Category: Lending

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 […]

Spain’s Lech Walesa? Part 4, Europolitical jujitsu

27 February, 2014 (09:00) | Bad banks, Banking, Economics, Eurozone, Foreclosure, Global news, Housing, Lending, Spain, Speculation |

  By:David A. Smith   [Continued from yesterday’s Part 3 and the preceding Part 1 and Part 2.]   Three years in to its ECB-ordered austerity plan, Spain’s economy appears no better off, and its property markets are frozen in confrontational irresolution because it is impossible for a debtor to escape his debts, even if the […]

Spain’s Lech Walesa? Part 3, Political suicide

26 February, 2014 (09:02) | Bad banks, Banking, Economics, Eurozone, Foreclosure, Global news, Housing, Lending, Spain, Speculation |

By:David A. Smith   [Continued from yesterday’s Part 2 and the preceding Part 1.]   As we saw yesterday and in the preceding Part 1, the Eurozone’s prescribed fiscal stabilization plan, loosely dubbed austerity, is not having the desired effect of enabling the Spanish economy to recover; unemployment is over 25% and the housing market remains […]

Spain’s Lech Walesa? Part 2, Earnable amnesty

25 February, 2014 (11:36) | Bad banks, Banking, Economics, Eurozone, Foreclosure, Global news, Housing, Lending, Spain, Speculation |

 By:David A. Smith   [Continued from yesterday’s Part 1.]   Yesterday’s post, using as seed an update article from BBC News (February 18, 2014), revisited Spain, more particularly Barcelona and the intriguing Ada Colau, who is the personifying voice that a nascent populist movement, currently called the Platform for People Affected by Mortgages,  needed to […]