When Lenders and Investors Objectives Aren’t Aligned
The Big Picture does a nice summary of how disconnects between lender and investor alignments can create moral hazard on the scale of mortgage implosion and financial market meltdown. Overstructuring risk mitigation combined with dangerously low interest rates makes credit feel like cash, debt like wealth. And, here we are…
Seth Godin Reminds Us There is “Too Small to Fail”
A great little post about the value of being small. It doesn’t imply that you have to keep a lid on growth and profits. Seth Godin espouses the virtues of small ways of doing things like: simple accounting, decision makers place close to customers, staying close to the product and the real world.
Don’t miss Howard Lindzon’s seminal tiraid on “too small to fail.”
The Baseline Scenario Answers Reader Questions
Washington Post writers dig deeper into reader questions and mark-to-market accounting, reduction in spending, changing relationship between government and banks.
WSJ Headline: Bernanke Endorses Obama
Might seem true, but holy smokes. Wall Street Journal heading down the New York Times, Fox News path. Time to turn to blogs–at least the partisanship is declared. However, I do think it is ill advised for the Federal Reserve to dip into endorsing, encouraging, or directing fiscal policy–weird hazards here.
I guess you need to put Secretary Steve Preston, of HUD in the same political camp.
Caution on Limiting Financial Innovation
Bankwatch highlights the downside of over regulating or harmful new regulations that prevent financial innovation to emerging financial market challenges. He points to social lending or peer-to-peer lending as a point in case.
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I am Bill Rice the Managing Editor of MortgageLoan.com. These are my morning notes. If you have comments, feedback, or pointers to something interesting email me or follow me on Twitter.
(photo credit: olivermccloud)
About Bill Rice