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The Obama Mortgage Market Edition

November 7, 2008 By Leave a Comment
cerberus

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
todo list

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
walmart

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 … [Read more...]

New Hope?

November 5, 2008 By Leave a Comment
11-5 post election market

New Hope has a rocky start: Mr. President we have a problem: The FDR/Obama parallel may not be extreme. This is going to be a fast start for President Obama anyway you look at it. His cabinet picks are going to be critical to success. … [Read more...]

Obama Wins, New Treasury Secretary, Making Your Own Success

November 5, 2008 By 2 Comments
obama

Obama Wins Historic Election, Now What? No question this was a historic election on many counts. However, the big question looms: We are beyond the campaign promises, now what do we really get? This was a campaign filled with a boat-load of promises, walking into a fist full of problems. I hope the "Hope" American's elected delivers the hope we expected--we will certainly get change. Handicapping the New Treasury Secretary We have already jumped into the Cabinet guessing game. Dealbreaker is … [Read more...]

Vote, Consumer Credit Crunch, Auto Sales Sink, Consumers Stop Spending

November 4, 2008 By Leave a Comment
i voted

Stop Reading and Go Vote! If you haven't already voted yet: take one last peek at what your vote will mean to your mortgage market, shut the lid on your laptop, head to the polls, do your civic duty, and then get your free coffee! Consumer Credit Crunch Banks are going to turn us into a savings economy after all. Tightening would have been a lot more valuable done over time rather than an overnight choke hold. However, a good short-term belt tightening never hurt anyone in the long-run. It … [Read more...]

Small Bank Bailouts, The Great Recession, JP Morgan Loan Modifications, Global ZIRP, PMI Losses, GM No Bailout Merger

November 3, 2008 By Leave a Comment
small bank

Small Bank Bailouts Financial market calamity was narrowly averted today as Farmers National Bank of Emlenton is expected to get a much needed capital injection from the US government. William Marsh, CEO led with this, "they were giving out free stuff"-type quote in the WSJ: "It seemed like the consensus in the industry was...go out and get this," said William Marsh, president and chief executive of Farmers National Bank of Emlenton, in Emlenton, Pa. Mr. Marsh said his bank is healthy and viable … [Read more...]

Weekend Notes: The Loan Modification Edition

November 1, 2008 By Leave a Comment
home loan modifications

Loan Modification Plans The US government and JP Morgan Chase race to massive loan modification plans. Naked Capitalism reviews the JP Morgan plan with skepticism: So despite the use of mortgage counsellors, borrowers are NOT being assessed on an individual basis. I hate to sound like a perennial skeptic, but I doubt that these programs will be terribly successful (although pushing foreclosures off even two or three quarters will probably make the bank's financials look better, and they … [Read more...]

GDP, Mortgage Bonds, Zero Interest Policy, Renters for Obama, Stop Being Bearish

October 30, 2008 By Leave a Comment
googlesoupline-093x093

GDP Swings Low, Sweet ... Well it is official, we're contracting. Consumers are hoarding their cash (taking queues from the banking sector). Unlike the recession of 2001 consumers will not be borrowing their way through hard time--try to find a home equity line of credit these days. They're calling it a recession: “This is the first of a run of negative G.D.P. numbers,” said Ian Shepherdson of High Frequency Economics. “The economy is in recession.” He predicted that the economy would … [Read more...]

Fed Lowers Rate 0.5% to 1%, But is There More?

October 29, 2008 By Leave a Comment
fomc meeting

Aaron Task presents a great Fed premonition. The Fed might not be done. In fact, it seems pretty clear they are locked into a recessionary outlook and few ideas for a short-term recovery. Recent policy actions, including today’s rate reduction, coordinated interest rate cuts by central banks, extraordinary liquidity measures, and official steps to strengthen financial systems, should help over time to improve credit conditions and promote a return to moderate economic growth. Nevertheless, … [Read more...]