Even a minor lowering of expected profit margins would cause the scale of the overvaluation to widen materially suggesting sharply rising risk for equity investors.
Posts on ‘March 25th, 2010’
More Foreclosures, Please . . .
Despite the helping families rhetoric, it is not what these mods are about. These are little more than “extend & pretend” measures, designed to put off the day of reckoning. Were the banks required to report their mortgages accurately and/or write them down, they would be revealed as insolvent.
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.
