Jay Jay

Loading...
Symbols:
Authors:
comments61
  • Positive ratings 0
  • Negative ratings 0
  • Net rating 0
Filter comments by:
Highest rated Latest comments
Or filter by symbol:

Latest Comments
61 Comments

    • Fri Dec 28th 01:05 AM
      |
      Rating: 0 0
      Commented on:
      Home Price Decline Hits New Record
      Did the value dropping below what you paid also contribute to making it uninhabitable? This is what I'm wondering. When values are going up, nobody argues, when values drop, sue!
      View article »
    • Wed Dec 19th 23:59 PM
      |
      Rating: 0 0
      Commented on:
      Fed's Proposed Lending Rules Ignite Fierce Debate
      I support the idea of taking pwer awa from he central bank, but not if it means placing it in the hands of blow hards like Dodd. When are we going to learn that the market can price better than beurocrats?
      View article »
    • Wed Dec 19th 23:54 PM
      |
      Rating: 0 0
      Commented on:
      Blaming the Fed for the Sub-Prime Mortgage Crisis
      I thought the central bank was supposed to prevent these kinds of things, not cause them. Can we say we've learned our lesson and give them the old heave ho.
      View article »
    • Sun Dec 9th 17:29 PM
      |
      Rating: 0 0
      Commented on:
      The Government's Subprime 'Bailout' Plan Will Kill the Housing Market
      The current crop of politicians are only guilty of being of the same ilk as their predecessors that created the climate one step at a time. In fact the seeds of this disaster were sowen by FDR following the last one of similar origin. Specifically the formation of the Home Loan Bank system. Any mechanism to artificially hedge the risk of investors only serves to raise the prices for people with good credit. The ironic thing is all these types of things are done in the name of affordable housing. And the more they intervene, the less affordable housing gets.

      Regarding the idea that the government is simply orginizing the action I like this quote:

      "When authority presents itself in the guise of organization, it developes charms fascinating enough to convert communites of free people into totalitarian states." from the The Times, London circa early mid 20th century
      View article »
    • Sun Dec 9th 16:02 PM
      |
      Rating: 0 0
      Commented on:
      The Government's Subprime 'Bailout' Plan Will Kill the Housing Market
      I read the the article to he thought it was too much intervention, rather than not enough.
      View article »
    • Sun Dec 9th 12:30 PM
      |
      Rating: 0 0
      Commented on:
      The Government's Subprime 'Bailout' Plan Will Kill the Housing Market
      Good article Davy. Wanted to point out the the bubble blew the biggest not coincidentally in the nonrecourse states. I've talked to more than one of my Cali associates about the risks of buying in the recent market have been told in effect, if it doesn't work I'll just walk. When the governemt does things like tell buyers that they don't have any skin in the game if their equity is gone, it encourages more people to take risks because they know their downside is limited to their down payment. And wth no down payment, there is no downside risk, and everybody is a buyer. Prices go through the roof, then come crashing down through the floor. This is yet another unintended consequence of medling in markets. Intervention causes strife which begs yet more intervention, etc, etc. Wash, rinse, repeat until the country is bankrupted.

      I think these programs are more about slowing the rate (prolonging) the crash than stopping it, and they know it. I keep hearing noise from mortgage servicers that they aren't set up to handle so many defaults all at once. They're really staffed just to collect checks every month from 99% of the people.
      View article »
    • Sun Dec 2nd 21:28 PM
      |
      Rating: 0 0
      Commented on:
      Bill Poole: A Fed 'Put' Exists
      Ya you make my point "the goverment helped facilitate it.."

      I've studied Americas first great depression plenty. You would do well to do the same. I'd recommend you start with Rothbard's "Americas Great Depression" and go from there.
      View article »
    • Sun Dec 2nd 16:28 PM
      |
      Rating: 0 0
      Commented on:
      Bill Poole: A Fed 'Put' Exists
      Interventions in smaller conflagrations (LTCM) only enable further risk taking up to the point at which even the resources available to a govenment granted agency are inadequate to contain the collapse.

      Regarding your comments on Americas first Great Depression. The credit expansion and malinvestment of the preceeding period were the cause of the neccessary liquidation. There was no other possible outcome from that point in time although it could have been postponed and amplified by earlier easing by the nascent Fed.

      I wish it weren't so, but I fear we are going to try that again. Seems we've discovered interest only loans all over again 80 years later.

      To make an analogy to another large system, the ecosystem of Americas west, it was the multitude of small fires that burned off dead fuel in small batches that keep things in balance. When man first started stopping these it was an easy task, and seemed to show obvious benefit. But as the dead and diseased fuel built up, the size of the fires increased until they have fires that are so large that they cannot be controlled anymore by man. The fires simultaniously burn vast areas as they liquidate the accumlation of malinvestment. So instead of little patches here and there every year, they get huges fires every 10 years or so.

      When corrections happen in disparate areas, its easier for those effected to recover by moving to an uneffected areas. When it happens all at once more suffer for longer.
      View article »
    • Sun Dec 2nd 12:09 PM
      |
      Rating: 0 0
      Commented on:
      Bill Poole: A Fed 'Put' Exists
      Think what that disingenuous hack was saying is that if your firm's risk taking is large enough to have a macroeconomic effect, we will bail you out. If you are an individual, or a small firm, you're can help pay for it by depreciation of your savings and future wages. I don't understand how he thinks this is no cause for moral hazard. And regarding the hostorical precidence for bailing the market, this just shows that the past we had good leadership at the fed, and now we have political hacks that advocate only for short term incentives.
      View article »
    • Sun Dec 2nd 11:59 AM
      |
      Rating: 0 0
      Commented on:
      Do Rate Cuts Really Make an Impact?
      Since the more the fed reduces the overnight rate the worse the market is, how about we try raise them instead?

      Reducing rates now is just prolonging the necessary correction. This will just cause a prolonged period of funk after the Fed has finnaly shot their wad. In other words "I think we're turning Japanese, I think we're turning Japanese I really think so..."

      Good points abbottmd
      View article »
    • Sun Dec 2nd 10:49 AM
      |
      Rating: 0 0
      Commented on:
      What Does the Jump in Jobless Claims Mean for the Economy?
      Consumption in recent years hasn't ben supported by incomes, its been supported by borrowing. You can only do this for so long before you have to start paying it back, at which point your consumption spending becomes less than your income. Policy has encouraged consumption, when it should have been ecouraging productivity. Its a mistaken understanding of the cause/effect of wealth. Its like saying "I've noticed that when people are rich, they eat more lobster, therefore we should encourage people to eat lobster because we've noticed this correlation of lobster eating and being wealthy."
      View article »
    • Fri Nov 30th 22:39 PM
      |
      Rating: 0 0
      Commented on:
      Countrywide's FHLB Bailout
      Its in everybodies long term interests to let CFC succeed or fail on its own merits. A loan from the FHLB is a tax payer subsidy to a private company playing chicken with the economy. Paying articially low risk insurance rates does make it a real market just like a guy that pays his parents $100/month to live in their basement an independant adult. The insurance premium is enough until it isn't, and then they get bailed out. Just like national flood insurance, its self supporting with premiums until their's a major flood, then the program gets bailed out by the tax payers. If the loans given as colateral are anything like the home equity loans I see CFC hawk on TV all day long, then they're seconds and thirds and will likely be worth 0 cents on the dollar in the likely event of a foreclosure.
      View article »
    • Fri Nov 30th 21:54 PM
      |
      Rating: 0 0
      Commented on:
      Bank Coalition Near Accord to Freeze ARMs - WSJ
      For every undeserving household the receives an artificially low interest rate to own a home, a prudent one is excluded.
      View article »
    • Tue Nov 27th 01:18 AM
      |
      Rating: 0 0
      Commented on:
      Freddie Mac Raising Capital, Spooking Investors - Barron's
      Maybe when this all blows over we can look back and laugh how aroogant and foolish we were to mix government and mortgages. The ammount of corruption that was wrought on our congress and the realize that making interest rates artificially low just makes prices artificially high, so the end consumer is no better off.
      View article »
    • Mon Nov 26th 22:56 PM
      |
      Rating: 0 0
      Commented on:
      Mortgage Meltdown on the Horizon
      Perhaps there are so few people smart enough to have these qualifications for a mortgage but dumb enough to be buying in this market?
      View article »