real-estate-and-urban.blogspot.com - 11/21/2008
—
Some time ago, Susan Wachter and I wrote an article about (among other things) the history of the US mortgage market. One of the points of the piece was that depositories are not capable of holding long-term fixed-rate mortgages, because it subjects them to too much duration risk: mortgages ...
Comments
Blog Reactions
links for 2008-11-21
Economist's View —
... Gordon
Food prices and food security: Don’t blame liberalisation - voxeu.org
Sheila Bair and seizing Citigroup - Bronte Capital
A thousand of Keynes’s (and my) words - Edge of the American West
The Big Easing - Models & Agents
A Gaping Hole in the Safety Net - Howard Rosen
Sen. James Inhofe calls out Andrew Leonard - Andrew Leonard
In defense of mortgage backed securities - Richard Green
Fight!
EconLog: Library of Economics and Liberty —
Richard Green writes , depositories are not capable of holding long-term fixed-rate mortgages, because it subjects them to too much duration risk: mortgages are assets with long duration (i.e., have values that are sensitive to changes in interest rates), while deposits are liabilities with short duration. ...the basic MBS [mortgage-backed security] was and remains an ingenious product, and will continue to be an important instrument of housing finance in the years to come. We are not exactly in agreement here. Some quick points. 1. The mortgage security does not make ...
Related Content
Fed Goes All In for Mortgage-Backed Securities
traderdaily.com 12/31/2008 —
The U.S. Federal Reserve on Tuesday moved forward aggressively with an effort to drive down mortgage costs, setting a goal of buying $500 billion in mortgage-backed securities by mid-2009.
The central bank said it would start buying the securities ...
New York Fed Begins Purchasing Mortgage-Backed Securities
newyorkfed.org 1/5/2009 — The Federal Reserve Bank of New York today began purchasing fixed-rate mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae. Selected private investment managers are acting as agents of the New York Fed in these purchases.
Mortgage Backed Securities: Its a trap!
accruedint.blogspot.com 12/17/2008 — The agency-backed mortgage sure is tempting. Fannie Mae 30-year 6% mortgage-backed securities are currently yielding in the 4.40% area with just a 2-year average life, based on Bloomberg figures. That looks pretty good compared with 2-year Treasuries ...
New Accounting Guidelines for Mortgage-Backed Securities
nytimes.com 4/2/2009 — The Financial Accounting Standards Board voted on Thursday to give more discretion to bank managements in reporting the value of mortgage securities. The changes seem likely to allow banks to report higher profits by assuming that the securities are ...
Defense Spending Would Be Great Stimulus
online.wsj.com 12/24/2008 — MARTIN FELDSTEIN The Department of Defense is preparing budget cuts in response to the decline in national income. The DOD budgeteers and their counterparts in the White House Office of Management and Budget apparently reason that a smaller GDP ...
A Defense of the Paulson Plan
gregmankiw.blogspot.com 9/25/2008 — The Treasury proposal to rescue the financial system has gotten a lot of grief lately, especially from the community of economics professors. A smart friend, who knows more about this topic than I do, emails me his response to the critics: Academic ...
The macroeconomic benefits of mortgage-backed securities
voxeu.org 6/20/2009 — Mathias Hoffmann , Thomas Nitschka , 20 June 2009 Mortgage-backed securities have played a major role in the financial crisis and aren’t very popular as a result. This column documents macroeconomic benefits of these instruments, showing that ...
Defense and the National Interest
d-n-i.net 9/22/2008 — Global Security Newswire Sept. 26, 2008 The U.S. Air Force is considering the addition of significant new features to many of its B-61 nuclear gravity bombs, such as the one shown above (Center for Defense Information photo). U.S. Air Force Might ...
Follow WallStreetBlips on Twitter
