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Links 3/10/09
naked capitalism —
... Credit Cards Are the Next Credit Crunch Meredith Whitney, Wall Street Journal. Whitney warned of this in an FT comment (and I would suspect in her research) late last year; this is updated and amplified. Her estimates also show that even if the TALF works, it will only alleviate the crunch, not offset it (and other reports are showing that TALF uptake is modest). ...
Credit Card Investments - Still Substantial Risk
ZachStocks —
... There was a very informative opinion piece in the WSJ today that outlined some of the issues facing credit card lending, the companies who offer the credit, and consumers who rely on credit. As the economy continues to contract, lenders are looking at their exposure and quickly realizing that outstanding credit lines can be a big risk. ...
Lunchtime Links 3-10
Rolfe Winkler —
... Meredith Whitney op-ed: Credit Cards are the next Credit Crunch (WSJ) Whitney is worried that banks may be forced to cut back even more on credit card lines. She argues that we need to look kindly on the balance sheets of largest card issuers in order to prevent a mammoth drop in consumer spending that is financed with plastic. A decent piece, but color me skeptical. We’ve leveraged the public’s balance sheet to finance our lifestyle more than enough, thank you very much. ...
Tuesday links: the bottom rung
Abnormal Returns —
... on Wall Street? (NYTimes.com also Big Picture)
The secondary market for private equity stakes is locked up due to differences over price. (Clusterstock)
“Corporate culture matters, and some corporate cultures don’t deserve to survive.” (Interfluidity)
Credit cards are a problem, but are banks overreacting? (WSJ.com also Clusterstock)
Don’t invest ...
Readings
Paul Kedrosky's Infectious Greed —
Catching up still, but some readings: In defense of the greedy fat cat bankers (SPopular Delusions) Palm clarifies ten thing Roger McNamee said about Palm (PalmInfocenter) Can Geothermal Power Compete with Coal on Price? (Scientific American) Meredith Whitney Says Credit Cards Are the Next Credit Crunch (WSJ) Inspirational Speech « Piano Tree (Source) Grand Illusion: The Federal Reserve (Part 1) (Seeking Alpha) Japan: A Dreadful Failure to Lead ...
Further reading
FT Alphaville —
Elsewhere on Wednesday: - What Cuomo is really looking at - Credit-protection madness - Debunking the Citi memo - Citigroup questions - Grantham: shift to stocks before ‘rigor mortis’ sets in - The inner circle of systemic risk - Did Pandit really mean it? - As a concept, you have to love auction rate securities - Not any more - Meredith Whitney on the next crunch - To blame - or not to blame - the quants - Oil contango: Fun while it lasted? - Latency arbitrage - ...
Two Days in a Row?
UpsideTrader —
... never will. I do know that the next guy that says that we have definitely bottomed will be duct taped to a tree. Goldman Sachs just downgraded American Express from a neutral to a sell with a $7 price target. You know how I feel about analysts, I rank them somewhere between inept and irrelevant, but I like this call a great deal. I've talked about consumer credit woes for almost a year and the problem will get worse, and I still stand by my COF to $5 call. Yesterday Meredith Whitney wrote a nice piece on the problem in the Wall St. Journal. I am ready to play the trend until ...
Weekend Linky Dinks
UpsideTrader —
[image] Mr. Market pulled off four days in a row-count em'-four. We saw a week where Madoff will soon be making little rocks out of big rocks, and where Cramer was taken down by Stewart. I hope there is more to come on the Cramer front for the sake of the public. Oh, by the way, there may be yet another stimulus coming. Enjoy the links. Will FAS do a reverse split? Meredith Whitney says credit cards are the next crunch. Some more Cramer . Here we go, China is nervous and wants a guarantee. What's the beef with leveraged ETF's ? Gartner ...
Guest Post: It's the writedowns, stupid
naked capitalism —
... here). There will be huge writedowns in this asset class in 2009. Leveraged Loans and High Yield. In February downgrades were outpacing upgrades 49 to 6. Heavy losses are likely to occur due to defaults. (see the FT analysis here). Credit Cards, Auto Loans, and Student Loans. Credit card default rates were at the highest in 20 years in February. Meredith Whitney has been beating the drum about this. She sees credit cards losses taking on tsunami proportions. The U.S. banking system ...
