The good things about Negative Equity Mortgages (for the banks)

There was a post on Geckko’s World about Negative Equity Loans – and he rightly pointed out that there had been an instant and widespread denouncement of them, then going on to point out that if a person was to try to reduce their debt that it could in fact be a very good concept. My opinion is that the focus will not be as a facility to reduce a persons debt but rather to increase, however, Geckko makes some very interesting and valid points which show that the first reaction was perhaps not totally balanced, as well as giving some smart operational guidelines (it’s worth leaving here for a while to check out the post).

However, there are some distinct advantages for the lender in this process as well which I have not seen any commentary on (if you have please post links in the comment section!).

1: Reduced borrower risk: Surely a higher LTV makes it riskier right? …

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Pete Peterson formerly of Blackstone, CFR, Lehman and Secretary of Commerce

Pete Peterson is a fascinating individual, he came from humble beginnings and went on to work at executive levels in some of the most well known finance houses in the world. He mentions some of the deficit fears that have been laid out in this blog many times in the past and the inflationary risk that comes with it, Peterson is in agreement with Volcker that there is a serious dollar risk forming.

Peterson is also a human, he is one of the few Wall St. legends to come out and admit that he needed psychotherapy in the past, this interview is absolutely worth watching and learning from.

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Irish economic policy for the crisis: What next? (first session)

On Wednesday there was a conference in Trinity College Dublin called ‘Irish economic policy for the crisis: What next?’. This post is video footage taken at the conference (thanks again to Philip Lane and Patrick Honohan for allowing me to film it).

There are some really fascinating ideas in the talks and for those of you who couldn’t make it on the day it is really worthwhile watching.

The first speaker of the day was John Fitzgerald of the ESRI who gave a talk about competitiveness. The other parts are here ( part 2, part 3, part 4, part 5 )

Karl Whelan of TCD followed with a piece on Potential Output. Karl’s talk raised some great points about the structural deficit but pointed out (towards the end) that the actual deficit is the thing to focus on. …

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Irish economic policy for the crisis: What Next? (second session)

The second session was chaired by John McHale  now of NUIG, formerly of Queens University Canada, who I have emailed back and forth with in the past (so I was really pleased to meet him in the flesh!).

Colm McCarthy (more recently infamous for his role in an bord snip nua) talked about pensions and debt management. The audio on this one is a bit tricky as he was talking away from the camera but it is a great talk, the other segments are here ( part 2, part 3, part 4, )

Philip Lane gave a talk on on the challenges facing Ireland regarding our fiscal policy, the factors affecting Ireland (such as our EMU membership) were raised and his talk was fascinating, he also -and …

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