One reason that Fannie and Freddie will never return to their earlier forms is simple mathematics: to become independent, Fannie Mae and Freddie Mac must repay the taxpayer dollars invested in the companies, plus interest. Even if the firms achieve profitability, it could take them as long as 100 years — or longer — to pay back the government. And almost no one expects the companies to return to profitability anytime soon. [1] This is, like, so not bankruptcy remote.  The pizza delivery man is knocking on the door of Congress with another National Debt as big as the one…
Read more…

In the late nineties an approach was made to the British Ministry of Defence for salvage rights on the Operation Deadlight U-boats by a firm who planned to raise up to a hundred of them. Because the wrecks were constructed in the pre-atomic age, they contain metals which are not radioactively tainted and which are therefore valuable for certain research purposes. … [1] Truly a hot button issue for our times Hat tip to Eric M. for this one.  We were just digging into our Greek Combos at Cousin’s and going over how subprime mortgages had messed up just about…
Read more…

  Many thanks to M for our unofficial preview of Phoenix home sales.  When ARMLS issues their report in a couple of weeks, the numbers will be slightly different.  Our preview though, gives us a good indication of where the market is at. The numbers look surprisingly better.  Typically sales are not good this time of year.  Not only that, mortgages are not as easy to get these days.   Sales are way up, inventory is down: Active                        49,511 Under Contract           10,902 Sold                          5,377  +60% Sold(02-08)                3,348  …
Read more…