Daily Archives: July 26, 2013

Tax Haven: Russia

"Russia has set up regional zones as tax havens. Factories are taxed at low rates. How low? This low. What if Detroit were allowed by the U.S. government and Michigan’s government to offer this? What if Detroit had been allowed to offer it in 1960? If it works in one region temporarily, why not all regions permanently? Most Russian [companies] pay 20% in income taxes. What do you pay in the USA? Add Social Security and Medicare. Add state income taxes. Pity the Russians. They live under tyranny. Right?" Continue reading →

Continue ReadingTax Haven: Russia

Tax Haven: Russia

"Russia has set up regional zones as tax havens. Factories are taxed at low rates. How low? This low. What if Detroit were allowed by the U.S. government and Michigan’s government to offer this? What if Detroit had been allowed to offer it in 1960? If it works in one region temporarily, why not all regions permanently? Most Russian [companies] pay 20% in income taxes. What do you pay in the USA? Add Social Security and Medicare. Add state income taxes. Pity the Russians. They live under tyranny. Right?" Continue reading →

Continue ReadingTax Haven: Russia

White House: Fed Chief Race Down To Two

"The White House whittled down its candidates to succeed Federal Reserve Chairman Ben Bernanke to two names: Current Fed Vice-Chair Janet Yellen and long-time Washington, D.C., economic guru Larry Summers. Both candidates bring strong resumes, decades of experience with U.S. monetary policy, and about an equal amount of baggage. Yellen’s favorables include serving the past three years as Bernanke’s second in command, a factor that would presumably soothe potential market fears of a significant change in Fed policy. Yellen is known as a strong supporter of the easy money policies initiated by the Fed in the wake of the financial crisis." Continue reading →

Continue ReadingWhite House: Fed Chief Race Down To Two

White House: Fed Chief Race Down To Two

"The White House whittled down its candidates to succeed Federal Reserve Chairman Ben Bernanke to two names: Current Fed Vice-Chair Janet Yellen and long-time Washington, D.C., economic guru Larry Summers. Both candidates bring strong resumes, decades of experience with U.S. monetary policy, and about an equal amount of baggage. Yellen’s favorables include serving the past three years as Bernanke’s second in command, a factor that would presumably soothe potential market fears of a significant change in Fed policy. Yellen is known as a strong supporter of the easy money policies initiated by the Fed in the wake of the financial crisis." Continue reading →

Continue ReadingWhite House: Fed Chief Race Down To Two

TARP Audit: Housing Recipients Re-Defaulting in Alarming Numbers

"Nearly one-third of the homeowners who got help through the government's main foreclosure prevention program are defaulting again on their mortgages, according to a government watchdog's report. The Home Affordable Modification Program (HAMP) has worked on 1.2 million mortgage modifications since it started four years ago. Of those, more than 306,000 borrowers have defaulted again on their loans, and another 88,000 are at risk as well. The Special Inspector for the Troubled Asset Relief Program (SIGTARP), which conducted the review, said homeowners are also more likely to default again on the modified loans the longer they stay in the program." Continue reading →

Continue ReadingTARP Audit: Housing Recipients Re-Defaulting in Alarming Numbers

TARP Audit: Housing Recipients Re-Defaulting in Alarming Numbers

"Nearly one-third of the homeowners who got help through the government's main foreclosure prevention program are defaulting again on their mortgages, according to a government watchdog's report. The Home Affordable Modification Program (HAMP) has worked on 1.2 million mortgage modifications since it started four years ago. Of those, more than 306,000 borrowers have defaulted again on their loans, and another 88,000 are at risk as well. The Special Inspector for the Troubled Asset Relief Program (SIGTARP), which conducted the review, said homeowners are also more likely to default again on the modified loans the longer they stay in the program." Continue reading →

Continue ReadingTARP Audit: Housing Recipients Re-Defaulting in Alarming Numbers

Americans Gambling on Rates With Most ARMs Since 2008

"In the second year of the U.S. housing recovery, the loans that helped trigger the housing bust are making a comeback. Applications in late June rose to the highest level since 2008 after the Federal Reserve sent fixed rates surging by signaling it may curtail bond buying credited with pushing borrowing costs to the cheapest on record. The average 30-year fixed-rate mortgage jumped 1.2 percentage points in mid-July from May to the highest level in two years, adding about $200 a month to payments on a $300,000 mortgage. ARMs, loans with interest rates that adjust after initial fixed periods, usually of five, seven or 10 years, contributed to soaring defaults in 2008." Continue reading →

Continue ReadingAmericans Gambling on Rates With Most ARMs Since 2008

Americans Gambling on Rates With Most ARMs Since 2008

"In the second year of the U.S. housing recovery, the loans that helped trigger the housing bust are making a comeback. Applications in late June rose to the highest level since 2008 after the Federal Reserve sent fixed rates surging by signaling it may curtail bond buying credited with pushing borrowing costs to the cheapest on record. The average 30-year fixed-rate mortgage jumped 1.2 percentage points in mid-July from May to the highest level in two years, adding about $200 a month to payments on a $300,000 mortgage. ARMs, loans with interest rates that adjust after initial fixed periods, usually of five, seven or 10 years, contributed to soaring defaults in 2008." Continue reading →

Continue ReadingAmericans Gambling on Rates With Most ARMs Since 2008