Posts filed under “Credit”

Great chart, via Plexus Asset Management:

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Fed_mechanism_3

Its so simple! How can this not work?

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Source:
Why the Fed’s rate cut did not come as a surprise
Ryk de Klerk
Plexus Asset Management, August 17, 2007
http://investmentpostcards.wordpress.com/2007/08/17/stock-markets-how-deep-is-the-rabbit-hole/

Category: Credit, Currency, Derivatives, Federal Reserve

Quote of the day: Kasriel on Leverage

Category: Credit, Derivatives, Psychology

Open Thread: A Stealth Fed Rate Cut?

Category: Credit, Derivatives, Federal Reserve, Hedge Funds, Psychology

Subprime Credit Rot

Category: Credit, Derivatives, Hedge Funds, Psychology

Quote of the day: Moral Hazard

Category: Credit, Derivatives, Psychology

Ratings Agencies 2007 = Equity Analysts 2000 ?

Category: Credit, Derivatives, Hedge Funds, Psychology, Real Estate

Open Thread: Closing the Barn Door on Sub-Prime ARM Mortgages

To be filed under "Better-Late-Than-Never" regulatory actions: The Federal Reserve is considering the following changes in Sub-Prime lending disclosures:

The federal financial regulatory agencies today issued proposed illustrations
of consumer information for certain adjustable-rate mortgage (ARM) products
described in the agencies’ Statement on Subprime Mortgage Lending (Subprime
Statement), effective July 10, 2007. The Subprime Statement recommends
communications that ensure consumers have clear, balanced, and timely
information about the relative benefits and risks of certain ARM products. The
illustrations are intended to assist institutions in providing this information.

(Below is a table of the proposed changes)

So is this a case of too-little-too-late, or might this actually accomplish something positive?

What say ye?

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click for larger table
Sample_loans

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The rest of the proposed changes are after the jump . . .

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Category: Credit, Derivatives, Federal Reserve, Psychology, Real Estate

Money Markets Substitute Halting Redemptions

Category: Credit, Markets, Psychology

Open Thread: Fed Intervention

Category: Credit, Derivatives, Federal Reserve

Fed Treads Moral Hazard

Category: Credit, Federal Reserve, Markets, Psychology