Random Feed wrote an interesting post today on
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In case you ever wondered what happened those awful sub-prime mortgages, you will be happy to know that they are now being unwritten by the Federal Housing Administration. In fact, the FHA is responsible for 23 percent of all new loans this year, up from just 3 percent in 2006. That’s the good news. The bad news is that these new borrowers are pushing the program to the brink with default rates rivaling those that killed sub prime. And oh by the way, since it is already a

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Random Feed wrote an interesting post today on
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Mansoor H. Khan submits: A plan for the resolution of the insolvency of the U.S. banking system: The core problem of the U.S. banking system (and maybe the world’s banking system) is not liquidity but insolvency. The liabilities of the U.S. banking system exceed the value of its assets. The issue is not only the toxic assets (toxic mortgage backed securities, toxic commercial real estate loans, sub-prime mortgages, alt-A loans, adjustable loans likely to go bust, increase in prime

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Random Feed wrote an interesting post today on
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Hundreds of homeowners in Massachusetts will get foreclosure relief in the form of more affordable restructured home loans, as a result of a settlement between the state and Goldman Sachs & Company, over the investment firm’s sub-prime lending practices.Under the settlement announced Monday by Massachusetts Attorney General Martha Coakley, Goldman Sachs agreed to provide $50 million in loan re-structuring for about 700 Massachusetts homeowners who are struggling with sub-prime mortgages held by

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Random Feed wrote an interesting post today on
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This article tentatively accepts the proposition that the default of sub prime mortgages and the subsequent decline of housing prices have been the cause of critical problems in the banking system and collapse of credit markets world wide. Letís do some housing math. Last fall there were about one million delinquent mortgages. Let us presume the current figure is now fifty percent worse ñ i.e. one point five million homes. Assume that the average delinquent loan has a face value of about $

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Random Feed wrote an interesting post today on
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“As the U.S. financial crisis broadens and deepens, wiping out the wealth and savings of tens of millions, destroying hopes and dreams, it is hard not to see in all of this history’s verdict upon this generation. We have been weighed in the balance and found wanting. For how did this befall us, save through decisions that brushed aside lessons that history and experience had taught our fathers? It all began with the corruption called sub-prime mortgages. The motivation was not wicked. Democra

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