A Risk Manager's Perspective on Causes of the Subprime Mortgage Crisis

Incisive analysis of the interworkings of human behavior and risk management by David Rowe of Kamakura Corp. in his article Dangerous Adaptation: The Evolution of Risk. It's a quick read on the adaptability of the human wallet, er, mind. - David

Proving Augusta is Not a Golf Course

 Nope.

For you risk managers, statistics jocks, and golfers out there (is there a difference?): Friend Don van Deventer of Kamakura Corp. conclusively proves what Rory McIlroy learned himself at the Masters Tourney over the weekend: that Augusta National is not a Golf Course (but in fact something far more fearsome). - David

It's Not About Ben! - The Housing Meltdown Explained (by David White)

Fed Chariman Ben Bernanke recently inferred that the Fed's policy of low interest rates was not a major factor in the mortgage meltdown. That's right and wrong, and he's taking some heat for it. Let's sort it out:

He's RIGHT because low rates targeted by the Fed and endorsed by the originators (lenders) and backers (Freddy, Fannie, AIG, etc.) of those mortgages certainly improved the affordability of housing and homebuilding, a strong positive, contributing to the housing boom and a great deal of desirable new construction. Prudent capital investment by the private sector is a good thing, and it is encouraged by low costs of borrowing.