Forced to listen to Diane Rehm show today on home ownership, Fannie, Freddie etc. The show was very boring but I thought some points could be related to our ongoing discussions about the middle class etc. … [Read more...]
Following the AIG money
The company was indeed too big to fail. The money was provided to AIG in the form of loans and equity investments, contingent on the company’s winding down its AIG Financial Products Corporation and divesting itself of other … [Read more...]
How Not To Help Homeowners
The Treasury Department is planning to subsidize thirty-year, fixed rate mortgages at 4.5% interest. But the plan apparently only extends to new home purchases, not to refinances. Am I missing something? I thought our problem was that we … [Read more...]
An unspeasant change in the bailout formula.
The logic is that the bailouts to date have set up short sellers to know where to look for the next victim, sort of a domino theory of busted equity corporations. This probably has some merit. However, if the formula shifts so that … [Read more...]
The arrogance of these directors! As the Lehman Brothers debacle showed, the Fed was not rescuing AIG because AIG "deserved" to be rescued. The Fed was rescuing AIG--exercising its powers under Section 13(3) of the Federal Reserve Act for … [Read more...]
Let’s not be sidetracked by the Race issue, how about mixing things up a bit?
According to today's Wall Street Journal": "Four Federal Reserve governors voted unanimously to approve a 28-day secured Fed loan facility to Bear Stearns Friday using a rarely used Depression-era provision of the Federal Reserve … [Read more...]
ARE we heading into a Recession – or already entering one as Tom Finneran says?
According to Tom Finneran on WRKO we are in a recession, and it will deepen. Do you agree? If so, why? Do you disagree? If so, why do you disagree? Links and solid information if possible. … [Read more...]
No Bail-Out For The Hedge Funds!
A while back there was a discussion here about legislation that would bail out homeowners who found they couldn't afford the exotic mortgage loans they had taken after the initial teaser rate increased. I argued that the state should … [Read more...]
Nader endorses Deval…
WILL THE PRESIDENT OR THE FINANCIAL COMMUNITY NOMINATE NEW FED GOVERNORS?For the second time in less than a year, President Clinton has an opportunity to broaden the vision of the Federal Reserve Board.Many public interest groups are urging … [Read more...]