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It has occurred for some time that a businessman’s viewpoint is lacking in the approach to a variety of topics in the blogosphere. I shall attempt to fill that niche and also blog on some favorite personal topics.
Delightful advancement
It’s time to dream into action
Causes of the Financial Crisis- naked capitalism: More Discussion of Why the Bailout Bill Will Not Help Money Markets, Commercial LendingWhen Paulson dumps out his 700 billion in treasuries it's going to be at the short end. That will drive up rates for short-term treasuries. This will obviously draw even *more* deposits into the treasury MMs. That means even less in the commercial MMs and thus less working credit, the eventual commercial MM product. Hence Paulson's billions remove […]
- AEI - Short Publications - Not (Yet) a 'Minsky Moment'We are currently experiencing a liquidity shock to the financial system, initiated by problems in the subprime mortgage market, which spread to securitization products more generally--that is, mortgage-backed securities, asset-backed securities, and asset-backed commercial paper (MBS, ABS, and ABCP). Banks are being asked to increase the amount of risk that […]
- AEI - Research Areas - The Cascading Financial Crisis: A Review of Work from the American Enterprise InstituteThe subprime crisis could not remain isolated for long. One recent financial innovation was securitization of mortgages. Mortgages--including the huge number of those that were subprime--were packaged into securities and sold to investors throughout the financial system. All of the major investment banks' balance sheets had large swathes of mortgage-bac […]
- AEI - Short Publications - The Last Trillion-Dollar CommitmentThe government takeover of Fannie Mae and Freddie Mac was necessary because of their massive losses on more than $1 trillion of subprime and Alt-A investments, almost all of which were added to their single-family book of business between 2005 and 2007. The most plausible explanation for the sudden adoption of this disastrous course--disastrous for them and […]
- AEI - Short Publications - PanicThe proximate problem is simple, but the legislative solution being proposed by Paulson--a big bailout for holders of mortgage securities--is going to be messy and expensive. The underlying problem remains the continued drop in house prices, which has severely curtailed the liquidity and value of trillions of dollars of mortgage-backed securities (MBS) held […]
- AEI - Short Publications - The Subprime TurmoilWith respect to origins, the primary novelty is the central role of agency problems in asset management. In the current debacle, as in previous real estate-related financial shocks, government financial subsidies for bearing risk seem to have been key triggering factors, along with accommodative monetary policy. While government encouragement of risky borrow […]
- Subprime: Turmoil or 'Minsky moment'? | vox - Research-based policy analysis and commentary from leading economistsThe late Hyman Minsky developed theories of financial crises as macroeconomic events. The economic logic he focused on starts with unrealistically high asset prices and buildups of leverage based on momentum effects, myopic expectations and widespread overleveraging of consumers and firms. When asset prices collapse, the negative wealth effect on aggregate d […]
- AEI - Short Publications - Deregulation Not to Blame for Financial WoesIf the Democrats had allowed the Fannie and Freddie reform legislation to become law in 2005, the entire financial crisis might have been avoided
- Root causes of the current global financial crisis | Ya Libnan | Lebanon News Live from BeirutAnd so the real question is not why is it that consumers acted "irresponsibly" by agreeing to take on risk that they could not handle; the real issue is to find out what were the conditions that led the financial institutions to lure the unsuspecting consumer to carry excessive debt burden. Furthermore, the reason the crisis could not be contained […]
- naked capitalism: More Discussion of Why the Bailout Bill Will Not Help Money Markets, Commercial Lending
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- Mixed economic data, higher dollar press stocksInvestors turned cautious on the second trading day of the year as a pair of economic reports gave mixed signals about how the recovery was going.
- Oil hovers below $82 amid US crude inventory dropOil prices hovered below $82 a barrel Wednesday in Asia after a report showed U.S. crude supplies fell more than expected last week.
- Asian markets tempered by mixed US economy figuresAsian stock markets inched higher Wednesday with gains tempered by muddled U.S. economic figures that added to ambiguity about the strength of recovery in the world's No. 1 economy.
- Google, Apple spar in high-tech heavyweight battleThe once-cuddly relationship between Google Inc. and Apple Inc. is morphing into a prickly power struggle as the ambitions and ideas of the technology trendsetters increasingly collide.
- Feds: New charges pending against RajaratnamFederal prosecutors said Tuesday they will file new charges against billionaire hedge fund operator Raj Rajaratnam alleging he made at least $36 million from trades based on insider information, double what the government previously believed.
- Automakers hopeful for 2010 as brutal year endsAutomakers in the U.S. ended their worst year in almost three decades with hints of a recovery in December.
- Premiums are key issue for health care negotiatorsCongressional Democrats and President Barack Obama began work in earnest Tuesday on difficult issues still standing in the way of their national health care overhaul after months of tortuous debate. Topping the list: How to help Americans pay for insurance premiums.
- Software maker sues China on piracy accusationA U.S. software maker sued China and seven major computer makers Tuesday alleging piracy of its Internet filtering software.
- Ex-Perot employee returning $8.6MA former employee of a Perot Systems Corp. affiliate who had been charged with insider trading has agreed to return about $8.6 million in illicit profits, federal regulators said Tuesday.
- Fla. farmers scramble to save crops from coldSubfreezing temperatures across the South have Florida farmers worried that strawberry, tomato and other crops could be destroyed, with temperatures in even usually balmy Miami only in the 50s on Tuesday.
- Mixed economic data, higher dollar press stocks
