Category: Structured Thinking

Saving money, educational, investment and financial concept for Stacking coins with hand of child putting money on top, growth for the future. Funds, Bonds, Dividends and Interest.

Securitization Benefits Americans by Reducing Risk and Interest Rates

By Michael Bright There’s safety in numbers as the saying goes. That’s especially true in finance. When loans are bundled together into a bond – a process called securitization – the combination produces lower interest rates and a reduced risk of default. A safer financial system – and savings for consumers and small businesses – […]

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Consumers Defy Economists’ Optimism

By Michael Bright If you listen to economists, the financial condition of Americans is strong. The Federal Reserve board has paused in raising interest rates, they note, and price inflation has slowed. The dreaded recession that almost every economist was predicting has yet to materialize and might be avoided entirely. Why, then, are people complaining […]

Government Debt Ceiling and Federal Government Shutdown

Stop the Government Debt and Spending Spiral

By Michael Bright The federal budget deficit for fiscal year 2023 reached $1.7 trillion. The total accumulated federal debt is $33 trillion, and gigantic federal spending is still on track. President Biden has all but guaranteed this trajectory with a recent request of more than $100 billion to help tighten the U.S. border and support […]

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Strong Employment Means High Interest Rates for Longer

By Michael Bright A blowout jobs report would usually be a good sign for a nation’s economy. But the U.S. jobs report that came out earlier this month increased fears that interest rates will remain elevated for longer than had been expected. The Labor Department reported that nonfarm payrolls surged by 336,000 jobs last month, […]

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Mortgage Rates: A Primer

By Michael Bright Mortgage rates are north of 7 percent for a 30-year fixed loan, the highest mortgage rates since 2004. That is a psychological fact in addition to being a financial data point. For 20 years, people have grown accustomed to rates lower than today’s. They were in the 3 percent range not long ago. Those […]

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Michael Bright Featured in American Banker Discussing the SEC’s Proposed Rule Prohibiting Conflicts of Interest in Securitizations

On September 12, SFA CEO Michael Bright was featured in an OpEd published by American Banker, discussing the SEC’s proposed rule, aimed at prohibiting conflicts of interest in securitizations. Bright emphasizes the unintended consequences the rule could have on financial markets, if it were adopted as written. Read Michael Bright’s OpEd here.

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Michael Bright Featured in American Banker on Impact of Financial Regulatory Agendas

SFA CEO Michael Bright was featured in an OpEd published by American Banker discussing newly proposed financial services regulations and the potential threat it could have on economic recovery.

Rising Inflation and consumer spending

Don’t Expect Lower Interest Rates Anytime Soon

By Michael Bright The U.S. Labor Department has steadily reported that lots of new jobs are being created each week. That’s good news – except for people who are hoping for relief from rising interest rates soon. The surprising strength of the U.S. economy, measured in part by job creation, likely will mean that the […]

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Spending Cuts Likely Are Coming in Debt Ceiling Deal

By Michael Bright The U.S. government is lurching precariously close to defaulting on the national debt. Unless Congress raises the federal borrowing limit early next month, the world economy could face a catastrophe. I am hopeful that sanity will prevail, and that Congress will act in time. To make that happen, in my view, President […]

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Keep Your Eye on Housing to Gauge Economic Trajectory

By Michael Bright Bad news is often good news when it comes to the economy these days. To wit, the U.S. economy grew by only 1.1 percent year over year according to the latest Commerce Department data. That is half of the nearly 2 percent growth that many economists had predicted and is down considerably […]