Category: Loans

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 | No comments

[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 […]

Houseless by degrees

22 May, 2012 (10:33) | Bankruptcy, Ecosystem, Education, Homeownership, Households, Housing, Loans, Rental, Student loans |

By:David A. Smith   The deeper one digs into our current massive supply overhang of foreclosed or foreclosing homes, the more causes one finds, unexpected causes.  Beyond the securitization froth, Fannie Mae’s peccadillos and malfeasances, the end of the Baby Boomer Buyer Bulge, or even the Eurozone’s starvation for yield, let’s add another one: a […]

This debtor is no more

30 September, 2010 (11:11) | Capital markets, Default, Fannie Mae, Finance, Freddie Mac, GSEs, Housing, Innovations, Lending, Loans, Rescission, Securitization, US News |

By: David A. Smith   I wish to register a complaint!   Mr. Praline: ‘Ello, I wish to register a complaint! (The owner does not respond.)   As The Wall Street Journal fully realizes, any good vendor knows that if it sells defective merchandise, the customer should be entitled to a refund by returning the […]

Mortgage brokers: the honorable mercenary? Part 2

5 June, 2007 (09:53) | Loans, Mortgages |

[Continued from yesterday's Part 1.]   Yesterday we discovered that, in being to thine own financial interests true, mortgage brokers claim they work neither for consumers nor for lenders.   “Neither a borrower nor a lender work for.   And it shall follow as the night the day.   Thou canst not be sued by […]