When I think of his name alone, I smile, but when I think of Forest Gump’s insightful words, I want to, well, break something (something small and inconsequential, nothing that really matters, of course). That wise, wise man was onto something when he said, “My mama told me, ‘stupid is as stupid does’.” Now, maybe I am wrong, and maybe Forest’s wisdom is beyond me, but it seems the sentence below reflects exactly what he was trying to tell us all.
With the future of Greece and the wider euro zone at stake, Prime Minister Lucas Papademos’ efforts to get the three parties in his government to accept the tough reforms demanded by the European Union and International Monetary Fund seem to have been thwarted by arguments over little more than procedural matters.
Okay, so the global economy is hanging in the balance, and Greek politicians are arguing about whose turn it is to speak next? Oh Forest, oh great one, thank you for allowing me just a glimpse into the vast bank of universal wisdom. Truly, stupid is as stupid does.
Think financials … One big deal out there for the financials is the fight they are having with the States’ Attorney Generals about their misdeeds in the inflation and deflation of The Great American Housing Bubble. The “generals” have sued the banks to exact punishment and some dollars for compensation, and in this action have actually shielded the banks from potential losses in the untold billons, as I suspect any settlement will prevent future lawsuits from individuals in this matter. If I am right, this is good news for the banks, i.e., the financials.
As the nation’s five largest mortgage lenders edge close to a $25 billion settlement over foreclosure abuses, it’s becoming clear that the deal will have little or no impact on their future bottom lines.
Yup, the banks have had several years to pile the sandbags against the coming high tide, and when the water does come, it will be less than expected and the bags will hold. Nevertheless, even if the punishment for the bad-boy banks seems like a slap on the wrist, if you are the holder of an underwater home that will benefit from the coming settlement, wrist slap or not, you will have more money in your pocket, as will several million more folks.
Under the proposed pact, the banks would provide $17 billion in loan modifications for delinquent borrowers; $3 billion in refinancing for homeowners who are current but unable to refinance because they owe more than their homes are worth; and around $1.5 billion in direct payments of up to $2,000 each to borrowers who lost their homes to foreclosure.
Now, add that settlement potential to the cash from folks simply refinancing mortgages at historical low rates, and you have a whole bunch more dollars floating around the system …
The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, rose 7.5 percent in the week ended Feb 3.
The above reflects a building trend. As consumer confidence rises, and folks feel they will keep their jobs, the words, “Honey, how about you buy me that house, that new car, that vacation, or we both, together, just go shopping for those expensive but cute shoes I really, really want” will flow more often.
Trade in the day – Invest in your life …
