing.
KB down... KB Home posted a Q3 net loss of $35.6 million vs year earlier profit of $153.2 million, The loss from continuing operations was $478.6 million...
Due largely to pretax noncash charges of $690.1 million for writing down the value of land and $107.9 million from goodwill impairment.
Revenue fell 32% as the swelling supply of homes and tighter mortgage standards kept potential buyers on the sidelines as the number of sales closed dropped 28%.
The cancellation rate for the quarter was 50%, compared with the prior quarter's 34%, KB CEO Jeffrey Mezger:
"At this time, we see no signs that the housing market is stabilizing and believe it will be some time before a recovery begins.
Rising foreclosure rates are intensifying the problem of surplus inventory and will likely drive further home-price reductions."
On the lighter side, a hilarious offering from Mark Gilbert at Bloomberg, Chuck Norris's Tears Might Solve Credit Crunch. A hap tip to Breifing.com and Bloomberg.
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