Unclogging the Foreclosure Market. . . on the Cheap Want to fix the economy? First you have to address its Achilles’ Heel, the weak national housing market. In turn, that means addressing housing’s Achilles’ Heel, the burgeoning number of foreclosures. Instead of throwing tens of billions at former investment banks, Washington would do well to...Read More
Saving Detroit — Or Not“Even when people set their own houses on fire, we still dial 9-1-1, hoping to save lives, salvage what we can and protect the rest of the neighborhood.” –Bob Herbert, “‘Drop Dead’ is Not an Option” (The New York Times; 11/15/08) Great analogy, but Herbert doesn’t push it nearly far enough...Read More
The Real Lender of Last Resort —And Why It’s Due for a ComebackTraditionally, the Federal Reserve holds the title of *“lender of last resort.” However, that’s only true if you are a troubled corporation with a $100 billion-plus balance sheet. If you are Joe or Jane Home Buyer, the real lender of last resort is...Read More
Realtor Lobbying Clout Overrated Housing may enjoy its share of tax breaks, incentives, etc., but that’s likely in spite of — not because of — realtors’ lobbying clout. Locally, the deadline for paying annual dues to the board of realtors is Dec. 1. As part of their dues collection campaign, the board implores its members...Read More
Successors to “T.A.R.P.”:“B.A.R.F” and “H.U.R.L.”Given the evolving nature of the Troubled Assets Relief Program (“TARP”), and the *Federal Reserve’s penchant for appending the term “facility” to all its financial rescue efforts, it may be timely to give TARP a more accurate — and descriptive — name. My suggestion: Bank Assets Relief Facility, or “B.A.R.F.” In...Read More
“In the long run we’re all . . . broke?” *Until recently, the standard for futility was the Cal Tech football team (“we may be small, but we’re slow”). Now, however, it’s many long-term stock investors. Really long-term. Pick an investment, and, if you’re brave, glimpse at how far prices have been rolled back. The...Read More
