Deleveraging

The Zero Sum Game Of Lower Interest Rates And Why Mortgage Rates Will Rise

The Zero Sum Game Of Lower Interest Rates And Why Mortgage Rates Will Rise

The Federal Reserve has forced long term interest rates to historic lows in a desperate attempt to “stimulate” both the housing market and the economy in general.  The results have been mixed but the benefits of lower […]

What Financial Issues Do People Worry The Most About?

What Financial Issues Do People Worry The Most About?

Besieged by the rising cost of energy and food, many consumers are barely able to make ends meet.  Throw in the fact that for many consumers real wages have been stagnant for decades and you have the […]

Strategic Defaults – The Difference Between The Rich And “Other People”

Strategic Defaults - The Difference Between The Rich And

Million Dollar Home Owners Falling Off The Cliff “I think you’ll find the only difference between the rich and other people is that the rich have more money” – Mary Colum If the difference between the rich […]

Will Governor Schwarzenegger Trigger 55,000 California Foreclosures?

California’s long running budget crisis has now degraded to the point where Governor Arnold Schwarzenegger has ordered a pay reduction to the minimum wage rate of $7.25 an hour for 200,000 state employees. The California banking industry, […]

Federal Reserve Super Low Rate Policy Crushes Savers And The Elderly

Federal Reserve Super Low Rate Policy Crushes Savers And The Elderly

Fed Sees Solution In Zero Rates The Federal Reserve recently vowed to keep interest rates “exceptionally low”  for the foreseeable future in an attempt to revive the economy.   Since mid 2006 the Fed has brought the […]

Depression In Commercial Real Estate Results In Bargains For Some

Depression In Commercial Real Estate Results In Bargains For Some

Depression Pricing As Empty Hotels Slash Rates The recent era of easy lending was not confined to residential real estate.  Commercial real estate lending is the next big worry for a banking industry already beset by an […]

Greenspan Revisionist Babble

Greenspan Revisionist Babble

Debt Is The Greenspan Legacy Alan Greenspan, former Federal Reserve Chairman, today expressed his concern about the level of the US national debt. Sept. 16 (Bloomberg) — Former Federal Reserve Chairman Alan Greenspan said he’s worried that […]

Loan Sharks “Salvation” For Many At 2,437% Interest Rates

Loan Sharks: The New Subprime Lenders With A Twist – They Expect To Get Repaid – And Why A Loan At 2,437% Interest Makes Sense For every loser, there is a winner.  Since the demise of the […]

How The Government Encourages “Ruthless Defaulters”

How The Government Encourages

The Delusion of Lenders The old banking rule of lending only to those who had the capacity to repay was gradually relaxed and then completely abandoned over the past two decades. New techniques such as loan securitization […]