Our government wastes a lot of time on the soap box about issues that really have nothing to do with solving the problem. They spend very little time solving the real problem. Housing prices are a symptom, not the problem. Executive pay was a symptom, not the problem. Madoff was a symptom, not the problem. … Read more Ditech is Wrong…People are Stupid
Exactly what potential home buyers do they think are still out there. Most of those who would have been buyers at this period of time (in a normal market) were enticed to buy 2 years ago. A large portion of those buyers were pulled from future buying demand at that time, so we are currently … Read more Home Buyers?
The FOMC should have left interest rates alone as the housing bubble started to burst, and let home prices fall back to historic trend-lines. Granted there may have been defaults, but they were necessary. These people didn’t deserve to be in these homes in the first place, they bought overpriced assets with no equity up … Read more FED: Finance & Economics Disability or FOMC: First to Originate Make-believe Crisis
How many more signs in the open market do people need to see to realize equilibrium interest rates need to rise to free up the markets? Right now, the low rates are just shifting the excess risk leverage into treasuries creating a pricing bubble there, driving the yields down, and escalating the spread between rates. … Read more Bank Liquidity
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
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
As long as everybody continues to think this problem started with housing bubble, when it started with the stock bubble…they are just going to make the wrong decisions and make things worse. Investors are looking for the “boogeyman” in the markets now…when investors were the boogeyman in the markets to begin with.
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
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
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