Category: Banks

Optionality and anti-optionality: Part 2, Loan + Insurance = Lower risk

28 July, 2014 (08:36) | Banks, Economics, Finance, Foreclosure, Homeownership, Housing, Lending, Loans, Optionality, Rental, Saving, Theory, US News |

[Continued from last week's Part 1.] By: David A. Smith When you’ve got enough to take care of yourself, more claim checks don’t do you any good. But they can do a lot of good for all kinds of other people. – Warren Buffett As we saw in yesterday’s Part 1, the Economist’s (May 17, […]

Optionality and anti-optionality: Part 1, reward later or reward now?

25 July, 2014 (09:36) | Banks, Economics, Finance, Foreclosure, Homeownership, Housing, Lending, Loans, Optionality, Rental, Saving, Theory, US News | 1 comment

By: David A. Smith Money is a claim check on other people’s products and services. – Warren Buffett Once a month, Mrs. Guggenheim sends the bank the same amount of money.  Darling, if you have to ask the price, you can’t afford it Is she saving for herself, or repaying a debt? Either way, her […]

The demise of deposit insurance: Part 4, “An odd definition of private property”

10 October, 2013 (09:00) | Banks, Cyprus, Deposit insurance, Deposits, Eurozone, Global news, Law, Markets, Recapitalization, Russia, Speculation | 1 comment

By:David A. Smith   [Continued from yesterday's Part 3 and the preceding Part 1 and Part 2 .]   As shown in the previous posts, using as a starting point a recent New York Times (August 22, 2013) article on the bank recapitalization mess in Cyprus and how the result has delivered Cyprus’s largest bank into the hands […]

The demise of deposit insurance: Part 3, “As a last resort”

9 October, 2013 (11:42) | Banks, Cyprus, Deposit insurance, Eurozone, Global news, Law, Markets, Recapitalization, Russia, Speculation |

By:David A. Smith   [Continued from yesterday's Part 2 and the preceding Part 1.]   As we’ve seen in the two preceding days’ posts, courtesy of a New York Times (August 22, 2013), the fulminations of a certain blogger notwithstanding, the Eurozone’s paymasters have concluded that their Cypriot experiment in capital confiscation has done relatively well […]

The demise of deposit insurance: Part 2, “Not in the cold war anymore”

8 October, 2013 (10:44) | Banks, Cyprus, Deposit insurance, Deposits, Eurozone, Global news, Law, Markets, Recapitalization, Russia, Speculation |

  By:David A. Smith   [Continued from yesterday's Part 1.]   In yesterday’s post revisiting the Cyprus bank bail-in fiasco six  months after the fact, courtesy of a New York Times (August 22, 2013) story from a month ago, we discovered that the Eurozone’s financial and political leaders, determined to ‘punish’ Russian depositors for (in […]