Archive for the ‘economy’ 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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…this article speaks of shaken confidence should the money grab occur.  I submit the damage is done.  By planning this and moving to execute, the Cypress government betrayed their citizens.  By planning this and moving to execute, the Eurozone leaders did the same.  The message has been sent: we can and will take your money.

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.

This is not a partisan issue.  The corruption is bipartisan in that politicians of both stripes have declined to prosecute the criminals who drove the housing market to massive heights before destroying the economy.  Someone recently told me the Rule of Law is still strong in America; I don’t disagree…so long as you are not one of the “masters of the universe”.

I, too, have been surprised there hasn’t been a tsunami of foreclosures.  Perhaps my error was one of not understanding the totality of the system.  I suspect there has been a wave of defaults the data may not show yet; however, they are not foreclosures and the wave probably won’t be seen because of “system bandwidth“.

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.