Tag Archives: credit default swaps

Forcing Banks To Keep A Skin In The Game Of Mortgage Lending

One of the causes of the last recession and housing crash that everyone agrees on is that many originators of mortgage loans had little incentive to see that such loans were repaid because they quickly sold such mortgages. They were … 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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FDIC Plan Likely To Fail

Mortgage bonds are going to need government support in these times of stress says Ben Bernanke, Federal Reserve chief. There’s also the option of covered bonds. Real estate values are plunging and foreclosures are way up. Irwin Nowick writes: First, … Continue reading

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Washington Asked To Do More To Prevent Foreclosures

From Time magazine: As of August, nearly 3% of all home loans were in foreclosure, and a further 6% were more than 60 days late on their mortgage payments. To the back burner went Treasury’s original plan to buy up … Continue reading

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What Are Derivatives & Should They Be Regulated?

From the USA Today: Here is a look at how Congress’ actions on two key fronts became significant factors in the financial crisis: 1. Not checking derivatives In 2000, a united financial services industry persuaded Congress to allow a vast, … Continue reading

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Jewish Law Prohibits Giving Bad Advice

From Time.com: •Hidden Flaws and the “Reasonable Man” Medieval jurists like Maimonides identified a more specific kind of bad advice. They tackled the idea of the “hidden flaw,” which, Levine points out, leads directly to a demand for fiscal disclosure. … Continue reading

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Was The Bailout A Sellout?

From the Inquirer: While the American Empire’s fall won’t be lamented, the depression will be painful. In the process they’ve driven many large US banks, hedge funds and insurance companies straight off the cliff of financial insolvency and into undeclared … Continue reading

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The Bailout Will Fail

Economist Paul Craig Roberts writes on VDare: Every example of deregulation that the New York Times editorial provides is located in the Clinton Administration and the George W. Bush administration. I was a member of the Reagan administration. We most … Continue reading

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The Essential Glossary

From the Guardian: Collateralised debt obligations A CDO is a financial structure that groups individual loans, bonds or other assets into a single portfolio which can then be traded on the money markets. When they were introduced, CDOs were seen … Continue reading

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