Category: Borrowing

Fiscal autonomy = Political autonomy: Part 2, Obstructing his policies

1 December, 2017 (09:00) | Borrowing, Capital markets, China, Cities, Development, Government, Housing, money laundering, Municipal finance, Politics, Speculation, SPVs | No comments

By: David A. Smith [Continued from the previous Part 1.]   As we saw in Part 1, using as the jumping-off-point a disappointingly credulous article in the Economist (November 16, 2017), China’s provinces, territories, and municipalities have indulged in an orgy of off-balance-sheet financing, using Local Government Financing Vehicles.  They did so partly for fiscal […]

Fiscal autonomy = Political autonomy: Part 1, Not subject to the same rules

29 November, 2017 (09:00) | Borrowing, Capital markets, China, Cities, Development, Government, Housing, money laundering, Municipal finance, Politics, Speculation, SPVs | No comments

By: David A. Smith   As every child who’s ever had an allowance knows, among its many virtues money provides autonomy – and almost as good (sometimes better), unobserved autonomy – the freedom to buy what I want, not what my distant imperious parent wants, and not have to listen to a lecture about it […]

True confessions of a risk-a-holic

2 December, 2011 (09:00) | Borrowing, Finance, Foreclosure, Homeownership, Lending, Workouts |

By:David A. Smith   Seduced – the terrible story that MUST be told   Something about the confessional story appeals to our prurient and vicarious interests; we enjoy wallowing in another’s misfortunes, clucking at the foolish choices our hero or heroine makes, and generally enjoying, with a thrill of peril avoided, hearing how our wayward […]

The subprime lenders that worked: Part 3, more why

31 May, 2007 (09:58) | Banks, Borrowing, Consumer protection, Subprime |

[Continued from the previous Part 1 and Part 2.] Not only (as we saw two days ago) have the state housing finance agencies been able to lend in the subprime marketplace without experiencing high rates of default, we can also trace their lower defaults to specific structural elements in their business approach. Yesterday I listed […]

The subprime lenders that worked: Part 2, why

30 May, 2007 (08:59) | Banks, Borrowing, Consumer protection, Subprime |

Yesterday — All my blog posts seemed so far away — we saw, in an era when national multi-billion dollar subprime lenders could collapse seemingly overnight, one category of lender — the state housing finance agencies — has been working in the same space, with the same target customers, in the same period of time, […]