Transforming a Mortgage Deadbeat is Harder than You Think

June 21, 2012 by  
Filed under Fools of Finance

I have “mortgage modification” fatigue. More specifically, I am tired of reading about government attempts to magically transform a mortgage non-payer into a responsible credit user.  The basis for my fatigue is that these attempts mostly fail. Recent data confirms this.

The TransUnion credit score people (I don’t like them either) reports that more than half of the folks who actually received mortgage modifications had fallen behind on their new and improved mortgage payments within 18 months.

TransUnion – being in the business of favoring consumer debt – laughably tried to spin this bad news in a positive way. It said that even these persistent mortgage deadbeats continued to pay on credit card and car debt they obtained after the modification. That shows – according to TransUnion – that these borrowers were able to handle new credit because of the mortgage modification.

Are you kidding me?

Why are these folks running up new debt anyway? Just because they can? Isn’t having to default on – then modify –  a mortgage sending an important signal about whether new debt for these people makes any sense at all?

Mortgage default is a financial felony. In comparison, credit card default is a misdemeanor. I am not encouraged by repeat felony offenders just because they commit fewer financial misdemeanors.

Here is a link to the article. 

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The Sad Decline in Personal Net Worth

June 11, 2012 by  
Filed under Fools of Finance

The Federal Reserve does at least one thing well: Finding economic bad news and sharing it with us. This week’s bad news is about personal net worth. As you probably guessed, it’s down – way down.

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Police Repel Moronic Sneaker Buyers

February 24, 2012 by  
Filed under Fools of Finance

It is hard to decide which is more stupid – paying north of $200 for sneakers or rioting to be the first in line to do so.

Is there much hope for an economy that continues to be based on wanton consumption when events like this still happen?

These shoes are marketed specifically to provoke over-the-top consumer reactions. It’s like iPhone junkies on steroids.  This is the best news that Nike could ask for.

At some point (if it hasn’t happened already), the legions of low-rent lawyers will spring into action against Nike and the retailers for negligently marketing shoes in a manner likely to cause “rush the store” injuries to their pathetic clients.

Orlando police disperse rowdy sneaker seekers.

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Black Friday Sanity v. Consumer Craziness

November 16, 2011 by  
Filed under Fools of Finance

An entire mini-industry has been constructed around Black Friday, our newest national holiday. Much more is written about Black Friday deals, leaks, strategies, and other craziness than is written about the origin and meaning of Thanksgiving. Now some some stores are opening at midnight (Target being one of them), forcing employees to work on Thanksgiving. It is all so pathetic.

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Is Consumer Stupidity Incurable?

September 21, 2011 by  
Filed under Fools of Finance

I saw this headline and had to comment: Banks continue to rake in huge amounts in overdraft fees.

Wait – it gets worse when you read the specifics: Banks and credit unions received $30.8 billion in overdraft fees in just the first 6 months of 2011.

That’s $30.8 BILLION! Read more

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Do Bored Economics Professors Deserve Tenure?

August 29, 2011 by  
Filed under Fools of Finance

The U.S. has too many unprepared and unmotivated students attending too many lousy colleges. (I use the word “students”  loosely because being a student implies that there is actual “studying” involved. A more accurate term would be “attendees” because so many college attendees place studying well below drinking, partying, and hooking-up on the list of must-do college activities.  But I digress. Read more

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Thank-You Tea Party for our Damaged Retirement Accounts

August 10, 2011 by  
Filed under Fools of Finance

Mr. ToughMoneyLove is as fiscally conservative as most but I am also pragmatic. The same can’t be said for our tea party members of Congress who robotically activated their “no new revenues” autopilot.  Then they didn’t know enough to deactivate it. They refused to see what was apparent to everyone else – that compromise was the only way to reach an agreement that consumers and the investing community would accept as a positive outcome. Read more

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Money Advice for Parents of Kids who are Grad School Wannabees

June 24, 2011 by  
Filed under Money and Behavior

Some baby boomers have completed the task of helping their kids through college. Some of those kids are now contemplating graduate school, the kind that may cost a lot of money. These include law school and business school, where scholarship money is rare. Why are scholarships rare for those programs? Because many exist primarily to feed cash to the university. Our culture and economy do not need more lawyers or MBAs but the colleges don’t want you to think in that direction.

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Overselling the College Degree

May 5, 2011 by  
Filed under Money and Behavior

I distrust the student loan industry and the higher-ed bureaucrats who exploit it relentlessly. Motivated by economic self-interest, student lenders and college officials have persuaded misguided politicians that “college for all” is a noble goal. It absolutely is not. Read more

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Apple Fanboys Called Out

March 11, 2011 by  
Filed under Fools of Finance

The iPad 2 went on sale today. The mesmerized Apple fanboys and fangirls were lining up as usual. Instead of ranting (again) myself about this silly consumer behavior, I give you Splork: Undignified iPad 2 Consumer Dumbsh-ts

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