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 …

College tuition is increasingly expensive these days – even for the top online schools. To battle the rising costs, our wonderful politicians seek ways to get more people access to education funds and debt.  As Peter Schiff discusses in one of his recent posts, this “solution” is exactly the problem.
Take the recent student loan reforms that were slipped into the health care bill. Obama wants to reduce the cost of providing student loans by taking the profits out of the industry. According to Obama, student loans are too expensive because …

What a circus.  Obama is setting up a debt commission, actually formally named the National Commission on Fiscal Responsibility and Reform.  Sounds fancy.  The commission will bring in a few former politicians from both sides of the aisle to solve the countries fiscal woes.  Do these guys get paid to be on this commission?  Are we going into further debt in order to pay people to figure out how to get out of debt?  How confident are you in that this debt commission will result in anything?  Is this silly …

This is a guest post from Silicon Valley Blogger of The Digerati Life. The Digerati Life is a site that covers topics on investing, saving and money management. Check out the site’s coverage of OptionsHouse and their review of Zecco, for a taste. But the topic for the day is how to manage your credit after experiencing foreclosure. If you’re interested in providing a guest post, please click here for more information.

We, homeowners, have gone through quite a drubbing during this latest real estate market downturn. The …