Post Tagged with: "mortgages"
Not South Florida but Condo Problems in Raleigh, NC Too
by John Lounsbury It may not be South Florida, but there are condo problems in Raleigh, NC too. Sunday 32 condo units were auctioned off at an average price of $210 per square foot in the West condo unit in a downtown entertainment district known as Glenwood South. When the West condo building was finished
The U.S. Banking Crisis Has a Long Way to Go
The banking has not reached the halfway point, maybe not even the midpoint of the first quarter. The FDIC has recorded 307 bank failures. The total could reach 1,800 – 3,
Zombie Households
by Annaly Capital Management Thursday’s third quarter GDP release provides a ton of fodder for the data dorks among us. There will be more to follow on this in the October monthly commentary, but today we’ll look at just one of the stand-out drivers of GDP in Q3: private residential investment. The chart below shows
Foreclose on the Foreclosure Fraudsters, Part 2
By William K. Black and L. Randall Wray William K. Black is an Associate Professor of Economics and Law at the University of Missouri-Kansas City. He is a white-collar criminologist and was a senior financial regulator. He is the author of The Best Way to Rob a Bank is to Own One. L. Randall Wray
Black Says `Major Frauds’ Continue at Mortgage Companies
Short clip below. Regarding the comments about Citi, see this article here. This is not new news because Bowen testified in April (see here). Yet, nothing was done in the intervening six months until the foreclosure crisis precipitated damage control. Update: Here is a second video that includes Bill Black talking to Dylan Ratigan on
The Subprime Debacle: Act 2, Part 2
by John Mauldin They Knew What They Were Selling It’s hard to know where to start. There is just so much here. So let’s begin with testimony from Mr. Richard Bowen, former senior vice-president and business chief underwriter with CitiMortgage Inc. This was given to the Financial Crisis Inquiry Commission Hearing on Subprime Lending and
Foreclose on the Foreclosure Fraudsters, Part 1
By William K. Black and L. Randall Wray William K. Black is an Associate Professor of Economics and Law at the University of Missouri-Kansas City. He is a white-collar criminologist and was a senior financial regulator. He is the author of The Best Way to Rob a Bank is to Own One. L. Randall Wray
Chris Whalen: US Foreclosure Crisis A ‘Cancer’
Chris sees the foreclosure crisis developing into a drip, drip of foreclosed property, unpaid property taxes, and loan losses. In his view, the Obama Administration is in a similar position to the Hoover Administration during the Depression. I’ve been saying for a long time Barack Obama is walking in Herbert Hoover’s shoes. And they’re making
Market Is Facing Major Headwinds
by Comstock Partners The current market rally is not based on a self-sustained typical economic recovery, but on blind faith that the Fed can pull out a magic wand and cure everything with another round of quantitative easing (QE2). As we pointed out last week, this a desperate attempt by the Fed to try non-conventional
An update on asymmetric information and corporate governance in bank bailouts
Last June I wrote a post on the topic of corporate governance that pointed to one of only two outcomes as the likely result of the bank bailouts. Outcome number one was bank prudence and low credit growth in the face of uncertainty. Outcome number two was a reckless heads I win, tails you lose
The Alchemy of Securitization
This is a cross-post from the new economic blog Global Economic Intersection. Ratings agencies have been criticized for inadequately determining risk in the massive collection of debt securities created in the credit bubble. A second major problem in the mortgage securitization process is the existence of holes in the legally required filings of mortgage documents.
NY Fed Joins Attorneys General in Pursuing Foreclosure Frauds
by L. Randall Wray, Professor of Economics at the University of Missouri-Kansas City, Research Director with the Center for Full Employment and Price Stability and Senior Research Scholar at The Levy Economics Institute and author of Understanding Modern Money. In a surprising turn of events, the NYFed—no less—has gone after the Bank of America for