The extent to subprime meltdown is beyond imagination – Canadian mining firms holding subprime investments now has no money for its day to day operation
Sam Adelton
Sep. 25, 2007

No one will easily understand how the subprime meltdown of the financial system is well spread in the economies of the world. It was the greed of making easy money. Even companies invested their cash reserves in these catastrophic subprime loans with a hope of earning big returns on their apparently idle money.

The Canadian cash crunch that started with defaults on subprime mortgages in Southern California and Florida has hurt more than 25 companies that invested in commercial paper, including Sun-Times Media Group Inc. and Canada Post, the nation's mail service.

Investors fled Canada's asset-backed commercial paper, paralyzing the C$40 billion market for debt that carried the highest credit ratings, after losses from home loans to people with poor credit histories roiled global credit markets.

The extent to subprime meltdown is beyond imagination – Canadian mining firms holding subprime investments now has no money for its day to day operation
Sam Adelton
Investors fled Canada's asset-backed commercial paper, paralyzing the C$40 billion market for debt that carried the highest credit ratings, after losses from home loans to people with poor credit histories roiled global credit markets.
READ MORE>>

Euro zone economy headed for recession - German Business Confidence Drops to a 19-Month Low - Time to buy dollar index?
Peter Oberois
The Euro Zone economy is in trouble. The stagflation in Europe is fast changing to deflation.
READ MORE>>

United Auto Workers union negotiating hard with GM on job security - will Rick Wagoner blink?
Kirt Ray
It is a deal or die situation for GM. The company needs to cut cost, be flexible in capacity and above all manage retiree health insurance costs. But the union is negotiating hard. Will Rick Wagoner blink?
READ MORE>>

Bond market ready for explosive move- Fed will cut rate faster than in 2001-2202
Sam Adelton
The shift of funds from stocks to bonds is related to market fundamentals and demographics. The shift is structural and hence is long term.
READ MORE>>

Gold price appreciation says adding liquidity will increase inflation pressure – what can the Federal Reserve and ECB do now?
Fred Day
The financial markets did not take well the additional liquidity the European Central Bank (ECB) and the Federal Reserve added to the system to avoid skyrocketing effects in overnight rates.
READ MORE>>

Financial markets face mega turmoil from bad loans made to accommodate merger and acquisition mania
Sam Adelton
The financial markets are in chaos with just the sub prime mortgages. Guess what will happen when Private Equity funds and Hedge Funds go belly up?
READ MORE>>

The Federal Reserve and ECB may lose their independence for massive mistakes in the last twenty years
Alex Brown
The sub prime mortgage fiasco is the creation of the central banks’ easy money policy. Now they are trying to put the fire off through the water hose called liquidity.
READ MORE>>

MORE ARTICLES >>