Category Credit crisis

Calculated Risk translates legendary investor Warren Buffett’s comments from Spiegel Online. The bankers brewed a poisoned drink, and then had to drink it themselves. Usually they prefer to sell the poison to others (said sarcastically).

Financial bloggers, especially those who cover real estate, look forward with glee to the eternally optimistic announcements from the National Association of Realtors that, by golly, we’ve turned the corner, those pesky speed bumps are behind us, and all is…

Say a consumer has $10,000 of credit-card debt with a 20% interest rate and the minimum payment is calculated by taking 2.5% of the average daily balance. It will take more than 50 years to pay off the balance with…

The WSJ thinks so. Calculated Risk isn’t so sure. It does appear that prices in hard-hit areas have dropped enough that long-term investors and vultures are starting to buy. So, that might imply a bottom is forming. We shall see.

Buffett buys subprime mortgages, freezes resets Sure, they probably bought the mortgages cheap. But the best way to get mortgages paid is to insure people can afford to stay in their homes. That’s why they didn’t raise the rates even…