about this blog
- Elizabeth MacDonald is the stocks editor for Fox Business Network. She is recognized as one of the top prize-winning business journalists in the country, and has received 14 awards, including the top prize in business journalism, the Gerald Loeb Award for Distinguished Business Journalism, and the Newswomen's Club of New York Front Page Award for Excellence in Investigative Journalism.
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DrZoidberg
Maybe someone could post here - WHERE one can write any thoughts in a broader forum ? Running downstairs to get a coffee- I caught FBN running a comment on Florida suing Mozilo. They left out Washington State in the list of states suing. It's California, Illinois, Washington AND now Florida. Odd - these states are suing on the very subject MacDonald brings forward on these attractive no money down loans - Perhaps one way to explore the matter is to examine OTHER types of loans, and see who in their right mind would issue 5 year no money down loans on such HIGH valued products. Airplanes ? Boats ? Cars ? Perhaps a car loan would be a good place to start. WHO would lend ANYONE 250k to buy a car - no money down, 5 yrs, no interest, no income check etc. hmmm - that one spells it all out. Fraud with Intent.
DrZoidberg
More so if people have been living rent free for 5 years ? in nice big 250k to 500k homes ? No money down - No interest payments till 5 years later ? I have only one question and it's a scary one. Were they allowed to draw on home equity ? Is there really a TWO times multiplier in this game of pinball ? I use pinball borrowing from Jerzy Kosinski's book Pinball where one reference to the title is made in the book 'Pinball, you never know what's going to happen next'. is it possible that we not only see the loss of the home as a product - at 400k + depreciation ? BUT - another 400k in HELOC's taken out on it ? My God.
DrZoidberg
Question to Elizabeth MacDonald... Did you ever find Bear Stearns to be a heavy consumer of this 'toxic waste' as I think you put it accurately - regarding these resets that will start showing up in 2010 ? 2011 ? I think the most responsible thing to do is that a task force be formed to track down this 'toxic waste' and prepare for the defaults - perhaps even with penalties extended BACK to who SENT the toxic waste loan products. The FDIC as you point out says reset, and you say 'default' I tend to agree, why should anyone expect it won't default ? I think it would be foolish to NOT address the expected defaults coming. Legally ? perhaps there can be accountability through indictments - some to mine for more information, some prosecution. If an effort ISN'T made to aid in discovery as to who did what when (we know the why, at least my intuition says as to the why) ? I think we'll have far more than just one or two investment banks/firms like Bear Stearns find themselves with more on sheet balances in red than not. Maybe you can do some more pieces on what YOU think should or could be done to remedy these anticipated - not too far off in the future - write downs coming ? I see innercitypress.org bring data together, and 'basic' observations as to questionable activity - but to date I haven't found any other source than you that's on this matter with such clarity. I hope you continue to get closer to the truth and share more insights backed with data.
beholder
you can not unstain something that was so much toxic, not even with 29b free tax payers $. I am eager to see how they plan to clean all that mess that their greed created. Ben bought them some time but not near enough and grim collector is coming with bill. The Truth is to black for all of us, in the previous period to much money went to money haven, and no FED's mumbojumbo can resurected it. They can print as much as they want, but real money backed with real value assetes has just vaneshed and when oil baloon bursts (as next BS) the foundetion of this new age economy will be rocked. I think that old greek saying goes fromm nothing comes nothing...
Diggy Zazz
This is legitimized robbery. We've heard the "too big to fail" argument for these rich-boy bailouts before. It's the same swindle that Greenspan pulled to rescue Long Term Capital Management in the late '90's. I love the way that the neocon Fed chiefs preach the gospel of laissez-faire capitalism until some of their own are in danger of missing out on their $40 million Xmas bonuses. Then, it's big government to the rescue in a way that even th leftmost of liberals never envisioned.
Robert Canella
Wow... This is enlightening...we see the FED backing with Taxpayer dollars a deal to save a private equity company...then the FED takes profits on the deal...Dimon saying we don't think the collateral is worth anything at all. Nice deal! Next we see the "Friends of Angelo" getting deals from Countrywide/ B of A then offering more tax payer guarantees to the banks thru the DODD/SHELBY morgtgage bill...sure wouldn't want the banks to end up footing the bill for this mess! By the time this is over, I am afraid our children's children will be working 'till Christmas every year just to pay off the tax debts we are chalking up...gotta love those bankers and the FED!!! At least some real American's getting involved to get some attention to this non-sense. I understand there is a rally going on today (7/27) in Washington DC from a group called FED-UP USA... http://fedupusa.org