You assume available jobs are located near where teenagers live? In many cases the jobs are located in remote areas with small populations (most agricultural work).
Also, I want mine and your teenagers to be studying and preparing for their futures. These are jobs with limited upside, for the most part.
Learning discipline and the value of hard work is infinitely more important than learning things that are easily Googlable in out-dated high school curriculums.
These jobs aren't located near where Mexicans live either - they are actually on the wrong side of a heavily policed border in an entirely different country.
I'm not sure I agree with the whole chain of logic, but at this point is seems fair to point out that the Mexicans aren't enrolled at a university that requires them to turn up for classes.
The OP probably meant summer jobs. I worked on farms and cut grass at a country club no where near my house. Saved enough money to buy my first computer and teach myself some code. I was hired because I spoke Spanish (took it in middle/high school) and could translate.
When I was a kid I did pipeline work during summer breaks. Lots of kids are out of school during harvest season, one of the major reasons for kids even having school breaks.
Second Ally Bank. I've used them for about 3 years now, and can only say good things. Their newly offered credit card is run by a third party, which I might avoid. Standard banking is really great. I don't miss the physical branches.
Same here. I've been using Simple less and Ally more. It's nice to have a checking and a savings account at the same bank (instant transfers). Check books are also convenient.
I think the comment is referring to the fact that one can write CDS on top of an underlying instrument. So, if I have $100 million in MBS, other parties, or even myself, can write CDS contracts that reference my $100 million MBS.
What I have just done is to create more exposure than the underlying MBS. The MBS is still only $100 million, but the total outstanding contracts on the pool (MBS + CDS) is now much larger.
What you are talking about is related to offsetting contracts, which is different.
AIG was left holding the bag for most of these. They are one of the few who did not offset like you are saying.
It sounds like a reasonable theory on its face. However, the outcome of this is likely that banks will stop making loans all together. If they were to offer mortgages at all, it certainly would not be a 30 year fixed rate product.
It's not correct to say that banks can sell off all of their risk through securitization. They do in fact retain some of the risk. Though most has been transferred.
The buffer is (in theory) in excess of the losses. So, after a crises a bank would be left with the buffer and be able to continue to operate as a going-concern. The question is how to set the buffer and how big ?
>However, the outcome of this is likely that banks will stop making loans all together.
Really? We had a healthy mortgage market for a great many decades before mortgage backed securities were invented. And if mortgages are such a bad idea that banks can't make money off of them, then we shouldn't have them.
It's quite simple to get a mortgage in other countries where banks don't securitize. And if you get into trouble they will work with you rather than immediately foreclose.
Fixed rate mortgages for 30 years are a scam. How can a consumer predict interest rates over 30 years? If they go down they have to spend money on fees to refinance which benefits the Lenders. Adjustable rate mortgages are far better and allow for quick stimulation to consumers when rates are cut.
It's just insurance. One side pays the other side if a certain outcome occurs. In exchange for protection from the outcome, the side seeking protection pays a fee.
Meaning, the mortgages (default risk) are guaranteed by the government, either explicitly (FHA) or implicitly through a government sponsored interprise (Fannie and Freddie).
After the housing crisis the private market (mostly banks) left very quickly. FHA and the GSEs stepped in and took their share.
Yes. FHA and the GSEs pool mortgages from banks, stamp them with their guarantee, and then sell the loan pools as MBS to investors.
(Most) banks, especially small ones, are unwilling to sell and hold a fixed rate 30 year mortgage. There's way too much risk, price volatility (driven by rates) and uncertainty about what will happen over a 30 year time period.
Banks only do a 30 year mortgage because they know they can sell it to FHA or the GSEs.
And why is that? Technically, we could repay all of our debt, at any time, as we print our own currency. There are long-term implications for what you are talking about, but we are far away from anything approaching a crisis (not including self-imposed crisis by The Congress). There is no connection between a household 'maintaining a budget' and the way the US government finances itself. It is a false equivalency, but serves as a useful political cudgel.
