Category Archives: bonds

Bond Investors

A year ago, it appeared that many Wall Street firms would have trouble meeting their debt payments. This has not happened. Wall Street has been going up for the past few months (until the past two weeks). Now bond investors … Continue reading

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Why The Housing Boom Went Bust

I’m reading this new book by economist Thomas Sowell — The Housing Boom and Bust. He writes that “the idea that lenders would be offended by receiving monthly mortgage payment checks in the mail from blacks should at least give … Continue reading

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William D. Cohan’s New Book: House of Cards: A Tale of Hubris and Wretched Excess on Wall Street

Click here to see the book on Amazon.com. Bear Stearns and Lehman Brothers had huge investments in securities backed by home mortgages, a market with rising defaults and collapsing home values. Unlike banks, which loans out money it gets from … Continue reading

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Thomas Sowell’s New Book: The Housing Boom and Bust

Check out the book on Amazon.com. Economist Thomas Sowell appeared on Dennis Prager’s radio show May 27: Tom: If the results weren’t so serious, all this would make a great Gilbert & Sullivan musical, with all the mutually contradictory statements … Continue reading

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Obama Wants To Regulate Derivatives

I was a lousy math student. I got a D in Algebra in high school as a freshman. I got Ds in my junior year in Geometry. I repeated it as a senior and got a C. I got to … Continue reading

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Saving Lenders

I enjoy Jack Guttentag’s columns on mortgages in the Washington Post. Last week he explained why increasing capital requirements for lenders won’t reduce the risk and severity of financial crises. There are just so many ways lenders can get around … Continue reading

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American Politicians Eager To Intervene In Foreclosure Market

Pols love Sheila Bare’s proposal unveiled Thursday. They want to do more. They think they know better than the free market what real estate is worth. Ludicrous. From Bloomberg: The Treasury last week agreed to purchase stakes with banks including … Continue reading

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How The Bond Market Is Dealing With Risk

Report: NEW YORK — Debt issued by Fannie Mae, Freddie Mac and the Federal Home Loan Bank system is getting squeezed out by the new competition. Call it the law of unintended consequences, but the U.S. rescue package, which now … Continue reading

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Financing Mortgages With Covered Bonds

From Business Week: If covered bonds catch on, they will magnify the losses the Federal Deposit Insurance Corp. suffers in the case of bank failures, thus exposing taxpayers to the risk of more big bailouts. To put it bluntly, covered … Continue reading

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Guidelines For Bank Bonds

From CNN: On Monday, Treasury Secretary Henry Paulson laid out guidelines for banks seeking to issue so-called covered bonds as a way to finance home mortgages. Four big U.S. lenders – Citi (C, Fortune 500), Bank of America (BAC, Fortune … Continue reading

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