Why should people who rent and people who thought that no down payment neg-amortization liar loans were not for them, subsidize people who bought real estate through iffy loans? Why is the government jumping in to favor one group at the expense of others?
Calling them “homeowners” is nice and wells up […]
Bailout 2008 passwd in its second, even less attractive form.
Is it not a conflict of interest for the govenment to take equity stakes in financial institutions that are heavily regulated by the government? Already the bailout bill has a reiteration that the SEC has discretion to relax mark to market rules to favor such banks.
Now I have seen the future.
Remember destruction of the ozone layer? It was on the nightly news, in movies, comics made jokes about it and people actually talked about it over the dinner table. It was a great exercise in mass delusion but with little practical effect.
Global Warming was next. The […]
OK, soon any large company in America, financial or non-financial, will have a US Dollar printing press. Simply write an IOU (90 day commercial paper) to the Treasury’s new NY subsidiary. The large company hands in a note and gets newly minted cold hard cash. There is a big difference between […]
We Got the Bailout and the We are Still in the Same Mess
Goldman Sachs was founded in 1896. It has pretty much followed the same business model for the last fifty years. Citicorp operates pretty much the same way it did in 1985 when I graduated from law school and Sherman & Sterling was their main outside counsel.
In those days the titans of […]
Regulation never made a lender prudent about the loans he made. What makes a lender prudent is fear of loss of capital. This bailout plus the insuring of money market funds and backing swaps with the full faith and credit of the US government will make lenders less prudent no matter what regulations […]
Lets see. The government is going to purchase hundreds of thousands of home mortgages. Wall Street needs the cash in a week at latest. You know exactly what is going to happen.
Somewhere in D.C., at a lower rent office building like the one I used to work in, thousands of boxes […]
Here’s what I think happened. The masters of the universe (MOTU) on the Street were watching the climate change people scare the pants off the public with tales of global warming, saw that the press had no ability to evaluate the claims, and watched the climaters belly up to the trough and about to take […]