Risky lending

Local Governments Join The Strategic Default Movement

As if creditors didn’t have enough worries with nonperforming consumer debt and defaulting  real estate mortgages, it now appears that another wave of debt defaults has started – this time by municipal borrowers. Consider the City of […]

Why The Biggest Risk To The Economy Is A Strong Recovery

Why The Biggest Risk To The Economy Is A Strong Recovery

Concerns about the current economic mess turning into another Great Depression seem to have faded.  The consensus view of  government officials and private economists seems to be that the economy, although still fragile,  is well on its […]

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 […]

The Correlation Between Incomes And Default Rates

The Marginalization Of Risk The massive number of loan defaults that has put the entire banking industry on the brink on insolvency did not happen by accident.   Banks recklessly extended credit, even to low income borrowers who […]