“Look at all these monkeys in the big cage that the man has collected. I will sell them to you at $35 each and when the man returns from the city you can sell them to him for $50 each.”
Posts from ‘February, 2010’
KPIG Radio February 26
The big unknown for real estate in 2010 will be the effect of strategic default a trend that has increased steadily as prices have fallen and more homeowners are underwater.
Walking Away From Your Mortgage
A lengthy but good discussion on strategic default or deliberately abandoning ones mortgage. Investors do this all the time so why shouldn’t you. Be warned, strategic default is not without consequences and you need to be VERY CLEAR on the assorted ramifications of doing so as I stated previously. Thanks to radio listener Jim S. [...]
KPIG Radio February 25
Stocks struggled in morning trade and enter the final hour with modest losses on little real news. Initial claims for unemployment jumped 22,000 to 496,000 last week, the more relevant 4-week moving average gained 6,000 to 474,000, this supposedly surprise move was blamed on the weather. Durable Goods increased 3% in January, much was made [...]
KPIG Radio February 24
Down one day and up the next, stocks enter the final hour with decent gains and look to erase yesterday’s losses with an hour to go. The days news is mixed, Chairman Bernanke’s testimony included an admission that the Fed wouldn’t raise rates anytime soon because of the uncertain recovery. Once again the media acts [...]
KPIG Radio February 22
Stocks struggled into the final hour with losses in the 1% range on little significant news. The Case/Schiller Home Price Index gained .32% in December. Out west San Francisco slipped .2% while San Diego advanced .1%. Moody’s reported a 4.1% increase in Commercial Real Estate prices during December. The Rockefeller Institute reported a 5th consecutive [...]
Transparency, what transparency……
Secret AIG Document Shows Goldman Sachs Minted Most Toxic CDOs A potentially more important development slipped by with less notice, Bloomberg Markets reports in its April issue. Representative Darrell Issa, the ranking Republican on the House Committee on Oversight and Government Reform, placed into the hearing record a five-page document itemizing the mortgage securities on [...]
An Easily Understandable Explanation of Derivative Markets
Heidi is the proprietor of a bar in Detroit . She realizes that virtually all of her customers are unemployed alcoholics and, as such, can no longer afford to patronize her bar. To solve this problem, she comes up with new marketing plan that allows her customers to drink now, but pay later. She keeps [...]
KPIG Radio February 22
Stocks struggled to begin the week and following a choppy morning session enter the final hour about even. The January Chicago Fed National Activity Index increased to .02 the first positive reading since the summer of 2007. The 3-month moving average also improved reaching -.16 the 3rd consecutive month the figure has been above the [...]
KPIG Radio February 19
After opening lower stocks gained late and enter the final hour with modest gains. For the week the DOW is up about 300 points or 3% while the NASDAQ added some 45 points or about 2%. The ECRI Weekly Leading Index continues to slip and on an accelerating trend, falling to 128.4 last week the [...]
Hi and welcome to The Profit Motive, I’m your host Caleb Lawrence. Once upon a time in America the media acted as the watchdog of the corporations and the state. In the modern era it’s all about ratings and profits, opinion has been substituted for news and frequently is presented as fact. Much like my daily radio show on KPIG 107.5 FM in Santa Cruz California and KPYG FM 94.9 Cayucos/San Luis Obispo California. A thousand Blogs were able to spot the current problems and many began discussing it years before it reached crises proportions. While there were exceptions, and these exceptions are becoming more common, the mainstream media failed to get it and largely continue to do so.
