Jumbo Mortgage Rates Reflect Default Risk
Economic Crisis Impacts All Borrowers
Jumbo mortgages, typically loan amounts above $417,000, are defaulting at a rapid pace as the economic crisis affects borrowers at all income levels. Bloomberg is reporting that jumbo mortgages, typically associated with higher [...]
Defaults Everywhere - More Lending Is Not The Solution
Mortgage Defaults Only Part Of The Problem
Mention loan defaults and most people probably think of mortgages. Home foreclosures due to mortgage defaults are getting the bulk of press coverage and the most attention in Washington. The credit [...]
Economic Reality Crushing The American Dream
Reality Becoming Impossible To Ignore
There still appears to be a serene sense of calm by the American public. They hope that the government will be able to solve our economic crisis in short order and restore to [...]
California & Congress Implement Discredited Depression Era Policies
Irony Everywhere
Supposedly we learned certain lessons from the depression of the 1930’s. Experts agree that two of the worst policy decisions during the depression were to raise taxes and erect trade barriers.
Knowing that something is wrong and [...]
Nikkei - Black Hole Or Buying Opportunity?
Has Japan Been Pulled Into A Black Hole?
According to Einstein’s theory of general relativity, a black hole is a region of space in which the gravitational field is so powerful that nothing, including electromagnetic radiation can escape [...]
Government Bond Buyers Demand Higher Yields
Massive Government Borrowing Raises Repayment Doubts
As governments worldwide attempt to sell massive amounts of debt, investors are beginning to question whether they are being properly compensated for default risk. The assumption that government debt is risk free [...]
Notable Links
Living Beyond Yours Means - California’s Economy Gets Worse
California’s Pain Is Only Beginning
BIG SUR, Calif. — As Sacramento squabbles over the state’s $42 billion deficit, Californians are getting a bitter taste of what’s to come after the [...]
Is The Economic Panic Justified?
Act In Haste, you know the rest…
How many of us have had a make a fast decision when panicked or stressed? How many times have we heard, “I wish I had thought things out a little [...]
Job Cuts And Pay Freezes - The Downward Spiral Continues
Companies by the thousands are announcing large layoffs to their labor forces and, in addition, cutting or freezing the pay of those who remain employed.
AT&T Freezes Salaries of 120,000 Management Workers
NEW YORK (Reuters) — AT&T Inc Chief [...]
