Thursday, December 21, 2017

Continuous Workout Mortgages: Efficient Pricing and Systemic Implications

By Robert J. Shiller, Rafal M. Wojakowski, M. Shahid Ebrahim, and Mark B. Shackleton

This paper studies the Continuous Workout Mortgage (CWM), a two in one product: a fixed rate home loan coupled with negative equity insurance, to advocate its viability in mitigating financial fragility.

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Saturday, December 16, 2017

What Is Bitcoin Really Worth? Don’t Even Ask.

Dabbling in Bitcoin lies somewhere between gambling and investing.

After all, true investing requires a rational appraisal of an asset’s value and that is simply not possible at present with Bitcoin. Real understanding of the economic issues underlying the cryptocurrency is almost nonexistent.

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