Lunchtime Links 10-8
Caveat Emptor—Treasury hails milestone in home loan modifications (NYT) The milestone is that 500,000 mortgage modifications have been started. But that’s not a very big number and it doesn’t mean that many will actually end up in a modification. And relatively few involve principal reductions, which is what’s necessary for home prices to find a stable floor. That can happen via foreclosure, short sale or outright principal forgiveness. But someone will eventually have to recognize the loss due to the declining value of collateral.
House Republicans press Obama on jobs creation (WSJ blogs) Republicans want deficit reduction, but they also want tax breaks. Sorry guys, the Laffer curve ain’t rescuing us from hole we’re in.
Happy birthday Dennis Kucinich! (House.gov) To send personal greetings, his office number is (202) 225-5871.
Consumer credit declines sharply in August (CalculatedRisk) Bad news short term, good news long term.
China has lots of colorful tanks (Boston.com)
Bill Nye, the….Math Guy? (PBS)
Metronome Sync (ht Tom Parsons)