Posted in Corporatism on Jul 30th, 2008
Holman Jenkins is one of my favorite columnists, until today. In today’s article he recommends destroying tens of thousands of new, but vacant, homes as a way to buoy home prices, restore confidence in home buyers and to sure up the many financial institutions that have a horse in the housing race.
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Posted in Property Rights on May 5th, 2008
A self-professed “classically liberal” friend of mine continues to make the claim that. “It is difficult to deny the relief to the mortgage borrowers once the pirates have helped themselves to the Treasury.” In other words, since the Fed and Treasury are taking actions to bail-out the major financial institutions (a terrible idea, I agree), then it […]
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Posted in Corporatism on Apr 24th, 2008
The following is excerpted from remarks by David Einhorn in October 2007: Consider municipal bonds. According to S&P’s long-term data the 10 year default rate on an A rated municipal bond is 1%; while a corporate bond’s default rate is 1.8%; and a CDO’s is 2.7%. An A rated muni has the same chance of […]
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Posted in Macroeconomics on Mar 24th, 2008
Read a bit more about this here. Insights and guidance, as always, appreciated. Where are markets seizing up? It does not appear to be in bank credit; it does not appear to be in the commercial paper market? Is it simply that the MBS market has frozen? Perhaps, and that does not seem to have […]
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Posted in Macroeconomics on Mar 19th, 2008
While funny, I’ll just add that it is not necessary reflective of my view.
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