Category Archives: cheap money

Citigroup Becomes First Lender to Cave to Mortgage Principal Reductions by Bankruptcy Judges

It’s official: the first domino has fallen. The L.A. Times has reported that Citigroup Inc. has agreed that bankruptcy courts should be allowed to change the terms of mortgages, including ordering reductions in the principal amount of loans, as part … Continue reading

Posted in bailout, bankruptcy, Barack Obama, cheap money, Citigroup, class actions, contract rights, homeowner relief, legislation, loan modifications, recession, Seventh Circuit, TARP, TILA, workouts | 2 Comments

Clinton Breaks Down the Credit Crisis

I happened to catch Bill Clinton on the Late Show with David Letterman earlier this month and was surprised at how much substance was contained in the interview. I encourage you to read the full text of Clinton’s explanation of … Continue reading

Posted in banks, Bill Clinton, causes of the crisis, cheap money, Fannie Mae, Federal Reserve, Freddie Mac, incentives, interest rates, legislation, lenders, liquidity, overinvestment, subprime | Leave a comment