Category: Original content

The Trump administration may privatize Fannie Mae and Freddie Mac — and it could disrupt the nation’s housing-finance system – MarketWatch

The Trump administration may privatize Fannie Mae and Freddie Mac — and it could disrupt the nation’s housing-finance system – MarketWatch

A fully privatized mortgage market will fundamentally change mortgage credit. The US is the only mortgage market in the world with a fixed rate for 30 years. It only works because most mortgages have no credit risk. Once you remove the govt guarantee you then have both credit risk and interest rate risk.  Investors facing …

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Time to open the friendly skies.

Time to open the friendly skies.

As I’ve previously posted, there is extremely low risk from flying. Opening up flying saves the airlines and tourist dependent regions.Allowing those with covid negative tests to fly is about the safest way to reopen economies. The US and EU should create uniform test criteria that would be accepted in all states and EU member …

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Investors brace for consumer debt defaults if US relief stalls | Financial Times

Investors brace for consumer debt defaults if US relief stalls | Financial Times

Several issues to consider – 1) how much have loan modifications and forbearance artificially suppressed defaults and delinquencies, 2) how many jobs have been permanently lost due to downsizing and company BK, 3) how many jobs are vulnerable to the ebb and flow of reopening economy. The reopening economy jobs should be targeted by directly …

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On eve of bankruptcy, U.S. firms shower execs with bonuses | Article [AMP] | Reuters

On eve of bankruptcy, U.S. firms shower execs with bonuses | Article [AMP] | Reuters

Bonus before bankruptcy or BBB. Where is the governance? Hopefully some of the bonuses will be subject to clawback. The beauty of the “heads I win, tails you lose” C-Suite. When company does well bonus is well deserved, when company does poorly they need to retain management to execute “visionary” turnaround. And when board is …

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Weighing Sweden’s Coronavirus Model – The Wall Street Journal.

Weighing Sweden’s Coronavirus Model – The Wall Street Journal.

Weighing Sweden’s Coronavirus Model The global economy needs a leader as lockdowns are lifted and countries fear a second wave if lockdowns are relaxed to quickly. The Swedish model can be that model and happy to see WHO endorsing it as a legitimate approach. The worst case scenarios never materialized in terms of Covid disease …

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The Irrationality of UK Covid-19 Lockdown

The Irrationality of UK Covid-19 Lockdown

As we approach the end of the six week lock down in the UK and talks of extending until  June, it’s time for a reality check. Below are some facts that reveal the hypocrisy of the UK lockdown. These stories are replicated in many other places (in fact in a number of ways, the UK …

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The 1MDB scandal: what does it mean for Goldman Sachs?

The 1MDB scandal: what does it mean for Goldman Sachs?

The 1MDB scandal: what does it mean for Goldman Sachs? – 1MDB scandal: what does it mean for Goldman Sachs? I’m reading the book Billion Dollar Whale about 1MDB and if it’s to be believed culpability goes to the highest levels at Goldman – Cohn and Blankfein. It was at a minimum willful blindness. I …

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