As always, call with questions or comments.
Glenn Atkins
www.garrisonassetmanagement.com
Monday, April 28, 2008
KNWA Interview Regarding Local Recession
In this interview with KNWA Northwest Arkansas' News, we comment on the resiliency of the economy in Northwest Arkansas.
As always, call with questions or comments.
Glenn Atkins
www.garrisonassetmanagement.com
As always, call with questions or comments.
Glenn Atkins
www.garrisonassetmanagement.com
Thursday, April 24, 2008
Garrison On TV - Television News Interview
Here's a little something KNWA Northwest Arkansas' News put together recently, representing our views on the nation's current economic situation.
Enjoy. As always, call or e-mail with questions or comments.
Glenn E. Atkins, CFA
www.garrisonassetmanagement.com
Enjoy. As always, call or e-mail with questions or comments.
Glenn E. Atkins, CFA
www.garrisonassetmanagement.com
Friday, April 4, 2008
The Truth Will Set You Free
James A. Garfield, the last of the log-cabin presidents and the 20th President of the United States, among others, said "The Truth Will Set You Free". The entire quote was "The Truth Will Set You Free, But First It Will Make You Miserable."
Hang on to your wallets, because here comes some truth. Congressman Barney Frank, Chairman of the House Financial Services committee, is proposing to throw around $11 billion dollars at the mortgage lending market to help insure up to $400 billion in mortgages.
One problem in his proposal, among many, is that the underwriting standards for this bailout will be enumerated at some later date. According to a Wall Street Journal (WSJ) article yesterday, the idea is that any loan originated between 2005 and mid-2007 would be renegotiable between borrower and lender. Lenders would have to write down the value of the mortgage to no more than 85% of the current appraised value of the property. The borrower gets a low fixed interest rate and a new principal balance equal to a new, presumably lower, appraised value. Instant equity!
This proposal will also bail out the lenders too because they would get a federal guarantee of the debt. What would you do if you were a lender? Why, you would "renegotiate" all your worst loans and essentially "put" them to the government. Well really not the government, but the taxpayers - me and you. According to the WSJ, mortgage fraud has gone up 1,200% (not a misprint) since 2000. What's a rational lender to do?
Hang on to your wallets, because here comes some truth. Congressman Barney Frank, Chairman of the House Financial Services committee, is proposing to throw around $11 billion dollars at the mortgage lending market to help insure up to $400 billion in mortgages.
One problem in his proposal, among many, is that the underwriting standards for this bailout will be enumerated at some later date. According to a Wall Street Journal (WSJ) article yesterday, the idea is that any loan originated between 2005 and mid-2007 would be renegotiable between borrower and lender. Lenders would have to write down the value of the mortgage to no more than 85% of the current appraised value of the property. The borrower gets a low fixed interest rate and a new principal balance equal to a new, presumably lower, appraised value. Instant equity!
This proposal will also bail out the lenders too because they would get a federal guarantee of the debt. What would you do if you were a lender? Why, you would "renegotiate" all your worst loans and essentially "put" them to the government. Well really not the government, but the taxpayers - me and you. According to the WSJ, mortgage fraud has gone up 1,200% (not a misprint) since 2000. What's a rational lender to do?
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