Category Archives: wall street

Wall Street Finds Profits Again, Now by Reducing Mortgages

The New York Times reports: …Wall Street has found a way to make money from the mortgage mess. Investment funds are buying billions of dollars’ worth of home loans, discounted from the loans’ original value. Then, in what might seem … Continue reading

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Why Your 401K May Be Looking Better Than The Overall U.S. Economy

Investors are seeing a lot of bargains on Wall Street. Why? Because many individual companies boast good bottom lines. Why? Because borrowing costs are way down. Why? Because small investors are hungry to buy bonds. Corporate earnings are up. You … Continue reading

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Regulating The Regulators Of Our Financial System

It’s been a year since Lehman Brothers went bankrupt. What has changed in our regulation of such financial firms? Very little. Crazy incentives induced by government regulation created a financial collapse. Perverse incentives caused lenders to lend money to people … Continue reading

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The Secret Lives Of Mortgages

What is a mortgage-backed security? These financial instruments were a key part in the financial industry’s meltdown over the past year. Lenders have been selling loans via Wall Street. These bonds depend for their payoff on people making their monthly … 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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‘Chain of Blame: How Wall Street Caused the Mortgage and Credit Crisis’

This is an excellent new book on the mortgage and credit meltdown. The authors get inside the lives of the leading characters in the mortgage meltdown and explain what makes them tick and what makes their business work (or fail). … Continue reading

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Do You Remember The Spring Of 2007?

Everything was great with the economy. Consumer spending was strong. The credit markets looked strong. Sure, the real estate bubble had burst. I am reading the 2008 book by Charles Morris, “The Trillion Dollar Meltdown: Easy Money, High Rollers, and … Continue reading

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JP Morgan Stops Foreclosures

Prime mortgages are at issue, particularly those with option ARMs. We’re due for a vast increase in foreclosures as option ARMs roll into much higher rates. JP Morgan owns $325 billion worth of mortgages, of which $250 billion of that … Continue reading

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Restructuring The Finance System

Credit problems now extend to student loans, car loans and credit cards. The whole system seemed in danger of shutting down a few weeks ago. Now the Dow Jones has jumped a thousand points. WASHINGTON (AP) — Federal Reserve Chairman … Continue reading

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