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...reason it has proved so hard to help homeowners is that today's mortgages are no longer simply held by a local bank; they have been sold to Wall Street, where they were cut up and repackaged into thousands of bonds sold to investors. The current global credit crisis originates from the moment when subprime borrowers starting having trouble making their mortgage payments, which had been funneled into interest payments to bond holders...

Author: /time Magazine | Title: Homeowners Ask: Hey, Washington, a Little Help? | 10/16/2008 | See Source »

...that proposals to buy up individual home loans and refinance them, as proposed by Senator John McCain, seem impractical at best. "You can't get whole loans out of trusts," says Joshua Rosner, an analyst at Graham-Fisher. "To do so, you would need the approval of all the bond holders, which can be thousands of investors spread around the world." Worse, Rosner says, for most mortgage trusts, the government has no data or records that would identify those investors...

Author: /time Magazine | Title: Homeowners Ask: Hey, Washington, a Little Help? | 10/16/2008 | See Source »

Early in to Siberia, a new novel by Per Petterson (Graywolf Press; 245 pages), the narrator and her older brother cut their hands and mix their blood. It's a familiar childhood ritual, sweetened by naive redundancy: How much closer than siblings can you be? The bond between this sister and brother turns out to be a love story--pure, but as painful as the touch of steel to skin...

Author: /time Magazine | Title: Brotherly Love | 10/16/2008 | See Source »

Smith: But that's also a great example of a President in effect not simply exercising crisis management but coming out of that crisis having established a kind of emotional bond with people and banking political credit that he can call upon down the road when things inevitably become more difficult. Maybe think of F.D.R. in March of 1933--I would argue that there really was never a majority of Americans who bought into the right-wing notion of Stalin Delano Roosevelt, because at a critical moment, F.D.R. established a kind of credibility ... God knows he was controversial. God knows...

Author: /time Magazine | Title: What Kind of Temperament Is Best? | 10/16/2008 | See Source »

...comprised as much as two-thirds of the gross national product. "Retail sales is the most important number because it doesn't gauge reactions, but gauges what consumers are doing and it's a good indicator of actual spending," says Michael Englund, chief economist for Action Economics, a bond and currency market consulting firm. "The good news for households is that food and energy prices are falling, although some might see this as a weakness in demand and a sign the economy is slowing." Englund says the drop below August's sales levels are mostly due to extremely weak auto...

Author: /time Magazine | Title: Four Reasons the Markets Are Still Troubled | 10/15/2008 | See Source »

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