One year anniversary since Lehman and Ike

Yes, Hurricane Ike also hit Ohio with $553 million in losses, the second most expensive storm to ever hit. But unless you live here, you probably don't remember. The Lehman crisis you may recall--lots of news stories about it yesterday. WSJ (9-15) our nation's most liberal newspaper (can't find a thing to report about ACORN) had several related comments, op-eds and observations:

Speeches were made which the authors (By John Cochrane and Luigi Zingales) paraphrase tongue in cheek: "The financial system is about to collapse. We can't tell you why. We need $700 billion. We can't tell you what we're going to do with it." from "Lehman and the financial crisis" "One year, 2 CEO's and $82 billion since the government rescue of AIG, monsters are still rattling in the closet." Dennis K. Berman, "The Game." "At the height of the [housing] boom, just 20% of Universal Lending [Denver] mortgages were backed by FHA, which guarantees loans to borrowers who can't afford big down payments. Today FHA accounts for more than 80% of his business," more government, more paper work, but more sales. It's no longer free enterprise for Peter Lansing. "Today I think of my self as a government contractor. . . Plan B is to sell pencils on the corner." John Helsinrath, "No easy exit." Gee, I hope all those doctors who think a public option is OK for health insurance are paying attention to Mr. Lansing's business.

Keep in mind FHA always had a higher rate of foreclosure, so don't expect that to change, except to climb higher, like your taxes. Also notice that the same non-profits that funnelled people (for a handsome fee skimmed from the government, the agent, the buyer and the lender) into homes they couldn't afford, are now (for a handsome fee) offering foreclosure workshops and tax advice. Meanwhile, yesterday we were treated to the most tepid good economic news by Gregory Zuckman (for rich people who gamble) I think I've ever seen in the Wall Street.

1. Stocks are up nearly 50% since early March. 2. Housing markets are stabilizing. 3. So are auto markets. (Sorry Chrysler dealers and pension plans) 4. Consumer confidence was higher in mid-September than was originally forecast. 5. Labor markets, although grim, are stabilizing. 6. Global trade is rebounding. 7. Durable goods orders are climbing. 8. Core inflation rates are trending lower in many countries. 9. Inflation seems to be under control. 10.Risky bonds are climbing.

Wow. I'm underwhelmed.