My kid’s last day of school was yesterday so I’m fighting the urge to take the summer off. Ok, it’s not possible, but I can dream.

It’s been a week to remember.

* Two US senators completely missed signs of favoritism. Sen. Kent Conrad, a Democrat from North Dakota, said the Senate Ethics Committee will look into mortgage loans he received from Countrywide Financial Corp…Sen. Christopher Dodd, a Connecticut Democrat who is chairman of the Senate Banking Committee, also has acknowledged receiving mortgages from Countrywide.
* The first sign of last summer’s problems – Two former Bear Stearns hedge fund managers were arrested today. “This is not about mismanagement of a hedge fund investment strategy,” said Mark J. Mershon, the head of the New York office of the Federal Bureau of Investigation, at a news conference Thursday. “It is about premeditated lies to investors and lenders.”
* It’s real money – The FBI arrested over 300 real estate brokers in mortgage fraud schemes since March whose victims lost more than $1B.

Fast and easy credit that was relatively unchecked by regulators provided the perfect environment for fraud, the creation of instant wealth and/or newly found leverage to those who were willing to use it or accept it.

We seem to be entering the fourth phase of the credit crunch (not marriage).
Discover, Fret, Propose, Charge, Reconsider, Solve

This week’s persistence award goes to a woman who, for 6 months, tried to get someone at WaMu to talk to them about their mortgage (hat tip to Holden Lewis/Mortgage Matters). Can someone please explain to me how WaMu’s CEO has been able to hold onto his job?

Here’s Politco’s list of mortgages held by US Senators.


  1. John K June 20, 2008 at 6:38 pm

    Take time off??? At your own peril.

    At the beginning of this year, a couple expert economists said that we’d have a recession this year, but that it would be over by the end of the second quarter … which is next week! You can’t take time off now, Jonathan, we’re headed for busy times, just ten days from now!

    I know I’m ready. I couldn’t be more “unbusy”. Thank god I’ve been saving my strength for the promised turnaround!

  2. Edd C Gillespie June 21, 2008 at 10:22 am

    Is it safe to say we are concerned when the predators are doing favors for our elected officials? Or is it that the Senators are really so credit worthy that the deserve the extra break?

    Which brings up the completel unrelated question of how much credit ratings are contributing to the economic cass divisions in the US.

    Discuss that, would you Jonathan?

  3. Edd C Gillespie June 21, 2008 at 10:26 am

    Are we concerbed about a predatory lender doing political favors for a Senator or is it that there are economic class divisions that are beginning to resemble the Grand Canyon?

    In an unrelated matter, would you mind discussing your impression of the impact of credit ratings on the separation of the social classes in the US?

Comments are closed.