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HomeMorgan Stanley Remains Bearish on Housing
Posted by Larry Doyle on January 13th, 2010 1:20 PM |
The equity markets can and will do whatever they want, but when I look at the economy I remain steadfastly fixed on our housing and labor situation. When these cornerstones of our economic landscape not only stabilize but show marked improvements I will become more constructive on our overall outlook. Are we there yet? No way.
Thanks to a loyal Sense on Cents supporter, I am happy to provide Morgan Stanley’s U.S. Housing Outlook for 2010. What are the key points to this report?
1. Housing transactions have increased and prices have stabilized due to massive government supports.
2. The bottoming process continues and the trend for housing remains down given the high percentages of homeowners with negative equity, the high rate of unemployment, the lack of a viable Jumbo mortgage market, and increasing rates of mortgage delinquencies. (more…)
Financial Crisis Inquiry Commission Questioning
Posted by Larry Doyle on January 13th, 2010 11:28 AM |
I did not expect to learn anything riveting from today’s Financial Crisis Inquiry Commission’s questioning of the Wall Street CEOs and I didn’t. Why?
The executives being questioned represent the survivors or are new to the game. Who are they?
Lloyd Blankfein of Goldman Sachs
Jamie Dimon of JP Morgan
John Mack of Morgan Stanley
Brian Moynihan of Bank of America
The Commission will be at work during calendar 2010, but the initial performance will pack the biggest punch and get the most attention. Why? Simply because the media will provide the greatest coverage to the opening round. (more…)
Audit the Fed or Washington Rope-a-Dope
Posted by Larry Doyle on January 13th, 2010 8:47 AM |
The American public wants answers.
The Washington establishment, primarily in the persons of Ben Bernanke and Tim Geithner, clearly feel America can’t handle the truth. What truth? The depth of economic despair and problems primarily embedded in our nation’s financial system. What institution has tried to fill the hole in our financial system? The Federal Reserve.
Given the shadowy operations of the private institution that is our central bank, Americans are justifiably nervous and concerned as to what lurks behind the shadows inside the Federal Reserve. To this end, with the leadership of Ron Paul (R-TX) the calls to ‘audit the Fed’ are growing ever stronger. (more…)
12th Street Capital Prescient re: Mortgage Fraud
Posted by Larry Doyle on January 12th, 2010 3:33 PM |
Last August, our friends at 12th Street Capital highlighted the strong likelihood of increased mortgage fraud by brokers originating loans with FHA insurance. In my piece “Fair and Fraudulent Mortgage Lending,” I referenced the stellar work and perspectives provided by KD and his 12th Street team. I wrote:
Where can one go to receive a fair deal in the process of getting mortgage financing? What parts of the mortgage market may represent the next wave of fraud? Which firms may currently be involved in these frauds?
Major “high five” to KD and our friends at 12th Street Capital for providing tremendous perspectives on these topics this morning. KD writes:
From the Fair Mortgage Collaborative website . . .
The Fair Mortgage Collaborative is a nonprofit membership organization whose members are individually and collectively committed to providing low and moderate income and minority homeowners and homebuyers access to mortgages with the consumers’ best interests at its core, at a fair rate of compensation. Our approaches and standards work for all homeowners and homebuyers.
KD’s comment: “While I certainly applaud their effort, I would make the friendly suggestion they should be looking at FHA lenders and Reverse Mortgage lenders in particular . . . for those are the bastions of future (and current) abuses.”
What do we learn today, five months later? The Wall Street Journal reports on a number of mortgage firms being subpoenaed for the very activities highlighted by 12th Street last August. (more…)
Will America Learn This Thursday if Mary Schapiro is a Liar?
Posted by Larry Doyle on January 12th, 2010 12:20 PM |
Head of SEC, Mary Schapiro
January 14, 2010 at 4pm
U.S. Distict Court for the Southern District of N.Y.
Presiding Justice, Jed Rakoff
Will America learn this Thursday afternoon if SEC Chair Mary Schapiro did in fact lie verbally and in a proxy statement regarding the merger of the NASD with NYSE Regulation to form FINRA?
As I highlighted in my commentary yesterday, “The Financial Crisis Inquiry Commission Should Investigate…”, I believe FINRA and Mary Schapiro are truly the embodiment of the Wall Street-Washington cabal that stifles the truth, transparency, and integrity America so badly deserves.
For more details on this case and the upcoming hearing, I submit the following press release that came out this morning:
MAJOR NEWS ORGANIZATIONS ASK WALL STREET SELF-REGULATOR TO COME CLEAN ON ALLEGED WRONGDOING AND URGE FEDERAL JUDGE TO UNSEAL KEY REDACTED FINANCIAL INFORMATION IN BROKERS’LAWSUIT AGAINST FINRA.Mary Schapiro and other NASD Managers Allegedly Lied to and Shortchanged NASD Member Broker-Dealers in 2006 Merger with NYSE and otherwise Violated Their Fiduciary Responsibilities. (more…)
A Windfall Profit Tax for Wall Street?
Posted by Larry Doyle on January 12th, 2010 8:42 AM |
The American taxpayer bailed out Wall Street. How does Wall Street return the favor and refund the American taxpayer? Why is Washington pursuing this topic now? The Washington establishment feels the beating pulse of rage from the American public.
I guess it would have been too much to expect the Washington crowd to proactively address the topic of repayment from its incestuous partners on Wall Street. In fact, we should expect to hear the Wall Street establishment bellow that they have paid back the TARP funds and that should be sufficient. Wall Street should not be so naive. The American taxpayer bailed out the entire industry as much as it bailed out any single specific firm. Washington should not be so cute in structuring a repayment program where the costs are conveniently passed along to the American public. American taxpayers should not be easily placated. (more…)
The Financial Crisis Inquiry Commission Should Investigate…
Posted by Larry Doyle on January 11th, 2010 9:28 AM |
Will America ever truly learn what happened on Wall Street that brought our markets, our economy, and our country to its knees?
We should not expect the incestuous Wall Street-Washington partners to implicate themselves and thoroughly expose their shortcomings. A full 16 months since the failure of Lehman Bros. and how much have we truly learned? What change has really occurred? Who has been fired in Washington? Who has been indicted on Wall Street? Will the Financial Crisis Inquiry Commission, charged with investigating the factors which facilitated our economic disaster, truly be effective?
The truth may hurt but if the hard questions are not asked, the failings are not exposed, and those responsible are not held to account, then the lessons will not be learned, and the experience will likely repeat itself.
Will the commission pretend to investigate, but ultimately wilt under the pressure of the incestuous pillars of power? Will the commission rise above the fray, hold people and institutions to account, and make our country proud? Will the commission use its power to subpoena, if need be?
Whom should the commission pursue? What agencies and institutions should the commission target? If I were on the commission, I would recommend pursuing the following targets: (more…)
NQR’s Sense on Cents with Larry Doyle: America’s Open Mic
Posted by Larry Doyle on January 9th, 2010 4:18 PM |
UPDATE: This episode of NQR’s Sense on Cents with Larry Doyle has concluded. You can listen to a recording of the episode in its entirety by clicking the play button on the audio player provided below. Once the audio begins, you can advance or rewind to any portion of the episode by clicking at any point along the play bar.
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America is talking . . . loudly.
Washington and Wall Street may think they can continue to play “business as usual,” but the times they are a-changin.
Why are incumbents from both parties quitting? Why are select previously friendly members of the media starting to turn on the administration? Why are selected politicos even starting to turn on senior members of their own party?
The answer to all the above is the same: America is speaking up like never before. America is fed up with the standard pandering and posturing put forth by banksters, regulators, and politicians.
So much to talk about. So many issues across so many sectors of our economic landscape. Please join me from 8-9pm ET this Sunday evening, January 10th for NQR’s Sense on Cents with Larry Doyle as I provide America’s Open Mic.
