Living humans don’t stand a chance when a giant hedge fund is bidding on all the foreclosed houses in a poor neighborhood — but that’s OK, because rapacious investors make great landlords. Continue reading… “Hedge funds buying up of foreclosed subprimes, raise rents, float rent-bonds”
A third of all credit cards issued in the first quarter were to subprime customers.
Banks and other lenders are wooing risky credit-card borrowers more aggressively than they have since the financial crisis in a bid to jolt revenue in a period of sluggish growth and tight regulation.
Apparently its open season on consumers
It’s no mistake. This credit card’s interest rate is 79.9%. The bloated APR is how First Premier Bank, a subprime credit card issuer, is skirting new regulations intended to curb abusive practices in the industry. It’s a strategy other subprime card issuers could start adopting to get around the new rules.
Nearly 1 million homes nationwide are in the process of foreclosure, according to a report Wednesday from the U.S. Department of the Treasury covering banks and loan servicers that make up 64 percent of all outstanding mortgages. As of June 30, there were 992,554 homes in the process of foreclosure, up 15.3 percent from March 31 and up 79.4 percent from the same period a year ago, the Office of the Comptroller of the Currency reported.
Since the Bear Stearns crisis first hit the news, we have been trying to find more information about what was taking place behind the scenes. This piece by John Mauldin puts it into perspective on a level that most everyone can understand. While this doesn’t give the blow by blow details, it does give some great insight into situation, and what could have happened if the bailout did not take place.
Continue reading… “How the Bear Stearns Bailout Saved You, the Little Guy”