Since 2008, the cyber-currency called Bitcoin has fascinated some cryptographers and Internet traders. It gained undeserved notoriety by mention in the FBI’s takedown of the illicit goods trading on Silk Road. Since then Chairman Bernanke’s positive comments added legitimacy and luster to Bitcoin and its exchange rate (over $1200 on 11/29/2013) earned it “above the […]
The recent and ongoing debacle with Obamacare is not the first example of the government acting in the public’s interest, and it is not the first example of government failure, as we showed in our last article on the unintended consequences of regulations. When government seeks to provide goods that are already produced privately, it […]
The Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) buy mortgages from banks and thrifts then securitize them for sale. These mortgage backed securities are more attractive to investors than raw mortgages because they don’t need servicing and are easier to buy and sell. In this way, Fannie […]
When we can, consumers save for a house, for retirement, for college, or for unexpected expenses. Savings sometimes molder in bank accounts, but wise savers use a portfolio of certificates of deposit, mutual funds, common stocks and bonds. In the depths of the housing-finance recession, the federal government loaned billions to mortgage-lending banks they deemed […]
Last year, Congress took a major step toward reforming the National Flood Insurance Program by reducing wasteful subsidies that have put the program in the red. Now, some in Congress want to stop these reforms. ACI has signed onto a letter calling for the reforms to continue. The letter can be viewed here.
A recent New York Times story asked if higher inflation is needed. Some favor allowing inflation to increase to 6%, kick-starting our stalled economy. Since the Federal Reserve (Fed) is likely to change interest rates in the near future, consumers should understand the consequences. The traditional Consumer Price Index (CPI) measures price changes in a […]
In our hearts we know which parts of our retirement plan are working and which are not. We don’t need another hardball pitch on miracle investments or guaranteed income for life. Some consumers need quiet time to plan. Others need the confidence that a roadmap brings. When those are insufficient, you need a financial guide. […]
Chris Graham wrote an article for the Daytona Beach News Journal that heavily sites ACI’s work. The piece discusses how the state’s program to help Floridian insurance homeowners actually works to subsidize those living in other states and out of the country. The article can be read and downloaded here.
Mortgage Insurance is a guarantee that a mortgage lender will be repaid. Without this guarantee, most lenders would be reluctant to loan money for 15 or 30 years to anyone lacking high income, high down payment and high credit rating. Their reluctance would show up as refusal to loan or as an uncomfortably high interest […]