GM Downsizing in North America: Closing Factories, Cutting Jobs

GM Downsizing in North America: Closing Factories, Cutting Jobs

Last Tuesday, November 27, Mike Colias of the Wall Street Journal reported that GM will close several factories in North America and cut up to 14,800 jobs. Spurred by slowing sedan sales, the changes affect plants in Michigan, Ohio, and Canada. This is the first major downsizing since the company’s bankruptcy in 2009. Reducing GM’s […]

Mortgage Cash-Out Refinancing Hits Record, Resembles Behavior that Led to 2008 Crisis

Mortgage Cash-Out Refinancing Hits Record, Resembles Behavior that Led to 2008 Crisis

Americans have hit the highest share of cash-out refinancing since 2007 warns a recent Wall Street Journal article by Ben Eisen and Christina Rexrode. Specifically, more than 80% of borrowers who refinanced in the third quarter chose the “cash out” option, withdrawing $14.6 billion in equity out of their homes, according to government-sponsored mortgage corporation […]

Housing Agency Worries Over Inflated Home Prices

Housing Agency Worries Over Inflated Home Prices

As uncertainty over the future outlook of the U.S. economy looms, the Federal Housing Administration (FHA) worries that inflated home values will create market turbulence. Cezary Podkul of the Wall Street Journal writes, “the FHA insures about 11% of all U.S. single-family residential mortgage debt.” Of this debt, reverse mortgages, formally known as Home Equity […]