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Jim Myrtle

Jim Myrtle
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  • Hard Money, Soft Money And Asset Bubbles [View article]
    "Here is just one example, but really completely unregulated derivatives markets are a major culprit"

    Derivatives have been regulated on the CBOT and CBOE for a long time.

    Do you know of any banks that failed because of the types of derivatives that you think are to blame for the crisis?

    "WMC Mortgage Corporation, owned by General Electric, hired former strippers and an ex-porn actress to entice brokers into selling their mortgages, according to a report by the Center for Public Integrity?"

    When were strippers and ex-porn actresses deregulated?
    That does sound like something Clinton could get behind.....

    "Or that Wells Fargo gave its mortgage stars all-expense-paid vacations"

    Was there some point when regulations prevented Wells Fargo from doing that?

    "However the worst loans were securitized by folks like Citigroup, Merrill Lynch, and Goldman Sachs"

    Did previous regulations prevent this securitization?

    "They weren't securitizing junk mortgages to meet government goals for low-income homeownership, they were doing it to make money"

    Did previous regulations prevent making money?

    Thanks for trying to answer my question.
    May 25, 2014. 01:06 PM | 2 Likes Like |Link to Comment
  • Hard Money, Soft Money And Asset Bubbles [View article]
    "- After not having suffered any major financial crisis, we deregulated financial markets and see what happened.."

    What was the deregulation and how is it to blame for the crisis?

    Can you provide some specifics?
    May 25, 2014. 11:24 AM | 2 Likes Like |Link to Comment
  • Is Inflation Next? [View article]
    "The corporations that own the stock of the 12 member banks are the Real beneficiaries"

    Sure. In 2013, they benefitted from about $1.6 billion in dividends.
    That's a real benefit.

    In 2013, the US Treasury benefitted from about $77.7 billion in Fed distributions.
    More than 48 times the "stock owners" benefit.
    May 2, 2014. 11:51 PM | 1 Like Like |Link to Comment
  • Is Inflation Next? [View article]
    "I think the point he is trying to make is that the "money supply" itself should also be included as part of the government debt"

    My bank accounts are part of the money supply and are in no way related to government debt.
    May 1, 2014. 06:33 PM | Likes Like |Link to Comment
  • Is Inflation Next? [View article]
    I hope your books have fewer errors than your posts here.
    Apr 18, 2014. 03:42 PM | 2 Likes Like |Link to Comment
  • Is Inflation Next? [View article]
    "That's not the issue master of the twist Jim. Not talking about after 2004"

    That's hilarious. Of course we're talking about after 2004.
    It's clear, the ten years before 2004, an adjustable mortgage saves you money.
    It's not clear that an adjustable after 2004 costs you money.

    "Won't even return to see what you write"

    Of course not. See you later, Robin.
    Apr 18, 2014. 10:57 AM | Likes Like |Link to Comment
  • Is Inflation Next? [View article]
    "Yes ,convert FRN's to Silver. Why? Because it is a better storage of wealth"

    Down 60% in 3 years = "a better storage of wealth"!

    LOL!
    Apr 17, 2014. 12:09 AM | Likes Like |Link to Comment
  • Is Inflation Next? [View article]
    "the traditional fixed-rate mortgage may be an expensive method of financing a home."

    Excellent!

    "Calculations by market analysts of the "option adjusted spread" on mortgages suggest that the cost of these benefits conferred by fixed-rate mortgages can range from 0.5 percent to 1.2 percent, raising homeowners' annual after-tax mortgage payments by several thousand dollars"

    Even better.

    "To the degree that households are driven by fears of payment shocks but are willing to manage their own interest rate risks, the traditional fixed-rate mortgage may be an expensive method of financing a home"

    Look at that.

    30 year mortgages are expensive, especially if you move in less than 10 years, as many Americans do.

    If they can "manage their own interest rate risks" home buyers can save with an adjustable.

    "Indeed, recent research within the Federal Reserve suggests that many homeowners might have saved tens of thousands of dollars had they held adjustable-rate mortgages rather than fixed-rate mortgages during the past decade, though THIS WOULD NOT HAVE BEEN THE CASE, of course, HAD INTEREST RATES TRENDED SHARPLY UPWARD"

    So did they after 2004?
    Look at these 3 charts and you tell me which was better.

    http://bit.ly/1h5IY8A

    http://bit.ly/1h5IY8C

    http://bit.ly/1h5IY8E
    Apr 17, 2014. 12:07 AM | Likes Like |Link to Comment
  • Is Inflation Next? [View article]
    Keep working on that math, Coins.
    Maybe one day you'll understand what outperform means.
    Apr 16, 2014. 05:41 PM | Likes Like |Link to Comment
  • Is Inflation Next? [View article]
    "I posted a youtube of someone else who heard it twice as well"

    Obviously someone's faulty recollection is more accurate than the actual words he said. LOL!
    Apr 16, 2014. 05:40 PM | 1 Like Like |Link to Comment
  • Is Inflation Next? [View article]
    "Jim, I personally heard Greenspan say it on CNBC"

    Misheard.

    "and don't need to prove anything to you"

    If he said it, you could, no doubt, find it on YouTube.
    Let's go back to the horse's mouth.

    Mitigating Homeowner Payment Shocks

    Rising debt service ratios are a concern if they reflect household financial stress and presage a drop in consumption or a rise in losses by lenders. Most homeowners and renters are aware of the possible difficulties should they lock themselves into a high level of debt payment obligations. Financial institutions might be able to help some households in this regard by looking for ways that households--both renters and homeowners--can shield themselves from unexpected payment shocks.

    One way homeowners attempt to manage their payment risk is to use fixed-rate mortgages, which typically allow homeowners to prepay their debt when interest rates fall but do not involve an increase in payments when interest rates rise. Homeowners pay a lot of money for the right to refinance and for the insurance against increasing mortgage payments. Calculations by market analysts of the "option adjusted spread" on mortgages suggest that the cost of these benefits conferred by fixed-rate mortgages can range from 0.5 percent to 1.2 percent, raising homeowners' annual after-tax mortgage payments by several thousand dollars. Indeed, recent research within the Federal Reserve suggests that many homeowners might have saved tens of thousands of dollars had they held adjustable-rate mortgages rather than fixed-rate mortgages during the past decade, though this would not have been the case, of course, had interest rates trended sharply upward.

    American homeowners clearly like the certainty of fixed mortgage payments. This preference is in striking contrast to the situation in some other countries, where adjustable-rate mortgages are far more common and where efforts to introduce American-type fixed-rate mortgages generally have not been successful. Fixed-rate mortgages seem unduly expensive to households in other countries. One possible reason is that these mortgages effectively charge homeowners high fees for protection against rising interest rates and for the right to refinance.

    American consumers might benefit if lenders provided greater mortgage product alternatives to the traditional fixed-rate mortgage. To the degree that households are driven by fears of payment shocks but are willing to manage their own interest rate risks, the traditional fixed-rate mortgage may be an expensive method of financing a home.

    http://1.usa.gov/1kzsprp

    Remarks by Chairman Alan Greenspan
    Understanding household debt obligations
    At the Credit Union National Association 2004 Governmental Affairs Conference, Washington, D.C.
    February 23, 2004

    Let me know if the proof of your claim is there. Thanks!
    Apr 16, 2014. 04:01 PM | 2 Likes Like |Link to Comment
  • Is Inflation Next? [View article]
    "But believe what you want. Yellen agrees with me"

    Excellent! Does Yellen have the quote to prove your Greenspan claim?
    Apr 16, 2014. 01:51 PM | Likes Like |Link to Comment
  • Is Inflation Next? [View article]
    Sorry you mistook my mockery as applying to you.

    You must have misheard Greenspan.
    The quote you provided doesn't back up your claim.
    Apr 16, 2014. 08:50 AM | Likes Like |Link to Comment
  • Is Inflation Next? [View article]
    "Never said that Jim"

    Coins did, that's why I mocked him.

    I'm curious, do you still feel Greenspan told homeowners to get an adjustable mortgage?
    Apr 15, 2014. 10:46 PM | Likes Like |Link to Comment
  • Is Inflation Next? [View article]
    "That's why I called him out on "nitpicking" earlier. You can pick dates from multiple time frames to make your point look good on either side"

    When you say silver is a better store of value than FRNs, despite dropping 60% against FRNs since 2011, I'm gonna have to mock you.

    When you get a chance, can you walk thru the math with Coins?
    He still doesn't understand "150% outperformance". Thanks!
    Apr 15, 2014. 10:31 PM | Likes Like |Link to Comment
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