Implications Of The Bevilacqua Ruling [View article]
Wow, Gregory, thank you for the update. What a ruling. But...this is just one ruling in one State.
Depending on how you look at it good. Our country is broad so it's not precedence everywhere but Gregory is correct things are going to get interesting in Massachusetts.
Land use law, bankruptcy, all of that has years and years of State case law ahead of this above mentioned ruling.
Do you think this means that federal Frannie Feddie contracts broke this state law? Or the TBTF's broke the law? If so this is as major as Gregory claims. But I still don't think this one ruling will break the title companies or land use law out side of Massachusetts. But I, unlike the author have no idea. I agree with Charles Smith, all of the other technicalities be dammed if you didn't stay current. But I also am somewhat glad, it should be hard and difficult to foreclose on someone.
I like the refi for current FHFA borrowers (good idea to have the government give bond holders an incentive for this) and a change to FASB.
Just change the accounting standards so banks are given an incentive to rent their homes, not sell them at such a huge loss.
Also, let them value the future judgment against these dead beat borrowers. Let that be an asset to them.
Also, let them show the real holding cost to them to be a 100 year interest only loan at 0 percent. Once you back in this low cost of capital the underwater homes rent could look very good on their books. Just fix this problem, as you say, through tax incentives, bond holder incentives, and I might add FASB incentives.
Why Won't Frannie Do Principal Reductions? [View article]
As Levin mentioned above loan accounting won't allow for this.
If you want to get creative, start yelling at the FASB folks.
They can't do these things because from the banks perspective its still junk.
The FASB folks don't allow very much room for creative workouts.
As one commenter above mentioned "their investment company" does these types of workouts all the time.
It's great for private money but for regulated banks FASB just doesn't value judgments, rentals, or even modest workouts. I don't believe they value "equity swaps" in a home. So the banks are at the mercy of FASB GAAP and the regulators.
President Obama, and DeMarco just don't seem to care or are powerless to fix it.
I had no idea how good the Daley's were at running Chicago. They aren't getting too far in D.C. It appears no one, Geithner, DeMarco, Congress, Dems, Repubs want to work with them. To me this is a real shame. As they sit there and make President Obama's life hell, people march in the streets.
Housing Is Not Sexy Anymore, But It Holds The Key [View article]
I bought my home in 2000. Its paid for. My point is for current mortgage holders it is the bank that is breaking their deal. When they signed the mortgage they thought the home was worth what it was in 2007. Now they are telling folks to keep paying the higher interest.
The only people this benefits are the bond holders.
Your lower rates and lower returns are coming. As you say suck it up and get used to your new normal.
28 million households took out a mortage from the bank, the bank sold it to the government and then the economy fell apart.
The Fed then jumps in and says I will save everyone with low rates.
These same 28 million households go back to their bank and ask to refi at the new lower rates.
The bank has to tell these credit worthy folks that you know what you can't refi. That same home we lent on 3 years ago it isn't worth it today. Sorry, just go pound sand.
This is the problem. These households go home and they are pissed off. They didn't change, they kept paying, its just the rules changed at their expense.
The FHFA needs to change this. Fire DeMarco. Let American's refi.
Why Shorting U.S. Treasury Bonds Is A Safe Investment [View article]
Are you just ignoring what the Fed announced? "Low rates for 2 more years". Why not wait and short in 2 years?
The Fed can hold rates down, that is their job.
Rates need to be low in a deflationary/deleveraging time. I don't see this changing any time soon.
Good luck to you. Bill Gross sure looked like a fool doing this. But as you point out that was 6 months ago. Everything that has changed since then points to lower rates. If this trend continues rates could go negative like Japan. Put that in your model and see how your loss would exceed 20%.
Paul Krugman: Wrong on Monetary Policy (Part 1) [View article]
Blinder, Krugman's colleague again argues for more QE today in the WSJ.
What these two tenured professors forget are peoples attitudes.
We all know our government is broke so we are all saving like crazy.
This is bad for our economy.
Stop it Stop it Stop it.
The Supreme Court needs to get involved, they are our last hope of a real check and balance in our system. They need to step in and fix the level of federal spending. They can be the tyrant we need right now. The Peterson Institute should sue the Feds and let the Supreme Court hear the case immediately.
If it doesn't work, we can go back to QE3 in a second.
Paul Krugman On Europe's Future [View article]
At least they will get what they asked for. Sound money and no friends.
Fixing Wall Street: It's Time To Break The Axis Of Artifice [View article]
I'm listening. Great comment. This is one of the consequences of MMT. I agree with you.
Implications Of The Bevilacqua Ruling [View article]
Depending on how you look at it good. Our country is broad so it's not precedence everywhere but Gregory is correct things are going to get interesting in Massachusetts.
Land use law, bankruptcy, all of that has years and years of State case law ahead of this above mentioned ruling.
Do you think this means that federal Frannie Feddie contracts broke this state law? Or the TBTF's broke the law? If so this is as major as Gregory claims. But I still don't think this one ruling will break the title companies or land use law out side of Massachusetts. But I, unlike the author have no idea. I agree with Charles Smith, all of the other technicalities be dammed if you didn't stay current. But I also am somewhat glad, it should be hard and difficult to foreclose on someone.
Thanks for this very fascinating article.
The U.S. Economy Will Continue To Grow [View article]
Lucky for us we are probably back to quiescence and probably moving into improvement. Definitely not growing more confident yet as a whole."
That was written over a year ago.
Do you all think we are now "growing confidence". Or still quiescence? Or did we never get out of this and are stuck in stagnation?
Two Mortgage Plans [View article]
Cool ideas.
I like the refi for current FHFA borrowers (good idea to have the government give bond holders an incentive for this) and a change to FASB.
Just change the accounting standards so banks are given an incentive to rent their homes, not sell them at such a huge loss.
Also, let them value the future judgment against these dead beat borrowers. Let that be an asset to them.
Also, let them show the real holding cost to them to be a 100 year interest only loan at 0 percent. Once you back in this low cost of capital the underwater homes rent could look very good on their books. Just fix this problem, as you say, through tax incentives, bond holder incentives, and I might add FASB incentives.
Why Won't Frannie Do Principal Reductions? [View article]
You know "secondary source of payment"
I don't think you know much about loan accounting. CDO's were securities not loans.
Why Won't Frannie Do Principal Reductions? [View article]
Many banks don't go judicial on folks. It makes more sense not too.
The FASB banking standards don't promote this either, IMO.
Why Won't Frannie Do Principal Reductions? [View article]
If you want to get creative, start yelling at the FASB folks.
They can't do these things because from the banks perspective its still junk.
The FASB folks don't allow very much room for creative workouts.
As one commenter above mentioned "their investment company" does these types of workouts all the time.
It's great for private money but for regulated banks FASB just doesn't value judgments, rentals, or even modest workouts. I don't believe they value "equity swaps" in a home. So the banks are at the mercy of FASB GAAP and the regulators.
President Obama, and DeMarco just don't seem to care or are powerless to fix it.
I had no idea how good the Daley's were at running Chicago. They aren't getting too far in D.C. It appears no one, Geithner, DeMarco, Congress, Dems, Repubs want to work with them. To me this is a real shame. As they sit there and make President Obama's life hell, people march in the streets.
Housing Is Not Sexy Anymore, But It Holds The Key [View article]
The only people this benefits are the bond holders.
Your lower rates and lower returns are coming. As you say suck it up and get used to your new normal.
Why Banks Aren't Lending [View article]
For most people a loan means a home loan.
28 million households took out a mortage from the bank, the bank sold it to the government and then the economy fell apart.
The Fed then jumps in and says I will save everyone with low rates.
These same 28 million households go back to their bank and ask to refi at the new lower rates.
The bank has to tell these credit worthy folks that you know what you can't refi. That same home we lent on 3 years ago it isn't worth it today. Sorry, just go pound sand.
This is the problem. These households go home and they are pissed off. They didn't change, they kept paying, its just the rules changed at their expense.
The FHFA needs to change this. Fire DeMarco. Let American's refi.
This is really such a joke.
How Investors Are Restoring Equilibrium To The Housing Market [View article]
But this is only bringing up the bottom in our market.
First it was the homes in the 200K range, then the 300K OREO is gone, now most of the 400K OREO is gone.
I don't think this dynamic is helping the high end though. High end condos are gone now but the McMansions are still coming down it appears.
Just my comments, thanks for the article.
Why Shorting U.S. Treasury Bonds Is A Safe Investment [View article]
The Fed can hold rates down, that is their job.
Rates need to be low in a deflationary/deleveraging time. I don't see this changing any time soon.
Good luck to you. Bill Gross sure looked like a fool doing this. But as you point out that was 6 months ago. Everything that has changed since then points to lower rates. If this trend continues rates could go negative like Japan. Put that in your model and see how your loss would exceed 20%.
Why Obama's Jobs Plan Won't Work [View article]
As you can tell I love top down dictators, oh I mean leadership.
Solutions Wanted to Stabilize Housing Market [View article]
What happens to this home in the above situation?
Paul Krugman: Wrong on Monetary Policy (Part 1) [View article]
What these two tenured professors forget are peoples attitudes.
We all know our government is broke so we are all saving like crazy.
This is bad for our economy.
Stop it Stop it Stop it.
The Supreme Court needs to get involved, they are our last hope of a real check and balance in our system. They need to step in and fix the level of federal spending. They can be the tyrant we need right now. The Peterson Institute should sue the Feds and let the Supreme Court hear the case immediately.
If it doesn't work, we can go back to QE3 in a second.