The Man With the $16 House

A profile of Ken Robinson, who earned minor fame and more than a few enemies for the controversial way he “bought” his house:

The week after Robinson moved into the tan-sided home with a faux stone entrance and maroon shutters, he was soaring, an Internet hero a few levels shy of Steven Slater, the JetBlue flight attendant who last summer cracked a beer and left work on a plane's emergency slide. For $16, Robinson had filed paperwork with Denton County staking his claim to the abandoned home through an obscure Texas law called adverse possession. Ever since, curious visitors, beginner real estate investors and people who want an ultra-cheap home to fulfill their version of the American Dream have been knocking on his door for advice and a handshake.

How Rating Firms' Calls Fueled Subprime Mess

By 2006, S&P was making its own study of such loans' performance. It singled out 639,981 loans made in 2002 to see if its benign assumptions had held up. They hadn't. Loans with piggybacks were 43% more likely to default than other loans, S&P found. In April 2006, S&P said it would raise by July the amount of collateral underwriters must include in many new mortgage portfolios. For instance, S&P could require that mortgage pools have extra loans in them, since it now expected a larger number to go bad. Still, S&P didn't lower its ratings on existing securities, saying it had to further monitor the performance of loans backing them. It thus helped the market for these loans hold up through the end of 2006.

The People vs. Goldman Sachs

While much of the Levin report describes past history, the Goldman section describes an ongoing? crime — a powerful, well-connected firm, with the ear of the president and the Treasury, that appears to have conquered the entire regulatory structure and stands now on the precipice of officially getting away with one of the biggest financial crimes in history.

Bad Education

With fewer and fewer students having the income necessary to pay back loans (except through the use of more consumer debt), a massive default looks closer to inevitable.

On the emerging student loan bubble.

2011 Pulitzer Prize: Investigative Reporting: Weak Insurers Put Millions of Floridians at Risk

Despite no hurricanes in five years, Florida insurers are demanding yet more money from homeowners. At the same time, the capital that insurers have on hand to pay claims has shrunk. One reporter spent a year trying to figure out why.

  1. Weak Insurers Put Floridians at Risk

  2. How Insurers Make Millions on the Side

  3. Regulators Take a Gamble on Discount Insurance

  4. Property Insurers Sending Billions Overseas

  5. Florida Insurers Rely on Dubious Storm Model

  6. How State Farm Cashed in on a Crisis

  7. No Hurricanes, but Bigger Insurance Bills

2011 Pulitzer Prize: National Reporting: The Wall Street Money Machine

A series on how some Wall Street bankers, seeking to enrich themselves at the expense of their clients and sometimes even their own firms, at first delayed but then worsened the financial crisis.

  1. The Magnetar Trade: How One Hedge Fund Helped Keep the Bubble Going

  2. The ‘Subsidy’: How a Handful of Merrill Lynch Bankers Helped Blow Up Their Own Firm

  3. Banks’ Self-Dealing Super-Charged Financial Crisis