Re-default rates on modified mortgages are rising. Reuters.
Some background on Ponzi schemes from the NY Times.
John Meriwether's new hedge fund is experiencing major problems. WSJ. Coincidentally, Meriwether's last hedge fund, Long-Term Capital Management, collapsed almost exactly 10 years ago. As the old saying goes, "Insanity is doing the same thing over and over again and expecting different results." --John Dryden (I think???)
A key member of Congress is in support of releasing the second half of TARP before January 20th. AP.
Showing posts with label TARP. Show all posts
Showing posts with label TARP. Show all posts
Monday, December 22, 2008
Saturday, December 20, 2008
Daily Reading: December 20, 2008
Canada will provide aid to Canadian subsidiaries of U.S. automakers. Bloomberg. Ayn Rand must be rolling over in her grave when the PM of Canada says they have a "social responsibility" to help the ailing companies.
The second half of TARP funds will reportedly be used to help distressed homeowners. Bloomberg. Can someone explain this to me? If a family in California makes $50,000 a year and they owe $500,000 on their house, how in the hell can the Treasury do anything to prevent a foreclosure?! I don't think mortgage modifications will do any good in stemming the mortgage crisis. My plan for housing market stability makes more sense.
Oil producers are cutting production and capital spending. WSJ. This is really scary stuff. The recession is going to be bad, no doubt about it. But it will end eventually. Our energy problems, on the other hand, will persist. Production cuts now equals reduced supply later. Combine reduced supply with post-recession demand and $150 oil will be a pleasant memory. Energy is a MUCH bigger problem than mortgage defaults in the long-term. Refer to Brent Voss's report on oil for more information.
An interview with President Bush on the Wall Street Journal's editorial page. It will be interesting to see how history remembers our 43rd president.
The second half of TARP funds will reportedly be used to help distressed homeowners. Bloomberg. Can someone explain this to me? If a family in California makes $50,000 a year and they owe $500,000 on their house, how in the hell can the Treasury do anything to prevent a foreclosure?! I don't think mortgage modifications will do any good in stemming the mortgage crisis. My plan for housing market stability makes more sense.
Oil producers are cutting production and capital spending. WSJ. This is really scary stuff. The recession is going to be bad, no doubt about it. But it will end eventually. Our energy problems, on the other hand, will persist. Production cuts now equals reduced supply later. Combine reduced supply with post-recession demand and $150 oil will be a pleasant memory. Energy is a MUCH bigger problem than mortgage defaults in the long-term. Refer to Brent Voss's report on oil for more information.
An interview with President Bush on the Wall Street Journal's editorial page. It will be interesting to see how history remembers our 43rd president.
Friday, December 19, 2008
Friday, December 12, 2008
Daily Reading: December 12, 2008
The 5 people who voted in the MOS poll will not like this article. The (not so) Big 3 might get TARP money. AP.
An under-reported story is the number of regional commercial banks that have been shut down by regulators. This article reports the number has recently grown to 25. AP.
Securities fraud is a big deal, just ask Bernard Madoff. How in the hell is it possible to run a $50 billion Ponzi Scheme? Bloomberg.
More auto bailout news from Bloomberg. I am really struggling with how I feel about the government bailing out decades of poor management and an inefficient industry. In normal times (when most Americans are fat and happy) I would say, "Let a bankruptcy judge sort it out. The Japanese make better cars anyway." But these are most certainly not normal times. My concern is that if GM and Chrysler aren't given some aid they will be forced to liquidate. The subsequent job loss could be devastating to an already weak economy. So I think short-term aid is appropriate if withholding said aid would have far reaching consequences (read: materially negative for the country as a whole). Believe me, I have no sympathy for Detroit or its entitlement minded citizens. My concern is strictly for America.
An under-reported story is the number of regional commercial banks that have been shut down by regulators. This article reports the number has recently grown to 25. AP.
Securities fraud is a big deal, just ask Bernard Madoff. How in the hell is it possible to run a $50 billion Ponzi Scheme? Bloomberg.
More auto bailout news from Bloomberg. I am really struggling with how I feel about the government bailing out decades of poor management and an inefficient industry. In normal times (when most Americans are fat and happy) I would say, "Let a bankruptcy judge sort it out. The Japanese make better cars anyway." But these are most certainly not normal times. My concern is that if GM and Chrysler aren't given some aid they will be forced to liquidate. The subsequent job loss could be devastating to an already weak economy. So I think short-term aid is appropriate if withholding said aid would have far reaching consequences (read: materially negative for the country as a whole). Believe me, I have no sympathy for Detroit or its entitlement minded citizens. My concern is strictly for America.
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