Items of Interest:
"President's strategy for economic recovery is a stool" — The White House
The White House:
Help for homeowners — The President's strategy for economic recovery is a stool with several legs, as he's said, and one of them is solving the foreclosure crisis. — “We must stem the spread of foreclosures and falling home values for all Americans, and do everything …
Calculated Risk: Comments on Housing PlanLee Fang / Think Progress: Flashback: Just Days Ago, Conservative Lawmakers Said It Was …Philip Klein / AmSpecBlog: Next Step: Housing BailoutLos Angeles Times: Housing plan aimed at keeping people in homes
Obama Plans $75 Billion Outlay to Fight Foreclosures – Seeking to stabilize the foundering housing market, President Obama is offering a plan to help as many as nine million families refinance their mortgages or avoid foreclosure, according to a summary released by the White House on Wednesday morning...
Bailout Likely to Focus on Most Afflicted Homeowners – the key to understanding that plan will be remembering that there are two different groups of homeowners who are at risk of foreclosure.
The first group is made up of people who cannot afford their mortgages and have fallen behind on their monthly payments. Many took out loans they were never going to be able to afford, while others have since lost their jobs. About three million households — and rising — fall into this category. Without help, they will lose their homes.
The second group is far larger. It is made up of the more than 10 million households that can afford their monthly payments but whose houses are worth less than what is owed on their mortgages...
Dean Baker / American Prospect: Foreclosure: Why Are the Banks So Scared of the Market?Benjamin Lockwood / The Atlantic Business Channel: A terrible housing ideaAssociated Press: Obama to unveil $75 billion mortgage relief planSusanG / Daily Kos: Obama outlines new housing rescue planMichael / Discourse.net: Taking the Back of the Envelope to the Homeowner BailoutKrooney / TIME.com: Up Next: Mortgage WoesBill Scher / Blog entry: Progressive Breakfast: No Place Like HomeDan / Riehl World View: Housing: Bailout, Or O-Bunko?
Robert Stein / Connecting.the.Dots: A Case Against Home OwningCaitlin Taylor / The Note: The Note, 2/18/09: Obama Outlines Mortgage Rescue Plan in PhoenixStephen C. Rose: Step Two — The Mortgage MessNick Gillespie / Reason: Coming Today: A Brand New Plan to Pump Up to Reinflate the Housing …
Obama's foreclosure fix on the way – The administration is also expected to ramp up loan modifications of borrowers in default. These modifications would lower monthly payments to more affordable terms - often 31% to 38% of gross monthly income - through reducing interest rates or lengthening the loan's term....
Mary Katharine Ham / Weekly Standard: Who Will Obama's Foreclosure Plan Bail Out?Tom Petruno / Money & Company: Miracle on Wall St.: The Dow escapes a new closing low
Melissa Clouthier / Right Wing News: What If America Plunged Into Great Depression II?
related:Megan McArdle: Did World War II end the Great Depression?
In an interview, Mr Greenspan, who for decades was regarded as the high priest of laisser-faire capitalism, said nationalisation could be the least bad option left for policymakers.”
It may be necessary to temporarily nationalise some banks in order to facilitate a swift and orderly restructuring,” he said. “I understand that once in a hundred years this is what you do.” ...
Mish's Economic Analysis:
The Nationalization Train Has Left The Station -- Those who think Greenspan is the "high priest of laissez-faire capitalism" have holes in their heads. The very existence of the Fed and its micro-mismanagement of interest rates is in direct conflict with capitalism...
Alex Barker / Westminster Blog: Greenspan backs nationalisation
Pete Abel / The Moderate Voice: Nationalizing Banks: Up Remains Down as Greenspan Chimes InYves Smith / naked capitalism: Greenspan Predicts TARP Will Prove Insufficient, Supports Bank NationalizationMyglesias / Matthew Yglesias: Eisinger and Salmon on Bank Nationalization
Buck Naked Politics: Greenspan and Other Free Marketeers Favor Nationalization of Banks (or “Some Banks")Real Time Economics: Greenspan vs. the Greenspan DoctrinePareene / Gawker: Fear ‘The Swedish Model’David Knowles / Political Machine: Alan Greenspan Says the N-WordJeremy Gantz / The Raw Story: Greenspan says recession will be ‘longest and deepest’ since '30sEuropean Tribune: Hell freezes over: Bubbles randoid supports NationalisationBalkinization: Card Counting in a Casino SocietyLew Rockwell / LewRockwell.com Blog: Republican Socialists — Senators and now ex-counterfeiter in chief …
Matthew Richardson and Nouriel Roubini / Washington Post:
Nationalize the Banks! We're all Swedes Now -- The U.S. banking system is close to being insolvent, and unless we want to become like Japan in the 1990s -- or the United States in the 1930s -- the only way to save it is to nationalize it...
Rachel Oswald / The Raw Story: Bank accused of fraud gave big bucks to Congress; Members duck, skirt calls from RAWOwen Thomas / Gawker: Mini Madoff Ripped Off by Real MadoffSteveK / TVNewser: Accused Scammer Told CNBC in May '08 “It Is Fun Being a Billionaire”Dan / Riehl World View: Will Dodd Cough Up The Bucks?
The Coming Crisis: White Collar Homelessness -- According to data from the Labor Department, more jobs have been lost in the past 12 months than any other period since the government began keeping records in 1939. Perhaps most disconcerting is that experts predict unemployment will get worse before it gets better. In 1991 and 2001, unemployment didn't hit its peak until two years after those recessions ended.
As unemployment becomes worse, community-based organizations are noticing a change in their clientele. Shelters are seeing clients who are more representative of the newly unemployed...
- Put the Ghost Banks Out of Their Misery - Nicholas Von Hoffman, Nation
- We Won't Pay for One-Way Banker Bets - Gordon Brown, Times of London
- SEC Killed Wall Street On April 28, 2004 - Vanessa Drucker, Fund Strategy
- Feds Re-Impose Loan Standards They Undermined - Steven Malanga, RCM
- Despite Gov't Mistakes, Recovery Lies Ahead - Wesbury & Stein, Forbes
- Wall Street Is Still Searching for the Bottom - Mark Hulbert, MarketWatch
- Cheering for Stimulus Buys Into 1930s Myth - Amity Shlaes, Bloomberg
- Obama's Stimulus Conceit Spooks Markets - Locke Smith, RealClearMarkets
- Where Wall Street & Detroit Intersect - Steven Pearlstein, Washington Post
- Wall Street Losing Hope for Leadership - Charles Gasparino, New York Post
- A Short History of the Nat'l Debt - John Steele Gordon, Wall Street Journal
- If You Got Money, It’s Time to Spend Some - Edward Glaeser, Economix
- Foreign Stocks Again Proving Toxic For U.S. Investors - Money & Co.
- A Game-Changing Number in Housing - Tony Crescenzi, CNBC
- The Stock Market Hates Obeynomics - Rich Karlgaard, Digital Rules
- Investors Cannot Rely on the Mainstream Media - A Dash of Insight
- Best and Worst Stocks Since November 20th - Bespoke Investment Group
- Japan’s Lessons for a World of Balance-Sheet Deflation - Martin Wolf, FT
- What If New York or California Go Bust? - John Avlon, Daily Beast
- The Private Equity Meltdown Myth - Jesse Eisinger, Portfolio
- Stimulus: The Triumph Of Faith Over Reason - Caroline Baum, Bloomberg
- Obama Rides a Brilliant Policy Wave - Bob Herbert, New York Times
- Is Obamanomics Dead On Arrival? - Paul Farrell, MarketWatch
- Jobs v. Protectionism In the Stimulus Plan - Moira Herbst, Business Week
- We're Already In a Protectionist World - Anne Applebaum, Washington Post
- Green Stimulus Is Essential - Ban Ki-moon & Al Gore, Financial Times
- Mean Reversion: Longer Than Your Life? - Redenbaugh & Juliano, RCM
- In An Economic Winter, Small Signs of Spring - Jim Jubak, MSN Money
- A Government-Driven Home Boom - Peter Wallison & Edward Pinto, Forbes
- Why a Commerce Job Goes Unfilled - Editorial, Investor's Business Daily
- Will Comp Controls Move Wall Street Overseas? - John Tamny, RCM
- Congress Gets Punitive On Pay - Lucian Bebchuk, Wall Street Journal
- 13 Unexpected Consequences of the Financial Crisis - Daniel Drezner, FP
- Recession Doesn’t Hold Back the Hottest Stocks - John Dorfman, Bloomberg
- How The Credit-Loss Cycle Got Supersized - Lawrence Strauss, Barron's
- How Consumerism Hurts Consumers - Liz Pulliam Weston, MSN Money
- Why Geithner Bashing Has Gone Too Far - James Stewart, SmartMoney
- Go Ahead and Save. Let Government Spend - Robert Frank, New York Times
- Deconstructing Paul Krugman - Francis Cianfrocca, The New Ledger
- The Economy Is Handcuffed by the Trade Gap - Peter Morici, Kiplinger's
- Geithner Pitches His Plan Across the Pond - Jesse Stanchak, Slate
- Why Facebook Is for the Old People - Lev Grossman, Time Magazine
- Death of Corporates Is Worth Investigating - William Pesek, Bloomberg
- Angry America and the Bank Bailout - Steve Fraser, The Nation
- East Europe Explains Meltdown - Ambrose Evans-Pritchard, Daily Telegraph