Greenspan, the Wizard of Bubbleland [Sept 14, 2005]
Greenspan’s formula of reducing market regulation by substituting it with post-crisis intervention is merely buying borrowed extensions of the boom with amplified severity of the inevitable bust down the road. The Fed is increasingly reduced by this formula to an irrelevant role of explaining an anarchic economy rather than directing it towards a rational paradigm. It has adopted the role of a cleanup crew of otherwise avoidable financial debris rather than that of a preventive guardian of public financial health. [...]
Don’t get caught in the housing bubble crash (part one) [Dec 29, 2005]
In 1998, I began loudly warning people about the approaching dot-com bust. I had analyzed the situation and knew the bubble was going to burst. There was no doubt in my mind, because I looked at the fundamentals of these internet companies’ finances… the internet startups that had stock prices in the billions of dollars but had sold no products, had no revenues and had no customers. You don’t have to be a genius to figure out that bubble was going to burst, and something very similar is happening today in the housing market. I’ll explain all this later.
Warning signs of the housing bubble crash (part two) [Jan 1, 2006]
But today, there are radical loan structures that are interest-only loans. You pay for five or 10 years, and you own nothing. You pay interest only. There are people who think they own their homes, paying interest only. They’re building zero equity. Some of these people are qualifying on 5 percent down. There are people qualifying for even less, but that’s the typical low qualification happening today. You can buy a $200,000 house for $10,000 in cash, and you pay no principal. You pay nothing but interest for five or 10 years, and it’s a variable rate interest, as well. This is a financial time bomb just ticking away.
Subprime Credit Crunch Could Trigger Collapse [Jul 26, 2006]
Some of you might have seen my new informational site, the Mortgage Lender Implode-O-Meter. But for those who haven’t, I started this site to coherently track a story that is otherwise only quietly developing on a smattering of disparate finance blogs and message boards, with little treatment in the mainstream media (MSM). That story is the collapse of mortgage lending finance, especially in the subprime sector.
Pop Goes the Bubble!
The Great Housing Crash of ’07 [Aug 30, 2006]
The housing bubble is a $10 trillion equity balloon that will explode sometime in 2007 when more than $1 trillion in no-interest, no down payment, adjustable-rate mortgages (ARMs) reset; setting the stage for massive home devaluation, foreclosures and unemployment. (“By some estimates housing activity has accounted for 40% of all the jobs created since 2001″. Times Online) July’s plunging sales are just the first sign of a major slowdown. The worst is yet to come.
Pessimistic stock guru goes with the short answer [Sept 25, 2006] [$, free abstract]
Hickey points out that housing sales have collapsed, prices are eroding, and a whole army of homeowners on adjustable-rate mortgages face sharp spikes in their monthly payments as their introductory periods expire.
The Secret Maneuverings of the Plunge Protection Team [Mar 17, 2007]
The Working Group on Financial Markets, also know as the Plunge Protection Team, was created by Ronald Reagan to prevent a repeat of the Wall Street meltdown of October 1987. Its members include the Secretary of the Treasury, the Chairman of the Federal Reserve, the Chairman of the SEC and the Chairman of the Commodity Futures Trading Commission. Recently, the team has been on high alert given the increased volatility of the markets and what Hank Paulson calls “the systemic risk posed by hedge funds and derivatives.”
Welcome to the United States of Foreclosure [Mar 18 2007]
The stock market is about to crash. The only question is whether it will quickly drop down the elevator shaft or follow the jerky flight-path of a man pushed down a stairwell. Either way, the outcome will be the same; stocks will nose-dive, the dollar will plummet, and the bruised US economy will be splattered on the canvas like George Foreman in Rumble in the Jungle.
The Subprime Scandal [Mar 19, 2007]
Why is the market so nervous? Mainly thanks to the latest bitter fruit of financial deregulation: the collapsing $1.3 trillion “subprime” mortgage business, which now accounts for one mortgage in three. Here is a textbook case of why financial institutions need to be regulated, to protect both consumers and the solvency of the larger economy.
–researched via reddit