http://www.carlgalopin.com/wordpress Economic Commentary for Investors Sun, 05 Sep 2010 00:03:11 +0000 http://backend.userland.com/rss092 en The number of mortgages that are underwater is staggering. The article “New CoreLogic Data Shows Second Consecutive Quarterly Decline in Negative Equity “ reports  23% of “all residential properties with mortgages were in negative equity at the end of the second quarter of 2010”. “Negative equity” means the mortgage due ... http://www.carlgalopin.com/wordpress/?p=126 Maiden Lane and the Fed's Credibility reviews the Fed’s purchase of assets in the JP Morgan/Bear Stearns deal.  http://www.carlgalopin.com/wordpress/?p=124 Some interesting observations about the direction of the S&P 500 can be found in the following article: Be on the Right Side of S&P Earnings Estimate Cuts .   http://www.carlgalopin.com/wordpress/?p=120 Obama’s recess appointment of Donald Berwick as Administrator of the Centers for Medicare & Medicaid Services (CMS) is very troubling as seen in the article: President Obama to Make Recess Appointment of CMS Administrator Republicans Attacking as 'Expert on Rationing'.      There are two quotes in particular that stand out.   First, “Berwick ... http://www.carlgalopin.com/wordpress/?p=110 Feeling optimistic about the economy? Here are some articles to change your mood!   The key point in  Paul Krugman's Depression Economics is “government spending is a huge tax on true economic productivity.”   Why The Greater Depression Still Lies Ahead discusses the impact of debt on the Great Depression and the ... http://www.carlgalopin.com/wordpress/?p=108 Whatever happened to the “Rule of Law”? In the BP case, one wonders. Playing Politics vs. Fighting the Spill.  Here’s the Wall Street Journal take on the escrow fund: Claims Fund Offers Shield From Suits. http://www.carlgalopin.com/wordpress/?p=106 What is interesting in following the stock market are the patterns that emerge. Here are some articles on various patterns.   June 17, 2010 article on every other year patterns: Equities — an ‘even years’ curse?   June 7, 2010 article on almost perfect negative correlation between $USD and $SPX:  A Flawless Market ... http://www.carlgalopin.com/wordpress/?p=102 9 Reasons Why Spain Is a Dead Economy Walking. If this author is correct, Spain might have to leave the Euro Zone.   EU chief warns 'democracy could disappear' in Greece, Spain and Portugal. Politics and banking is always a bad mix.  Here’s the way I see this shaping up.   Greece will ... http://www.carlgalopin.com/wordpress/?p=100 Bullfighter Christian Hernandez runs out of ring in Mexico, arrested for breach of contract. In hindsight, some decisions look bad…such as being a bullfighter or giving Fannie Mae and Freddie Mac a government charter.   It's Time to Nationalize Fannie and Freddie cries out Stephen A. Blumenthal in the Wall Street Journal ... http://www.carlgalopin.com/wordpress/?p=97 In case you missed it: ObamaCare threatens your health plan. This is only the beginning. http://www.carlgalopin.com/wordpress/?p=94