Some Borrowers Will Need Very Large Loan Modifications
As discussed in a previous post, Bank of America agreed with the state attorneys general to offer concessions to 390,000 sub prime and pay option arm borrowers by reducing both the principal owed and/or the interest rate [...]
World Economies Burn, Politicians Debate
As the world economies implode the presidential candidates debate who is the angrier man; doesn’t seem to be inspiring very much confidence in the marketplace.
Smaller countries world wide are collapsing - Bulgaria, Estonia, Romania, Turkey - we [...]
World’s worst borrowers given astonishing concessions
Bank of America agreed with the state attorneys general to offer astonishing concessions to 390,000 subprime and pay option arm borrowers that will cost upwards of $9 billion, as reported on by the Wall Street Journal.
Summary terms [...]
Buy on the bad news?
It was difficult to tell today if the late Monday afternoon rally that brought the Dow back almost 400 points off the lows of the day was due to program trades or real buyers “buying on the [...]
The line at the Treasury grows longer
It is no secret that the budget deficits of state and local governments have been growing this year and are likely to accelerate sharply as this recession deepens. Tax revenues for most states in the previous two [...]
“Investment Time Bomb, Mega Catastrophic Risk”
I have often noted that predictions made early eventually turn out to be the most accurate, but oft most forgotten since it is yesterday’s news. Perhaps the real nightmare now upon us is the one predicted by [...]
General Electric’s tactics incite panic
General Electric’s plan to raise $12 billion in capital via a common stock offering and a $3 billion sale of preferred stock to Warren Buffet normally would seem to be a prudent move to raise liquidity in [...]
Insurance Industry Meltdown Continues
Insurance company stocks again suffered major losses today, with MET down 15%, PRU down 11% and HIG down a stunning 32%. The Wall Street Journal reported on the various reasons for the continuing sell off including the [...]
Mortgages Still Being Approved For Unqualified Borrowers
With foreclosures at record highs and the banking system in collapse, why would the banks still in business be making loans with reckless disregard to the borrower’s ability to repay? As explained in my post “Unsound [...]
