Archive for the ‘Banks’ Category

It’s almost spooky to see this play out.  Last week, the idea of taking deposits was floated in Cyprus.  An uproar ensued (the banks are still closed there).  Cypress appears to have rejected the idea but I suspect it’s more tabled than rejected for the moment.  I wrote that it doesn’t really matter as Pandora’s box has been opened.  I did not expect to hear less than a week later the open admission this precedent will be acted upon in other regions, “if necessary”.  I thought they’d give it a month or so, at minimum.  I was wrong.

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I agree, Mr. President.  Interestingly, I wonder if the architects of this money grab considered half the money in the banks there belong to Russian citizens?

same stuff, different year.  The government may as well indemnify the banks against any further prosecution.

…here’s a compiled list (reported to be all?) of the programs aimed at helping the banks and homeowners in the housing crisis.  And yet, the crisis is still ongoing.

What at first glance may have seemed a slam dunk may not be so.  Looks like BoA has some wiggle room in the characterization of the bad faith argument the government will need to prove.  As has been noted, it’s likely BoA will settle rather than risk the tricky argument and the triple damages the government could claim.

I would rather see a forced path out of this mess (in terms of requiring short sales, etc.) than a monetary settlement.  Here’s to hoping the consumer wins in this mess.

The folks who’s business it is to track trends say they have no idea.  Here’s my two cents: if you’re buying for the long term, rates are incredibly favorable.  However, make sure the market you’re in is the right one.  E.g., Colorado Springs not Las Vegas.  The former has a high occupancy rate and homes are selling in under 24 hours.  The numbers have been stable, too.  The latter has a massive overhang of houses and a lot of underwater homeowners which can only translate to downward trends in prices.

…Drudge linked this article with the headline, “Banks scrapping free checking accounts due to government regulations.”   This caught my attention; are the regulations so intrusive the banks must charge consumers?  No, as the actual article indicates, the banks simply won’t tolerate any intrustion into their profit margin.

Most people who have done any analysis on the topic of the government’s (and industry’s) response to the housing crisis would say that it has been…lacking…to say the least.  They will probably categorize the response as terrible.  I am sure I have done so, too.  However, the truth is (IMHO) a bit more nuanced.   I think the response has been both lacking and terrible…on purpose. 

I say all that to say the bottom is nowhere in sight.  While I am not a conspiracy theorist, I do think that many individual actors acting at the same time in accordance with what they perceive to be their best interests will appear to be a conspiracy.  Along those lines, the end is nowhere in sight because “they” don’t want it to be.  Until such time as positive, direct action is taken to alleviate the toxic debt referenced in the preceeding link, nothing will change.