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MortgageGraphics' web-based tools are available on an individual subscription basis or may be licensed, customized and integrated into existing websites.
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Consumer Financial Literacy
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Disclosures
- At the initial point of inquiry
- As sales tools
- Customized to each mortgage
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Borrower Education
- Show how negative amortization works
- Illustrate the risk of payment shock
- Home equity scenarios
- Mortgage analysis tools
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No software to purchase or download.
Work online from any computer.
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MortgageGraphics is easily integrated into existing websites.
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Current notes for June 17, 2009: Free markets hold the promise of long-term prosperity for all, they do not ensure protection from short-term economic fluctuations and pain (this includes the formation of asset price bubbles and the bursting of those bubbles, for example, the housing price bubble). Economists’ view of proper policy responses to free market fluctuations has evolved and ‘fluctuated’ over time. Milton Friedman, perhaps the most well know economist of the last several decades, devoted his life and his work to free markets solutions and the role of the supply of money in managing economic cycles. It was the implementation of Milton Friedman’s theories on monetary policy that finally brought the U.S. out of the stagflation of the 1970’s. Somewhat recently, Keynesian economics seems to have come to the forefront in the form of government intervention, bailouts, and so called fiscal stimulus packages. Those who welcome the revival of Keynesian economics would be wise to look at Japan’s economic turmoil of 1990 2001 –it is very relevant to the situation in the U.S. today. The Japanese real estate bubble burst in 1989. Japanese real estate values fell an eye-popping 70% from 1989 to 2001. Japanese stocks have faired even worse. Short-term interest rates in Japan over the last 15 years have been consistently close to where they are in the U.S. today (0% - .25%). In the 1990’s, the Japanese government tried several times to spend its way out of economic sluggishness through large fiscal stimulus packages. Meantime, insolvent Japanese banks were allowed/helped to stay in business. Japan's economy only began to prosper in the early part of this decade after banks were cleaned up and the Japanese Central Bank pursued a course of “quantitative monetary easing.” (Economic conditions have recently gotten worse in Japan as they have across the globe.) The simple fact is that markets must find an equilibrium price for assets –Governments can only make short-term fixes that prolong/delay economic reality. Fiscal stimulus packages do not work. They will never be as efficient and productive as the formation and deployment of private capital. Fiscal stimulus packages are in large nothing more than a government mandated re-allocation of resources which is not done with the productivity and efficiency of the market’s “invisible hand.” So, if you’re looking for a bottom in the housing market, don’t bet on government policy or intervention to make it happen. Only a balance of supply and demand as determined by the free market will bring about a bottom to current falling home prices. By that measure, we’ve got some way to go. Fiscal stimulus packages and subsidized mortgage rates will only prolong the cycle.
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