Let’s say you’re an American named Maria living in Southern California.  The year is 2006.  You make $45,000 and your husband David makes another $40,000.  You have two children aged six and four and your two-bedroom apartment is getting too small.  So you decide to consider buying a house.  Eventually, you and your husband find [...]

Apparently the answer to this question is yes.  CNBC is reporting that home ‘owners’ who refinance their mortgages through loans backed by Fannie and Freddie will be able to borrow up to 125% of their homes’ value (hat tip Marshall Auerback).  That’s not a typo: we’re talking no-money down and 25% cash back.  Sign me [...]

I happened upon an article about shops being closed in France that highlighted a larger issue about cultural attitudes in the U.S. and Europe regarding work, leisure and material wealth.  I would like to share some thoughts with you on these issues because I think they are significant in regards to savings, debt and other [...]

Alan Blinder, David Leonhardt, and Alan Auerbach talk about deficits.  Leonhardt had a well-regarded piece in the New York Times on the issue linked below.

There are two basic truths about the enormous deficits that the federal government will run in the coming years.
The first is that President Obama’s agenda, ambitious as it may be, [...]

PIMCO’s founder Bill Gross is out with his latest monthly missive.  It makes for interesting reading, especially in regards to the captains of finance and their desire to stay rich using other people’s money.
I remember as a child my parents telling me, perhaps resentfully, that only a doctor, airline pilot, or a car dealer could [...]

Dollar bears are getting their way in the currency markets right now.  While most eyes are peeled on Sterling (up 3 big figures since Friday) and the Euro, all currencies are rising against the Dollar (including the Commodity Dollar Complex – Auusie, Kiwi, and Loonie).  For me, the most interesting currency is the Swiss Franc [...]

OK, I lied.  I am forced to used that dreaded phrase – one last time.  What did a commenter just call it: “Photosynthetically capable new plant growth?”  The reason the dreaded phrase is making a comeback is due to the excellent analysis of Niels Jensen, Senior Partner over at Absolute Return Partners in London. Visit [...]

It is not just the Chinese making noises about the reliability of the United States as a debtor.  Now, Japanese politicians are doing it too.  In fact, the Democratic Party of Japan (which is not in power) have said they would not buy U.S. bonds if elected.  An excerpt from a BBC story covering these [...]

The German car maker Daimler wants to put the Chrysler chapter behind it, so it will give up its remaining 19.9% stake and forgive all remaining loans. See BBC story.
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As the possibility of bankruptcy draws nearer, General Motors is moving to sell non-core assets and to broker arrangements with bondholders and unions alike which will keep it out of bankruptcy. In a 9AM press conference today, new General Motors head Fritz Henderson announced a debt-for-equity swap offer for GM bondholders which would cut [...]