financial crisis: 23 Percent Completion Rate of Short Sale Transactions - 05/09/09 11:18 PM
According to research firm Campbell Communications, “Three out of four potential short sale transactions fail, principally because the mortgage servicer takes too long to respond to the offer.” After foreclosure, these properties are sold at a price on the average of 20 percent below market and thus they further depress the … (9 comments)
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financial crisis: The Financial Crisis and Geithner's Faux Solution - 04/09/09 11:29 PM
He is using TARP funding, Federal Reserve Funds, Fannie Mae & Freddie Mac funds, and FDIC guarantees to make subprime investments and subprime loans with govt. guarantees to insolvent (subprime) financial institutions. The risk to the taxpayers is measured in trillions of dollars.I don't think investor confidence will be earned by … (0 comments)
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financial crisis: Geithner’s Administration of TARP Denies Us The Promised Transparency - 04/06/09 02:15 AM
As a condition for the approval of TARP funding Congress appointed Dr Warren to oversee the Treasury Secretary’s use of TARP funds.
Dr. Warren, the Leo Gottlieb Professor of Law at Harvard Law School, has distinguished herself researching bankruptcy and debt over many years and she has never shied from confronting … (12 comments)
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financial crisis: Pension Insurance Fund Losses Could Cost Taxpayers 100's of Billions More - 03/30/09 04:38 PM
Billions of dollars from pension insurance funds held by the Pension Benefits Guaranty Corporation (PBGC) have been invested in speculative investments in emerging foreign markets, real estate, and private equity funds according to the Boston Globe, Michael Kranish. The federal agency that insures the retirement funds of 44 million Americans is … (6 comments)
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financial crisis: Liquidation Value < Fair Market Value - 03/27/09 03:44 PM
The liquidation prices of REO properties and strong competition for buyers in markets with extraordinarily high numbers of REO properties is driving the 'fair market value' of homes to new lows and the liquidation of REO properties will probably cause an over-correction in the housing market.
According to the Dictionary of … (4 comments)
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financial crisis: Geithner's TAP - Taxpayer's Losses - 03/23/09 01:39 PM
Suppose we segregate the MBS and CDO assets currently held by banks into 3 separate tranches:
Assets backed by Prime Mortgages;
Assets backed by a blend of Prime and Sub-prime Mortgages; and
Assets backed by Sub-prime and Alt-A Mortgages.
Assets backed by Prime Mortgages were properly rated as AAA investments and … (4 comments)
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financial crisis: Is It Any Wonder? - 03/22/09 01:03 PM
Historically huge amounts of public funds measured in trillions of dollars are being allocated to private corporations who are then using the taxpayers money for protecting and preserving the status quo, rewarding wrong doers, and buying influence with politicians in office. Here is a quick review of their actions to date.
… (0 comments)
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financial crisis: The Outlook for any return of Consumer Spending is Black - Pitch Black - 03/21/09 04:24 PM
The Financial Times Lex column on the: US Economy, dated 17 March 09, stated that the outlook for consumers and for any increase in consumer spending is pitch black and in need of serious deleveraging.
According to the Federal Reserve data on the 4th quarter ’08, the consumer’s household balance sheet … (2 comments)
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financial crisis: Public Funds on TAP or Geithner’s Toxic Asset Plan (TAP) - 03/18/09 01:15 AM
Treasury Secretary Geithner is proposing the use public funds to provide financing and guarantees to private investors (hedge funds) to buy mortgage backed Toxic Assets. The problem is how to set a fair market price for these assets. The Banks are lobbying for relief from mark-to-market accounting practices because the market … (4 comments)
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financial crisis: The Fox (Hedge Funds) Will Save the Chickens (Public Funds) - 03/15/09 02:43 PM
Secretary Geithner’s plan for a public/private investment partnership to address the greatest economic challenge of our time, toxic assets (measured in the trillions of dollars), is like asking the fox to save the chickens. Geithner's public/private fund will invite hedge fund managers to leverage public funds, borrow public funds at the … (0 comments)
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financial crisis: Major Banks & Their Lawmakers don't like FASB mark-to-market Accounting Std - 03/12/09 04:11 PM
Investors, on the other hand do, stating that it gives them greater insight into the true present market value of a Banks' assets.
Now top U.S. lawmakers acting on behalf of their constituents, the Banks, are threatening to take action themselves if the Financial Accounting Standards Board (FASB) doesn't revise their … (2 comments)
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financial crisis: The Govt. Can’t Fix the Economy - 03/12/09 12:45 AM
Government actions to date have not and will not make the banks solvent, restore liquidity, or stabilize the economy. Government actions have not been bold enough or strategically effective and they have done nothing to restore the confidence of entrepreneurs, investors, and consumers.
Secretary Geithner’s failure to produce a comprehensive plan with … (2 comments)
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financial crisis: Federal Negotiators Accept Greater Taxpayer Exposure - 03/01/09 03:36 PM
I accept the fact that our government has to take bold action to stabilize the financial markets. However, my confidence in the government's actions is repeatedly shaken and continually eroded by the lack of a structured plan that produces predictable behavior and repeatable successful outcomes by government agents who are responsible … (3 comments)
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financial crisis: How Will it Work - Term Asset-Backed Securities Loan Facility (TALF) - 03/01/09 02:01 AM
TALF is a Federal Reserve credit facility that was created to assist credit markets meet the needs of consumers and small businesses by facilitating the issuance of asset-backed securities (ABS) and improving market conditions for ABS. TALF was rolled out by the U.S. Department of the Treasury and the Federal Reserve … (0 comments)
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financial crisis: Consumer Debt is at Saturation Levels - 02/27/09 01:07 AM
Consumer spending is responsible for 70% of US economic growth according to an article written by Hale "Bonddad" Stewart, a former Bond Broker, for the Huffington Post dated 26 Feb 2009.
Hale also states that the outstanding Total Household Debt has increased from 47% of GDP in 1981 to 96% of … (10 comments)
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financial crisis: Government Regulators Subject 19 Banks to ‘Mild Discomfort' Tests - 02/25/09 06:05 PM
The assumptions for the baseline scenario and the adverse scenario used to develop the so-called ‘Stress Tests' are overly optimistic and fall far short of any 'worst case' scenario to the point that some may charge that they are more like a ‘Best Case' scenario and a ‘Mild Discomfort' scenario.
The … (5 comments)
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financial crisis: Capital Investors Are Reluctant to Invest in Banks - 02/25/09 12:31 PM
Investors, Government Regulators, and Banks are still struggling to determine if the Banks deemed "To Big to fail' have all the capital they need. In the current situation I submit that Investors are more conservative and the Banks are less conservative in their valuation of the Banks' tangible assets. The Regulators … (4 comments)
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financial crisis: We Need Restitution for Damages! - 02/23/09 06:02 PM
Reckless, irresponsible, and criminal behavior by the executive officers in our financial institutions has damaged investors (corporate, public agencies, non-profits, & private), customers (businesses, public agencies, non-profits & individuals), competitors, markets, government income (local, state, and federal), taxpayers, and insurers. Insurance companies are at risk of sizeable losses for claims filed … (3 comments)
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financial crisis: Banker's Who Drove U.S. into the Ditch are Managing The Bailout & Recovery - 02/14/09 01:27 AM
I just finished watching Bill Moyer's Journal on PBS. According to Bill Moyers, key administration officials came from the same banks that taxpayers are now bailing out. I checked this out on line and found that:
Mark A. Paterson, former lobbyist at Goldman Sachs is now Geithner's Chief of Staff
Jacob … (3 comments)
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financial crisis: Congress is Ramping Up to Flood the Economy With Public Funds - 02/10/09 01:15 AM
Congress is ramping up to flood the market with public funds through the Federal Reserve, the Department of the Treasury, and other government channels. They will use the FDIC to provide any necessary guarantees. They repeatedly promise transparency and accountability but what have they published to date. Have you seen a:
Definition … (3 comments)
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