Category: Saving

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 […]

Capturing wallet share: Part 2, too big, or too few?

12 August, 2010 (11:46) | Banking, Consolidation, Finance, Innovations, Saving, US News |

[Continued from yesterday's Part 1.]   By: David A. Smith   Yesterday’s exploration of a Wall Street Journal story on banking concentration asked whether banking concentration was depriving customers of informed choice.    There’s a reason we enacted the 1890 Sherman Antitrust Act   Measured in loans and other assets, Citigroup Inc. and the three […]

Capturing wallet share: Part 1, some get bigger

11 August, 2010 (11:02) | Banking, Consolidation, Finance, Innovations, Saving, US News |

By: David A. Smith   How many banks is enough?  How many are too many?  And how many physical branches should a bank have?    What is convenience when capital has dematerialized?   Those questions lie silently behind a Wall Street Journal article with surprisingly populist overtones:   A City Feels the Squeeze in the […]

Nothing but upper ups?

3 February, 2009 (10:56) | Banking, Government, Saving, Speculation, US News |

In the halcyon days of the early Peanuts comic strip, Charlie brown was trying to console the perpetually-aggrieved Lucy via a bit of soothing wisdom: “Life has its ups and downs, you know.”   My dear, your being down is in the nature of things   “I don’t want downs!” shrieked Lucy.  “I want only […]