MortgageBailoutScam.com

September 15, 2007

Bank Runs then-and-now (Photos)

Filed under: Photos,Politics — labordaytheses @ 10:10 pm

Note to readers: I thought I had a copy of a photo of a line outside a Countrywide branch that accompanies a story in the print edition of the LA Times a few weeks ago, but I am unable to find it. If anyone can point me to a copy, I would really appreciate it. Thanks!

-Ant

Customers outside a Northern Rock branch in Kingston Upon Thames

2007: Depositors at failing Northern Rock branch in Kingston Upon Thames (via the Telegraph)

1914: Depositors at failed bank L.W. Schwenk, 7th St. & Ave. A, New York City. (via Wikipedia)

Poster for the “War of Wealth” by Charles Turner Dazey, a play that opened February 10, 1896. (via Wikimedia)

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September 8, 2007

Mortgage Bailout Scam question of the day

Via Nourial Roubini’s blog:

These are some of the complex and difficult issues that analysts and policy makers are starting to address. Bill Gross of Pimco is now proposing the creation of a fiscal institution like the RTC (that resolved the S&L banking crisis of the late 1980s and early 1990s) – what he called the Reconstruction Mortgage Corporation – to resolve the subprime credit problems. While this may sound as a fiscal bailout of borrowers (and by default of lenders) the alternative in his view is destructive home price deflation (as much as 10% fall in home prices in his view) and million of homeowners ending up in foreclosure. Folks at Goldman Sachs are actually predicting that home prices will fall as much as 15% in the next few years before they bottom out.

Home prices in my neighborhood in Southern California increased, on average, more than 150% between 2001 and 2006, with no corresponding increase in average income. Can someone please tell me why > 25% YOY gains for 5 years straight is considered peachy, but a subsequent 10% decline is a disaster of such epic proportions that it merits the biggest bailout in government history?

September 3, 2007

Links round-up

Filed under: Mortgage Bailout,Politics,Real Estate Speculators,VA mortgage — labordaytheses @ 6:04 am

The Bush speech

Investors default on outsize share of home loans. I’m shocked.

Ginnie Mae removes loan limit on VA mortgages. Very few people (myself included) will have any criticism of more generous benefits being extended to our veterans (though it seems like providing adequate body armor and a paycheck sufficient to keep military families off of food stamps might be a more productive place to start.) I think the timing of this announcement tells you everything you need to know about the real agenda.

The New Money Pit

The Punch Bowl Caucus

Wow, even the crowd at Michele Malkin’s blog is pissed off.

Voice an opinion

Should the federal government bailout subprime borrowers? (MSNBC)

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