Category: Banks

Twilight at the Groucho Marx club: Part 3, From whatever source

3 August, 2016 (09:00) | Bailouts, Banks, Brexit, Caddyshack, Eurozone, Global news, Greece, Italy, Monte dei paschi, Recapitalization, Speculation, Workouts |

By: David A. Smith   [Continued from yesterday’s Part 2 and the preceding Part 1.]   After the previous two parts, using as source material articles from the Economist (July 3, 2016) and the Wall Street Journal (July 27, 2016; blue font). It has become apparent that though Italy is by no means an equal […]

Twilight at the Groucho Marx club: Part 2, New rules bent the first time they are tested

2 August, 2016 (09:00) | Bailouts, Banks, Brexit, Caddyshack, Eurozone, Global news, Greece, Italy, Monte dei paschi, Recapitalization, Speculation, Workouts |

By: David A. Smith   [Continued from yesterday’s Part 1.]   In yesterday’s Part 1, I returned to the Eurozone’s continuing slow train wreck of the Eurozone, where one country after another promises improved behavior, then cannot achieve its promise.   Judge Smails: You know, despite what happened, I’m still convinced you have many fine […]

Twilight at the Groucho Marx club: Part 1, That was always the plan

1 August, 2016 (09:13) | Bailouts, Banks, Brexit, Caddyshack, Eurozone, Global news, Greece, Italy, Monte dei paschi, Recapitalization, Speculation, Workouts |

By: David A. Smith   When in a moment of financial exuberance you join that exclusive club whose members and surroundings you’ve envied for years you seldom think of the downside.  No, once you’re In you’ll capitalize on all those Insider opportunities, and now that you’ve managed to raise the initiation fee, the ongoing dues […]

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 […]