A great analysis and compilation of President-elect Obama's potential Job Stimulus Plan. What do you think it might include or should include? … [Read more...]
Mortgage Rates Up, Mortgage Applications Down?
December 11, 2008 By Leave a Comment
Welcome to the unique conundrum of an economic mess we are in. Seems as though you solve one problem and you create more. Goes to my "too many artifical inputs, queers the economy" theory--okay so Adam Smith mentioned it first. Anyway, it looks like rising unemployment and tightening bank credit standards is working hard against the US Treasury plan to push mortgage rates to 4.5 percent, and maybe even 4 percent mortgage rates. MBA says mortgage applications drop 7 percent (17 percent for home purchase … [Read more...]
Unemployment Economic Edition
November 14, 2008 By Leave a Comment
I though since our economy is (almost sequentially) taking us through a course in classic economic theory I would make today a deep dive on employment and its role in the economy. Economic Reading If you are looking to brush up on all of your economic classics I have assembled a great economics reading list. Or, if you prefer to have all the quintessential classic economic writings in one place I recommend Michael Lewis's The Real Price of Everything: Rediscovering the Six Classics of Economics. Official … [Read more...]
TARP Reversal, Mortgage Servicers on Hot Seat, China Rapidly Slowing
November 13, 2008 By Leave a Comment
TARP Reversal, Paulson ADHD? Paulson leads his dramatic redirection of the Trouble Asset Relief Program (TARP) with an adaption of John Maynard Keynes, “When the facts change, I change my mind – what do you do, sir?”: Treasury Secretary Henry Paulson, whipping out his dead economist quote book, used this gem from John Maynard Keynes to justify his bombshell Troubled Asset Relief Program update and redirection: "I will never apologize for -- for changing an approach or a strategy when the … [Read more...]
Loan Modifications Primer for Mortgage Industry
November 12, 2008 By 1 Comment
If you don't know loan modifications you are going to have a hard time surviving this mortgage business cycle. Despite all of the appealing government assistance and FHA mortgage refinance programs, banks and now the government is settling into massive programs to streamline loan modifications for troubled homeowners. Here is a quick primer on loan modifications to get you up to speed and help you spot opportunities for your mortgage business: FHFA endorsed Fannie Mae and Freddie Mac Loan Modification … [Read more...]
AMEX Bank, ABA No New Regs, Big Bank Loan Modifications, Economist Turn Negative, 10 Benefits of Recession
November 11, 2008 By Leave a Comment
American Express Becomes a Bank American Express becomes a bank, getting unprecedented speedy approval to become a Federally chartered bank. This is likely a smart preemptive move by American Express to hedge mounting credit card troubles by gaining access to TARP bailout funds. The cautionary part of this tale--how bad might those mounting losses be for the Federal Reserve to waive even the cursory 30-day waiting period? Bad! American Express Co. won U.S. Federal Reserve approval to become a commercial … [Read more...]
Obama "Big Bang," Auto Industry, First Time Home Buyer, China Stimulus Package
November 10, 2008 By Leave a Comment
Obama Gearing Up "Big Bang" Reform Plan? The Obama team is analyzing analogies of FDR and attempting to avoid warnings of Carter-style open 100 days. This is certainly on the minds of an Obama economic advisory board that is in full motion on Obama's opening economic moves. "We can't afford to wait on moving forward on the key priorities that I identified during the campaign, including clean energy, healthcare, education and tax relief for middle-class families," said Mr Obama. "We also need a rescue … [Read more...]
The Obama Mortgage Market Edition
November 7, 2008 By Leave a Comment
TARP II-A Better Troubled Asset Relief Program Will Obama focus on building a "better" TARP? One that looks more like the original Paulson plan, zeroing in on setting a price on the seed of the mortgage meltdown--"troubled assets?" Notably a portion of the TARP acronym, but reprioritized immediately out of the gate to a bank recapitalization plan. The argument being presented by some is that we are still facing the same problem Paulson called an emergency meeting of Congressional leader to warn … [Read more...]
President-Elect Obama's To-Do List
November 6, 2008 By Leave a Comment
President-elect Obama Economic To-Do List New York Times does a nice job of assemblying an economic to-do list for the new President-elect, with break-out depth on each topic. A highly recommended read to get your arms around the monumental tasks we and Obama have mandated on his election. (photo credit: florian) … [Read more...]
Obama Reviewed, China, TARP Update, Bank of England, Wal-Mart Indicator
November 6, 2008 By Leave a Comment
Obama Election Reviewed Everyone is jumping in with there review and assessment of President-elect Obama. Here is what the financial services wonks are saying: Blown Mortgage is tracking Obama's Housing Promises Henry Blodget on the Yahoo! TechTicker is noting Obama already reseting expectations Wall Street Journal is ttracking Economists reactions to Obama Paul Kedrosky says Wall Street doesn't care China Crash Debated Economist Nouriel Roubini, noted economic doomsdayer often attributed with … [Read more...]