The quotes below are from a review of a new book by Raghuram Rajan, former chief economist at the International Monetary Fund, called “Fault Lines: How Hidden Fractures Still Threaten the World Economy.” A sample: The credit market—at least as regards to housing—was distorted by government policy, not by a sudden and mysterious escalation in [...]

Reading this article about what’s holding back the housing market, one can’t help but think of Franklin D. Roosevelt’s classic line: The only thing we have to fear is fear itself. The piece makes many good points. The main one: High unemployment and economic uncertainty are holding back the market, despite low interest rates and [...]

Banker & Tradesman is reporting that bankruptcies in Massachusetts jumped 25 percent during the first half of 2010, compared to a year ago. But there’s good news: “Bankruptcy filings are considered a lagging indicator, and these bankruptcy filings really reflect earlier economic conditions. Many people struggle to hold on for as long as they can [...]

Expect an already slow economic recovery to slow down even more, the president of the Boston Federal Reserve Bank seems to be saying in both the Globe and Herald. Some tidbits from the Fed’s Eric Rosegren: – The government needs to keep stimulating the economy, which is still quite weak, Rosengren suggests. – There’s a [...]

Actually, the rich are worse than us. They’re now the biggest defaulters on home mortgages across America, according to the New York Times. It’s tempting to snort with delight at their plight. But here’s the problem: These walk-aways are probably tied to 1.) Loss of jobs. 2.) Loss of wealth due to Wall Street’s crash [...]

Tim McLaughlin has a double-dip message to all those who see anecdotal evidence of economic recovery at local shopping malls and restaurants: It’s the banks, stupid. They’re still not lending at a rate indicative of a sustained recovery. File under: I scream. You scream. We all scream for … easier credit and more jobs.

MIT professor Andrew Lo, who was one of the first to see the financial crisis coming, assesses where we are and what we haven’t learned from the events of the past two years. Warning: Much talk about derivatives, credit default swaps, etcetera. But he makes his point: We know so little about what the hell [...]

The Wall Street Journal has a news article on how Detroit wrecking crews are preparing to tear down the boyhood home of one-time presidential candidate and former Massachusetts Gov. Mitt Romney. Detroit is losing a small piece of its history. But the project is part of a demolition effort that is just now gaining momentum [...]

The U.S. homeownership rate has slumped to its lowest level since the first quarter of 2000. But look at the graphic within the above link and it’s somewhat surprising to see that the rate is still not that much higher than what it was in 1965 (67.1 percent versus 63 percent). One would think the [...]

Even a few months ago, news that foreclosures are spiking would have been big news in Massachusetts. Not these days. The explanation given in the Globe sounds reasonable — maininly that foreclosures are now seen as a lagging market indicator, sort of the way unemployment numbers are seen as a lagging recovery indicator. The housing [...]