Latest Posts

  • Chart of the Day

    May 8, 2008 / 3:37am / in Americas, General, housing bubble, International Investing

    From the WSJ, showing scary near-term projections:

    Chart of the Day 5-80-8

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  • Another Really Bad Idea to Fix Housing

    Apr 30, 2008 / 5:35am / in Americas, General, housing bubble, International Investing

    From today's WSJ. I keep searching for the punchline but it appears to be real:

    Federal Deposit Insurance Corp. Chairman Sheila Bair is finalizing a legislative proposal that would allow the Treasury Department to make direct loans for close to one million homeowners in the latest government initiative to stabilize the slumping mortgage market.
    ...

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  • "Government Got What It Asked for in Housing Bust"

    Apr 25, 2008 / 8:17am / in Americas, General, housing bubble, International Investing

    Caroline Baum places the blame where it belongs:

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  • Thomas Paine on the Credit Crisis

    Apr 24, 2008 / 4:49am / in General, housing bubble, International Investing

    Understanding the credit crisis means acknowledging that while the financial instruments involved may be new, the government sponsored inflation and regulation that brought it on is not. The classics of Bastiat, Mises, and Rothbard read like they could have been written this week. This great find by the Mises Institute is by Thomas Paine:

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  • Housing Prices Continue to Fall - No Bottom in Sight

    Apr 3, 2008 / 10:15am / in Americas, General, housing bubble, International Investing

    Bloomberg has the sad stats:

    Home prices declined in 21 U.S. cities in January, led by Sacramento and Las Vegas, as banks sold foreclosed homes at bargain prices.
    ...

    San Diego was the third-worst U.S. market, with prices dropping 21 percent, and Los Angeles was fourth, with a 17 percent decline, Radar Logic said.

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  • Housing Stats of the Day

    Mar 25, 2008 / 4:20am / in Americas, General, housing bubble, International Investing

    From the WSJ:

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  • The Housing Transaction Bubble

    Mar 17, 2008 / 10:43am / in Americas, General, housing bubble, International Investing

    From Mauldin:

    This shows that part of the bubble in housing was in the number of transactions that occurred during the bubble years. In 2005 alone, there were 48% more housing transactions that occurred than should have been expected based on historical average sales per household. In large part this was caused by "investors," many of dubious financial strength, buying homes and condos on readily available credit with no real lending standards and no way to pay the loans if they were not able to sell them at a higher price.

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  • Lessons from the Mortgage Market Meltdown

    Mar 3, 2008 / 10:51am / in Americas, General, housing bubble, International Investing

    Excellent paper on the mortgage crisis and its likely market impact:

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  • And Still Further to Fall...

    Feb 29, 2008 / 5:56am / in Americas, General, housing bubble, International Investing

    Single Family Home Prices

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  • The New Breed of SPE’s

    Jan 23, 2008 / 11:48am / in Americas, derivatives, General, housing bubble, International Investing

    This WSJ article about ACA Capital Holding, shows financial firms adeptness in managing their balance sheet. ACA, ostensibly an insurance firm, was undercapitalized from the beginning. Based on the firm’s ‘A’ credit rating, the firm has a veneer of security which fell apart when S&P downgraded them to triple-C in December – a canary in the subprime coalmine. To avoid collapse, the firm is negotiating with the banks to avoid posting collateral.

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