Strategic Defaults - The Difference Between The Rich And “Other People”
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, perhaps [...]
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 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 avalanche [...]
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 lawmakers will [...]
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 subprime [...]
How The Government Encourages “Ruthless Defaulters”
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 spread the [...]
Time Shares - Another Shattered Dream
Vacation Turns Into Financial Nightmare
Anyone who has vacationed to a tropical resort cannot be blamed for thinking how great it would be to own a piece of paradise. Those who succumbed to the charms of the omnipresent [...]
Feds To CIT - “Your Loan Application Has Been Denied”
CIT Solution Is Bankruptcy - Not Bailout
A CIT spokesman said late today that “There is no appreciable likelihood of additional government support being provided over the near term”. Taxpayers had previously supplied a massive $2.3 billion dollars [...]
