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Are Financiers Overpaid?

Isn't that the way of things? A topic, or a sector, gets hot... there's an exciting story to tell, brain power and resources get over-diverted... eventually, that market becomes overloaded with participants, driving profits down, or it collapses... then, on to the next "thing."

Have we reached equlibrium yet?

Obama Wants a 'Better Plan'? Here's One: Bite the Bullet

[I'm not certain how many "strong regional banks" there are to step up to the plate. ]

Are we to believe that if the big names in banking were allowed to fail that nobody will fill the void?

I find that hard to believe.

As a consumer and a business owner, I'd prefer a larger amount of choices in this area.

Surely there's some correlation between the consolidation in the banking industry and the increased focus of far too many resources on economic activity that produces little to no real value.

Bankruptcy, Credit Cards, And the Mortgage Crisis

“This was caused by the ‘ability to pay’ or ‘means’ test.”

It was also caused by the practice of many BK attorneys to lie to potential clients about their ability to file a 7 in spite of the changes in the law.

Credit Where Credit Is Due

[In addition, while business loans increase our capital stock and lead to greater productivity, loans made to consumers are merely spent, and do not create conditions that will make repayment easier. ]

In much the same way, it seems this new stimulus bill won't create greater productivity, nor will it create sustainable jobs.

More like a "belch" into the economy than a breath of life.

Sheila Bair - World's Worst Regulator - to Stay at FDIC

[fixing housing becomes a priority to stabilizing the broader economy... ]

How, exactly, do we "fix" housing?

Through "streamlined" modifications?

The "solution" that leads to a 58% default rate within 8 months?

Of course, with streamlining, they'll be doing even less due diligence than they do now.

Yeah, that'll fix things.

The Great American Ponzi Scheme (Part II)

[IF YOU REALLY WANT AN INDUSTRIAL BASE AND A COUNTRY THAT CAN ONCE AGAIN BUILD THINGS..STOP TELLING EVERY HIGH SCHOOL KID THEY NEED TO GO TO COLLEGE... Bring back shop class and trade schools!]

I agree. Little to no time seems to be spent discovering what kids are good at, where their strengths lie. All the focus seems to be meeting arbitrary competency scores. The trades are where "losers" are shunted (kids who don't get good grades).

Tradespeople are largely devalued. Listen, when my roof leaks, or the furnace dies, it's a damned valuable person who comes out to fix the mess. We could use some brighter people in those industries, people whose skills complement the work that needs to be done... not just the guys who couldn't cut it anywhere else.

Furthermore, I live in a northern client and I am shocked at how completely inefficient home design is. "Energy Star" ratings are a joke, and provide very little, marginal value. The design of homes needs a complete, fundamental overhaul with regards to energy efficiency.

The Housing Blame Game, Redux

[any one political party can amply choose to focus their blame on their rivals, while ignoring their own role in this mess]

Cheer up, Paul: the government is expanding its influence in other areas lately. There will be much more to debate and discuss going forward.

[we didn’t get into a historic mess overnight, or because of any one bad decision or company. It took a collection of actions, and a multitude of players, to create a mess of this magnitude;]

You've taken the fun right out of the debate. We've been conditioned to believe that there is ONE bad guy, one party who's chiefly to blame. We will not be satisfied until that culprit is found and lynched- literally or figuratively.

[the sooner we all recognize this truth, perhaps the sooner we can begin to address real solutions that will make a difference and help prevent us from ending up here again.]

Like most of our problems, we're all to blame, to some degree. But admitting that would force all of us to accept responsibility, and... we'd rather not. Thank you, though.

Also, regarding real solutions.. That's not terribly attractive to anyone involved in the debate. It removes a platform from which politicians can proselytize, pander, and raise money, it limits finger pointing, and it gives everyone one less thing to complain about...

then we'd have to revisit the same old issues we've been talking about and not doing anything about for years. New problems allow us to feel better about ourselves, because we're temporarily distracted from all the old problems we still haven't solved.

Low Rates, Big Problems

[Only way to "solve the housing problem" is to make mortgages assumable.]

And who, exactly, would want to assume a mortgage on an underwater property?

FHA/HUD: Fee Stooges

[In May of 2008 the Bush Administration proposed that government-backed loans reflect risk-based pricing, and that the new pricing roll-out would coincide with the expansion (to serve more delinquent borrowers) of FHA loan programs.]

The problem with this is it contradicts the stated goal of most politicians, which is to "stabilize housing prices."

stabilize [stey-buh-lahyz]

-verb

1. to make or hold stable, firm, or steadfast.
2. Government. to aritificially inflate or prop up [syn: backstop]

If borrowers are required to pay an appropriate risk-based premium, then they won't be able to pay as much for a home, and once again, prices will fall.

So we can't have any of that, understand?

Amity Shlaes: Paulson Plan Bring On Accounting Deja Vu

Will my mutual fund account statement suspend mark-to-market accounting until things turn around? I mean, hey, those stocks have GOTTA be worth more than that.

Can I use these same tactics to refinance my house, based on its old value?

Trust me- when this thing blows over, I'm sure it'll return to its former luster.

Besides, I'm a "hold-to-maturity" kinda guy.

Oh, and by the way, could the government put a temporary ban on anyone in my neighborhood selling for awhile? Listen- their selling is hurting my home's value... it's like SHORT SELLING!

While we're at it, could we institute a no-confidence provision? That way, we'd have a chance to dump the whole lot- executive and legislative branch- in one fell swoop.

Has it occurred to anyone that Main Street folks might prefer some short-term pain to this steaming load that's being forced down our throats?

The Financial Crisis Explained

[There is simply no painless solution to this fundamental situation; prices must be allowed to fall. ]

You're wrong- dead wrong.

Crisis... what crisis?

Don't you understand that the bailouts and the housing legislation and the possible RTC II are going to help us AVOID a crisis?

Is the U.S. Banking System Safe?

[Home prices have historically tracked inflation and are likely to revert to the mean. ]

I agree with NY above that inflation is going to accelerate, but with all of the reasons that housing prices have to continue to decline, I'm wondering if house prices may decouple from that measure.

New Lender Guidelines To Help Struggling Homeowners

[and would in most cases receive a final decision on whether they will receive help with their loan within 45 days.]

They're already far, far, very, very far short of this standard.

This new plan appears to be a combination of "nothing new" and promises that can't be kept.

They say that they'll "consider" things... such as principal reduction... when the recent Boston Fed paper clearly states that such a consideration makes no sense.

I love how these announcements really say nothing at all.