Mosler housing proposal


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My housing proposal:

  1. The government does not interfere with the lawful foreclosure process.
  2. If the former owner wants to remain in the house, the government buys the house during the foreclosure sale period from the bank at the lower of fair market value or the remaining mortgage balance.
  3. The government rents the house to the former owner at a fair market rent.
  4. After 2 years the house is offered for sale and the former owner/renter has the right of first refusal to buy it.

While this requires a lot of direct government involvement and expense, and while there is room for dishonesty at many levels, it is far superior to any of the proposed plans regarding public purpose, including:

  1. Keeping people in their homes via affordable rents
  2. Not interfering with existing contract law for mortgage contracts
  3. Minimizing government disruption of outcomes for mortgage backed securities holders
  4. Minimizing the moral hazard issue
    • foreclosure was allowed to function normally
    • renting at fair market rent is not a subsidy
    • repurchasing option at market price is not a subsidy


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2008 swap line advances as a % of GDP


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Swap lines as % of GDP by CB, year end 2008 (a bit dated now in Feb but anyway FYI).

Swap lines as % of GDP

BANK %S
ECB (16) 2.42%
Swiss 5.11%
BOE 1.07%
BOJ 2.53%
Aussie 2.13%
Sweden 4.87%
Denmark 4.06%
Norway 1.71%
Korea 1.09%

Resp,

Source Federal Reserve Statistical Summary:
“At end-December 2008 swaps outstanding were $553.728 billion: $291.352 billion with the European Central Bank, $25.175 billion with the Swiss National Bank, $33.08 billion with the Bank of England, $122.716 billion with the Bank of Japan, $22.830 billion with the Reserve Bank of Australia, $25 billion with the Bank of Sweden, $15 billion with the National Bank of Denmark, $8.225 billion with the Bank of Norway and $10.350 with the Bank of Korea.”


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Obama sends 17,000 troops to Afghanistan


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One more thing his anti war supports told me was just pre-election talk that’s actually happening.

Feels more like the Carter administration every day.

Obama Sends 17,000 Additional Soldiers to Afghanistan

by Edwin Chen and Roger Runningen

Feb 17 (Bloomberg) — President Barack Obama signed an order boosting U.S. troop strength in Afghanistan by 17,000 combat and support personnel.

Obama said in a statement that he approved a request for the additional soldiers and Marines made by Defense Secretary Robert Gates and military commanders.

“This increase is necessary to stabilize a deteriorating situation in Afghanistan, which has not received the strategic attention, direction and resources it urgently requires,” Obama said in the statement released by the White House.

Pentagon officials were informed of the decision yesterday, White House press secretary Robert Gibbs said in Denver, where Obama signed legislation providing $787 billion in tax cuts and spending to stimulate the economy.

The announcement marks the new president’s first significant decision on defense as he seeks to fulfill his campaign promise to shift the focus away from Iraq to Afghanistan as the central front on the battle against terrorists.


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2009-02-18 USER


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ICSC UBS Store Sales WoW (Feb 10)

Survey n/a
Actual 0.90%
Prior 0.00%
Revised n/a

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ICSC UBS Store Sales YoY (Feb 10)

Survey n/a
Actual -0.90%
Prior -1.80%
Revised n/a

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Redbook Store Sales Weekly YoY (Feb 10)

Survey n/a
Actual -1.40%
Prior -1.70%
Revised n/a

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Redbook Store Sales MoM (Feb 10)

Survey n/a
Actual 0.90%
Prior 0.70%
Revised n/a

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ICSC UBS Redbook Comparison TABLE (Feb 10)

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MBA Mortgage Applications (Feb 13)

Survey n/a
Actual 45.7%
Prior -24.5%
Revised n/a

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MBA Purchasing Applications (Feb 13)

Survey n/a
Actual 257.30
Prior 235.90
Revised n/a

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MBA Refinancing Applications (Feb 13)

Survey n/a
Actual 4472.90
Prior 2722.70
Revised n/a

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Import Price Index MoM (Jan)

Survey -1.2%
Actual -1.1%
Prior -4.2%
Revised -5.0%

 
Karim writes:

  • Import prices -1.1% m/m and -12.5% y/y; -0.8% m/m ex-petroleum; imports from China -0.7% m/m (-0.5% and -0.7% prior 2mths)
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    Import Price Index YoY (Jan)

    Survey -11.2%
    Actual -12.5%
    Prior -9.3%
    Revised -10.3%

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    Import Price Index ALLX 1 (Jan)

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    Import Price Index ALLX 2 (Jan)

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    Housing Starts (Jan)

    Survey 529K
    Actual 466K
    Prior 550K
    Revised 560K

     
    Karim writes:

    Housing starts and building permits fall to all-time lows.

    • Starts -16.8% m/m (all 4 regions down) and -56.2% y/y; 3rd consecutive double digit m/m decline
    • Permits -4.8% m/m (all 4 regions down)
    • When adding the supply of vacant homes (over 1mm) to starts, excess supply (relative to new household formation and obsolesence) still exists and in turn downward pressure on home prices

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    Building Permits (Jan)

    Survey 525K
    Actual 521K
    Prior 549K
    Revised 547K

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    Industrial Production MoM (Jan)

    Survey -1.5%
    Actual -1.8%
    Prior -2.0%
    Revised -2.4%

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    Industrial Production YoY (Jan)

    Survey n/a
    Actual -10.0%
    Prior -8.2%
    Revised n/a

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    Capacity Utilization (Jan)

    Survey 72.4%
    Actual 72.0%
    Prior 73.6%
    Revised 73.3%

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    Capacity Utilization TABLE 1 (Jan)

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    Capacity Utilization TABLE 2 (Jan)

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    Capacity Utilization TABLE 3 (Jan)


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