All Posts Tagged With: "derivatives"
How Paper Mortgage Losses Turned Real
The question that keeps coming up is this: If only a small portion of all mortgages are failing how come the general financial impact has been so enormous? To resolve this mystery, let’s go back to the 1970s when the mortgage-backed security — the MBS — was developed. The MBS was a financial device designed [...]
15Dec2008 | Peter G. Miller | 0 comments | Continued
Foreclosures & The Multiplier Effect
If we’re just having a subprime crisis, then how come the impact is worldwide? That’s the essential question raised by Ben Stein, an attorney and economist who you may also know as a droll actor and TV pitchman. Writing in the New York Times, Stein points out that we have a $10.4 trillion mortgage marketplace [...]
4Sep2008 | Peter G. Miller | 0 comments | Continued
Should We Hedge Foreclosures?
Imagine you were facing foreclosure and that your lender was willing to work out a deal — a loan modification — so you could keep your home while the lender could avoid the costs of a foreclosure. This sounds like a great outcome for everyone, except that it isn’t. Believe it or not, some folks [...]
1Sep2008 | Peter G. Miller | 1 comment | Continued
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