Comments on: Subprime Losers

By: The Demand for Housing « The Baseline Scenario

The Demand for Housing « The Baseline Scenario — Mon, 17 Aug 2009 15:51:02 +0000

[...] Rational Karl Smith points out that there may not be a conflict here at all. When it comes to no-money-down liars loans, or [...]

By: Karl Smith

Karl Smith — Tue, 14 Jul 2009 21:00:19 +0000

haha – thanks. And thanks for the link. I need to get over to your site to comment but I have been backed up with the work that I am like paid to do.

By: Mike

Mike — Tue, 14 Jul 2009 17:20:14 +0000

By the way, I’m mad an economist had to point out to a finance guy that the real damage is in hidden in decreasing the value of the option to sell, not the actual sell price. Nobody even tries to price that externality in the estimate models.

By: AEI And Consumer Financial Protection « Rortybomb

AEI And Consumer Financial Protection « Rortybomb — Tue, 14 Jul 2009 15:20:46 +0000

[...] billion dollars. Another AIG! Spread out among people who could afford their mortgages! Mortgages have externalities with them if they go bad; real value is lost in bankruptcy, and foreclosures directly effects the [...]

By: teageegeepea

teageegeepea — Fri, 10 Jul 2009 02:24:33 +0000

An argument against our lax bankruptcy laws (which date back far enough for de Tocqueville to notice)? Although I suppose limited liability for corporations results in even more losses that aren't internalized (or dead-weight loss for trades never made).