Economy

The Pain Settles

 Coming into 2010, the general level of civic unrest in the U.S. was one of the most visceral topics from coast to coast. If one finds themselves unemployed, the tendency leans toward complaint. The unemployment rate in the United States, as dubiously measured by the United States Department of [...]

$PEND ‘EM IF YA GOT ‘EM

U.S. consumers appeared to have resumed their free spending habits. Surprised analysts expected flat to negative consumer spending growth in August. However, the figures released by the United States Commerce Department reveal that the consumer spent far more than analysts expected. The department [...]

“SHOW ME THE NOTE”

Prior to 1980, home mortgages were easy to understand. Banks made mortgage loans on local property to people they knew and held them until they were repaid. Bank deposits provided the money. This resulted in a local mortgage market funded by local deposits. The bank issuing the mortgage was the [...]

THEY WONT GET AWAY WITH IT, WILL THEY? 1st Quarter 2010

There has been a lot of chatter about accountability in the wake of the financial crisis. President Obama signed the Fraud Enforcement and Recovery Act in May of 2009, which created the Financial Crisis Inquiry Commission to “examine the causes, domestic and global, of the current financial [...]

DON’T RENT THE MONEY

One area of the economy that has been receiving a great deal of scrutiny is the mortgage market, because frankly, housing drives the economy. The Federal takeover of Fannie Mae and Freddie Mac has the mortgage market convinced that it is back to business as usual. Despite this, things are more than [...]

What Will It Be?

The current economic crisis can be characterized like many previous episodes: too many debt obligations and not enough monetary instruments to cover them. The current situation is fairly typical, in that there has been approximately three dollars in debt created for every dollar currently in [...]

Over Sight Or Over Slight

The U.S. economy has entered an accelerating downward spiral. As confidence wanes, spending has dried up. This situation has affected many consumers’ ability to service their debts. Mortgage default rates have risen. Savings rates have plunged. As a result of excess Treasury borrowing (nearly 1.2 [...]

WHO’S BAILIING OUT WHOM?

  As with the second quarter newsletter, this edition comes to us at the tail end of the 3rd quarter. As this goes to press, the Senate and House have passed the “Emergency Economic Stabilization Act of 2008”. This act epitomizes the pinnacle of legalized theft. When the bill left the House on [...]