November 29

Two Key Questions about The Great Re-Leveraging AKA Bailouts

Let’s take another look at The Great Re-Leveraging AKA US Government bailouts, which tend to generally take one of three forms (or some combination): (1) Government guarantee (as seen with money market funds, some bank loans, increased FDIC deposit coverage and, of course, a special guarantee for Citi’s ‘bad bank’ assets) (2) Direct loans or.

November 18

Let’s Say You Run a Bank…A Modest Proposal

…You wake up Monday morning and realize that loans are defaulting at faster rates than expected. You just increase loss reserves and go back to work, but… …You wake up Tuesday morning and your CFO tells you all of your investments, including your loans, must be ‘marked to market’. That means recognizing losses on your loans before.

September 29

FNMA and FHLMC: The Hitchhiker’s Guide Meets Godzilla

Four months left for the Administration and the Goldman Sachs-US Treasury department.  The Greatest Deleveraging in the History of the World has destabilized financial markets and threatens to drag one developed economy after another into a recession. In the latest move to have this occur, the US Treasury has basically taken over the largest single.

July 29

FNMA and FHLMC: Guidance from the Hitchhiker’s Guide to the Galaxy

Don’t Panic is a phrase used in the book The Hitchhiker’s Guide to the Galaxy by Douglas Adams. It comes from the fictional intergalactic travel guide The Hitchhiker’s Guide To the Galaxy, that theoretically served to show planet-hoppers how to see the Universe on less than thirty Altairian dollars a day. Now to FNMA and.