Tom Lindmark

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    • Deep Concern About the Economy: Three Views
      Tony,

      I assume you are excepting the current housing downturn. I think it does qualify.

      Actually the data is based on recessions caused by financial crises as opposed to other factors. As I mentioned, they do include a number of caveats. Worth reading the whole study.

      Tom
      Jan 07 23:07 pm |Rating: 0 0 |Link to Comment |View article
    • Solving the Housing Crisis in Bankruptcy Court
      Professor Bornstein,

      There is evidently some controversy regarding the numbers that you present here and elsewhere. I would refer you to Felix Salmon's post on Portfolio.com www.portfolio.com/view.... In the interest of open and honest discourse, you may rebut them here or if you like email me the rebuttal and I would be happy to publish it on your behalf, with my own appropriate analysis, of course.
      Jan 01 18:22 pm |Rating: +1 0 |Link to Comment |View article
    • GMAC: Why the Bond-Exchange Silence?
      Uncle Bubba,

      The Fed's approval of the GMAC application to become a bank holdiing company was conditional upon GMAC achieving certain target capitalization levels. They need to do the debt swap in order to meet those levels. So far as I know, they have not announced that they have achieved that threshold.

      The ad you saw for GMAC accounts with FDIC insurance was for GMAC bank. A small bank that GMAC has operated since 2001. It is not pertinent to the move by GMAC to become a bank holding company and gain access to TARP funds.
      Dec 29 15:01 pm |Rating: +1 0 |Link to Comment |View article
    • Some Decent Christmas Eve Economic News
      the hand,

      Thanks for your comment. The difference in the two figures involves stripping out food and energy from the measurment Reuters quoted yesterday. Both the number you cite from the BLS and the Reuters number are correct.
      Dec 25 10:57 am |Rating: 0 0 |Link to Comment |View article
    • Is Inflation Dead?
      It's an interesting piece with some good thoughts. One problem I have with your analysis is that while interest rates may be zero on a nominal basis, in a deflationary environment they can be punishing on a real basis. That's the reason that expansion in a deflationary period is rare indeed.
      Dec 19 15:56 pm |Rating: 0 0 |Link to Comment |View article
    • The Future of Residential Mortgages (Maybe)
      jepitman,

      Go ahead and write something. If you are right then I'll be the first to commend you.

      Tom
      Dec 14 22:53 pm |Rating: +1 0 |Link to Comment |View article
    • Greg Mankiw: Swap the Payroll Tax for a Gas Tax
      Not a bad idea!
      Dec 14 22:52 pm |Rating: 0 0 |Link to Comment |View article
    • Fannie and Freddie's Unbelievable Proposals
      If someone is current on their mortgage and demonstrates the ability to remain current what difference does it make whether or not they are underwater from a valuation point. You would seem to suggest that they be denied the ability to take advantage of a lower rate even though that action would further ensure their ability to service their debt. Denying them the opportunity to refinance is akin to cutting off your nose to spite your face.
      Dec 14 11:41 am |Rating: 0 0 |Link to Comment |View article
    • Loan Modifications: BofA Gets Taken to Court
      In the case of WAMU, the FDIC became the receiver of the bank after is was judged to be insolvent. The FDIC's job in this case is to find the least costly way to unwind the bank. Senior debt holders along with holders of other securities and uninsured depositors are entitled to 50% of whatever money is left after the institution is wound down.

      Thus senior debt holders of WAMU may be in line for some recovery of principal.
      Dec 05 15:01 pm |Rating: 0 0 |Link to Comment |View article
    • Another Day, Another Bailout: Deleveraging Denial
      Steve,
      Thanks for your comments but one observation. If I'm not mistaken the ABS market is relatively new so any historical comparisons suffer from the fact that they represent an easy money period. If the statistics went back 20 or 30 years or more, I might be inclined to agree that they are at an all time high. Right now, they may well be simply representing an acknowledgement of the risk inherent in the product.
      Nov 26 23:30 pm |Rating: 0 0 |Link to Comment |View article
    • Ten Reasons to Hate Mortgage Modifications
      Steeler Mom,

      I am pleased that it worked for you. As I said in the post, those that do suffer life changing events are the most likely to be helped. You're a perfect example. Thanks for the comment. It reminds me that there are more people like you out there who will take care of their obligations than there are people who want to game the system.
      Nov 25 20:46 pm |Rating: 0 0 |Link to Comment |View article
    • Misguided Policies
      Thank you. That was a fine article. No pie in the sky plans just a rational analysis of the inevitable direction the economy is going to go.
      Nov 13 11:00 am |Rating: 0 0 |Link to Comment |View article
    • It Might Be Impossible to Stop the Decline of Housing Prices
      When we get back to historical affordability and price/rent ratios the backlog will be absorbed. Stop looking for sure to fail schemes to turn things around. Let housing prices find their natural level just like any other asset and then watch the market efficiently work. There are projected to be 1.5 million new households formed next year. The country is growing unlike many and that natural organic growth will provide the demand to absorb the supply over time.
      Nov 09 11:42 am |Rating: +2 0 |Link to Comment |View article
    • The Worst Is Likely Behind Us
      Tough comments but probably accurate. The 10% growth figure since 1929 is simply playing with numbers. Pick the right low point and you can conjure up anything you want. Reality Check: The S&P has not grown over the last 10 years.
      Nov 02 11:48 am |Rating: 0 0 |Link to Comment |View article
    • Bad News for Housing
      I've said elsewhere that I don't doubt that there are a lot of homeowners that are underwater. Unfortunately, no one has explained how they come up with numbers like 20%. What's the methodology and how far underwater are they?

      There are projected to be 1.5 million household formations in the country next year. These new households represent a new source of demand for housing. Don't forget that in a growing country like the U.S. it doesn't take long to replace lost demand.
      Nov 02 11:41 am |Rating: 0 0 |Link to Comment |View article

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