The Economic Policy Institute does a deep-dive on the long-term unemployment picture (hat tip: Naked Capitalism). There are some significant pearls of economic consideration in this analysis, especially as it applies to long-term employment. Here is one that I think is particular enlightening regarding the unemployment deficit we need to recover from: "Furthermore, while the labor market has shed 6.7 million jobs since the start of the recession, it is important to keep in mind that in those 19 … [Read more...]
The Day After…Trying to Understand Obama's Healthcare Plan
July 23, 2009 By 3 Comments
I watched it, but I have to say I don't get it. President Obama's press conferences are increasingly sounding like the ShamWow infomercials. He might have a legitimate claim to be on PitchMen. I must admit, I am kinda waiting for what else I get for $19.95. So let's tool through the morning coverage and see if anyone has figured it out... BBC: I think the BBC captures the healthcare reform landscape in the closing paragraphs: The speaker of the House of Representatives, Democrat Nancy Pelosi, … [Read more...]
Subprime Borrowers Aren't to Blame for Mortgage Meltdown?
July 21, 2009 By Leave a Comment
New favorite writer of mine, Martin Mandelman of Mandelman Matters, writes an interesting piece exonerating subprime borrowers from culpability in the mortgage meltdown: "What did surprise me was what our politicians and the media started blaming the meltdown on: sub-prime borrowers. Anyone that read me back then knows it well… and if I said it once I said it a thousand times: it’s NOT the sub-prime borrowers. At best people were confusing a fuse… with the bomb." Now, while I too am not blaming … [Read more...]
Two Big Themes Today: Stimulus II and Mortgage Fraud
July 8, 2009 By Leave a Comment
Image by Getty Images via Daylife Unemployment numbers rock the market and kill notions of "Green Shoots." Mike Shedlock does a nice job of comparing and contrasting the two camps in Battle Lines Form Over "Son of Stimulus". The housing market certainly isn't feeling any relief from the first stimulus (little of which has hit the street) and may lack the confidence a second one will improve the outlook. PIMCO tells us these housing prices are headed downhill for the next 2 years! Unfortunately, … [Read more...]
Are We in an Economy Where Low Mortgage Rates Don't Matter?
March 27, 2009 By 1 Comment
Image via Wikipedia 24/7 Wall Street presents and interesting angle on the role of mortgage rates in recovering the housing market. Are we in an economy where factors and anxiety around unemployment and investment make it such that mortgage rates are too much at any cost? While some data shows that housing may be finding a bottom, it is likely that very few people are willing to gamble their own money that the perception is true. If unemployment rises, housing prices could continue to fall. If foreclosures … [Read more...]
Roubini Still Predicting Rough Road Ahead for Stock Market and Banks
March 26, 2009 By Leave a Comment
Image by Getty Images via Daylife Roubini, professor at NYU’s Stern School of Business and the chairman of consulting firm Roubini Global Economics, tells Bloomberg that banks are not out of the woods yet. The infamous doomsdayer of the impending mortgage crisis in 2004, is cautioning investors and economist on reveilling in the euphoria of optimist stock market rallys. Roubini cautions economic recovery heralds as he predicts more major bank failures and nationalization ahead. I am certainly … [Read more...]
Mish's Open Letter to President Obama
February 27, 2009 By Leave a Comment
Image via Wikipedia Okay, Mish and I are not politically aligned, but I like his approach and I think this Obama budget is going to be a powder keg in both parties. Full of democratic policy initiatives, much like the economic stimulus package, this budget is going to drive Americans and politicians crazy with images of overusing political capital. In classic Mish fashion he captures the key points: With all due respect Mr. President, Tim Geithner and Ben Bernanke are offering the same policies … [Read more...]
The Quants Killed Wall Street
February 24, 2009 By Leave a Comment
Image via Wikipedia Great article by Felix Salmon in Wired--Recipe for Disaster: The Formula That Killed Wall Street I remember back in my DeepGreen Bank days structuring and pitching home equity portfolios for sale and securitization. It is amazing up in the ivory towers of Wall Street it got very abstract, while on the front-end of getting into the palaces (Wall Street firms, rating agencies, and mortgage insurers) it was good old fashion salesmanship. This article is a great walk-through of … [Read more...]
Unemployment Jumps Up Again, Tech Sectors Turn to Lose
December 11, 2008 By Leave a Comment
US Jobless Claims Jumps 58,000 to 24 Year High. Tech Sector losses 34,000 contributing most of these losses November losses. … [Read more...]