Response to Mrs. Kelly’s housing analysis on CNBC

What Mrs. Kelly doesn’t see, is that the traditional 20% down payment to secure a loan for an underlying asset that is still likely to drop 10-20% going forward, is not the same security as 20% down in a normal market. Banks would need 30-40% down to not be insane to lend money in this … Read more Response to Mrs. Kelly’s housing analysis on CNBC

Pointless Bailout Anyway

These people don’t even know what they are trying to fix. The free markets just let the larger commercial and investment banks price default risks into the market with the lower valuations in the purchase prices. Banks and investors have both increased their leverage in the markets substantially in the past 12 odd years thinking … Read more Pointless Bailout Anyway

The problem with the current economic solutions

If Einstein were asked to solve the wrong problem, even he would come to the wrong conclusion. It is my opinion that this is what is happening to the powers that be in the U.S. Federal Reserve and Treasury. Yes, there was a housing bubble, which preceded the current economic problems, but it is NOT … Read more The problem with the current economic solutions

Housing not the problem

Until they realize this actually stemmed from the stock bubble, and not the housing bubble ….they aren’t going to get around the problem. They will just keep rewarding those that made irrational decisions and punish those that made rational ones to stabilize overpriced markets…and the cycle continues. Over the last 8 years, this was easy … Read more Housing not the problem

Way Overpriced

If you look at a long term chart going back to early 1900’s, the overall general uptrend in the DOW should have put us at 10,500 right about now.  This would be an historically normal range along the long term trend line, but the markets never fully corrected after the Nasdaq bubble burst.  Investors rolled … Read more Way Overpriced