Modern Greek Drama That seems to be the question of the hour — along with a certain Greek (financial) drama playing out in Europe (plus the winding down of the Fed’s QE II campaign). My take: with rental vacancy rates at 3% (and falling) in the Twin Cities, I see lots of demand for houses in...Read More
Uhh . . . You Might Want to Get a 2nd (Legal) Opinion There may be valid reasons to keep Lake Calhoun, “Lake Calhoun,” but I very much doubt that it’s because no one has the legal authority to change it: Last week, Minneapolis Park Board attorney Brian Rice issued an opinion saying the organization...Read More
Financial “Sword of Damocles”: Outstanding Derivatives Dwarf World Economy What’s the best evidence, post-crash, that meaningful financial reform has yet to occur? It’s not that those who helped orchestrate the debacle — corporations and individuals — have escaped accountability. It’s not that the largest banks, whose size and interconnectedness raised the spectre of contagion — and therefore...Read More
Fed Fall-Out — or, “Trying to Avoid Bubble Baths” Quick, which of the following is currently a bubble? A. Stocks B. Bonds C. Commodities D. Housing E. Commercial real estate F. Precious metals (gold, silver, etc. ) G. All of the above Answer: hell if I know. And judging from what I read these days ....Read More
Diagnosis: Excellent. Prescription: None Until we as a country figure out how to divvy up these losses on housing and let these markets clear and move on, they will be a serious drag on employment. –Thomas L. Friedman, “The Uncertainty Tax“; The New York Times (6/11/2011) NYT Columnist (and former St. Louis Park ECHO staffer)...Read More
Goldman Sachs Deserves “Capital” Punishment So, Goldman Sachs stands accused of having pocketed billions from its massive short against the housing market — and lying about it to Congress. How is it defending itself? Watch carefully. Legal Semantics — Not a Denial The company is not saying, “we didn’t do it” — even though that’s sure what it sounds...Read More
