Mortgage Lending Made Easy Makes Me Uneasy

Mortgage Lending Made Easy Makes Me Uneasy

By The Banker | Blog Posts, Wall Street

Yesterday was a pretty big day in the slow unwinding of post-crisis mortgage-lending policy making, according to the Wall Street Journal. I’m not going to jump up and down and declare that this latest negotiated relaxation of federal mortgage standards means we’re back to the pre-Crisis madness. On the other hand, it appears that all [&hellip

More On Actively Managed Equity Mutual Funds

More On Actively Managed Equity Mutual Funds

By The Banker | Blog Posts, How Not To Invest, Investing, Personal Finance, Wall Street

Lately I’ve taken to saying boldly and loudly to anyone who asks my opinion (and some who don’t!) that every academic study ever done on actively managed (high cost) mutual funds vs. passively managed index (low cost) mutual funds shows that, in aggregate, the actively managed funds under-perform the passively managed funds by approximately the [&hellip

Volatility in Stocks - That's a Good Thing

Volatility in Stocks – That’s a Good Thing

By The Banker | Blog Posts, Texas

A version of this post ran in the San Antonio Express News today. The U.S. stock market got quite volatile last week, and I couldn’t be happier. Let me explain why, by way of the analogy of the 2011 fire at Lost Pines State Park. Scorched earth and equity markets Two weeks ago, I drove [&hellip

This US History Sounds Marxist, And Also Basically True

This US History Sounds Marxist, And Also Basically True

By The Banker | Blog Posts, Inequality

Can something be basically Marxist and also basically true? Of course my answer is yes, because Marxism as a tool for analysis can sometimes be summed up as a ‘Follow The Money.’ As an economic and political system Marxism has – so far – been as awful a system as we humans can manage to [&hellip

Do You Need An Investment Advisor? And Why?

Do You Need An Investment Advisor? And Why?

By The Banker | Blog Posts, How Not To Invest, Investing, Personal Finance, Texas

A version of this post previously appeared in the San Antonio Express News. Some friends of mine recently opened up investment accounts with a guy who is a salesman at a national insurance company. My friends also hired a “fiduciary” to review their investment plans. Finally, they consulted me, for free, on what to do [&hellip