Query by violated2: What you did not see on ABC, NBC, CBS and CNN concerning the housing meltdown..?
verify this out…
Greatest answer:
Answer by Rocket34
and what that does not show is the predatory lenders who set up mortgages they knew the purchasers couldn’t pay, using fine print…
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Question by frickadella: Why never banks restructure loans to cease foreclosure crisis?
Properly, I hear a lot about how unamerican it is and uncapitalist as effectively – and by the way, its the home owners fault for purchasing a residence they could not afford. Place aside that OLD worn out notion of fiduciary duty, bah, that the bank may have had when giving out loans in the 1st spot and assist me recognize this: Who wins when so numerous are foreclosing? The banks lose money, the owner loses the house, and the investors that fund the mortgage marketplace are losing too correct… and the communites, the countys and on and on? I wouldn’t anticipate the bank or investors to restructure solely for the advantage of homeowners, but can not they just defer partially the payments or locate some answer that allows the owner to hold the property and nevertheless honor their obligation, just perhaps further out?
So I guess my query is, what is stopping banks from performing something when it appears everyone is losing out?
Ideal answer:
Answer by Rex
Absolutely everyone is not loosing it. Much less then 1% of homes are facing foreclosure, the media just talks about it a lot.
You look to be missing the truth that these men and women had been provided large sums of cash, which they spent and it needs to be paid back.
No 1 need to get a free ride, especially not based on them being greedy in the first location.
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Question by saqibsaqib09: The idea of ‘Debenture’?
Can somebody clarify to me the idea of debenture? Preferably utilizing basic examples.
Best answer:
Answer by An Informed Voter!
A debenture is defined as a certificate of agreement of loans which is provided beneath the company’s stamp and carries an undertaking that the debenture holder will get a fixed return (fixed on the basis of interest prices) and the principal quantity anytime the debenture matures.
In finance, a debenture is a extended-term debt instrument utilized by governments and large organizations to acquire funds. It is defined as “a debt secured only by the debtor’s earning power, not by a lien on any specific asset.” It is similar to a bond except the securitization situations are various. A debenture is generally unsecured in the sense that there are no liens or pledges on distinct assets. It is, however, secured by all properties not otherwise pledged. In the case of bankruptcy, debenture holders are deemed general creditors. The advantage of debentures to the issuer is they leave specific assets burden free, and thereby leave them open for subsequent financing. Debentures are usually freely transferable by the debenture holder. Debenture holders have no voting rights and the interest offered to them is a charge against profit.
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Query by Sally: do cons know that it is not socialism that tanked europe?
it’s is the abuses of wallstreet, old fashioned american capitalism…
european governments pension funds have been heavily invested in the worthless mortgage backed securities that firms like Goldman sacs were pushing as AAA rated securities…
this is why I do not have severe conversations of essential subjects with cons, lead to I have figured out that you don’t care about the truth, it really is less difficult to blame it on socialism then go after the people who are at fault..
Ideal answer:
Answer by Anon Eemus
Of course it’s not socialism. I don’t think a lot of conservatives have been saying it was socialism.
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Question by anand b: WHAT IS A DEBENTURE Signifies?
relates to share market
Very best answer:
Answer by Bostonian
a debenture is a long-term debt instrument employed by governments and big companies to raise funds. It is similar to a bond except the securitization circumstances are diverse a debenture is typically unsecured in the sense that there are no liens or pledges on specific assets. It is secured by all properties not otherwise pledged. In the case of bankruptcy debenture holders are regarded as general creditors.
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Query by alicia: how does the present mortgage business operate? ?
Very best answer:
Answer by Chris S
You need to have to be much more certain. Large market-alot of operations! Are you seeking for the loan approval method, securitizations, a job?
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Query by M.v.: The treasurer’s department is accountable for?
preparing payroll tax returns.
sustaining payroll records.
signing payroll checks.
approving the payroll.
Greatest answer:
Answer by McChrystal
In goverment the Treasury of a country is the division responsible for the country’s economy, finance and income. Treasury management (or treasury operations) involves management of an enterprise’ holdings in and trading in government and corporate bonds, currencies, economic futures, choices and derivatives, payment systems and the related financial threat management.
In corporations, the Treasurer is the head of the corporate treasury division. They are normally responsible for liquidity threat management, cash management, issuing debt, foreign exchange and interest rate threat hedging, securitization, oversight of pension investment management, and capital structure (such as share issuance and repurchase). They also normally advise the corporation on matters relating to corporate finance. They could also have oversight of other places, such as the purchase of insurance coverage.
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Question by KAUSIK M: What is Basel II?
Greatest answer:
Answer by earthdrivenforce
Basel II is an international organization standard that demands financial institutions to keep sufficient money reserves to cover risks incurred by operations. The Basel accords are a series of suggestions on banking laws and regulations issued by the Basel Committee on Banking Supervision (BSBS). The name for the accords is derived from Basel, Switzerland, exactly where the committee that maintains the accords meets.
Basel II improved on Basel I, 1st enacted in the 1980s, by supplying far more complicated models for calculating regulatory capital. Primarily, the accord mandates that banks holding riskier assets should be needed to have more capital on hand than those maintaining safer portfolios. Basel II also needs organizations to publish each the particulars of risky investments and risk management practices. The full title of the accord is Basel II: The International Convergence of Capital Measurement and Capital Requirements – A Revised Framework.
The three important needs of Basel II are:
1. Mandating that capital allocations by institutional managers are much more threat sensitive.
2. Separating credit dangers from operational risks and quantifying both.
three. Lowering the scope or possibility of regulatory arbitrage by attempting to align the real or economic danger precisely with regulatory assessment.
Basel II has resulted in the evolution of a quantity of strategies to enable banks to make risky investments, such as the subprime mortgage marketplace. Larger risks assets are moved to unregulated components of holding firms. Alternatively, the danger can be transferred straight to investors by securitization, the approach of taking a non-liquid asset or groups of assets and transforming them into a security that can be traded on open markets.
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Query by j l: Wall St. crash….who can we prosecute for this mess ?
Best answer:
Answer by beardog4314
No one particular, there’s no crime. The market goes up, the marketplace goes down, the market goes up again. It’s only a difficulty in the brief term.
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Question by ALEXBLP: who invented mortgage?
is there a specific person or connected history showing that how humanbeing come up with the concept of mortage??
Best answer:
Answer by Igor
Some actually smart people 🙂
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Query by Boots B: Worldwide financial crisis?
I have a reseach about the causes of the global financial crisis so i want assist locating trustworthy websites that can give me the info? Can any1 assist offer some hyperlinks?
Thank u!!
BTW im in 10th grade!!
Thnx!
Ideal answer:
Answer by Randolf
youtube! study the comments there.. There’s a lot acting so known as genius there.
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Query by peterleewaih: What is Catastrophe Bond?
What is Catastrophe Bond?
Very best answer:
Answer by Bondmy
Catastrophe bonds (also known as cat bonds) are danger-linked securities that transfer a specified set of dangers from a sponsor to investors. They are usually structured as floating price corporate bonds whose principal is forgiven if specified trigger situations are met. They are normally utilized by insurers as an alternative to conventional catastrophe reinsurance.
For example, if an insurer has constructed up a portfolio of risks by insuring properties in Florida, then it may possibly wish to pass some of this threat on so that it can remain solvent soon after a big hurricane. It could merely acquire standard catastrophe reinsurance, which would pass the danger on to reinsurers. Or it could sponsor a cat bond, which would pass the threat on to investors. In consultation with an investment bank, it would produce a specific goal entity that would concern the cat bond.
Investors would get the bond, which may possibly pay them a coupon of LIBOR plus a spread, normally (but not always) between three and 20%. If no hurricane hit Florida, then the investors would make a wholesome return on their investment. But if a hurricane were to hit Florida and trigger the cat bond, then the principal initially paid by the investors would be forgiven, and as an alternative utilised by the sponsor to pay its claims to policyholders.
Michael Moriarty, Deputy Superintendant of the New York State Insurance coverage Division, has been at the forefront of state regulatory efforts to have U.S. regulators encourage the improvement of insurance coverage securitizations through cat bonds in the United States rather of off-shore, by way of encouraging two various methods — protected cells and particular goal reinsurance cars.
In August 2007 Michael Lewis, the author of Liar’s Poker and Moneyball, wrote an post about catastrophe bonds that appeared in The New York Occasions Magazine, entitled “In Nature’s Casino.”
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Question by journalistneil: Is the term ‘credit crunch’ a psychological scare? ?
Ok, so the planet is at present experiencing a monetary crisis. Everybody knows it and is feeling the pinch. I am myself.
But where did the term ‘credit crunch’ originate? When was it very first used? I hate hearing the term personally, I uncover it irritating. Is it just psychological? Are firms employing this as an excuse to raise costs and governments to raise taxes?
I am interested to hear your views. I am not suggesting it doesn’t exist, just wondering if it is getting exaggerated by over use?
Ideal answer:
Answer by src50
No. the credit market freezeup is genuine – albeit triggered by excessive effortless credit and improper securitization of that debt.
The term “bailout” is a misnomer.
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Query by iceshot1: hows the government handling the housing marketplace?
Ideal answer:
Answer by Baz
The US housing market place is in significant difficulty, far worse than in nearly any other developed nation. Since 2006, housing prices have fallen 30 to 40 percent in most areas millions now owe much more on their mortgages than their homes are worth, and millions a lot more have only slivers of equity. The typical homeowner today has 7 % equity in his or her home, versus 45 % as recently as 1990. The private housing finance program has virtually disappeared, and the government system that remains is pursuing the identical policies that created the current troubles. The affordable housing targets imposed on Fannie Mae and Freddie Mac in 1992 have been the major contributors to each the deterioration in underwriting standards between 1992 and 2008 and the development of an unprecedented ten-year housing bubble that suppressed delinquencies and stimulated the development of a private securitization marketplace for subprime loans. But other government policies are also to blame for the deterioration in the US housing marketplace, such as the thirty-year fixed-rate mortgage, the mortgage interest tax deduction, the appropriate to refinance with out penalty, and the Community Reinvestment Act. Until Fannie and Freddie’s industry dominance and the government’s role in the housing finance system are substantially decreased or eliminated, the United States will continue to have an inferior and unstable housing market.
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Query by SupaStar: Why is the GOP ‘smart’ adequate to figure out NASCAR, but as well dumb to understand Obama is way ahead on points?
Other than the actual election, this is the only poll that matters:
(270 votes necessary to win the Presidency)
Robust Dem (253)
Weak Dem (32)
Barely Dem (73)
total: 358
Exactly tied ()
Barely GOP (13)
Weak GOP (42)
Powerful GOP (125)
total: 180
http://electoral-vote.com/
Very best answer:
Answer by Michael
polls are worthless and the numbers are hardly ever fair.
-1 for getting a mindless lemming
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Query by : FASB meeting March 12, 2009 what are they talking about?
can anybody tell me what the FASB meeting on March 12, 2009 was about I study the entire write-up and cant understand any of it. Please support
Very best answer:
Answer by Bonimba
It was about “mark to industry” accounting, or the practice to worth assets that are not traded on markets in a way that is commensurate with what the markets would worth them. In other words, if the assets you own are not traded on any marketplace, then you have to use best judgment to “guess” what they ought to be worth. You can think about that in the course of the financial meltdown, when firms and banks had to liquidate assets at any cost, having to mark similar assets at these levels would have resulted in an endless downward spiral. Hence the monetary crisis, hence some relaxation of the guidelines that helped the stock industry choose up once more.
FASB Chairman Robert H. Herz Testifies on Mark-to-Market Accounting
Norwalk, CT, March 12, 2009—Robert H. Herz, Chairman of the Financial Accounting Standards Board (FASB), testified about mark to industry accounting today just before the U.S. Residence of Representatives Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises. Herz appeared at a hearing convened by Congressman and Committee Chairman Paul E. Kanjorski (D-PA) on “Mark-to-Marketplace Accounting: Practices and Implications.”
“Many investors have produced it clear that, in their view, fair value accounting permits organizations to report amounts that are much more relevant, timely, and comparable than amounts that would be reported beneath option accounting approaches, even in the course of intense market place circumstances,” mentioned Chairman Herz.
Herz underscored the significance of neutral, independent standard setting to capital market investors, and noted that after gathering substantial input about fair value from a diversity of capital market place participants, the prevailing view urged the FASB not to suspend or weaken mark to market place accounting rules. “While bending the guidelines to favor a distinct outcome may seem appealing to some in the quick run, in the lengthy run, a biased accounting normal is dangerous to investors, creditors and the U.S. economy,” mentioned Herz.
Addressing misconceptions that mark to market is a broadly applied rule, Herz explained that so named “mark to market” accounting normally only applies to trading accounts and derivatives that don’t qualify as hedges. Furthermore, Herz clarified that the use of fair value for measurement depends on each the nature of a financial asset and its intended use by an institution. Herz added that current economic reporting in the U.S. and elsewhere across the planet included the use of both fair value and historical cost.
In response to the current difficult market place conditions and feedback from a wide array of investors and constituents—including the SEC—the FASB lately announced projects intended to boost the application guidance used to establish fair values as nicely as enhancing disclosures in financial reports. (http://www.fasb.org/news/nr021809.shtml). Earlier in the crisis, the FASB and SEC jointly issued new guidance on the application of fair value in illiquid markets. (http://www.fasb.org/news/2008-FairValue.pdf).
“The truth that fair worth measures have been challenging to decide for some illiquid instruments is not a trigger of existing difficulties but rather a symptom of the several difficulties that have contributed to the international crisis—including lax and fraudulent lending, excess leverage, the creation of complex and risky investments through securitization and derivatives, the global distribution of such investments across quickly expanding unregulated and opaque markets lacking a appropriate infrastructure for clearing mechanisms and price discovery, faulty ratings, and the absence of appropriate risk management and valuation processes at numerous financial institutions,” Herz stated.
Given the challenging financial atmosphere, Herz underscored the FASB’s commitment to continue operating actively with regulators and constituents to provide guidance on reporting problems emanating from the monetary crisis and continue its project with the International Accounting Requirements Board (IASB) to improve, simplify and converge the accounting standards for financial instruments.
The full text of Chairman Herz’s testimony is positioned at www.fasb.org
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Question by : What is the word for…?
What is the word for the method of shops minimizing the value of an item by a penny in order to make them seem less costly?
For example, £4.99 seems more affordable than £5.
There’s definately a word for it, I read it in the dictionary a couple of years back, but I can not keep in mind what it is.
Very best answer:
Answer by s4bub
Psychology!
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Question by SmooveB: Mortgage Crisis-Is it the fault of Democrats or Republicans. Why?
Best answer:
Answer by delphi
I think there is lots of blame to go about. The Republican trickle down economics and deregulation sure got the ball rolling.
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Question by Chase Them With The Truth: Is there any doubt the democrats trashed the US/planet economy?
Watch the following and present your answer…
http://www.youtube.com/watch?v=_MGT_cSi7Rs
Ideal answer:
Answer by Bubuh
Let me try Googling “how Republicans trashed the economy” very first.
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Question by : Every thing is Obama’s fault, I am really angry at him?
@days_o_work: Never bring logic into this please
Greatest answer:
Answer by Volatile
as you must be
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