Friday, December 19, 2008
Mortgage refinance big bang; unemployed loan their bodies to medicine, other mothers; Bush releases TARP funds for GM, Chrysler
Suddenly, according to news reports, phones at mortgage companies are ringing off the hook. That’s because the Fed lowered rates to all most zero and printed some more Weimar money.
Maybe some of the refinancing business will get done online with companies like Ditech, but all the sudden, over a one day period, there is an overwhelming amount of work for loan officers and mortgage brokers. Will that suddenly lead to a rush of new jobs? Will these jobs be tied to the idea of “online reputation”? Will retirees be invited in to do these jobs, or perhaps even get unsolicited calls?
Put people are doing other desperate things for income, using their own bodies (or allowing them to be borrowed) to support their families. One particularly dangerous trend is people getting paid to participate in new medication trials. Many more women are making money with surrogate motherhood.
The ABC News story on this matter is by Gigi Stone, “Americans Go to Recession Extremes for Pay: More Americans Make Money by Putting Their Bodies at Risk in Clinical Trials and Surrogacy”, link here.
(While I blog: BREAKING NEWS 12/19/2008 at 9 AM):
On Friday morning (at 9 AM), Dec. 19, President Bush, saying that “these are not ordinary times” and that he normally does not favor government intervention to save ordinary companies, announced his temporary rescue program for GM and Chrysler (not Ford, which I "have") with TARP funds, with a “drop dead” date for restructuring by March 31, 2008 (in fact, auto loans will be called back by March 31). The President did not believe that a Chapter 11 right now was acceptable but could become necessary early in 2008. The announcement was broadcast by a Webcast from the White House site. There will be many news stories in the next hour.
One big reason why domestic car companies cannot compete well with foreign makers: it’s not just the unions, it’s funding health care benefits. Foreign companies don’t have to do that.