Do as I say, not as I do.

So it looks like the government has gotten concessions out of private banks in regards to outstanding mortgage balances. According to USA Today  the settlement requires the five leading mortgage servicers to forgive at least $10 billion in principal that homeowners owe on mortgages. That will help underwater borrowers who owe more on their mortgages […]

Option ARM Bomb

Many have been warning of this pending implosion for years, but evidently it’s just now hitting the major news organizations.  How did anyone ever think that a mortgage that didn’t even cover the interest charges each month was a good idea? From the numbers I’ve seen, 2010 and 2011 are the years when most of […]

O’Shaughnessy sees big upside, S&P 500 at 900

From a story on Yahoo News. A rising savings rate and an improved housing market, while not completely healed, point to brighter times ahead in the U.S. economy, O’Shaughnessy told Reuters in an interview. “I do think that as all that coalesces, you see a good chance for the S&P 500 (at) 900 out of […]

Honk if you’re paying my mortgage

I’m not a Republican (or a Democrat), but I like this. The only thing that might be better is if it said “Honk if I’m paying your mortgage” Or maybe a few others: Honk if you’re bailing out my bank. Honk if I’m bailing out your bank. Honk if you’re tired of bailouts. Honk if […]

Why AIG blew up

The NY Times has a good article today which examines why we’re stuck paying hundreds of billions in bailouts to AIG.  The article is titled Propping Up a House of Cards. It’s a good article, and it does a good job of explaining what happened, but I think it draws the wrong conclusion.  The NY […]

Will the banks survive?

Fortune has a good article today that talks about the causes and potential solutions of the banking crisis.  I disagree with their conclusions, but the article does a good job of explaining the risks that the banks are facing – and getting ready to face. How can it be that the banks are tottering after […]

Over half of modified mortgages default again within 6 months

Just another example of bailouts that don’t work. MarketWatch says  A study looking at loans that were modified in the first three months of 2008 showed that 37% of borrowers were more than 30 days behind on their payment within three months, and 55% had re-defaulted within six months¸ said Grovetta Gardineer, a managing director […]

You should pay my mortgage

I was reading a story on CNN tonight. It was one of those stories that made me bang my head up against the wall because it feels so good when I stop. I’m going to quote a bit of the story so you can see what pissed me off. Take Joe Martinez of Bristow, Va., […]

The return of Mark to Myth?

It looks like the Senate is attempting to allow the banks to sweep their problems under a rug.  A MarketWatch.com article this evening says “an accounting regulation that some bankers and lawmakers complain is a key contributor to the financial crisis might need to be temporarily changed or restricted. The rule, known as mark-to-market, requires […]

Benanke is looking for a big rug

“Helicopter Ben” Benanke gave a speech yesterday (Jan 13th, 2009) at the London School of Economics. You can read the whole text of it here if you’d like. I’d like to comment on part of the speech near the end, where Bernanke says this:  Public purchases of troubled assets are one possibility.  Another is to […]