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bailout: Does Washington know something that we don't? - 03/07/09 07:25 AM
According to an article by Colin Barr of CNNMoney.com, "the government is bracing for a big bank failure".
"A bill introduced in Congress would give the FDIC, the agency that stands behind Americans' bank deposits, temporary authority to borrow as much as $500 billion from the government to shore up the deposit insurance fund".
This proposed legislation is a result of the FDIC burning through 64% of their fund balance in 2008 which was caused primarily by the failures of IndyMac and Washington Mutual.
What remains uncertain is whether this proposal would be a change in the TARP bailout policy that has continued to … (17 comments)
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bailout: As if Europeans didn't already hate Americans enough - 03/06/09 03:15 PM
In order to better cope with the current economic events and keep your sanity, rather than kicking your dog or your local Congressperson, I think that it's necessary to try to find some humor in all of this. I know it is hard, but believe me, decades from now, when we can finally look back and laugh without crying tears of despair, there is going to be some humor.
Well, one of these little bits of humor was in an article put out by Reuters today which quoted Pennsylvania Rep. Paul Kanjorski as saying, "One of the reasons we had to rescue AIG was the fact that it … (2 comments)
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bailout: Round 3 for AIG and Citi? - 02/23/09 06:48 PM
If the size and scope of the current financial crisis was at all uncertain or ever in doubt, the past couple of days of news headlines should have made things very clear, we are going to need a bigger boat.
There are two major breath-taking headlines that should have caught your attention.
First, AIG, which according to CNBC's David Faber, has already received $150 billion in loans from the government which already owns 80% of the now defunct insurance company, is looking for a third loan from the government in order to "keep operating after next Monday, when it will report the … (5 comments)
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bailout: Chrysler & GM Need More Money - Is Anybody Surprised? - 02/17/09 05:42 PM
According to the AP, Chrysler & GM announced today that they are going to need more money. For Chrysler it is $2 billion more than they had originally requested.
I have one question.
Is ANYBODY surprised by this?
Would anybody be shocked if they need even more money in another 6 months?
Isn't this the nature of bailouts?
Isn't this what AIG did, and then Citi, and then Bank of America did? Didn't they all end up going back to the trough, I mean Treasury, after their first bailout?
Isn't this what happened with the first half of TARP, the original $350 billion? It was … (6 comments)
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bailout: "You're gonna need a bigger boat" - 01/31/09 03:30 PM
I have to give credit to Tom Friedman of the New York Times for this analogy. Last week on Meet The Press with David Gregory, Tom Friedman compared the current banking crisis to the scene in Jaws when Roy Scheider sees the killer shark for the first time and says in shock and disbelief, "You're gonna need a bigger boat".
Well, that's exactly the reality of this banking crisis. Everybody knows we have a problem, but what a lot of people are beginning to realize is that the problem is much, much, bigger than anybody realized.
Joseph E. Stiglitz, a professor … (8 comments)
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bailout: Did you hear that sound today on Capitol Hill? - 01/16/09 06:52 PM
Did you hear that sound today on Capitol Hill?
It was the sound of Congress flushing another $350 billion of tax payer money down the toilet.
The Senate approved Bush's request of Obama's request for the second tranche of $350 billion of TARP money to be made available for the Treasury's disposal.
And it appears as though the vote and approval could not have come at a better time for both Citigroup and Bank of America whose stock has been decimated in recent days. They will likely be the first banks to receive additional capital injections, Bank of America for the second … (55 comments)
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bailout: Bailout billions: banks aren't talking - 12/22/08 03:45 PM
The AP published a report today revealing that of the 21 banks that received at least $1 billion from the government, none of them are providing any accounting for where they money was invested or spent, nor do they plan to.
At first glance, when you read the article it's easy to get upset with the banks, but the other side of this coin is that the government did not provide any written guidance or legislation that mandated what the banks needed to do with the money.
To be honest, I understand what the banks are doing, they're covering their assets. If … (0 comments)
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bailout: The home builder predicament - 11/27/08 07:40 AM
I will say it, the LAST thing the housing market needs right now is more new homes.
A couple of days ago I made a post about my opposition to a builder bailout; this idea was something that was being thrown around Washington recently from the National Association of Home Builders. They are getting hit hard, understandably.
An article put out by Reuters that was on CNBC.com the other day showed that new home sales are at their lowest rate since January of 1991. And when you consider that existinghome sales are up 59% from 1991 that tells you just how devastated the home … (0 comments)
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bailout: Congress Passes "Intervention" Bill - 10/03/08 12:50 PM
So Congress passed the economic intervention/bailout bill this afternoon.
It is a start, but we have a long ways to go before the economy begins to turn around.
This bill will hopefully prevent an economic catastrophe, but we still need to address the supply and demand imbalance within the real estate market.
The housing market is the engine for the US economy.
Until this engine can get jump started and have the excess inventory abosrbed, the US economy will continue to contract.
www.HousingStimulusPlan.org
… (0 comments)
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Mark MacKenzie
Phoenix,
AZ
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Mark MacKenzie Real Estate Planning
Office Phone: (480) 600-0330
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