On the dangers of privatising a critical service. And the UK has done it about as bad as you can imagine. Poor regulation combined with highly indebted water provider owned by private equity sowed the seeds for an epic disaster. https://www.theguardian.com/business/2023/jun/30/in-charts-how-privatisation-drained-thames-waters-coffers?CMP=Share_AndroidApp_Other
None of these UK mortgage payment shock solutions deal with the underlying problem and they actually make the problem worst. A 12 month grace period won’t solve the problem and assuming interest accrues during the grace period borrowers are worse off. Neither borrower income nor integrates are likely to change much, hence the grace period …
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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 …
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 …
Is lax oversight a feature or a bug in the global audit industry? It seems every time a major fraud is uncovered the leadership breaks out the standard playbook: 1) We were fooled as well, 2) It’s not our job to uncover fraud and 3) we promise to do better. Though massive fraud garners the …
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 …
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 …
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 …