Monthly Archives: February 2010

Brad Miller’s Old Solutions to New Problems

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

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Financial Innovation II: Much, But Not All

(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

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A Lottery in Your Savings Account

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

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Financial Innovation I, Two Problems and TRACE

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

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Vanilla Options for Derivatives

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

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GSE Losses As Shadow Bailout

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

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Superhero Registration Act

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

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