The Subprime Collapse:
Today's hot news item has been all about the collapsing housing market and the faltering economy. According Mara Lee of National Public Radio, "Nationwide, more than 13 percent of subprime borrowers were late on payments in the fourth quarter of 2006." While the subprime market share for housing may be small—about 20 percent of the overall market according to Lee—the effect on the housing market will be to see a general stiffening in the way loans are written for housing. It's going to be harder to get a "friendly" loan to build a new house, further depressing the overall housing market. More than 80 percent of these loans go to persons recognized as members of various minority groups.
The Kicker: Remember when you were told that buying a house was your best investment? Today it may well be worth less than when you bought/built it.
Pat Tillman Saga Continues:
A memo came to light recently, indicating the Bush administration had every reason to suspect that football player Pat Tillman was killed due to friendly fire long before the knowledge was made public. In other words, the administration exploited the man's death to avoid protest against their war policy, including hiding the facts as long as possible from the man's family.
AG Gonzales' Participation in Firings Growing More Evident:
Attorney General Alberto Gonzales had knowledge of the controversial firings of eight U. S. attorneys up to two years prior to the time they were actually fired, according to his former chief of staff, D. Kyle Sampson. The most serious problem at this point for the AG is his continued lying about his knowledge. The next question will be just what action the congress plans to take.
Today's hot news item has been all about the collapsing housing market and the faltering economy. According Mara Lee of National Public Radio, "Nationwide, more than 13 percent of subprime borrowers were late on payments in the fourth quarter of 2006." While the subprime market share for housing may be small—about 20 percent of the overall market according to Lee—the effect on the housing market will be to see a general stiffening in the way loans are written for housing. It's going to be harder to get a "friendly" loan to build a new house, further depressing the overall housing market. More than 80 percent of these loans go to persons recognized as members of various minority groups.
The Kicker: Remember when you were told that buying a house was your best investment? Today it may well be worth less than when you bought/built it.
What's a subprime loan?
Generally, subprime loans are mortgages given to borrowers with credit scores of 620 or below. Such low scores result from a history of paying debts late or not paying debts at all.
Because subprime borrowers are seen as "higher risk," their loans carry interest rates that are at least 2 percentage points higher than those offered to borrowers with better credit. So, for example, while a credit-worthy borrower could get a mortgage at 5 percent interest, the same mortgage would cost a subprime customer 7 percent interest or more.
("Subprime Mortgages: A Primer" by Mara Lee)
Pat Tillman Saga Continues:
A memo came to light recently, indicating the Bush administration had every reason to suspect that football player Pat Tillman was killed due to friendly fire long before the knowledge was made public. In other words, the administration exploited the man's death to avoid protest against their war policy, including hiding the facts as long as possible from the man's family.
AG Gonzales' Participation in Firings Growing More Evident:
Attorney General Alberto Gonzales had knowledge of the controversial firings of eight U. S. attorneys up to two years prior to the time they were actually fired, according to his former chief of staff, D. Kyle Sampson. The most serious problem at this point for the AG is his continued lying about his knowledge. The next question will be just what action the congress plans to take.
Labels: Politics, The Economy
posted by Jim | 9:12 PM
1 Comments:
The Bush wrecking crew has refined, as never before, the art of using military people as stage props. Why just the other day, the president spoke out against the Democrats still-weak plan to bring an end to the U.S. troop presence in Iraq and there, on the stage behind him, was a clearly handpicked and vivacious young officer. I am incensed over his use of soldiers, sailors, airmen and Marines as props for his stupid, gawdamn speeches. The draft dodger who couldn't even fly air cover for Houston before going AWOL has got one helluva lot of nerve.
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