Network Archives

The Fed Is Blowing More Bubbles

"As if any more evidence were needed (see my CB post earlier this week) that the Fed has succeeded, either through ignorance or design, in igniting new asset bubbles throughout the economy, the Federal Reserve Bank of Kansas City just released a survey of bankers that confirms a continuing rise in U.S. farmland prices. The chart below from the report by the Kansas City Fed puts this stunning trend in temporal perspective and reveals that it extends across all farmland, including irrigated cropland and ranchland." Continue reading →

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“Boomerang Foreclosures” Are Back As Bernanke’s Second Housing Bubble Begins To Pop

"As the chart below shows, while California foreclosure activity is collapsing, things in other places are starting to indicate that the second housing bubble blown by Bernanke in 5 years, is finally starting to crack. In other words, ignore the sad and very much artificial reality of California where the real estate market is no longer indicative of what happens in a free market, and instead keep a close eye on those states where all artificial attempts to crush foreclosure starts and completions have been used up, and where reality is about to come back with a bang." Continue reading →

Continue Reading“Boomerang Foreclosures” Are Back As Bernanke’s Second Housing Bubble Begins To Pop

Americans Are Tapping Their Homes For Cash Again

"Nearly 11 million borrowers are underwater on their mortgages, owing more than their homes are worth, according to CoreLogic, and yet home equity lines of credit are suddenly on the rise again. Blackwell pointed to increased consumer confidence, meaning borrowers now feel better about their ability to repay these loans. Both factors fueled a 19 percent jump in originations of home equity lines of credit at the end of last year, according to Equifax. In 2008, as housing was crashing, home equity line originations dropped 55 percent. With home prices up 8 percent year-over-year in December, homeowners are regaining home equity at a fast clip." Continue reading →

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Paper Claims SEC Regulation is Biased … In Other News, Sky Is Blue

"Former U.S. Securities and Exchange Commission staffers who now work in the private sector may have helped derail last year's effort to reform the $2.6 trillion money market fund industry, a report said. The case study on money market fund lobbying is part of a 60-page report by the Project on Government Oversight (POGO). It is one example within a broader review by the non-profit government watchdog that examines in detail how the 'revolving door' at the SEC may have impacted policy and enforcement decisions over a 10-year period." Continue reading →

Continue ReadingPaper Claims SEC Regulation is Biased … In Other News, Sky Is Blue

Housing Industry Hopes Obama Line Will Soften Mortgage Rule

"U.S. Realtors and mortgage bankers say they hope President Barack Obama’s call for streamlined mortgage rules in his State of the Union speech will help them persuade regulators not to set a strict minimum down payment for home loans. At issue is the so-called qualified residential mortgage rule, which six banking regulators including the Federal Deposit Insurance Corp. and the Federal Reserve are aiming to complete this year. The regulators drew protests in 2011 when they released a preliminary draft requiring lenders to keep a stake in mortgages with down payments of less than 20 percent and those issued to [debt-laden] borrowers." Continue reading →

Continue ReadingHousing Industry Hopes Obama Line Will Soften Mortgage Rule

SEC Head Nominee Mary Jo White’s Latest Conflict of Interest

"Here’s the big question for Mary Jo White: If she becomes chairman of the Securities and Exchange Commission, where will her interests lie? With the public that pays her salary? Or with the people handing her the big bucks? White is the white-collar defense lawyer and former U.S. attorney nominated by President Barack Obama to lead the SEC. Upon leaving New York-based Debevoise & Plimpton LLP, the law firm will give her $42,500 a month in retirement pay for life, or more than $500,000 a year. This means she has a direct interest in Debevoise’s future profits, and therefore an incentive to help make sure only good things come the firm’s way." Continue reading →

Continue ReadingSEC Head Nominee Mary Jo White’s Latest Conflict of Interest

Jack Lew: The Rookie

"New York Democrat Chuck Schumer said the Treasury nominee has an 'uncanny ability to delve into a subject' and 'master it.' Americans can only hope, because you wouldn't know it based on the little that Mr. Lew claims to have known about what happened during his tenure at Citigroup from 2006-2008. He was a senior executive at the giant failing bank before and during the financial crisis, but he gave the impression he was there mostly to cash a paycheck. When Orrin Hatch ticked off the problems that afflicted the two Citi divisions that Mr. Lew oversaw as chief operating officer, the nominee seemed to know less about them than Mr. Hatch." Continue reading →

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Ron Paul: Beware The Consequences of Pre-Emptive War

"Last year more US troops died by suicide than died in combat in Afghanistan. More than 20 percent of military personnel deployed to combat will develop PTSD. More than 20 percent of active-duty military are on potentially dangerous psychotropic drugs; many are on multiple types. Violent crime among active duty military members increased 31 percent between 2006-2011. The warning that 'he who lives by the sword dies by the sword' goes not only for individuals but for entire societies. It is a warning to all of us. A country or a society that lives with the violence of pre-emptive war in fact self-destructs." Continue reading →

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Russian Foreign Minister: Russia will never involve itself in ‘another Afghanistan’

"The head of the Foreign Ministry said Russia has no intention of deploying its military to the Middle East or North Africa, where social and political crisis is rampant, opting instead to work diplomatically with legitimate governments. 'This is my answer to those who wonder why we are not fighting for our positions,' Foreign Minister Sergey Lavrov said on the 'Sunday Night with Solovyov' program. 'We will not be fighting for our positions…and creating 'another Afghanistan' for ourselves. Never, under no circumstances!' Lavrov was referring to the Soviet experience in Afghanistan (1979-1989), which is being played out in similar fashion today by the United States." Continue reading →

Continue ReadingRussian Foreign Minister: Russia will never involve itself in ‘another Afghanistan’

David Galland: Three Levels of Survival Skills

"While we all hope that things will turn out for the best, and they very well might, I suspect that, like me, most of you sense that something is fundamentally wrong in the world today. Trying to ignore the risks, effectively keeping your alert level at 'White,' leaves you woefully unprepared. Now is the time to think this stuff through, while you still can do so calmly. Now, moving on, I want to share with you stories from two individuals faced with severe disruptions in the norm – one from old friend Roger S. from Zimbabwe, who reports on the current state of things there and the other from an individual who survived the war in Sarajevo." Continue reading →

Continue ReadingDavid Galland: Three Levels of Survival Skills