How We Got into the Subprime Lending Mess

This linked article, How We Got into the Subprime Lending Mess (published by my alma mater Wharton), describes the background to the changes in the mortgage industry that contributed to the dislocation between stated risk/return profiles and reality of the loans. The comments following are insightful too.

Turn Iran from a threat into an opportunity

Jean-Pierre Lehmann eloquently describes the opportunity to include Iran in globalisation which would benefit the world, rather than consuming resources needlessly.  The benefits include participation of the nation with the fifth largest oil reserves, access to a great world civilisation and a balance to fundamentalist culture.  We support his suggestions following: Stop treating Iran as …
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US Fed drops rates from 5.25% to 4.75% – oh dear …

Oh dear … Well, it wasn’t as if it wasn’t expected. Futures were pricing a 100% chance of a drop of 0.25% and a 50% chance of a drop of 0.5%. But I still think it was a dangerous mistake. Inflation is pulling at the rein and the speculative dynamic of stock markets continues to …
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More money than deals in clean tech

As we expected, there appear to be more money than deals in clean-tech. New Energy Finance reports: 2006 was another record year for Venture Capital and Private Equity investment in the clean energy sector, with $18.1 billion invested in companies and projects. This represented a 67% increase on 2005 ($10.8 billion), and beat New Energy …
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IEA reports on poor record of energy consumption

Energy Use in the New Millennium by the International Energy Agency published on 10 September draws a gloomy picture of efforts made by the 26 IEA member countries to control their energy consumption since 1990, the reference year of the Kyoto Protocol on climate change. “Final energy-use increased by 14% between 1990 and 2004. This …
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Water shortage risks highlighted by Marsh

A report from the newly launched Marsh Center for Risk Insights highlights the risk of water shortages. Marsh was under severe scrutiny in 2005 for governance issues.  They have clearly taken concerns of global sustainability to heart with the launch of their new research centre. Their report singles out water shortage as one of the …
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Role of soil in climate change highlighted

The International Forum on Soils, Society and Climate Change, a title you wouldn’t have imagined a few years ago, attempts to raise our awareness of soil erosion and the impact it has on the environment. Every year, some 100,000 square kilometres of land loses its vegetation and becomes degraded or turns into desert.  In addition, …
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Is Northern Rock the “whale” that signals the rebalancing of the price of liquidity?

Anatole Galetsky presents GaveKal’s perspective in Here Comes the Whale that Northern Rock is the large problem that needs bailing out in order to pass through the financial liquidity imbalance that has accrued during the past few years. … on past experience, the long-awaited appearance of the whale – Continental Illinois, Chrysler, Brazil, Drexel Burnham, …
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