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Crewleader
Crewleader's Journal
Crewleader's Journal
March 16, 2012
The impact of the mortgage settlement and financial tectonic plates shifting.[/b
March 13. 2012
Buying a home is something embedded in the American economic DNA. Purchasing a home is the biggest financial decision most households will make in their entire lives. In the past the act of buying a home was more of a ritualistic rite of passage; you scrimp and save for the down payment, you purchase a home where your family will set roots, and eventually you will aim for that mortgage burning party. The entire process was accelerated in the last decade to create a perpetual churn. A mortgage was merely a temporary tool in the non-stop property ladder progression to the top. The equation did not leave room for falling home prices or a weakened economy. So we are left with a battle for the soul of US housing. Do we go back to more tested ways of a boring housing market where banks actually verify financials or do we juice up the machine again? The only issue is that the market no longer believes in the new way of financing housing and the government now has to step in to soften the withdrawal with loans such as FHA insured products. Yogi Berra once said its tough to make predictions, especially about the future. But the past is set in granite stone. What will the future look like for the American housing market?
http://www.doctorhousingbubble.com/future-of-the-american-housing-market-home-buying-young-and-mortgage-settlement/
Dr. Housing Bubble 03/13/12
The future of the American housing market just became more complicated:The impact of the mortgage settlement and financial tectonic plates shifting.[/b
March 13. 2012
Buying a home is something embedded in the American economic DNA. Purchasing a home is the biggest financial decision most households will make in their entire lives. In the past the act of buying a home was more of a ritualistic rite of passage; you scrimp and save for the down payment, you purchase a home where your family will set roots, and eventually you will aim for that mortgage burning party. The entire process was accelerated in the last decade to create a perpetual churn. A mortgage was merely a temporary tool in the non-stop property ladder progression to the top. The equation did not leave room for falling home prices or a weakened economy. So we are left with a battle for the soul of US housing. Do we go back to more tested ways of a boring housing market where banks actually verify financials or do we juice up the machine again? The only issue is that the market no longer believes in the new way of financing housing and the government now has to step in to soften the withdrawal with loans such as FHA insured products. Yogi Berra once said its tough to make predictions, especially about the future. But the past is set in granite stone. What will the future look like for the American housing market?
http://www.doctorhousingbubble.com/future-of-the-american-housing-market-home-buying-young-and-mortgage-settlement/
March 15, 2012
On the Road to Catastrophe
Subprime at the Car Lot
by MIKE WHITNEY
Can you think of a better business model than being a Wall Street bank? You hand out 500 million credit cards to 118 million households, even though 60 million of the households make less than $50,000. You then create derivatives where you package billions of subprime credit card debt and convince clueless dupes to buy this toxic debt as if it was AAA credit. When the entire Ponzi scheme implodes, you write-off $200 billion of bad debt and have the American taxpayer pick up the tab by having your Ben puppet at the Federal Reserve seize $450 billion of interest income from senior citizens and re-gift it to you through his zero interest rate policy. You then borrow from the Federal Reserve at 0% and charge an average interest rate of 15% on the $800 billion of credit card debt outstanding, generating $120 billion of interest and charging an additional $22 billion of late fees
Jim Quinn, The Burning Platform
Have you ever read a better description of how banking really works? Its just one big looting operation thats backstopped by the bandits at the Federal Reserve. Just think about it; millions of hard-working people were taken to the cleaners in an $8 trillion mortgage-laundering scam, and yet, not one of the miscreants who concocted the coup has ever seen the inside of a jail. Hows that for justice?
http://www.counterpunch.org/2012/03/14/subprime-at-the-car-lot/
Subprime at the Car Lot
March 14, 2012On the Road to Catastrophe
Subprime at the Car Lot
by MIKE WHITNEY
Can you think of a better business model than being a Wall Street bank? You hand out 500 million credit cards to 118 million households, even though 60 million of the households make less than $50,000. You then create derivatives where you package billions of subprime credit card debt and convince clueless dupes to buy this toxic debt as if it was AAA credit. When the entire Ponzi scheme implodes, you write-off $200 billion of bad debt and have the American taxpayer pick up the tab by having your Ben puppet at the Federal Reserve seize $450 billion of interest income from senior citizens and re-gift it to you through his zero interest rate policy. You then borrow from the Federal Reserve at 0% and charge an average interest rate of 15% on the $800 billion of credit card debt outstanding, generating $120 billion of interest and charging an additional $22 billion of late fees
Jim Quinn, The Burning Platform
Have you ever read a better description of how banking really works? Its just one big looting operation thats backstopped by the bandits at the Federal Reserve. Just think about it; millions of hard-working people were taken to the cleaners in an $8 trillion mortgage-laundering scam, and yet, not one of the miscreants who concocted the coup has ever seen the inside of a jail. Hows that for justice?
http://www.counterpunch.org/2012/03/14/subprime-at-the-car-lot/
March 13, 2012
Four Charts of Interest on Fed-Speak Day
(March 13, 2012)
We interrupt the regularly scheduled Part 2 of Money from Nothing to post four charts of interest on Fed-Speak day. Part 2 will be published tomorrow, Wednesday.
Here are four charts to ponder on Fed-Speak Day, the devotional time set aside to reassure us that all is well due to the god-like competence of the Federal Reserve. Let's start with a chart of M2 money supply, i.e. "Fed printing." Note that the "recovery" was so strong and self-sustaining in 2010 that the Fed had to goose money supply as frantically as it did in the global financial meltdown of 2008. We'd hate to see how much they'd have to print if we (gasp) ever had another recession....
http://www.oftwominds.com/blogmar12/4charts-Fed3-12.html
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