The Economics and Incentives of Yield Spread Premiums and Credit Default Swaps

Via LivingLies “Based upon the foregoing facts and circumstances, it is apparent that the securitization of mortgages over the last decade has been conducted on false premises, false representations, resulting in intentional and inevitable negative outcomes for the debtors and creditors in virtually every transaction. The clear provisions for damages and other remedies provided under … Read more

The Equilibrium Distribution of Prices Paid by Imperfectly Informed Customers in the Mortgage Market

This document made my brain hurt. Anyway, good info… Consumers often transact with imperfect information about the best price available for a product. Some examples are mundane, a grocery shopper does not know the price of Kleenex at every other nearby grocery store. Others are more substantial, such as the best available price for a … Read more