You are currently browsing the Armchair Economist weblog archives for the day March 6, 2008.
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- April 3, 2008: Armchair Economist gets a much-needed update
- April 3, 2008: Ghost of Herbert Hoover
- April 3, 2008: Are you smarter than a high-schooler?
- April 3, 2008: Katrina hero: Wal-Mart
- April 2, 2008: No Child Left Behind
- April 2, 2008: The poverty hype
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Archive for March 6, 2008
Hillbama and taxes
March 6, 2008 by Tom Armstrong.
Mark Perry has some advise for Hillbama.
Posted in General post | 1 Comment »
Bernanke’s principal
March 6, 2008 by Tom Armstrong.
The Fed tells bankers to create more losses.
Posted in General post | 1 Comment »
Some mortgages should fail
March 6, 2008 by Tom Armstrong.
This WSJ opinion begins:
Most of the recent housing-related initiatives have focused on keeping people in their homes. But lawmakers would actually help the housing market stabilize more quickly if they took action to dislodge those borrowers who don’t have the desire and financial ability to stay.
Declining housing prices and the fear of further declines are the root causes of many of our problems. As a result of falling prices, homebuyers delay purchases, thus decreasing housing demand. Some homeowners stop making payments, especially if they believe that their homes are worth less than the mortgage balance. Foreclosures increase, adding to the supply of homes for sale. Lenders also tighten underwriting guidelines, which further dampens demand by locking out some potential homebuyers.
This cycle will be difficult to break. But as we saw in California in 1996, buyers will flock to the market once a bottom is reached.
Posted in General post | 1 Comment »