Finally, if AIG had defaulted, Goldman Sachs would have been forced to bear the risk of
further declines in the market value of the approximately $ 4.3 billion in CDOs that it transferred to the Maiden Lane III portfolio as well as approximately $ 5.5 billion for its credit default swaps that were not part of the Maiden Lane III portfolio; Maiden Lane III removed any risk for the $ 4.3 billion within that portfolio, and continued Government backing of AIG provided Goldman Sachs with ongoing protection against an AIG default on the remaining $ 5.5 billion.
Many are afraid of
further declines in the market and don't feel comfortable because all their friends aren't buying.
Not exact matches
First, the forecast:
Market research firm eMarketer predicts
further declines in net ad revenue from the company is it presumably continues its pending sale to Verizon.
«Averaging through hurricane - related fluctuations, job gains have been solid, and the unemployment rate
declined further,» the Federal Open
Market Committee said
in a statement Wednesday following a two - day meeting
in Washington.
If the Fed raises rates this year, as most of his colleagues expect, «things could go okay, but you are creating a risk of
further declines in where
market - based inflation expectations are, basically to the credibility of our inflation target, and I think you are creating downside risks our pursuit of our employment mandate.»
World stock
markets skidded
further Wednesday as fresh
declines in crude oil prices stoked fears for the health of the global economy.
OPEC oil output rose slightly
in October, keeping the global
market well supplied, as additional exports from Iraq, Angola and Libya offset disruptions
in Nigeria and a
further decline in Iran to its lowest
in two decades, a Reuters survey found on Wednesday.
As more borrowers participate, the costs of protection
decline, making EPMs more attractive over traditional mortgages, and thus, spurring
further participation
in a cycle that will eventually lead to regional housing
market stabilization.
As of last week, the
Market Climate
in stocks remained characterized by an overvalued, overbought, overbullish, rising - yields syndrome that has historically produced periods of marginal new highs, slight
declines, and yet
further marginal highs, followed somewhat unpredictably by nearly vertical drops.
Furthermore, it is not clear that wages
in the Russian
Far East are lower than wages
in northeastern China, and the
declining Russian population has raised concerns over the supply of labor and the true potential of the domestic
market.
My opinion is that while there is still risk that the
market will
decline even
further, investors may be underestimating the potential for a rapid 20 - 25 % spike higher
in U.S. stocks as risk aversion collapses.
But at the same time, the Fed's stimulative policies helped fuel a surge
in the stock
market, which, even with the recent
declines, remains
far above pre-recession levels.
We can't rule out a quarter of positive GDP growth, as we saw
in early 1974 (followed by a
further decline and bear
market plunge), but we can't see any basis on which to expect sustained and robust GDP growth yet, and certainly not robust earnings growth.
But a
further decline of less than 2 %
in the corporate bond
market would represent a fresh breakdown.
Some are betting on
further declines; speculative short positioning is at three - and - a-half year highs
in the futures
market.
It's still not great, of course, and as
far as traditional equities
markets go, a cost 50 %
decline is a disaster, but
in the cryptocurrency
markets, and especially against the backdrop of the bloodbath we have seen across other points over the last few weeks, it's a drop
in the ocean.
Further, respondents noted that orders related to commodities (oil, gas, and mining, specifically) remain under downward pressure reflecting the big
declines in commodity prices that have occurred as the «emerging
market century» and the «commodity super-cycle» proved unsustainable.
Despite the weakness
in manufacturing payrolls (a loss of 36,000 jobs
in goods - producing sectors
in May) that accompanies this secular shift, labor
market tightness has allowed for some moderate wage gains and
further declines in the unemployment rate, beyond the influence of the
declining participation rate.
All
in all, the Fed continues to expect inflation to rise gradually toward 2 % over the medium term as the labor
market improves
further and the transitory effects of energy price
declines and other factors dissipate, but the pace for hikes
in interest rates could well be moderate, as the Fed has been indicating.
Despite the weakness
in manufacturing payrolls (a loss of 36,000 jobs
in goods - producing sectors
in May) that accompanies this secular shift, labour
market tightness has allowed for some moderate wage gains and
further declines in the unemployment rate, beyond the influence of the
declining participation rate.
Regarding U.S. monetary policy, the IMF said it still remains «very accomodative,» but that the possibility of future rate hikes «have contributed to tighter external financial conditions,
declining capital flows, and
further currency depreciations
in many emerging
market economies.»
The resultant
decline in the price has discouraged local buyers, despite their recognition that the price was very attractive and the product was very sound, because of concerns about recording mark - to -
market losses should the price fall even
further.
This seems to be a strong hint that the
markets should expect any
further strength
in the US currency against those of China's main trading partners to be at least partly offset by a
decline in the renminbi against the dollar.»
The below chart illustrates U.S. oil production (
in gold) vs. FED's balance sheet (
in blue), and how overproduction from accommodative monetary policy resulted
in the sharp
decline in oil prices, creating a systemic risk that was again transmitted from financial and commodity
markets to the real economy (
in job losses and slow growth
in Texas and other oil producing states, as well as the
decline in headline inflation, pushing the Federal Reserve
further from the price stability objective):
Job growth is expanding with unemployment rate
declining, and the monetary policies of the Fed could lead to
further improvements
in the job
market.
So
far, it did produce another 50 %
decline in the stock
market in 2008 and early 2009 as a credit crisis
in 2007 caused the worst recession since the Great Depression.
One could try to argue that once a stock
market decline goes
far enough, corporate fortunes
in general are so poor that there is no longer any need to punish trusts.
Looking at TSLA's historical short interest chart and one can see that the negative investor sentiment or volume of shares sold short continues to
decline, a
far departure from June when Tesla was named the largest shortest stock
in the U.S. equity
market.
Despite the continued weakness
in commodity
markets, the
further decline in the Australian dollar against the major international currencies has meant that,
in domestic - currency terms, commodity prices have remained roughly stable
in recent months.
Premium Cider on the Rise Across European
Markets, Says Canadean Premium cider brands
in West Europe recorded a compound annual growth rate of almost 8 % between 2009 and 2015,
far exceeding competing price segment categories which all posted
declines, says consumer insight firm Canadean...
First Milk has made
further price cuts based on what it claims are falling commodity prices and continued
decline in UK
market returns.
«It's really encouraging to see such a drop
in consumption of bottled water among young people, because as they grow up, the overall
market is definitely going to
decline further,» says Jon Dee, the managing director of activist group Do Something!
In the 1920s food corporations and pharmaceutical companies developed and
marketed a second generation of commercial infant formulas, the availability of which contributed
further to the
decline and duration of breastfeeding.
The number of new residential solar - power installations on Long Island so
far in 2017 has
declined by more than 50 percent compared with the period
in 2016 as national companies have fled the
market or retuned their businesses.
Those data do not yet reflect the impact of the stock
market decline since 2007: the drop
in the value of pension funds means
further increases
in employer contributions will be required to fund promised benefits.
As
far as I know the PC version is still on the
market, but
in the age of the cloud it becomes a
declining solution.
They did not consider that the
decline of the youth labor
market, which had begun
in the 1930s, may have been a
far more powerful «push» on increasing high - school enrollments than the «pull» of easier courses and watered - down graduation requirements.
With physical bookstores
in English - language
markets in «terminal»
decline, a small number of companies with «no history with books» dominating the consumer book
market, and «insane» pricing of books and e-books, the free
market had gone too
far, suggested the man who oversaw the rise and fall of Borders
in the United Kingdom, Philip Downer.
Over the same period of time, the firm sees Apple's
market share
in the U.S. dropping from 83 %
in 2011 to 76.4 % next year, and then
further declining to 68 %
in 2014.
The recent steep
decline in yields have pushed bond prices up resulting
in Puerto Rico out performing the rest of the municipal bond
market and other bond
market segments so
far this year.
With most
markets already down 20 % around the world, you could argue the damage has already been done but there are a sufficient number of pessimists out there who warn the worst case could be down still
further, for a peak - to - trough
decline of as much as 50 %, as occurred
in 2007 - 2008.
Index funds do not offer protection from
market declines: when stock
markets around the world plunged during the tech wreck and again
in 2008, active mangers could move into cash and avoid
further losses.
(And later they don't want to increase their stock holdings
in a bear
market because they don't want to risk
further declines.)
When chosen this carefully, Graham found that
further declines in these undervalued equities occurred infrequently — offering upside with little
market risk.
In light of the severe market decline in October and so far in November plus additional investments Buffett has made, we estimate that investments per share might have fallen to as low as $ 76,00
In light of the severe
market decline in October and so far in November plus additional investments Buffett has made, we estimate that investments per share might have fallen to as low as $ 76,00
in October and so
far in November plus additional investments Buffett has made, we estimate that investments per share might have fallen to as low as $ 76,00
in November plus additional investments Buffett has made, we estimate that investments per share might have fallen to as low as $ 76,000.
Market - based measures of inflation compensation
declined further; survey - based measures of longer - term inflation expectations are little changed, on balance,
in recent months.
Inflation is expected to remain low
in the near term,
in part because of earlier
declines in energy prices, but to rise to 2 percent over the medium term as the transitory effects of past
declines in energy and import prices dissipate and the labor
market strengthens
further.
Inflation is expected to rise to 2 percent over the medium term as the transitory effects of
declines in energy and import prices dissipate and the labor
market strengthens
further.
Inflation is expected to remain low
in the near term,
in part because of earlier
declines in energy prices, but to rise to 2 percent over the medium term as the transitory effects of
declines in energy and import prices dissipate and the labor
market strengthens
further.
Before proceeding
further, we should note that, since the financial crisis exploded into public consciousness,
in September, with the exception of Treasury bonds and other debt explicitly guaranteed by the Treasury such as GNMAs, all sectors of the fixed - income
markets have experienced gut - wrenching
declines.