Wells Fargo has decided that they are going to implement a new “Pick-A-Writedown” program whereby they shoehorn their massively underwater “Pick-A-Pay” borrowers into interest only loans rather than face the writedown reality… this is a desperate attempt by the bank and shows how bad their position really is … the best thing these borrowers could do, financially, is to simply walk away from these junk loans.
Buffett’s “all-in” train play has some wondering if there will be a “Rail Renaissance” and appears to be a long term wager against teleportation… So, should “investors” now turn to “green energy” or resurrect “standard oil”?
Wouldn’t the term “liability price deflation” be a more appropriate description of what’s happening to housing rather than “asset price deflation”? An underwater mortgaged house is a liability not an asset… maybe it should be “liability value deflation”… or possibly “liability inflation”.
Someone is burning down vacant homes in Rochester NY and Houston TX… guess they don’t consider homes to be assets either.
A cantankerous Jim Rogers takes a whack at Professor Roubini over bubbles while Roubini says Rogers $2000 an ounce gold call is “utter nonsense”… Is this the start of a a good ole fashioned bear-on-bear smack down!? ... Which Bears Bubble is Better?
... They are ALL bubbles to me!