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“Liar Loans” Are Back! 2008 Here We Come

Earlier this year, as the US auto sales miracle unfolded on the back of record loan terms and record high average monthly payments, we continually argued that underwriting standards were likely to deteriorate going forward as competition for the finite pool of creditworthy borrowers heats up. Helping to drive (no pun intended) the shift towards looser lending standards is the …

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Mike Bird – The Fed is at risk of repeating one of the biggest mistakes in the history of the US economy

Everything seems to be going wrong in the global economy right now. Chinese growth is slowing, Hong Kong’s Hang Seng is officially in a bear market, Greece is heading into elections, and emerging markets around the world are feeling the strain of the strong US dollar. In the advanced world, the United States and United Kingdom are seeing some decent growth, …

Why it’s time for Germany to leave the eurozone by Mehreen Khan

Germany’s finance minister, Wolfgang Schauble, has drawn opprobrium and praise in equal measure for his suggestion that Greece takes a “time-out” from the eurozone. In proposing that Greece could be better off outside the euro, the irascible 72-year-old crossed a political rubicon: he confirmed that the single currency was “reversible” after all. But having broken the euro’s biggest taboo, commentators …

Little-Known History of the Euro: Crisis Was Baked In from the Start

You’ve heard that the Euro was created to provide two benefits for Europe: 1. Unite Germany, France and other countries in a peaceful political situation, to prevent repeats of World War I and II 2. Create a macro-zone to compete against the economic strength of the U.S. So how did we get to this … austerity and meanness of spirit, …

federal reserve

How the Fed screwed up the bond market – Jeff Cox

Live by central bank liquidity; die by central bank liquidity. That could well become the mantra for a bond market that, after years of support by the Federal Reserve and its global counterparts, now finds itself suffering under the unintended consequences of the trillions in easing distributed to allay the fears of a market in crisis. “Liquidity,” in fact, is the word …

Right-Wing Pressure in Academia – James DiEugenio

In 1951, at the height of Sen. Joe McCarthy’s hunt for disloyal Americans, William F. Buckley wrote a polemic against liberal education entitled God and Man at Yale, accusing Yale instructors of advocating collectivism and undermining Christianity. Buckley was relatively unknown at the time, but his book contained a foreword by the famous journalist John Chamberlain, who had worked for the New York …

Bernanke

Economic Update – Honest Economics – 04.19.15

Updates on Bernanke’s new big-bucks finance job, GM avoids billions in victims’ claims for faulty ignitions, Seattle capitalist raises all workers to minimum $70k/yr, Americans’ self-delusion on inequality, private profit trumps public policy, and anti-student-debt activism. Responses to listeners: impact on China if capitalism’s relocation stopped. Major discussions of economics of wages and prices, narrowness of economics education, and basic global economic development issue.

TPP

One Lethal Loophole in the TPP

After spending five long years negotiating the Trans-Pacific Partnership trade agreement, the Obama administration is now pushing for the fast-track authority from Congress that would make it easier to get the final deal approved. One serious problem is that the TPP is not likely to include rules on currency, which is leading lawmakers from both parties to consider opposing the …