Money is essential to a successful economy. But it's money in circulation that's useful. Money that's locked up in storage in vaults and savings doesn't help. The early economists understood this well and often used the analogy of money-is-to-economy as blood-is-to-human-body. Circulating money, money that is used to buy things is as important to the … Continue reading Rhetoric Is A Powerful Tool To Advance Moneyed Interests
banks
Banks Want to Do To Student Loans What They Did to Mortgages
On the heels of yesterday's post about student loans and their growth. I want you to know that Wall Street is hot on the problem. They've made a quiet proposal to the "supercommittee" that's supposedly addressing government deficits to have the government subsidize the banks via fees without creating any more student loans or taking … Continue reading Banks Want to Do To Student Loans What They Did to Mortgages
Student Loans and the Building Crisis
Student loans are gradually becoming a crisis. At the macro level, student loans are the only sector of consumer finance that is growing since the recession began 3 years ago. Federal student loans outstanding now total more than $1 trillion. That's more than total credit card debt. From Mybudget360.com: Student loan debt only segment of … Continue reading Student Loans and the Building Crisis
Warning: More Bank Bailouts Possible
One area I haven't commented on much is the ongoing European "debt crisis". The Greek debt crisis is a part of it, but it's only the tip of the iceberg. The roots are much deeper. One reason I haven't commented is because it's fairly complex and requires a lot of background explanation which I haven't … Continue reading Warning: More Bank Bailouts Possible
Iceland Shows Banks Are Not Too Big To Fail
Few nations were hit harder initially by the financial crisis in 2008 than Iceland. It's economy had grown rich around four very large (relative to Iceland) banks that were players in the big global casino financial industry expansion. In the U.S., U.K., and most other large developed countries governments responded with large bank-bailout packages. The … Continue reading Iceland Shows Banks Are Not Too Big To Fail
Are Banks Necessary?
At first pass the question "Are banks necessary?" strikes a macroeconomist as absurd. Of course, we say. But what does the empirical record say? It actually happened in Ireland some 35-45 years ago. From Wikipedia: Irish bank strikes 1966-1976 From Wikipedia, the free encyclopedia The Irish bank strikes between 1966 and 1976 were three strikes of about … Continue reading Are Banks Necessary?
GM, Banks, Bailouts and Incentives
With the GM IPO having succeeded so well this past week, the critics and nay-sayers have had to change tunes. I don't know that I really see the government investment in GM's bankruptcy and restructuring as a "bailout". I see more as the kind of strategic government intervention that helps the economy that a good … Continue reading GM, Banks, Bailouts and Incentives
more Bankers: FAIL
Yves Smith at naked Capitalism tells us of a case where Wells Fargo Bank (which acquired Wachovia 2 years ago), foreclosed and evicted a homeowner for failing to make payments. Then Wells sold the foreclosed house at auction to a new owner. Then Wells attempted to foreclose on the new owner for alleged failure to … Continue reading more Bankers: FAIL
Bankers: FAIL
A quote from Jamie Dimon, the CEO of JP Morgan Chase this week (from the Wall Street Journal via Yves Smith at Naked Capitalism): “We’re not evicting people who deserve to stay in their house,” James Dimon, J.P. Morgan chief executive, told analysts Wednesday. Now let's turn to the Lansing State Journal reporting the day … Continue reading Bankers: FAIL
High Noon: Banks vs. The Law – Part 8
It's happening fast and furious now. It's starting to feel like late summer 2008 IMHO. All 50 state Attorneys General are now involved in a joint investigation. JP Morgan Chase drops it's use of MERS (see Part 4). And Citi circulates a research note from a Professor that suggests the problems are much deeper than … Continue reading High Noon: Banks vs. The Law – Part 8
EconProph 