by admin on July 16, 2009
The bailout Lords of Washington D.C. have decided to stop handing out free lunches. After giving out a few trillions, they seem to be saying “enough is enough”.
The government has decided that the failure of CIT Group is not a systemic risk to the U.S. and world economies and will go into bankruptcy if necessary. [...]
by admin on March 29, 2009
If you’ve taken any macroeconomics course, you know that inflation is always a topic of choice. People are always concerned that inflation will erode their purchasing power. However, deflation, a general decline in prices which is often caused by a reduction in the supply of money or credit, is typically put on the sidelines.
As expected, [...]
by admin on October 1, 2008
The Financial Crisis is getting deeper and deeper as each day goes by. The downward spiral seems like it will continue for some time now. Even though the “U.S. Bailout” may ease the market in the very near future, it will probably not do much to stop the global meltdown that is occurring.
As we make [...]
by admin on September 23, 2008
How is the government going to buy mortgage-backed securities?
What it boils down to is that there are no set of transparent (regulated) ways to price mortgage-backed securities. You’ll read quarterly statements of different companies to find out that each one prices its mortgage-backed securities in its own adjusted manner.
Hence, you get different Wall Street firms [...]
by admin on September 22, 2008
A great song created by the people of VersusPlus.com. It is a great way to illustrate our current credit crisis.
As the lyrics tells us, we always have the all-mighty Fed to save us in the times of darkness. However, until when can the Fed keep doing this? Not long I suppose.
Enjoy the video!
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