axelrod608

What Causes Foreclosures?

>> "When has common sense been displayed in the halls of Congress?" >>

Perfect concluding sentence. Only when Congress stops trying to GIVE stuff to people will things change for the better.

Anyone who can't SAVE the downpayment can't save for the new roof, the new AC, the new water heater that we all know they will eventually need. The absolute reliance on credit and Uncle Sam to bail us out of every problem under the sun just plain doesn't work over the long haul.

This morning's news announced a new Florida $8000 downpayment program for first time homebuyiers. We have learned NOTHING in the past 3 years and will surely repeat the mistakes..

Why Did Economists Fail to Predict the Crisis?

SOME economists accurately predicted the crash. The pity is that the economists influencing current fiscal policy are the ones that got it wrong. Our institutions are still following the advice of those that got it WRONG and ignoring or heaping scorn on the ones who got it RIGHT.

Current public fiscal policy is straight from Hell. The idea that we can spend our way to prosperity is idiotic, moronic and just plain stupid.

Wall Street Breakfast: Must-Know News

PLEASE return to the old format listing SA articles.

Wall Street Breakfast: Must-Know News

>> "DoJ probes telecoms. " >>

About time. The only bad credit report items I have EVER had - three total - have all been from telecoms. They REFUSE to follow the requirements of debtor/creditor law. When I dispute a charge, they make no attempt to resolve the issue, charge it off, send it to a collection agency and report it as a chargeoff. Damn scofflaws.

It is SOP in the telecom biz to bypass the required attempt to collect disputed amounts in court. They know the legal requirement and refuse to follow it. And until Uncle Sam makes them adhere to the law, they'll keep doing it.

Wall Street Breakfast: Must-Know News

>> "Car-accident victims with pending lawsuits and those who won damages against GM before it filed for bankruptcy will still be unable to bring claims against the new GM.]

Tort bar raised to a new high. " >>

Not really. There's winners and losers in every bankruptcy.

Probably $1000 of every new car's cost is for lawyers and litigation. Same for $100 or more of every insurance premium. We - each and every one of us - pay a very high price for our litigious society. 5% of the world's population with 90% of the world's lawyers doesn't come cheap.

Our national health care cost would drop 30% without the cost of litigation/insurance.

Why 'Cash for Clunkers' Is a Bad Idea

Thanks for the program details. I was starting to look for an old Suburban beater I could get for $100 to trade in.

Firms Accelerate Refinancings, Convey Fragility of Recent Credit Recovery

There's the additional risk that interest rates will rise by the time these come due, thus costing substantially more to roll over. I'd like to think the Fed can't give money away for free forever.

Why Are So Many U.S. States Facing Budget Deficits?

The county I live in, in Florida, doubled - no I am not making this up - doubled its spending in a two year period. That was during the home price inflation extravaganza. Property taxes soared and they spent every penny of it PLUS they floated a bunch of bond issues, adding more debt.

In a county where the average worker still makes under $30k, ALL the administrators in the Fire Dept make six figures. More than half of all six figure earners in my county are on the government payrolls.

Ever wonder where the fiscally irresponsible congress critters come from ? They get their start as fiscally irresponsible Republican and Democratic local and state "representatives".

So, yes, falling tax receipts are a problem, but the CAUSE behind the crisis is elected government officials at all levels with no concept of fiscal responsibility.

Commercial Real Estate Is Plunging

One needs to bear in mind that insurance companies are very large investors in CRE. They, as well as the small and mid sized banks, are facing a serious threat of losses and reduced revenues.

One wonders what the Fed and Treasury will do for this sector. Will the big banks will be the only ones put on federal life support.

It's probably not a swell time to be buying annuities from the insurance companies. What's a retiree to do ? There's no port open to weather this storm.

Second Round of Massive Deleveraging About to Hit U.S. Banking System?

Big financials like GS can repay their TARP with no problem because their earnings are heavily weighted to trading. It's the banks that hold their own loans, securitized MBS's and credit card acciounts that will get slashed by the next round of deleveraging.

Today's unemployment numbers verify that the economic down cycle is still in charge. Here in Florida, the state's unemployment fund runs out of money before summer ends. Who's going to pay those UC compensation benefits ??

Good article. A frank discussion of facts is necessary to combat all the "talking heads" and cheerleaders that think they can talk the recession to death. When one looks at all the numbers as a totality - rather than cherry picking a positive tidbit here or there - the risk of another serious meltdown is apparent.

Wall Street Breakfast: Must-Know News

>> "The FOMC statement predicted "inflation will remain subdued for some time," >>

Clearly, whoever makes statements like this does NOT buy the groceries, fill the gas tank, pay the utility bills or the medical expenses.

Marc Faber: 10-20% Inflation Coming to the U.S.

Government numbers don't tell the whole story. Housing prices may be deflating, but how often do I buy a house ? We hear that CPI is dropping, but as I fill the tank and buy the groceries, those prices have been on the "up" escalator for a couple years now.

The Social Security cola may be little or nothing for next year despite rapidly rising costs for what seniors buy. And with the government tinkering with virtually every part of the economy and the markets, one is hard pressed to plan ahead.

One thing for sure - if Bernanke's head of the Fed, the printing presses will be humming. In conservative economic circles, that IS inflation.

The Market Decline Was Expected but Will It Continue?

The long term market cycle suggests a serious downturn in early August.and a trough thru most of 2013. If we keep losing half a million plus jobs a month, the idea of GDP growth next year is sheer fantasy.

Wall Street Breakfast: Must-Know News

OOoops.... level 2 and 3 assets... above...

Wall Street Breakfast: Must-Know News

>> "How can it be that these banks are not just swimming in cash. Borrow at 0% and loan at 5-8% is just like printing money. " >>

Unfortunately, our "leaders" gave that 0% money to companies holding lots of level 3 and 4 "assets" that were worth a whole lot less than they claimed. So despite making easy money on new loans, they have continuing writeoff losses on the junk.

There's a LOT of junk left, thus a lot of losses yet to be booked. And if the economy keeps deteriorating, the losses will keep coming and growing.