Keyword: financialmeltdown

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  • A new program aims to help poor and minority families qualify for mortgages.[Fannie]

    08/28/2015 11:48:10 AM PDT · by Lorianne · 37 replies
    Atlantic, the ^ | 28 August 2015 | Gillian B. White
    In the years since the recession, the dream of a steady paycheck and a home in a nice neighborhood have become more elusive for many working-class Americans. While some may say that the lack of homeownership reflects changing values, owning a home remains an important tool for wealth building for most families. Yet it is particularly unattainable for low-income and minority households. The homeownership rate for households that fall below median income was less than 50 percent in 2014, for those who made above the median it was nearly 80 percent. And the gap in homeownership between whites, and blacks...
  • A new housing bubble?

    05/04/2015 11:07:03 AM PDT · by Lorianne · 3 replies
    Los Angeles Times ^ | 23 April 2015 | Edward J. Pinto, Stephen D. Oliner
    Contrary to the prevailing view that only borrowers with pristine credit records can get a mortgage these days, many risky loans are still being made. A new index published by the International Center on Housing Risk at the American Enterprise Institute measures this risk month by month, based on about three-quarters of all home-purchase loans extended across the country. And the index clearly shows that many of today's mortgages would not perform well under stressful conditions. This conclusion holds for the nation as a whole and for nearly every state individually, California included. Here's why. In recent months, fully half...
  • Venezuelan leader Maduro seeks economic help on tour

    01/06/2015 2:48:53 PM PST · by Lorianne · 6 replies
    BBC ^ | 04 January 2015
    Venezuelan President Nicolas Maduro is beginning an international tour to try to stem the impact of falling oil prices and a deepening recession. Mr Maduro goes first to China - a major source of loans for Venezuela - for talks with the Chinese President, Xi Jinping. He will then travel to various Opec member countries to press for cuts in oil output that would boost prices. Venezuelan oil prices have dropped by half since June. The country gets most of its foreign currency from oil exports and is estimated to have the largest oil reserves in the world. Before he...
  • Wait. So THAT’S what the bailouts were about?

    10/17/2014 8:10:42 AM PDT · by Lorianne · 11 replies
    Medium ^ | 07 October 2014 | Matt Stoller
    To understand the backstory, letÂ’s take a quick look at AIGÂ’s role in the housing bubble. Broadly speaking, AIG sells insurance, and one of its divisions (AIG Financial Products) sold a very specific type of insurance called a credit default swap. If you were a big bank and you owned a mortgage backed security (stuffed into a collateralized debt obligation, or CDO), you could buy a credit default swap against the possibility that the security would default. Then, because you owned this insurance, whatever that security might contain, be it good loans or the most toxic dreck imaginable, it was...
  • China's leaders refuse to blink as economy slows drastically

    09/16/2014 8:07:03 PM PDT · by Lorianne · 8 replies
    Telegraph (UK) ^ | 15 September 2014 | Ambrose Evans-Pritchard
    Premier Li Keqiang is determined to drive through deep reforms and wean the economy off exorbitant levels of debt before the damage becomes irreversible ___ China’s leaders have brushed aside warnings of an incipient credit crunch in the Chinese economy, determined to purge excesses from the financial system despite falling house prices and the deepest industrial slowdown since the Lehman crisis. Industrial production dropped 0.4pc in August from a month earlier, a rare event that highlights how quickly China is coming off the boil. The growth of fixed asset investment fell to record lows. “It is a shockingly sharp deceleration,”...
  • Only a monetary 'nuclear bomb' can save Italy now, says Mediobanca

    09/16/2014 7:59:11 PM PDT · by Lorianne · 20 replies
    Telegraph (UK) ^ | 15 September 2014 | Evans Amrbrose-Pritchard
    The OECD has drastically cut its growth forecast for Italy. The depression will drag on though most of 2015. The economy will contract by 0.4pc this year. It will remain stuck in the doldrums next year with growth of just 0.1pc. If so, Italy’s public debt will spiral to dangerous levels next year, ever further beyond the point of no return for a country without its own sovereign currency and central bank. “This is catastrophic for the finances of the country. We’re heading for a debt ratio of 145pc next year,” said Antonio Guglielmi, global strategist for Mediobanca. “Who knows...
  • Andrew Huszar: Confessions of a Quantitative Easer

    11/16/2013 9:04:08 PM PST · by Lorianne · 37 replies
    Wall Street Journal ^ | 11 November 2013 | Andrew Huszar
    We went on a bond-buying spree that was supposed to help Main Street. Instead, it was a feast for Wall Street. ___ I can only say: I'm sorry, America. As a former Federal Reserve official, I was responsible for executing the centerpiece program of the Fed's first plunge into the bond-buying experiment known as quantitative easing. The central bank continues to spin QE as a tool for helping Main Street. But I've come to recognize the program for what it really is: the greatest backdoor Wall Street bailout of all time. Five years ago this month, on Black Friday, the...
  • Obama to back mortgage finance reform to speed housing recovery [try to re-inflate bubble]

    08/06/2013 6:51:05 PM PDT · by Lorianne · 28 replies
    Reuters ^ | 05 August 2013 | Mark Felsenthal and Margaret Chadbourn
    Obama will propose eliminating mortgage finance entities Fannie Mae and Freddie Mac over time, replacing them with a system in which the private market buys home loans from lenders and repackages them as securities for investors, senior administration officials said. The mortgage securitization process is deemed essential to the smooth flow of capital to housing markets and the availability of credit. A government reinsurer of mortgage securities could backstop private capital in a crisis, the official said.
  • Pension Falsehoods -- And Realities

    06/17/2013 9:36:37 AM PDT · by Lorianne · 5 replies
    Market Ticker ^ | 17 June 2013 | Karl Denninger
    There's dumb and then there's really dumb. The executive of Sacramento County in California recently attributed the increase in his county’s pension costs to “investment losses during the recession.” The official, Brad Hudson, is right that public pension costs are growing, but not that investment losses are to blame. To the contrary, these expenses are rising despite gains in pension-fund investments. Oh really? The article goes on to say that the Dow is up 15% from December 31st 2007 to June 3rd of this year. True. But annualized this is less than a 3% rate of return, while the pension...
  • Marc Faber: "People With Financial Assets Are All Doomed"

    06/02/2013 10:55:04 AM PDT · by Lorianne · 22 replies
    Zero Hedge ^ | 01 Jun 2013 | Tyler Durden, quoting Mark Farber
    As Barron's notes in this recent interview, Marc Faber view the world with a skeptical eye, and never hesitates to speak his mind when things don't look quite right. Faber explains, among other things, the fallacy of the Fed's help "the problem is the money doesn't flow into the system evenly, how with money-printing "the majority loses, and the minority wins," and how, thanks to the further misallocation of capital, "people with assets are all doomed, because prices are grossly inflated globally for stocks and bonds." Excerpted from Barron's: On the error of the Fed's ways: The Fed has been...
  • America’s Bubble Economy Is Going To Become An Economic Black Hole

    05/24/2013 6:43:24 AM PDT · by Lorianne · 23 replies
    Economic Collapse ^ | 21 May 2013 | Michael
    What is going to happen when the greatest economic bubble in the history of the world pops? The mainstream media never talks about that. They are much too busy covering the latest dogfights in Washington and what Justin Bieber has been up to. And most Americans seem to think that if the Dow keeps setting new all-time highs that everything must be okay. Sadly, that is not the case at all. Right now, the U.S. economy is exhibiting all of the classic symptoms of a bubble economy. You can see this when you step back and take a longer-term view...
  • Wake Up Call – Next Bubble To Burst: Government Spending

    12/30/2012 3:47:39 PM PST · by Lorianne · 20 replies
    Progressive Radio News ^ | 24 December 2012 | Richard Martin
    Podcast/audo 52:57 Will “the cliff” do the trick? Or must we wait for the wave of municipal bankruptcies to kick in first? Why has government spending accelerated if we are truly in a “recovery”? Why is the Fed massively padding its balance sheet? How much of the economy is sapped by unproductive activities? With government responsible for almost half of GDP, how much longer will it be before private business just gives up altogether and America wakes up to a Communist society? It is moving inexorably in that direction. Some statistics proving the presence of deflation.
  • U.N. Presents Grim Prognosis on the World Economy

    12/19/2012 8:32:26 PM PST · by Lorianne · 16 replies
    New York Times ^ | 18 December 2012 | Rick Gladstone
    World economic growth has weakened substantially this year and faces the confluence of a triple threat — the so-called fiscal cliff in the United States, the European debt crisis and a sharp slowdown in China, the United Nations said in a report released on Tuesday. The worst case, the report said, could be a new global recession that mires many countries in a cycle of austerity and unemployment for years. “A worsening of the euro area crisis, the ‘fiscal cliff’ in the United States and a hard landing in China could cause a new global recession,” Mr. Vos said in...
  • Study Shows a Pattern of Risky Loans by F.H.A.

    12/16/2012 9:05:54 PM PST · by Lorianne · 3 replies
    New York Times ^ | 12 December 2012 | Gretchen Morgenson
    A new and extensive analysis of 2.4 million loans insured by the Federal Housing Administration in recent years shows a pattern of risky lending that could generate $20 billion in losses and harm thousands of the nation’s most vulnerable borrowers. By ignoring risks in loans it insured in 2009 and 2010, the study concludes, the F.H.A. is imperiling both borrowers and taxpayers who stand behind the agency. The analysis emerged less than a month after the F.H.A.’s auditor submitted a troubling report on the financial soundness of its insurance fund. In mid-November, the auditor estimated that the fund, which backs...
  • PolitiFact: A foreclosure ‘cliff’ could be looming

    11/30/2012 2:13:34 PM PST · by Lorianne · 9 replies
    Atlanta Journal Constitution ^ | 30 November 2012 | Eric Stirgus
    A “foreclosure tax” that would take effect in 2013 could mean a high tax bill for those facing foreclosure and millions of families who modified their mortgage or had a short sale through their lender. National Association of Realtors in a blog on its website —- In Washington, much of the political conversation these days surrounds a “fiscal cliff” of tax increases and drastic budget cuts that could ignite another economic recession if lawmakers don’t reach a compromise on such issues before this year ends. One organization, though, recently raised its concerns about another piece of federal legislation and its...
  • Ignore GDP and the Fiscal Cliff, U.S. Is Already in Recession

    11/30/2012 2:10:50 PM PST · by Lorianne · 9 replies
    Yahoo Finance ^ | 29 November 2012 | Aaron Task
    The U.S. economy grew 2.7% in the third quarter, up from a previously reported 2% the government reported Thursday. But the guts of the report raised some concern, notably a big increase in inventories and a big downward revision to consumer spending. For most economists, the GDP report provides further evidence of a U.S. economy that's growing modestly, but far from robustly. For Lakshman Achuthan, co-founder of the Economic Cycle Research Institute, the report is a distraction from the real story: the U.S. economy is already in recession. "The evidence is starting to mount a recession is already underway, and...
  • To Pay New York Pension Fund, Cities Borrow From It First

    05/30/2012 3:23:17 PM PDT · by Lorianne · 8 replies
    New York Times ^ | 27 May 2012 | Dany Hakim
    Across New York, state and local governments are borrowing $750 million this year to finance their contributions to the state pension system, and are likely to borrow at least $1 billion more over the next year. The number of municipalities and public institutions using this new borrowing mechanism to pay off their annual pension bills has tripled in a year. The eagerness to borrow demonstrates that many major municipalities are struggling to meet their pension obligations, which have risen partly because of generous retirement packages for public employees, and partly because turbulence in the stock market has slowed the pension...
  • To Pay New York Pension Fund, Cities Borrow From It First

    05/30/2012 3:23:17 PM PDT · by Lorianne · 7 replies
    New York Times ^ | 27 May 2012 | Dany Hakim
    Across New York, state and local governments are borrowing $750 million this year to finance their contributions to the state pension system, and are likely to borrow at least $1 billion more over the next year. The number of municipalities and public institutions using this new borrowing mechanism to pay off their annual pension bills has tripled in a year. The eagerness to borrow demonstrates that many major municipalities are struggling to meet their pension obligations, which have risen partly because of generous retirement packages for public employees, and partly because turbulence in the stock market has slowed the pension...
  • Taxpayers now stand behind derivatives clearinghouses.

    05/29/2012 8:23:35 AM PDT · by Lorianne · 7 replies
    Wall Street Journal ^ | 23 May 2012
    Little noticed is that on Tuesday Team Obama took its first formal steps toward putting taxpayers behind Wall Street derivatives trading—not behind banks that might make mistakes in derivatives markets, but behind the trading itself. Yes, the same crew that rails against the dangers of derivatives is quietly positioning these financial instruments directly above the taxpayer safety net. Specifically, the law authorizes the Federal Reserve to provide "discount and borrowing privileges" to clearinghouses in emergencies. Traditionally the ability to borrow from the Fed's discount window was reserved for banks, but the new law made clear that a clearinghouse receiving assistance...
  • ‘The Financial Crisis Was the Result of Government Housing Policy’

    05/18/2012 9:01:25 PM PDT · by neverdem · 43 replies
    Reason ^ | June 2012 | Anthony Randazzo
    The American Enterprise Institute’s Peter Wallison on how government, not greed, was the essential ingredient in the 2008 meltdown. In January 2011, a bipartisan, 10-member, government-created body called the Financial Crisis Inquiry Commission (FCIC) issued a comprehensive report assigning blame for the 2008 financial meltdown. The main culprits: “widespread failures in financial regulation and supervision,” “dramatic failures of corporate governance and risk management at many systemically important financial institutions,” “a combination of excessive borrowing, risky investments, and lack of transparency,” a government that “was ill prepared for the crisis,” and “a systemic breakdown in accountability and ethics.” The four Republicans...
  • Red and Blue and Broke All Over: Restoring America's Free Economy (book review)

    03/28/2012 11:09:00 AM PDT · by Lorianne
    Amazon (book review) ^ | 15 March 2012 | Charles Goyettet (book author)
    In his New York Times bestseller The Dollar Meltdown, Charles Goyette showed how increasing government debt is destroying the dollar and the wealth of the American people. But the problem goes much deeper: the country is heading for financial ruin because our leaders are ideologically bankrupt. The time has come for a dramatic solution. We need look no further than the Obama White House to find the culprits of America’s crippled prospects for recovery. They’ve forced the adoption of bailouts and unnecessary spending programs that do little but destroy wealth and drown the government in more debt and ever increasing...
  • Banks are using government loans to repay TARP

    03/10/2012 9:43:00 AM PST · by Lorianne · 15 replies
    Washington TX ^ | 09 March 2012 | Suzy Khimm
    The federal government seems to be on track in recouping the $414 billion in taxpayer money spent under the Troubled Asset Relief Program, with $120.7 billion now outstanding. But it turns out that over 130 bailed-out institutions paid back their TARP money simply by taking out loans from yet another government program, suggesting that the government--and taxpayers--actually haven’t gotten paid back yet. A new report from the Government Accountability Office, flagged by the Roosevelt Institute’s Matt Stoeller, shows that 40 percent of the 341 institutions that have exited TARP’s biggest single initiative--the $205 billion Capital Purchase Program--simply refinanced their loans...
  • Al Gore Was Right About [Crony] Capitalism [Schiff more right]

    03/06/2012 4:25:07 PM PST · by Lorianne · 7 replies
    Investment U ^ | 21 February 2012 | Jeannette Di Louie
    While talking about capitalism last week, former U.S. Vice President Al Gore got it right. Sort of… On Thursday, he said this about the United States’ economic structure: “While we believe that capitalism is fundamentally superior to any other system for organizing economic activity, it is also clear that some of the ways in which it is now practiced do not incorporate sufficient regard for its impact on people, society and the planet.” Taken by itself, that statement is completely true: Capitalism is the best economic system available, and the version America has been practicing for years is badly flawed....
  • Payroll tax cut may hurt housing market

    01/18/2012 1:51:49 PM PST · by Lorianne · 1 replies
    LA Times ^ | 23 December 2011 | Jim Puzzanghera
    To pay for the two-month payroll tax cut, a small fee will be levied for a decade on all mortgages sold to Fannie Mae and Freddie Mac. That also makes it harder to overhaul the housing finance system.
  • 'It's going to happen again' - Financial meltdown committee head

    11/16/2011 9:39:07 AM PST · by SeekAndFind · 10 replies
    American Thinker ^ | 11/16/2011 | Rick Moran
    The man who headed up the US government's investigation into the causes of the 2008 financial crisis says that we haven't learned our lesson and that conditions are ripe for another crisis to hit financial markets. Reuters columnist David Cay Johnston: _________________ The U.S. politician-businessman that Congress put in charge of determining the reasons for the 2008 financial crisis has a sobering message for us: "It's going to happen again." Phil Angelides, the real estate developer and former California state treasurer who chaired the Financial Crisis Inquiry Commission, said on Friday that "all across the marketplace the warning signs were...
  • Reformation

    07/21/2011 6:22:13 PM PDT · by Ari Bussel
    From the Despair of the Present, a Great Society will Arise By Ari Bussel I often recount the story of where I used to bank. At one point they considered us the fastest growing company in their portfolio, and we were treated like royalty. All the fake elements were there, including fascination, envy, need to extol and become close. None real or long lasting, they would all change in a heartbeat. We were customers of that bank for many years, and I expected to be treated no differently than in years past or future. Little did I know that the...
  • You Won't Read This Story About Goldman

    05/19/2011 8:39:32 AM PDT · by dirtboy · 4 replies ^ | 5/19/2011 | David Weidner
    Goldman Sachs Group Inc. is in trouble again. Still reading? If you are, you must be a Goldman employee, regulator, class-action lawyer, financial journalist or trolling the Internet for news about Steve Jobs. (See how I dropped the name to make this column more Google-friendly?) No one seems to care much about Goldman's latest troubles, and many Americans seem numb to more allegations of wrongdoing related to the financial crisis. Yet they keep coming, especially at Goldman. One of the biggest was last week's disclosure that the Commodity Futures Trading Commission's staff has "orally advised" the company that it "intends...
  • Fed Papers Show Breadth of Emergency Measures [bailouts]

    12/01/2010 11:55:09 AM PST · by Lorianne · 10 replies
    New York Times ^ | 01 December 2010 | Sewell Chan, Jo Craven McGinty
    WASHINGTON — The Federal Reserve released documents Wednesday showing that its efforts to help stabilize the markets at the height of the financial crisis reached far beyond Wall Street and deep into the economy. The crisis in the market for commercial paper, for example, the lifeblood of daily business, was more extensive and lasted longer than was previously known. Even bedrock corporations like Caterpillar, General Electric, Harley Davidson, McDonald’s, Verizon and Toyota relied on a Fed program that supported the market for commercial paper — the short-term i.o.u.’s that corporations rely upon to make payroll and pay their suppliers. During...
  • 'The Euro Game Is Up! Just who the hell do you think you are?' - Nigel Farage MEP

    11/30/2010 7:12:38 PM PST · by Lorianne · 5 replies · 2+ views
    You Tube ^ | 24 November 2010 | Nigel Farage
    Video 3:30 UKIP Leader Nigel Farage warns President Herman van Rompuy that untold millions of people will suffer as the EU political class pursues its dream.
  • The Most Important Part of Self Reliance in the Age of Turmoil

    10/24/2010 2:45:06 PM PDT · by Lorianne · 11 replies
    Whiskey and Gunpowder ^ | 20 October 2010 | Simon Black
    We have entered what I call the Age of Turmoil, a time that is marked by rapid change and fluctuating crises. The old system of debt and consumption that gave us great salaries, generous benefits, stock market and housing appreciation, and a high standard of living is gone forever. What’s happening right now is a major sea change: the game is being reset, and the rules are being rewritten. I’m not being pessimistic, and this is not a cause for fear. We shouldn’t be afraid of the Age of Turmoil, but rather prepare for it by becoming more self-reliant. Those...
  • The AIG Bailout Scandal

    08/11/2010 3:41:28 PM PDT · by Lorianne · 9 replies
    The Nation ^ | 06 August 2010 | William Greider
    Three governmental investigative bodies have now pored (sic)through the AIG wreckage and turned up disturbing facts—the House Committee on Oversight and Reform; the Financial Crisis Inquiry Commission, which will make its report at year’s end; and the Congressional Oversight Panel (COP), which issued its report on AIG in June. The five-member COP, chaired by Harvard professor Elizabeth Warren, has produced the most devastating and comprehensive account so far. Unanimously adopted by its bipartisan members, it provides alarming insights that should be fodder for the larger debate many citizens long to hear—why Washington rushed to forgive the very interests that produced...
  • The Trillion-Dollar Bank Shakedown That Bodes Ill for Cities [CRA 2000 article]

    08/08/2010 5:15:10 PM PDT · by Lorianne · 9 replies
    City Journal ^ | Winter 2000 | Howard Husock
    The Clinton administration has turned the Community Reinvestment Act, a once-obscure and lightly enforced banking regulation law, into one of the most powerful mandates shaping American cities—and, as Senate Banking Committee chairman Phil Gramm memorably put it, a vast extortion scheme against the nation's banks. Under its provisions, U.S. banks have committed nearly $1 trillion for inner-city and low-income mortgages and real estate development projects, most of it funneled through a nationwide network of left-wing community groups, intent, in some cases, on teaching their low-income clients that the financial system is their enemy and, implicitly, that government, rather than their...
  • Wall Street's War

    05/31/2010 8:18:17 AM PDT · by Lorianne · 10 replies · 461+ views
    Rolling Stone ^ | Matt Taibi
    The financial-services industry has reportedly flooded the Capitol with more than 2,000 paid lobbyists; even veteran members are stunned by the intensity of the blitz. The companies with the most at stake are particularly well-connected. The lobbying campaign for Goldman Sachs, for instance, is being headed up by a former top staffer for Rep. Barney Frank, Michael Paese, who is coordinating some 14 different lobbying firms to fight on Goldman's behalf. The bank is also represented by Capitol Hill heavyweights like former House majority leader Dick Gephardt and former Reagan chief of staff Ken Duberstein. All told, there are at...
  • Missing from financial reform: Freddie and Fannie

    05/27/2010 7:36:42 PM PDT · by Lorianne · 5 replies · 322+ views
    Bankrupting America ^ | 25 May 2010
    As Fannie Mae and Freddie Mac continue to bleed revenue, they are now seeking additional bailout funds. This would be on top of their previous bailout of $145 billion. Yet, the new financial regulatory reform package going through Congress – which is designed to reduce risk – completely ignores Fannie and Freddie. The government-owned entities have been linked to the cause of the financial crisis, which ultimately led to the push for regulatory reform. Any further losses the mortgage giants incur will be piled on the back of taxpayers – Fannie and Freddie are still major players in the housing...
  • More Greek Tragedy [we need Letters of Marque and Reprisal]

    05/17/2010 10:24:24 AM PDT · by Lorianne · 3 replies · 330+ views
    Market Ticker ^ | 17 May 2010 | Karl Denninger
    You can write an insurance policy for someone who has an insurable interest, provided you comply with state laws on capitalization and other metrics. But you can't write naked swaps (including to create synthetic CDOs!) and you can't trade these things without formal capital support and proof that you hold capital sufficient to pay your bets. Don't expect this any time soon, by the way. Destabilizing the global economy and placing bets with no capital behind them is how the banksters rip us all off. I don't see it ending until governments get tired enough of it to define what...
  • Greenspan Wanted Housing-Bubble Cassandras Kept Quiet

    05/03/2010 4:24:04 PM PDT · by Lorianne · 4 replies · 339+ views
    Slate ^ | 03 May 2010 | Kara Hadge
    While Chairman of the Federal Reserve, Alan Greenspan heard warnings about the potential existence of a real estate bubble, but was against airing these concerns to the public. As the Huffington Post reports, Greenspan argued at a March 2004 meeting, "We run the risk, by laying out the pros and cons of a particular argument, of inducing people to join in on the debate, and in this regard it is possible to lose control of a process that only we fully understand." At the same meeting, a Federal Reserve bank president from Atlanta, Jack Guynn, relayed worries from Florida about...
  • Republicans pick Wall Street over free markets

    04/30/2010 2:33:22 PM PDT · by Lorianne · 12 replies · 656+ views
    Washington Examiner ^ | 30 April 2010 | Timothy P. Carney:
    Republican leaders have proven the Democrats right: The GOP's teeth gnashing about "permanent bailouts" was cynical populist showmanship -- and Republicans can't pull off that act as well as President Obama. By proposing a financial reform bill that is mostly identical to the one proposed by Sen. Chris Dodd, D-Conn., Republicans have passed up an opportunity to simultaneously appeal to their base, by returning to their alleged principles of limited government, and appeal to much of the middle, by waging a populist battle against Wall Street's corporate-welfare queens who panhandle on Capitol Hill. Republicans favoring limited government over a "pro-Wall...
  • Wall Street didn't cause crash of '08

    04/26/2010 2:43:07 PM PDT · by ATX 1985 · 13 replies · 853+ views
    CNN ^ | 04-26-10 | David Frum
    Financial reform? Not exactly. The bill before Congress does nothing to address the fundamental background causes of the crash of 2008. Wall Street may have been the instrument of the crash. But the crash was made elsewhere: in Washington's failed policies for middle-class families -- and in China's distorted rush for economic growth. The story is not a simple one. But I hope you will pay attention to the details. If you don't, you may find that the pocket that has been picked is your own. As you've heard, the crash begins with the huge excess load of debt built...
  • The FHA Is Being Run Like A Ponzi Scheme That Will Surely Implode

    04/25/2010 12:50:18 PM PDT · by Lorianne · 2 replies · 528+ views
    Busines Insider ^ | 19 April 2010 | John Carney
    The FHA is no longer the modest agency that helped make homes more affordable to generations of Americans. It has issued hundreds of billions of dollars of mortgages in the last two years. It’s support for the housing market is expected to redouble once again, growing to $1.5 trillion over the next five years. Along the way to becoming a behemoth, the FHA has radically transformed its business. Very few people seem to understand how thorough going this transformation has been. In many ways, the FHA is being run like a Ponzi scheme. And like all such schemes, it is...
  • Simon Johnson: 'Crisis Is Just Beginning' (video)

    01/09/2010 3:14:58 PM PST · by Lorianne · 23 replies · 1,602+ views
    CNBC/You Tube ^ | 07 January 2010
    Video 4:57
  • Argentina's president fires central bank chief over foreign reserves

    01/08/2010 4:45:37 PM PST · by Lorianne · 2 replies · 283+ views
    Los Angeles Times ^ | January 8, 2010 | Chris Kraul and Andres D'Alessandro
    Argentina's president, Cristina Fernandez de Kirchner, fired the nation's central bank chief Thursday after he refused to release $6.6 billion in foreign reserves to service the nation's mounting foreign debt. But questions over the legality of Fernandez's action have raised the likelihood of a double-barreled political and economic crisis. Fernandez's dismissal decree followed an emergency meeting with her ministers in the afternoon after bank head Martin Redrado rejected her call to resign. The banker justified his refusal by saying any transfer of reserves must be approved by Congress, which is in recess. "It's not a measure I wanted to take,"...
  • [Australia's] Joyce warns of US [financial] 'Armageddon'

    12/10/2009 6:21:47 PM PST · by Lorianne · 15 replies · 1,220+ views
    source cannot be posted | December 11, 2009
    see link in post below
  • Sweden cuts rates to new low(.25%), offers banks loans

    07/06/2009 7:02:25 PM PDT · by Lorianne · 3 replies · 339+ views
    Guardian UK/ Reuters ^ | 02 July 2009
    STOCKHOLM__Sweden's Riksbank cut interest rates to a fresh record low on Thursday and offered banks 100 billion crowns ($13.2 billion) to boost lending as it strives to reverse the country's worst recession since the 1940s. The central bank lowered its key interest rate by 25 basis points to 0.25 percent in a surprise move, putting official rates at their lowest since records began in 1907, and said it expected rates to remain at that level until late 2010. "The deposit rates are actually negative now. In some sense they are creating a money machine for banks. You can lend all...
  • Paper Avalanche Buries Plan to Stem Foreclosures

    06/29/2009 3:01:05 PM PDT · by Lorianne · 3 replies · 420+ views
    New York Times ^ | June 28, 2009 | Peter S. Goodman
    ... it is a potent indication of the difficulties afflicting the $75 billion taxpayer-financed program created by the Obama administration in an effort to avoid foreclosure for as many as four million distressed homeowners. Under the plan, the government offers mortgage companies $1,000 for each loan they agree to modify, then another $1,000 a year for up to three years. Hanging in the balance is more than the fate of individual homeowners. The administration portrays its mortgage program as a crucial piece of its broader effort to restore vigor to the economy. If the effort fails, foreclosures will continue to...
  • Proud To Be American? You Should Be Ashamed

    06/15/2009 1:01:24 PM PDT · by Lorianne · 35 replies · 1,472+ views
    Market Ticker ^ | June 15, 2009 | Karl Denninger
    We have seen the largest looting operation in history perpetrated against The American People. Over $5 trillion dollars in junk securities were marketed and sold. They had a real value of about $2 trillion dollars; the other $3 trillion, roughly, was pure fiction. The banks created and sold these throughout the world, with the full knowledge and support of Congress, The Fed, and the banks themselves. It was pure fraud. Americans have sat on their butts through all of this, allowed their 401ks and IRAs to be trashed, their supposed "home values" to be pumped and then destroyed, and their...
  • The Rational Crisis - Richard Posner takes on the financial meltdown.

    05/21/2009 11:11:37 PM PDT · by neverdem · 5 replies · 469+ views
    City Journal ^ | 15 May 2009 | Guy Sorman
    A Failure of Capitalism: The Crisis of ’08 and the Descent into Depression, by Richard Posner (Harvard University Press, 368 pp., $23.95) Coming from a leading free-marketer, Richard Posner’s new book may look at first glance like a confession of intellectual defeat. Actually, it is closer to healthy self-criticism. Capitalism, writes Posner, should be not rejected but repaired. Posner has joined the still-modest number of scholars who try to understand their mistakes without jettisoning their entire system of beliefs. Former Federal Reserve chairman Alan Greenspan became a member of this group after publicly admitting some months back that he had...
  • Joseph Cassano: the man with the trillion-dollar price on his head [AIG]

    05/18/2009 2:44:33 AM PDT · by Daisyjane69 · 10 replies · 744+ views
    TimesOnline (UK) ^ | 5/17/09 | Tim Rayment
    This is Joseph Cassano. He is the multimillionaire trader accused of bringing down the insurance giant AIG — and with it the world’s economy. So is he a criminal, an incompetent or a scapegoat?
  • Mesa city workers begin 4-day work week program

    03/04/2009 2:07:08 PM PST · by Lorianne · 10 replies · 372+ views
    AZ Family ^ | March 2, 2009
    Cities all across Arizona are being forced to cut their budgets. One of the ways some are saving money is by cutting their work week from five days to four. Mesa has joined the ranks of Buckeye, Avondale and Queen Creek as it begins its four-day workweek pilot program. If its success is anything like Avondale’s, it could become permanent. On Monday Blaine Comeaux, an election specialist with the Mesa city clerk's office, began a new schedule. He admits he is, “Getting used to working longer hours…staying mentally focused the entire day.” Comeaux and nearly 2,500 other Mesa city employees...
  • Obama’s last hope: my housing rescue plan

    03/03/2009 10:52:54 AM PST · by Lorianne · 5 replies · 507+ views
    Crikey ^ | 3 March 2009 | Christopher Joye
    Make no mistake: President Obama's recently announced $US75 billion housing plan is a long-term policy disaster insofar as it merely treats the symptoms of the calamity in an extremely costly manner via crude short-term interest rate relief -- read: good taxpayers bailing out bad -- and remarkably, does nothing at all to prevent the next generation of US borrowers experiencing exactly the same problems in the future. In fact, it can be argued that it only creates a higher tax burden for tomorrow's taxpayers. Disturbingly, the Administration's response also exacerbates the underlying dysfunctionality that is the root cause of the...
  • What Rick Santelli Means for Obamanomics

    02/20/2009 5:35:30 PM PST · by Lorianne · 7 replies · 1,536+ views
    source cannot be posted | February 20, 2009
    see clickable link below