tag:blogger.com,1999:blog-6616959642391988608.post4286177230450308916..comments2024-03-28T00:18:25.641-07:00Comments on Calafia Beach Pundit: Canadian banking system beats oursScott Grannishttp://www.blogger.com/profile/14028519647946868684noreply@blogger.comBlogger11125tag:blogger.com,1999:blog-6616959642391988608.post-21065861873348483102021-11-05T03:34:31.564-07:002021-11-05T03:34:31.564-07:00Nice blog post for reading and Thanks for sharing ...<br />Nice blog post for reading and Thanks for sharing the wonderful article <br /><a href="https://www.movingindia.in/packers-and-movers-pune" rel="nofollow"> Verified Packers and Movers in Pune</a> <br /><a href="https://www.movingindia.in/packers-and-movers-hadapsar-pune" rel="nofollow">Top Packers and Movers in Hadapsar Pune</a> <br /><a href="https://www.movingindia.in/Janani UKPhttps://www.blogger.com/profile/02346000150645718280noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-11964247834119167962010-02-27T16:07:07.869-08:002010-02-27T16:07:07.869-08:00Fannie and Freddie bought about one-third of RMBS ...Fannie and Freddie bought about one-third of RMBS issued in recent years, as I recall. They own 44 percent of all securitized homeowner debt now, but they used to be the only buyer...the private sector enlarged prior to the bust.<br />I have to say, there were classic free-market elements in this bust--and I don't think we should shy away from it. Just as capitalism is creatively Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-65706405646431745892010-02-27T14:23:45.790-08:002010-02-27T14:23:45.790-08:00Benjamin: excellent points you make. It reminds me...Benjamin: excellent points you make. It reminds me that big bond buyers never rely on ratings to begin with. The only way to be competitive is to know more than the ratings agencies. The problem this time was that 1) the rating agencies didn't realize how bad things could get and 2) Fannie and Freddie were buying the bulk of the securities sight unseen. Fan and Fred really messed things up. <Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-48013425804938401492010-02-27T12:18:02.934-08:002010-02-27T12:18:02.934-08:00Scott-
Yes, the market does correct. As you say,...Scott-<br /><br />Yes, the market does correct. As you say, who believes the AAA anymore? But that is real market damage--capital becomes more expensive.<br /><br />I must say, I am surprised that bond buyers have not set up their own credit-rating agency, and insist that bond sellers get rated by their agency, or no dice.<br /><br />This is what free markets would evolve. Bond buyers could Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-32397765849156723732010-02-27T10:42:25.145-08:002010-02-27T10:42:25.145-08:00randy: I think you're exactly right. Our probl...randy: I think you're exactly right. Our problem begins and ends with politicians who always seem eager to do whatever sounds popular, regardless of whether it is a good idea or not. If we can't mend our ways, we deserve the politicians we get, and they will keep wreaking havoc on the economy.Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-46411032480393635492010-02-27T10:40:47.398-08:002010-02-27T10:40:47.398-08:00Benjamin: I imagine that it will be a long time be...Benjamin: I imagine that it will be a long time before people trust AAA ratings implicitly again. It will also be a long time before mortgages are securitized like this again. The bad thing about securitization is that it becomes difficult for the market to know what is inside and behind the securities for sale, and it is easy for the originator to stuff bad loans into the package. If originatingScott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-3343186595918325932010-02-26T14:50:51.717-08:002010-02-26T14:50:51.717-08:00Interesting. I wonder why the Canadians did not m...Interesting. I wonder why the Canadians did not make some of the same policy moves that ultimately were proved so wrong for US. Were they smarter? More boring and less creative? Or is there something about their political system that makes perversion of public policy for political gain less of an issue? I assume the Canadians are humans too. Along with identifying specific policies we couldrandyhttps://www.blogger.com/profile/16368254229927808998noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-56543814853630824062010-02-26T14:35:52.375-08:002010-02-26T14:35:52.375-08:00Well, I agree but...
"less securitization&qu...Well, I agree but...<br /><br />"less securitization" is the elephant in the room.<br /><br />US lenders securitized debt and sold it to a rabidly hungry global capital market looking for yields. <br /><br />The RMBS were rated AAA by Moody's, S&Ps, Fitch.<br /><br />As long as lenders could sell RMBS, they would loan, and make money on the transaction, not on holding the Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-10344076190841736982010-02-26T14:32:08.858-08:002010-02-26T14:32:08.858-08:00Funny you mention. I work for a Canadian company,...Funny you mention. I work for a Canadian company, and the mother of one of the partners is Miriam Varadi. She had a great interview on CBC about his very same subject!<br /><br />http://www.youtube.com/watch?v=Rui-5U7D3pY<br /><br />check out the video. some great insight.Danielhttps://www.blogger.com/profile/17218368702832658780noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-1411261392411952982010-02-26T10:32:49.511-08:002010-02-26T10:32:49.511-08:00This is actually a repeat of the past. During the...This is actually a repeat of the past. During the banking crises of 20th centtury, especially after the Great Depression, Canada's banking system had a tiny fraction of the defaults suffered in the US. The reason, much freer banking system.<br />Those who fail to learn from history...piefarmerhttps://www.blogger.com/profile/04596576632760958227noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-57888371097709889752010-02-26T09:40:16.484-08:002010-02-26T09:40:16.484-08:00I love this post. It basically highlights everythi...I love this post. It basically highlights everything we have done wrong in housing since the Great Depression.<br /><br />Zero accountability and massive government meddling. Two ingredients for calamity.Public Libraryhttps://www.blogger.com/profile/00017383928897945054noreply@blogger.com