Are Mortgage Rates Set To Skyrocket?

“And bonds are now telling us that long-term interest rates are preparing for a major upside breakout.   One look at a chart of the 10-year Treasury rate bears this out” – Barron’s

Banks Need More Capital – No Agreement On How Much

“Conspicuously absent from any regulatory legislation floating around Capitol Hill is the precise level of capital that banks should hold for every dollar they lend, called a capital ratio.” – NYT

Citi’s Bailout Was Not Cheap For Citi

“At Monday’s price of about $4.20 a share, the government would reap a profit of about $7 billion on its $25 billion investment.

The bank has paid about $3 billion in dividends to the government, it notes. And it is scheduled to pay an additional $400 million a year in dividends on $5.1 billion of trust preferred shares issued to the government…

Uncle Sam has warrants over an additional $6.5 billion of Citi stock, too.”  NYT

Warning From The Treasury Market

“Last week bond auctions struggled, 10-year yields surged to 3.88% from 3.7%, and 10-year yields rose above 10-year swap rates for the first time in living memory—all indicators of market stress… next week’s potentially tricky auctions of U.S. 10-year and 30-year Treasurys have now taken on a greater significance… any repeat of last week’s lackluster results would suggest the U.S. may not have as much room for fiscal maneuver as it thinks.” – WSJ

Is The Health Care Bill The Final Straw That Tips The US Into Banana Republic Status?

“A “budget crisis” is not some minor accounting exercise. It’s a wrenching political, social and economic upheaval. Large deficits and rising debt — the accumulation of past deficits — spook investors, leading to higher interest rates on government loans. The higher rates expand the budget deficit and further unnerve investors. To reverse this calamitous cycle, the government has to cut spending deeply or raise taxes sharply. Lower spending and higher taxes in turn depress the economy and lead to higher unemployment.”  – WP

Why The Home Affordable Modification Program (HAMP) Is A Fraud On Taxpayers and Homeowners

“Over the last year, I have been watching the HAMP modification program with great interest. I have wanted to believe that the Federal Government would actually put into place a loan modification program that would help homeowners, though I knew that this was likely false hope. The results are now in, at least in my opinion.

HAMP is a complete fraud! Nothing else can be said otherwise. The Government has once again put into place a program that will not help homeowners. Instead, HAMP modifications will end up postponing homes foreclosures for a period of time for modified loans, but, most will end up losing the home in the end…” – Loan Fraud Investigations

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