Monthly Archives: February 2010

President Obama’s key initiative on the mortgage situation, the Home Affordable Modification Program (HAMP), has serious problems. Besides low modification rates, the biggest problem has to do with borrowers being underwater. It’s well known that being underwater is correlated with … Continue reading →

(Part One is here) Robert Litan at Brookings has a paper out, In Defense of Much, But Not All, Financial Innovation. You should check it out, it is pretty good. Here’s the summary chart, that Kevin Drum grabbed from the … Continue reading →

I want to flag this story by Anne Stuhldreher because it’s a pretty great financial innovation. From the Washington Post, Credit unions launch a savings lottery, and everyone hits the jackpot (my bold): …But eight Michigan credit unions, including one … Continue reading →

Remember all the discussion about financial innovation, including this Planet Money podcast? Let’s dig that back up. I want to talk a little bit about problems discussing financial innovation, point out some financial innovations that are pretty great, and then … Continue reading →

I really liked writing the Vanilla Options for stakeholders, which had a Fed members talking about reforms needed for shareholders and creditors in the financial markets in a manner that sounded very similar to arguments used for vanilla options in … Continue reading →

I want to talk about this, from Megan McArdle: It’s looking increasingly like Fannie Mae and Freddie Mac are going to cost the US government much more than AIG. In its latest long-term budget outlook released in late January, the … Continue reading →

Oh why not, it’s Friday, let’s have some comics talk. Ezra Klein: Spencer Ackerman’s adjudication of the dispute between Captain America and Iron Man is some of the most relevant punditry you’ll read today. And, incidentally, I agree with Spencer … Continue reading →

Part I So let’s assume that there’s an option value in being above water in your mortgage, if only because you can sell it without having to go into your pocket for additional payments. You’d have to do that for … Continue reading →

Matt Frost noted that there were “strange reproductive politics implicit in the comments” on the foreclosure email post. This is fascinating, from a commenter: “I finally lost my sympathy when they decided to have a baby without their financial situation … Continue reading →

Is this a real thing, conservatives calling for drug tests for those who get welfare benefits? I saw this remark everyone saw: South Carolina Lt. Gov. Andre Bauer has compared those on government assistance to “stray animals,” saying that the … Continue reading →