Tag Archives: bear stearns

Dennis Prager: A Low Regulation Philosophy Did Not Cause Our Subprime Debacle

Dennis says on his radio show today: “Prager H1: You think our banks are in bad shape? They look rock solid next to the banks of Europe, especially Eastern Europe… Climate change skeptics meet in New York… If Islam is … Continue reading

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Do You Remember The Spring Of 2007?

Everything was great with the economy. Consumer spending was strong. The credit markets looked strong. Sure, the real estate bubble had burst. I am reading the 2008 book by Charles Morris, “The Trillion Dollar Meltdown: Easy Money, High Rollers, and … Continue reading

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It Is Not All Fannie/Freddie’s Fault

Report: There is a meme developing that the current financial crisis is all, or at least mostly, attributable to Fannie Mae (FNM) and Freddie Mac (FRE), with a strong supporting role for the Community Reinvestment Act (CRA). This is simply … Continue reading

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Commentary Magazines Examines Mortgage Crisis

Report: By 2007, Fannie and Freddie owned about half of the $12 trillion in outstanding mortgages, an unprecedented concentration of debt—and of risk. Much of the debt was concentrated in the class of sub-prime mortgages that had proliferated after the … Continue reading

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Profits Drop At JP Morgan

Big surprise here: Profits at JPMorgan Chase fell by 84 per cent in the third quarter as bad mortgages inherited through its acquisition of the failed Bear Stearns took their toll. The American bank made a profit of $527 million … Continue reading

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Candidates Offer Varying Fixes For Mortgage Crisis

From the Boston Globe: John McCain says his mortgage plan will help overburdened homeowners keep their houses and boost an economic recovery. Barack Obama says it will hurt taxpayers and reward reckless financial institutions that helped cause the crisis. McCain … Continue reading

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Will The Government Fix Work?

Report: Second, Congress wanted to encourage home ownership and so allowed two major players in the mortgage market, Fannie Mae and Freddie Mac, to avoid strict oversight if they just helped people who normally could not afford a home buy … Continue reading

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Feds To Lose Billions On Bear-Stearns

From Bloomberg: About 80 percent of those are so- called Alt-A mortgages, a step higher than subprime in terms of quality, with the remainder prime mortgages, Bank of America estimates. Valuing the Maiden Lane assets “puts the Fed squarely in … Continue reading

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Bailing Out Bad Mortgages

From SFGate.com: The centerpiece of the program is a plan to take hundreds of billions of dollars of troubled mortgage loans off the books of financial institutions and put them into the hands of the government. Financial markets responded enthusiastically … Continue reading

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Who’s To Blame For The Subprime Crisis?

Economist Steven A. Landsburg writes: It seems to me that the Federal Reserve and government regulators are largely propping up the lifestyles not of the middle class in general, but of various individuals who made choices that turned out badly … Continue reading

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