The Exquisite Contrarian

Only 16% have received mortgage relief so far, and now – rather than fix the actual problem – the government’s starting up a new program to encourage mortgage companies to push their customers into a short sale. This has been a massive failure on everyone’s part and will continue to be until the government decides [...]

Jim Jubak presents the case that just like any government, including the US — and perhaps more than most — China probably runs its balance sheet through “budget magicians” who don’t want to show you that “China is indeed broke.” More: New evidence indicates China may be Bankrupt / The Christian Science Monitor.

Are we finally in a recovery? Who’s “we,” kemosabe? Big global companies, Wall Street, and high-income Americans who hold their savings in financial instruments are clearly doing better. As to the rest of us – small businesses along Main Streets, and middle and lower-income Americans – forget it. Read more: This recovery is a sham .

It turns out that the efforts to prop up AIG are also working out much better than expected. AIG still owes the Fed and the Treasury a combined $127 billion. But—surprise!—AIG is paying a lot of its debts back. And theres a not too far-fetched scenario in which we come close to breaking on our [...]