That’s the question I fielded the other week from a client on behalf of their friend, who was leaving town imminently, and was (deeply) underwater on their North Minneapolis home. The short answer: ‘no.’ The more detailed answer: “no, for about 18 different reasons,” starting with the fact that what the underwater homeowner is essentially “donating” is a...Read More
(Modern) History Quiz “You have to wonder what it will take for serious people to realize that punishing the populace for the bankers’ sins is worse than a crime; it’s a mistake.” Who said the above, about what? A. President Obama, about TARP, zero percent interest rates, and other Wall Street bailouts.B. FDR about investment...Read More
Laws, Sausages — & Securitized Mortgages Laws are like sausages ” it is best not to see them being made. –Otto Von Bismarck To “laws” and “sausages,” now add “securitized debt,” circa 2004-2008. It turns out that Wall Street’s financial sausage factory was even more toxic and laxly run than previously thought. The latest chapter...Read More
Waiting on Economists’ “Chants and Charms?” “A mighty good chant,” said the King, looking very pleased. Are you sure it will work?” All the magicians nodded together. “But,” said the King, looking puzzled, “How long will it take?” “Be calm, oh, Sire, and have no fears,” chanted the magicians. “Our charm will work in ten...Read More
Corporate Campaign Contributions In Citizens United v. Federal Election Commission, the Supreme Court decided that corporations could spend as much as they wished at any time, assuming there was no direct coordination with the candidate. In doing so, the court overturned its own precedents and refused to distinguish the free speech rights of corporations and...Read More
TARP Mystery . . . Solved! OK, it’s taken me almost a year to puzzle out, but I think I’ve finally got it: Superficially, the hundreds of billions in TARP money handed over to the financial sector’s worst actors only looks like a stupendous reward for failure — and not a little like ransom money,...Read More
