Comments on: Paulson Says No Go on Housing Bailouts

By: Anonymous

Anonymous — Thu, 28 Feb 2008 23:30:00 +0000

This looks to be of interest:

Malinvestment Theory
Austrian School economist Dr. Paul Cwik claims that the yield curve’s shape depends mostly upon actions by a monetary authority that promote an atmosphere of malinvestment resulting from periods of loose monetary policy. He claims that the process of liquidating those malassets inverts the curve.

By: Anonymous

Anonymous — Thu, 28 Feb 2008 19:48:00 +0000

Meanwhile, as a backdrop the peak of subprime/defaulting mortgages reach the tip of this implosion during the 3rd quarter (2008) thus Paulson will be out of a job as this crisis kicks into overdrive — however, if one keeps this all in focus, this was Clinton’s problem created back in 1999.

Best of luck to all and may the best lobbiest win more cash!

By: Deborah

Deborah — Thu, 28 Feb 2008 14:57:00 +0000

mortgages were 15 years then, weren’t they?

I forget what interest rate I used, but I worked out that going from 15 to 30 years you could reduce payments by 23%, but if you are already at 30 years, to go to 40 years will only reduce payments by 6%, not much help at all.

By: Independent Accountant

Independent Accountant — Thu, 28 Feb 2008 13:18:00 +0000

I read the WSJ’s article and concluded Paulson, of Goldman Sachs believes Helicopter Ben will adequately protect the banks. Therefore, why back a bailout for the peasants?

By: Anonymous

Anonymous — Thu, 28 Feb 2008 12:20:00 +0000

The journal article would have us believe that government should try to prop up housing prices. I don’t agree. Investment will not return until housing asset prices return to historical norms.