Category: Hard equity

Talking down and buying up

31 August, 2012 (09:20) | Banking, Bonds, Capital markets, Euro, Finance, Global news, Hard equity, Primer |

By:David A. Smith   Banker speak with forked tongue?   In real life, talking from both sides of one’s mouth is a prescription for social disaster, but in finance, the difference between two perspectives can have profitable consequences (at least in the short term), as reported in the Wall Street Journal (August 12, 2012):   […]

The principal of the thing: Part 3, protecting our interest

26 October, 2011 (10:02) | Debt, Foreclosure, Hard debt, Hard equity, Homeownership, Housing, Interest, Negotiation, Principal, Subprime, US News, Workouts | 2 comments

By:David A. Smith   [Concluded from yesterday's Part 2 and the previous Part 1.]   So far in this lengthy post we’ve dismantled two pillars of the argument, advanced by a recent New York Timesarticle, that Fannie Mae and Freddie Mac are acting arbitrarily in refusing to allow waivers of principal on home loans they […]

The principal of the thing: Part 2, keeping their interest

25 October, 2011 (10:49) | Debt, Foreclosure, Hard debt, Hard equity, Homeownership, Housing, Interest, Negotiation, Principal, Subprime, US News, Workouts |

By:David A. Smith   [Continued from yesterday's Part 1.]   Yesterday we showed that, despite what a recent New York Times article would have you believe, refusal to agree on unilateral cuts of mortgage principal owed by homeowners whose houses may be worth less than those loans isn’t stubbornness by a single individual but is rather […]

The principal of the thing: Part 1, getting their interest

24 October, 2011 (10:59) | Debt, Foreclosure, Hard debt, Hard equity, Homeownership, Housing, Interest, Negotiation, Principal, Subprime, US News, Workouts |

By:David A. Smith   Precedent is an asymmetric concept; if I as a borrower want to misbehave, anything I do has no binding effect on any other misbehaving borrower, but if I as a lender adopt a position with one borrower, that can certainly bind me in dealing with other borrowers.     Too many […]

For want of a bail

13 June, 2011 (15:33) | Bail, Hard equity, Homeownership, Innovations, Jail, Markets, Prisons, Supportive housing, US News |

By: David A. Smith    A jail is a home.  It is room, utilities, and board.  And for some, it is more home than any alternative, as revealed in this sympathetic National Public Radio story about those who languish in prison because they cannot make bail.    Leslie Chew, illiterate and economically destitute   Lubbock, […]