The name of this blog is Contrarian Musings for a reason. Investing is nothing more complicated than buying low and selling high. The only way to accomplish that is to be a contrarian. Investments for which there is little demand will be available at favorable prices. Investments for which there is great demand rarely offer [...]
The Obama administration has had a hell of a time getting banks to reduce the principal on underwater mortgages through their various mortgage modification programs. Most of the loans that get modified do not involve a principal reduction and therefore the re-default rate is very high. The market offers a better solution:
Anna and Charlie Reynolds [...]
The Obama administration’s mortgage modification program run through Fannie Mae and Freddie Mac hasn’t accomplished much for homeowners:
Obama originally promised that the program would spend $75 billion and save the homes of 3 million to 4 million families. But last month the administration reported that it had enrolled just 1.24 million homeowners [...]
From Kevin Hasset in Bloomberg on the home buyers tax credit:
A look at new home sales suggests that the credit didn’t have the intended effect of stimulating a resurgence in the housing market. New home sales, which fuel the construction that can drive gross domestic product growth, failed to rise above the level of 477,000 [...]
