America's Economic Future – A Discussion By Ted Kavadas
An article in yesterday’s Wall Street Journal presents a thorough summary of the situation at Fannie Mae and Freddie Mac. The article is titled, “No Exit in Sight for U.S. As Fannie, Freddie Flail.” Here is the link to the story: http://online.wsj.com/article/SB10001424052748704362004575001042824028862.html?KEYWORDS=no+exit+in+sight+for+us I’ve commented extensively on the U.S. real estate situation, and the national attempts …
I ran across this article from U.S. News & World Report, dated 1/19/10 concerning “strategic defaults”: http://www.usnews.com/money/personal-finance/real-estate/articles/2010/01/19/strategic-defaults-and-the-foreclosure-crisis.html The article is interesting in that it summarizes various facets of the “strategic default” situation and presents an interesting example of the dynamics that one “underwater” homeowner faces. I have mentioned “strategic defaults” on numerous occasions. It is a very important “wildcard” …
Given the incredibly outsized intervention efforts in the residential real estate market, I think it is important to examine some dynamics of the real estate bubble. Here is a chart from the 12/15/09 Contrary Investor commentary that I believe is interesting, as it depicts some underlying residential real estate fundamentals. It shows the equity and mortgage …
Here is a Wall Street Journal editorial on the December 24 developments at Fannie Mae and Freddie Mac. This editorial provides some new perspectives on the matter: http://online.wsj.com/article/SB10001424052748704152804574628350980043082.html My original comments on these developments was on December 28. I feel it is critically important to understand the extent of intervention as it pertains to the housing market. Fannie …
I would like to make a couple of comments regarding the speech Ben Bernanke gave on January 3. It was titled “Monetary Policy and The Housing Bubble.” (pdf) I could make a significant amount of comments regarding this speech, as I partly or fully disagree with many of the points presented. I will, however, briefly comment …
For those who may have missed it, there was a notable development on December 24 concerning Fannie Mae and Freddie Mac. Here is The Wall Street Journal link and the Treasury Dept link: http://www.ustreas.gov/press/releases/2009122415345924543.htm http://online.wsj.com/article/SB126168307200704747.html Basically the government announced plans to cover an unlimited amount of losses at both companies. It is yet another testament …
Yesterday The Wall Street Journal had an article titled “Debtor’s Dilemma: Pay the Mortgage or Walk Away.” Here is the link: http://online.wsj.com/article/SB126100260600594531.html The article has a variety of statistics and views on the issue of “strategic defaults.” As well, it discusses the legality and consequences of such. I have previously written numerous blog posts on the issue of …
Yesterday The Wall Street Journal published an article titled “One in Four Borrowers Is Underwater.” The story contains a variety of statistics with regard to homeowner equity and home ownership issues. It gives a good overview of the situation, and this facet of the residential real estate situation is not pretty. As the headline states, 23% of all …
Here is a story from The New York Times of October 8 that discusses the situation at the FHA: http://www.nytimes.com/2009/10/09/business/09fha.html?pagewanted=1&_r=2 What I found particularly interesting in this story was a quote from Barney Frank, the chairman of the House Financial Services Committee: “I don’t think it’s a bad thing that the bad loans occurred,” he …
On Tuesday The Wall Street Journal published an editorial on the FHA (Federal Housing Administration). I found it to be a good overview of the situation there. The editorial can be found at this link: http://online.wsj.com/article/SB10001424052970204488304574428970233151130.html I find this FHA situation highly disconcerting, especially in light of how similar situations have played out, and are playing out, …