Oct

29

Securitization – Good Idea Gone Bad or What Just Happened

October 29, 2008 | 1 Comment

I used to work for a credit card/finance/mortgage company.  I always wonders how they got around the capital requirements I learned about in Money and Banking class.  Well know I finally understand the big picture.  Most of the expansion in the last 20 years has been a result of securitization.
What the Heck is Securitization?
The government [...]

Oct

23

Magical Thinking

October 23, 2008 | 3 Comments

Do you blame your problems on somebody else?  The sub-prime mess is either Clinton's, Bush's or Congress's fault depending on who you believe.  Most of our problems are caused by magical thinking.  Magical thinking is 1 + 1 = 3.  Magical thinking says giving poor people houses is a good idea.  You need to remove [...]

Oct

22

Fed Chief Pushes for Another Stimulus Package

October 22, 2008 | 7 Comments

Ben Bernanke, Chairman of the Federal Reserve (the bank's bank) told Congress he supports another stimulus package.  What does this mean for you?
In testimony before congress Bernanke said that he supported another stimulus package.  President push also supported another stimulus package.  However, Bush wants the new package to be "targeted, temporary and timely."
What is the [...]

Oct

9

Bank Loans Have Not 'Dried Up'

October 9, 2008 | Leave a Comment

It's important to note that even though the hysterics of Washington bureaucrats indicate otherwise, lending has not stopped.  It may cost you a little more, and you might have to actually, well, you know, qualify for the loan, but the banks are still lending money.
I talked to a banker buddy of mine and he confirms [...]

Oct

3

Back To Basics

October 3, 2008 | 1 Comment

The major news right now is the so called credit crises.  Banks aren't lending to each other so the government is going to spend close to A TRILLION dollars to fix the problem.  It's depressing but we can't dwell on it.  (Just remember if your congress(wo)man voted for it in November, voting is the best [...]

Sep

23

Letting the Storm Pass

September 23, 2008 | Leave a Comment

I'm watching and reading even less news than usual.  Why?  Because everyday we are flooded with bad news and bad news doesn't make me money.
When I do happen to catch some news, financial or otherwise, I grimace.  Mostly because the people that are watching it look so depressed.  
Yes the market tanked.  Yes Wall Street [...]