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• After one year: America, the welfare state

  Posted Jul 31 2008, 11:12 AM by Todd Harrison
  Filed under: Banking, economy, todd harrison
  Rating:

  "Self-reliance for the penniless and government aid to those who already had more than they could use was the plan."
  - Nelson Algren, "A Walk On the Wild Side"

  One full year. One full, impossible to believe stompdown screamer of a year. That's how long it's been since the credit machine on Wall Street suddenly slipped a gear, lost the chain and folded in on itself, howling with the awful griding sound of metal chewing metal. The real tragedy of it, the outrageousness of it, is that this machine's tear down is still ongoing, happening in horrific slow motion.   Read More...

  Discuss ( 30 comments) 5,880 Views Digg this | Email this | Link to this

• Why should you care about Fannie and Freddie?

  Posted Jul 16 2008, 07:48 AM by Todd Harrison
  Filed under: Banking, Citigroup, Housing, stocks, JPMorgan, economy, todd harrison
  Rating:

  Given the daily barrage of bad news about the credit crunch, the mortgage crisis and failing banks, you'd think things would be a lot easier for someone who actually wants to take out a simple home loan.

  As a matter of fact, just this morning you read an article about two mortgage companies, one with a name that sounds like what they call your grandmother at her retirement community, the other like some up-and-coming DJ. Fannie Mae and Freddie Mac, could that be it? They ran out of money, apparently, which could make it even harder for you to get a mortgage in the future.

  Harder? Is that some kind of cruel joke? How could taking out a mortgage be any more painful than it already is?   Read More...

  Discuss ( 4 comments) 2,485 Views Digg this | Email this | Link to this

• Muzzling the bears

  Posted Jul 14 2008, 11:53 AM by Todd Harrison
  Filed under: Investing, Lehman Bros, Banking, economy, todd harrison
  Rating:

  Hello from New York, where I don't much care how they "fix" Fannie Mae or Freddie Mac, but the related witch hunt to crack down on "rumor mongering"  has me frothing at the mouth.

  I expect the government to use whatever means they have at their disposal to ensure the smooth operations of the financial markets. You may approve or disapprove of the government behaving in such a manner but you can't deny that there is precedent for such manipulation (see: Long Term Capital, Bob Rubin's October '98 Bear Slaughter, Last August's manipulations, etc. et al).   Read More...

  Discuss (no comments) 1,470 Views Digg this | Email this | Link to this

• Are we really addicted to credit? 7 Signs

  Posted Jun 27 2008, 10:07 AM by Todd Harrison
  Filed under: Banking, economy, Credit Crisis
  Rating:

  Are we really addicted to credit?  Let's take this simple quiz and find out.

  1) Have we ever substituted one form of credit for another, thinking that one particular type of credit was the problem? You mean, like, buying corporate junk while avoiding mortgage-backed-securities?  Cause corporate junk is "ok."

  2) Have we ever manipulated or lied to a lender to obtain credit? Hmm, like overstating our income on a loan application, or if loaning money, overlooking reasonable lending standards?   Read More...

  Discuss ( 10 comments) 4,967 Views Digg this | Email this | Link to this