The Botox Economy Part 1 and Part 2 – Minyanville, Satyajit Das
The global economy is currently taking the “botox” cure. A flood of money from central banks and governments — “financial botox” — has temporarily covered up unresolved and deep-seated problems.The surface is glossy and smooth, the interior decayed and rotten.
Big Government Returns With Vengeance – Mish
Sadly, belief in the “free lunch” theory of economics runs deep on both sides of the aisle. The only difference is in the nature of the pet projects and earmarks.
Closeout Sale: More Retail Closures Likely – Bloomberg
You lost your house – but you still have to pay – CNN Money
As terrible as it is to lose your house to foreclosure, at least it’s a relief to put your biggest financial headache behind you, right?
Wrong.
More than 5 Million Homes Will be Worth Less than 75% of Their Mortgage – Daily Finance
About 5.1 million mortgage holders (or roughly 10% of Americans with mortgages) will own homes that are worth 75% or less than what they owe on their mortgages by mid-June.
Cloudy Future for Fannie and Freddie – The New York Times
Fifteen months after Fannie and Freddie were effectively nationalized, neither the Obama administration nor Congressional leaders see a quick solution to one of the thorniest problems in American finance: how to fix the twin mortgage giants without choking the flow of credit to homeowners and dealing a blow to a still-fragile housing market.
The Mortgage Modification Mess – The Atlantic
It’s not going so well. The panelists generally appeared to agree that borrowers who are underwater or have second liens are mostly doomed to foreclose. But some believe the key might be for principal reductions to become more prevalent.
Housing Stock and Flow – Calculated Risk
How much longer until these excess housing units will be absorbed?
Mortgage Delinquencies Pass 10% – HousingWire
Home-loan delinquency rates in the US reached 10% in December, up from the record-high 9.97% in November, according to Lender Processing Services (LPS: 39.93 +1.94%), which provides data on mortgage performance.
It Begins: Cash Strapped Cities Begin To Crumble – Clusterstock, John Carney
The latest fright comes from Harrisburg, the capital of Pennsylvania. The city is considering seeking bankruptcy protection—as well as tax hikes and asset sales—to address $68 million in debt service payments due this year.
Supreme Court Allows Corporations To Run For Political Office – The Onion
In a landmark decision that overturned decades of legal precedent, the U.S. Supreme Court ruled 5-4 Tuesday to remove all restrictions that had previously barred corporations from holding public office. “This is an unfair, ill-advised, and tragic mistake,” Sen. John McCain (R-AZ) said before boarding a flight to Arizona in response to primary poll numbers that show him trailing the Phoenix-based company PetSmart by a double-digit margin…
