Failing banks and financial lenders making hedge funds fail with ten fold increase in requirements on collateral – financial meltdown now starts exploding
Peter Oberois
Mar. 10, 2008

The banks and financial lenders lost massive amounts in subprime and other mortgage loans. $250 billion of asset writedowns and credit losses caused by the collapse of the subprime-mortgage market has to be recovered somehow. The banks and financial lenders are increasing the collateral requirements for the hedge funds.

That in turn are making hedge funds vulnerable. The hedge funds liquidated at least $40 billion in the last eight weeks. Now the banks are even more aggressive and are asking to liquidate or sell holdings entirely so that they can recover their losses.

The financial meltdown now starts exploding as the hedge funds reel under pressure to liquidate the funds. The loss for investors can be even tually in trillions of dollars.

Some bankers are now raising the rates they charge on Treasuries because of the price fluctuations in the bond market. That in turn is creating a nightmare for healthy hedge funds.

Failing banks and financial lenders making hedge funds fail with ten fold increase in requirements on collateral – financial meltdown now starts exploding
Peter Oberois
The banks and financial lenders lost massive amounts in subprime and other mortgage loans. $250 billion of asset writedowns and credit losses caused by the collapse of the subprime-mortgage market has to be recovered somehow.
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Politically influenced Carlyle leads the implosion in private equity groups – the third wave of financial meltdown
Sean Anderson
The Carlyle private equity group has the big politicians all over the world, especially US and UK, backing it. But it is reeeling under pressure with its highly leveraged Carlyle Capital Corp defaulting on margin calls.
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Two million jobs can be eliminated in the financial services industry in the next six months – Lehman takes the lead with 1500 layoffs
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Wall Street firms have eliminated more than 30,000 employees in the last seven months. The layoffs are accelerating and will see a blow off in job cuts over the next several months.
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Liquidity crunch and financial meltdown continues – Bear Sterns problem is just the tip of the ice berg – other firms also in trouble
Karen Zuba
It is just the tip of the iceberg. Credit-default swaps protecting against a default by Bear Stearns for the next two years soared to 970 basis points. Other firms are not lagging behind either.
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Underemployment in US economy changing to unemployment – a sign of deflation and depression
Peter Oberois
Prices for common people are rising fast and at the same time wages are stagnated. This is called classical underemployment and is often the symptom of problem in a third world country.
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Retail sales stalling, trade and budget deficit worsening and consumer index dipping – the US depression worsens but real estate may be bottoming
Sam Adelton
The next week economic data will point to the fact that retail sales is stalling, trade deficit is worsening, and consumer index is further dipping. The US depression worsens and the financial meltdown triggered by mortgage collapse continues.
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Bill Foster, a physicist, a middle class American, shows the world the magic power of Obama by taking Hastert's former congressional seat
Nita Chandresh
If the trend persists and war mongering, fear spreading is continued by McCain Bush legacy, there will be no corners left in US that will not reject them outright. Hillary Clinton is just part of the Bush MacCain team now after what she did last week.
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