Relevant and even prescient commentary on news, politics and the economy.

The Alpha and the Omega of mid-2007

Sometimes, Blog Posts Write Themselves: Cleaning up a hard drive of old files, I ran across these two articles from the middle of last year. First, the WSJ, arbiter of business sanity and purveyor of a positive meme whenever one is to be found, on 28 July 2007—nine months after the general supply of securitizable […]

I’d like to refinance, please.

In one of the stupidest wastes of Treasury monies this month—a major accomplishment, though AIG hasn’t hit the trough again yet, so there might be hope—the Treasury wants to subsidize new mortgages (link to CR): Under the plan, Treasury would buy securities underpinning loans guaranteed by the two mortgage giants, which are temporarily under the […]

What Brad DeLong Said: Rest in Peace Doris Dungey, "Tanta"

UPDATE: For those who read here and not at CR, a link for Donations. We knew she was home with her family, but it was over the U.S. Thanksgiving holiday… Calculated Risk: Sad News: Tanta Passes Away: My dear friend and co-blogger Doris “Tanta” Dungey passed away early this morning. I would like to express […]

Ms. Osell Buys Her Dream House

Mortgages are a bitch: [I]n addition to the $300k that we already knew was still outstanding on their mortgage…they had another mortgage on this place. And so the reason they’ve been inexplicably stalling and quibbling over how much they’ll pay to do the repairs that are doubtless going to be required by the VA assessor […]

Because this worked so well last time…

Via Drs. DeLong and Black, the WaPo reports that this version of the S&L crisis will repeat the mistakes of the last one: Instead of giving each company a big capital infusion upfront, the government could make quarterly injections as the companies’ losses warrant, the sources said. This would be an attempt to minimize the […]

Trickle-Down in Action?

The Yahoo! headline says most of it: GMAC slashing workforce; reducing mortgage lending. I discussed the GMAC problems at Marginal Utility almost eighteen months ago. Things haven’t gotten much better since then. But some of the Mortgage Industry players have changed partners: Lender GMAC Financial Services said Wednesday it will close all of its 200 […]