Tag Archives: recession

Housing Crash Increases Rent Costs

You’d think a crash in real estate prices would reduce rents. You’d be wrong. As more people leave their homes and abandon their dream of owning their home, more such people are forced to rent. Rising rents are fueling inflation … Continue reading

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50/50 Chance We’ll Fall Into A Recession

I’m watching Larry Kudlow on CNBC. They’re listing off all the signs that point to a recession. A flight to safety such as gold and U.S. Treasury bonds. A reluctance by business and investors to invest in anything but gold … Continue reading

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The More The Government Intervenes In The Housing Market, The Worse It Gets

By scrutinizing the way banks were handling foreclosures, that market came to a halt for months and the free market was gummed up. The more government pushed various mortgage modification schemes, the more people tried for unrealistic modifications to their … Continue reading

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British Banks Reluctant To Loan

The Labor government is working to restore confidence among banks over lending to one another. The Bank of England governor testified before parliament. He wants a second five-year term as leader of the UK’s central bank. Mervyn King says he … Continue reading

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UK Interest Rates Not Falling Any Time Soon

So the UK Chancellor Alistair Darling met with the big lenders today and tried to talk them into lowering their interest rates. That ain’t happening soon. The banks see the country is headed for recession. That means more defaults on … Continue reading

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Another Bank Drops Out Of The British Mortgage Market

Sky News Business reports that nobody knows how the mortgage mess will play out. Meanwhile, some lenders are pulling out of this dangerous market. People with great credit and good incomes can still get loans. The head of the Co-operative … Continue reading

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The Subprime Mortgage

The best way to avoid a subprime mortgage is by having a good credit score. Looking around the country, I see it is more difficult to get loans. Foreclosure rates are skyrocketing. Many businesses are going bankrupt and there’s talk … Continue reading

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Fed Cuts Rates, But 30-Year Mortgages Rise

From the Boston Globe: The Federal Reserve keeps cutting interest rates, but interest rates on mortgage loans aren’t falling. Just the opposite. The chart above, from the front page of today’s Globe, shows the pattern nicely. The basic reason is … Continue reading

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How’s Wall Street Reacting To The Credit Mess?

Bad leveraged investments in subprime loans led to the current mortgage crisis. How’s Wall Street reacting? By going conservative. Companies are holding cash. Those with high-risk real estate investment portfolios are in trouble. David Leonhardt writes: A recession could cause … Continue reading

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We Haven’t Bottomed Out Of The Subprime Crisis

Business Weeks reports that the housing market is getting worse. Foreclosures are breaking records. Home equity is way down. And the economy is headed towards recession. For the first time since the Federal Reserve started tracking the data in 1945, … Continue reading

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