Extra Credit, Sunday Edition

Should "bad" financial contracts be banned? "No rational regulator concerned with substantive transparency would approve of common stock, if it were a novel investment vehicle. It guarantees no cashflows whatever; its "control rights" are so weak for most purchasers that representations thereof should be viewed as fraudulent. The only instrument in wide use more substantatively opaque than common stock is fiat money."

The Option ARM Non-Bomb? An ARM resetting from 6.25% to just 4.25%.

Art in a Poorer World: My Bloggingheads diavlog with Kriston Capps.

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