If only these simple 8 steps could fix economy

ZeroHedge ran a post from OfTwoMinds today with eight steps to fix the economy. Among the recommendations are requiring all banks to mark MBS, real estate and all other assets to market daily/weekly and imposing massive fines for mark-to-market misrepresentations. Doing so would mean writing off at least $5.8 trillion of fantasy “value,” most of

‘Too Big To Fail’ Movie Review: Hank Paulson’s Legacy

I finally saw HBO’s Too Big To Fail, a movie based on Andrew Ross Sorkin’s book of the same name. It was about Treasury Secretary Hank Paulson’s enactment of TARP during the darkest days of the financial crisis, and begins with Treasury taking over Fannie and Freddie on Sunday, September 7, 2008. That day, my

Updates On TARP, Gov’t Loan Modifications, Finreg for Lenders

Yesterday I summarized new Finreg rules requiring banks to retain at least 5% of loans they sell into secondary markets, and outlined which Qualified Residential Mortgage (QRM) loans will be exempt from this rule. The exemption debate rages, and here’s the Mortgage Bankers Association’s “profound concerns” on the matter. The QRM proposals are now open

Fannie Mae’s 2011 Housing Predictions. Six Banks Repay TARP To Taxpayers

Economist vs. Market Participant Outlook Economists make their living off of forecasting the future or explaining why their earlier predictions were incorrect. But by then, many have forgotten the earlier prediction. Rarely do traders base decisions on what an economist will say but in the mortgage banking arena, predictions by the MBA, Freddie, and Fannie