by Bill McBride on 7/16/2009 04:05:00 PM
Thursday, July 16, 2009
Click on graph for larger image in new window.
This graph is from Doug Short of dshort.com (financial planner): "Four Bad Bears".
Note that the Great Depression crash is based on the DOW; the three others are for the S&P 500.
From the Journal Sentinel: Judge denies Guaranty Bank's request to halt insurance payments
A federal judge has denied Guaranty Bank's request that it be allowed to halt payments to an insurance company despite Guaranty's contention that continuing to pay millions of dollars in premiums each month threatened the bank's survival.From the WSJ: CIT Bondholders Hash Out Their Options and Bloomberg: CIT Group’s Bondholders Said to Discuss Debt Swap
In February, Guaranty asked the court to let it stop paying premiums to Evanston Insurance Co. of Deerfield, Ill, but nonetheless keep the insurer's coverage on its home-equity loan portfolio intact. Guaranty also sought the return of $30 million in premiums paid since 2004, contending the policy was sold to the bank illegally under Wisconsin insurance law.
In a brief filed with the lawsuit, Guaranty asserted at the time: "This is a 'bet the bank' motion because the continued existence of Guaranty Bank rests on the outcome."
Mortgage insurer MGIC Investment Corp reported a wider quarterly loss and said it will stop writing new business as losses mount in the battered housing sector ...
The largest U.S. mortgage insurer said it will wind down its business and try to capitalize a fresh enterprise that would write new loans beginning next year.
Earlier Roubini report was titled: Roubini Now Says The Worst Of Economic Crisis Is Over
Nouriel Roubini, the economist whose dire forecasts earned him the nickname "Doctor Doom," is now saying that the worst of the economic and financial crisis may be over.
Roubini still warned that the US may need a second fiscal stimulus package of up to $250 billion by the end of the year to boost the deteriorating labor market, Reuters reported.
Posted by Bill McBride on 7/16/2009 04:05:00 PM