If you watched the recent 60 minutes segment on the continued mortgage mess – this time focusing on the false documentation and fraud that has penetrated the mortgage industry over the recent years – you know that the industry is anything but out of the woods.

I’ve recently had a number of conversations about folks my age – the generation Y crowd.  The consensus view of many people older than me view my generation as sort of a joke.  They say we have a feeling of entitlement, an expectation that things should be given to us.  They say when we do something good, that it means we should be taken care of for years as a result rather than moving on to something else.  Generation Y is more interested in work/life balance rather than building a …

Interesting article on a recent grad who has over $200k in student loan debt. Good luck paying off 200 large while working as a waitress.  Welcome to the new normal for higher education in America.  Tons of debt, mediocre degrees, no jobs.  Read the article here.

When looking at the balance sheet of a regional or community bank, you will find an unusually large portion of assets held in cash and short-term, liquid investments. Banks are awash with cash like never before. The appetite for lending among financial institutions has vanished over the last year and few loans are made that are not guaranteed by the Federal Government\U.S. Taxpayer through entities such as FHLMC, FNMA, GNMA, FHA and the SBA. Because of this government-mandated, taxpayer-funded guarantee,

When it comes to paying off your mortgage, I’m in the camp that you might be able to generate a better return, but I’d never try to convince you NOT to pay off your mortgage.  It’s a guaranteed return, a way to get debt free, and significantly lower your living expenses. When you start to consider future inflation, however, it definitely makes you pause with regards to paying off your mortgage.
Why?  Well, in inflation, debts become less.  If you owe $200,000 on your home and through inflation, the value of …

What is debt exactly that it entangles us in its web at the ripe age of 18? Debt is defined as something that is owed as a result of an obligation to repay something that was borrowed; if only it were that simple. What are we being educated as adolescents and young adults about Debt? Some think debt is the $20 they owe a friend and feel obligated to repay; while failing to begin paying down the thousands of dollars owed in student loans. Is debt the monthly cell phone …

The global economic strategy and policies moving forward is clear.  The printing of fiat currencies is the sole strategy and solution to every economic issue around the globe.  The trillion dollar bailout was meant to stabilize the Euro and send a message to the markets that the Euro will be defended (not sure how printing a trillion units of a currency symbolizes defense).  The effect was quick but has already began to fade.  Default and collapse in Europe might be prevented for a few months, but how much will be …

Amazing times we live in.  It seems like more and more people are strategically defaulting on their debt obligations either simply due to being sick of dealing with it or with a larger goal in mind.  Allow me to explain.
Mortgage Default
I’ve been pondering (and many economists have as well) how consumption has been rising in recent months despite stubbornly high unemployment.  Most people are starting to point to the fact that people have simply stopped paying their mortgage.  It’s commonly accepted that people can live in their home for a …