realitycheek commented on the blog post Glenn Hubbard’s Hilarious Deposition on Behalf of Countrywide
Reminds me of Martin Short’s Nathan Thurm http://www.youtube.com/watch?v=Wc2o8ywKqos
realitycheek commented on the blog post Corporate Loans to Highly Leveraged Companies Proliferate
More loans are needed at reasonable terms. Let corporations stretch their debt out if it would help repayment verses default. But what is true for corporations should also be true for consumers. I don’t understand why there isn’t more outrage over the fact that the fed funds rate is targeted to remain between zero and one quarter of 1% and yet credit card rates have never been higher. When is that rate cut to the banks going to “trickle down” and cut the rates a consumer pays on borrowing? What happened to “Usury Laws”? why can’t a reasonable spread be enforced? Would someone please shed the light on these interest rate spreads?
realitycheek commented on the diary post Robert Samuelson’s Lessons from Jamie Dimon’s Bad Bet by Dean Baker.
If you think this situstion is really about banks making large derivative bets you are missing a major point, that is, there is no underlying product without a buyer. The crappy returns on sovereign debt around the world in the 2002-2007 made “AAA” mortgage backed securities look awesome to a lot of folks domestic and [...]