dlaw

The Financial 'F-Word' That Needs To Be Said

Thanks all for comments.

J Egan, I'd love to give you some names, but I think their banks are all closed now.

Just listen to some conservative radio. They still support the phony mortgage industry.

Why The Paulson Plan Won’t Work

Sorry to comment on my own post here, but I'm listening to President Bush. Incredible. Total fallacy.

It's all Fannie and Freddie's fault - not Countrywide, not IndyMac, not WaMu, not Bear.

Incredible.

And he's not even *trying* to claim that the government will get back the taxpayer's money on these "low priced" RMBS.

Why The Paulson Plan Won’t Work

Thanks all for your interesting comments.

Some of you have made me fear I failed to make two important points more strongly:

First, I am in favor of a very large intervention - even to the point of creating guarantees/insurance on every non-fraudulent mortgage in America.

Second, "The Market For Lemons" suggests that government buying RMBS will NOT create a market for RMBS - because the market itself has been destroyed. The price points Paulson plans to set are simply too little information to create a basis for people to buy. This is crucial.

We must intervene, in my view. But when we intervene, we must provide much, much more information to the market about these credits or we will waste hundreds of billions. The level of fraud is - in my personal view - crippling this market.

Sentiment Overview: Still Mired in the Middle

Yeah, I bet we're gonna get an answer this week.

And I do not think it is going to be one anybody likes.

The Death of Consumption?

Oh, and sorry to the author of the article. It is a great little piece and deserves better comments than a little squabble.

The Death of Consumption?

apolloalliance.org

The Death of Consumption?

Palin comes from the most-corrupt Republican state party in America. The very idea that Sarah Palin and John McCain will do anything but the oil companies' bidding is ridiculous on its face.

That "Manhattan Project" stuff is ripped off straight from the DEMOCRAT proposal - the Apollo Alliance.

That a joke - Governor Kill-The-Polar-Bears is going to get us off of oil.

I've never read anything so ridiculous.

Young Jeezy's 'The Recession': I Think We’ve Bottomed Out

If the combination of this young fool thinking he's a contrarian because the market has been negative for five minutes and the old fool, sharksm writing "the upside over the long term is infinite", then nothing will.

The combination of the two is the best sell signal I've ever seen.

There is clearly WAY more optimism (or denial, take your pick) buried in the market than I thought. Until that optimism gets wrung out, we won't find post-bubble pricing.