Dennis, like you, I believe a recovery is underway. From what I can tell, Q1 was the bottom, and we will see a rolling recovery. You know what that is, but I should tell my readers that’s it’s when the whole economy doesn’t recover at once, some sectors come out of the slump a bit faster than others, so the whole economy takes some time before the recession is declared to be over.
But Dennis, I know that you feel bashed, unrightly so, and people have called you names. But from where I sit, the search Dennis Kneale Idiot yields 35K hits on Google, but the same search with our president’s name yields just under 3 million. And Britney Spears Idiot just under one million. Even Albert Einstein Idiot yields 210K results. I suspect in your case higher numbers mean name recognition, but I plan to do my part and refer to the end of this recession as the “Dennis Kneale Recovery.” Remember, I coined that phrase. Meanwhile, take a breath, anonomous bloggers (me included) can say what they will, but it’s their long term record that builds credibility. Many who took shots at you won’t be blogging by the time NBER declares the recovery. After all, it took a year before they declared the recession had begun. Best wishes to you, Dennis.
Details have been released on the proposed mortgage bailout.
It appears that banks will be invited to lower the interest rate and/or the principal to get the borrower’s payment down to 31% of their income. This should result in a cost to the bank that’s less that that of foreclosure. In theory. Given that the cost of foreclosure is estimated to be as high as 50% of the home’s value, the loan modification plan may save us all some money in the long term. The government is going to offer banks a portion of their expense, a dollar for dollar match to reduce the expense ratio from 38% to 31%, but it seems the bank has to first fund the plan to get down to 38%. I don’t know if the President received my note suggesting that we implement a clawback on all overpaid bankers’ income goung back for the last decade, that would fund much if not all of this plan.
as summarized in a word cloud, courtesy of wordle.net and the NY Times transcript:
(note, you may click on it for a larger copy or to print.)
This only gives a hint at the content of the speech, of course if you missed it live you should read a transcript of it when you have a moment.