Items of Interest:
Wall Street Examiner:
Trouble in the Cockroach Hotels -- One of the odder Kool-Aid concoctions of the era have been cockroach hotels (CHs or hedge funds). Once the foil enters the CH, the doors are shut behind. Next they walk through the rooms with all the lights turned off looking for treasure, and find cockroaches instead. Incredibly a myth has been perped that these CHs were run by geniuses (about 10,000 of them gambling $1.8 trillion) when in reality they were nothing more than “take these dice from my good dead hands” gamblers...
This [Bloomberg] article, “Hedge Funds Come Unstuck on Truth-Twisting, Lies” gives a good overview. Aaron Krowne’s Hedge Fund Implode-o-Meter provides the play by play on the downfall of cockroach hotels...
Gloom and some doom seen for hedge funds, private equity
Hedge Funds Make It Hard To Say Goodbye
Greenspan on Housing Bottoms -- Earlier this week, we noted that former Fed Chief Alan Greenspan had said that "the drop in US home prices will probably end 'well before' early next year as the number of houses in the market diminishes" (Greenspan 'Reputation Tarnishment' Tour Continues)...
For Many, a Boom That Wasn’t -- ...The bigger problem is that the now-finished boom was, for most Americans, nothing of the sort. In 2000, at the end of the previous economic expansion, the median American family made about $61,000, according to the Census Bureau’s inflation-adjusted numbers. In 2007, in what looks to have been the final year of the most recent expansion, the median family, amazingly, seems to have made less — about $60,500. This has never happened before, at least not for as long as the government has been keeping records. In every other expansion since World War II, the buying power of most American families grew while the economy did...
- Volcker Decries Fed Response to Crisis - Randall Forsyth, Barron's
- Wall Street In Washington, D.C. - Robert Novak, Chicago Sun-Times
- Ponzi Financing At Citigroup - Global Econ. Trends
- Arguing for a Housing Rescue - Luke Mullins, U.S. News & World Report
- A Mixed Fix for Mortgage Markets - Editorial, Los Angeles Times
- Even Mortgage Brokers Want to Stop Foreclosures - Seeking Alpha
- US subprime woes teach China to be cautious: PBOC- Reuters
- There’s No One Out There But Bottom-Feeders - Housing Bubble blog
- Bush, House jockey over foreclosure fix - CNNMoney
- Bush And Barney Together On FHA Plan? Not Sure It Helps - Realty Check
- Permanently high home prices? - NY Times
- Not All Americans Should Be Homeowners - David Wessel, WSJ, video
- The Cost of Maintaining Ownership in the Current Crisis: Comparisons in 20 Cities - CEPR