Don’t go wobbly on us now, Ben Bernanke – Telegraph, Ambrose Evans-Pritchard
Barack Obama’s home state of Illinois is near the point of fiscal disintegration. “The state is in utter crisis,” said Representative Suzie Bassi. “We are next to bankruptcy. We have a $13bn hole in a $28bn budget.”
Financial Reform Endgame – Paul Krugman
There’s no question that consumers need much better protection. The late Edward Gramlich — a Federal Reserve official who tried in vain to get Alan Greenspan to act against predatory lending — summarized the case perfectly back in 2007: “Why are the most risky loan products sold to the least sophisticated borrowers? The question answers itself — the least sophisticated borrowers are probably duped into taking these products.”
I’m Sure Glad The Recession Ended – Mish
It’s a good thing the recession ended. Otherwise, key economic charts might look something like this…
Housing: Time to Pull the Plug on Government Support - BusinessWeek
These policies are geared toward propping up home prices, the definition of a perverse public policy. Artificially holding prices at above-market levels harms new potential buyers, from young adults starting their own households to immigrants putting down stakes in the American Dream. The subsidies wrongly delay the inevitable home market price adjustment to excess supply in many markets across the country.
New Principles for Principal Reduction – The Atlantic
How much you love or hate principal reductions depends on your perspective…
City of Angels on brink of abyss – Guardian
Los Angeles, the second-largest US city, is facing a crisis of funding not seen since the darkest days of the Great Depression
When It’s OK to Walk Away From Your Home – The Wall Street Journal
No, you shouldn’t feel bad about it, and you shouldn’t feel guilty. The lenders would do the same to you—in a heartbeat. You need to put yourself and your family’s finances first.
