Mortgages are a manufactured product (2022)
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Mortgages are a manufactured product (2022)
1–10 of 127 posts
Re: Mortgages are a manufactured product (2022)
#2Previously on HN (199 points, 2 years ago, 222 comments)
Re: Mortgages are a manufactured product (2022)
#3> If you replaced your current mental model for mortgages with “it’s like a paper electronic flow meter for money, possibly with less paper these days”, it would improve your ability to understand the mortgage industry.
I feel even more confused
Re: Mortgages are a manufactured product (2022)
#4The securitization of mortgages, health care, and education.
All were simply fund-managers monetizing other peoples misery, and now many are realizing every party line is the same BS. People are angry, but often for the wrong reasons since wall-street washes accountability by design.
Unfortunately, ridiculous wealth and miserable populations seem a desirable trade in some cultures.
Thank god it is not my task to try and fix it =)
Re: Mortgages are a manufactured product (2022)
#5> If you replaced your current mental model for mortgages with “it’s like a paper electronic flow meter for money, possibly with less paper these days”, it would improve your ability to understand the mortgage industry. I feel even more confused
Yep that was the last thing I read. Absolute gibberish
Re: Mortgages are a manufactured product (2022)
#6> If you replaced your current mental model for mortgages with “it’s like a paper electronic flow meter for money, possibly with less paper these days”, it would improve your ability to understand the mortgage industry. I feel even more confused
Yep that was the last thing I read. Absolute gibberish
The second half of the following sentence clears it up:
> The analogy is less about providing visibility into the contents of pipes (though mortgages must do that) and more “highly specialized manufactured widget that the entire world sits downstream of.”
Re: Mortgages are a manufactured product (2022)
#7> If you replaced your current mental model for mortgages with “it’s like a paper electronic flow meter for money, possibly with less paper these days”, it would improve your ability to understand the mortgage industry. I feel even more confused
argument clearer if it just said "it's a flow meter for money" then you can analyze that and see if it makes any sense. Can't say it makes sense for me. Maybe it makes sense for the banks, but not the person with the mortgage.
Re: Mortgages are a manufactured product (2022)
#8The securitization of mortgages, health care, and education. All were simply fund-managers monetizing other peoples misery, and now many are realizing every party line is the same BS. People are angry, but often for the wrong reasons since wall-street washes accountability by design. Unfortunately, ridiculous wealth and miserable populations seem a desirable trade in some cultures. Thank god it is not my task to try…
FTA:
> A widespread misconception about mortgage securitization is that it was created to make Wall Street rich. …
> Mortgage securitization, and secondary sales of loans, and other mechanisms cause mortgages to migrate from the banking sector to pools of capital which are more structurally insulated against the interest rate cycle.
Re: Mortgages are a manufactured product (2022)
#9> If you replaced your current mental model for mortgages with “it’s like a paper electronic flow meter for money, possibly with less paper these days”, it would improve your ability to understand the mortgage industry. I feel even more confused
It's a terrible analogy, and does nothing to simplify or abstract in plain terms. And it pervades the rest of the article in a confounding way.
Re: Mortgages are a manufactured product (2022)
#10The securitization of mortgages, health care, and education. All were simply fund-managers monetizing other peoples misery, and now many are realizing every party line is the same BS. People are angry, but often for the wrong reasons since wall-street washes accountability by design. Unfortunately, ridiculous wealth and miserable populations seem a desirable trade in some cultures. Thank god it is not my task to try…
FTA: > A widespread misconception about mortgage securitization is that it was created to make Wall Street rich. … > Mortgage securitization, and secondary sales of loans, and other mechanisms cause mortgages to migrate from the banking sector to pools of capital which are more structurally insulated against the interest rate cycle.
Which has the effect of....?
At the end of the day, the reasons these choices exist is to make someone rich. The mechanism (shielding from interest rate cycles) is just an implementation detail.