So the major banks have been given billions of dollars from TARP so we could start borrowing money to buy cars and homes to get the economy going again. But now that the banks are awash in cash they’re keeping it in the bank. It seems that the banks are hoarding their cash so they [...]
Another indicator that we may be nearing the bottom of the housing market is builder confidence in April made its most dramatic increase in nearly seven years, according to an industry report. According to CNN Money “The Housing Market Index, a survey-based measurement of sales, as well as sales expectations, rose by more than 50% [...]
Warren Buffet in his letter to the shareholders in 2003 described derivatives as “financial weapons of mass destruction, carrying dangers that, while now latent, are potentially lethal.” His vision of derivatives being destructive is so true, as we live in 2009, in the ruins of financial institutions. I received this e-mail from a friend of mine and thought it [...]
Fannie Mae announced that in order to help ownership rates among minorities and low-income consumers, they are going to ease the credit requirements on loans it purchases from banks and other lenders. The action, which will begin as a pilot program involving 24 banks in 15 markets — including the New York metropolitan region — [...]
So what do you think of AIG receiving $160 million dollars in bonuses? AIG (American International Group) is an international insurance and financial services organization. You may know that’s only part of a larger package of $450 million of bonuses that are due by contractual agreement with upper management. Who is running AIG anyway? How [...]
It seems bad enough that as I wrote in my blog yesterday, when subprime mortgage loans were showing signs that they were toxic, Wall Street simply re-packaged subprime mortgages into a new costume and called the loans Al-A mortgages. In other words, they took the subprime loans and called it by a different name. Both [...]
So why am I so mad at banks? Because they have gotten federal bailout monies to start the lending process for borrowers who are distressed and to create new loans. Instead, they have used the money to fatten their bottom line. Have you tried to get a loan for a home lately? Even if you [...]
