Latest Articles
Debt Trap - flash (6/18/2010)
Debt/income ratio will rise as long as the deficit exceeds debt times the income growth rate.
Debt/income ratio will rise as long as the deficit exceeds debt times the income growth rate.
Too Global To Be National? (6/18/2010)
US multinationals fatten their bottom lines by arbitraging wages, taxes, and regulations across countries.
US multinationals fatten their bottom lines by arbitraging wages, taxes, and regulations across countries.
Trade Surplus Trap (6/18/2010)
Countries heavily dependent on exporting manufactured goods must deny their own citizens higher standard of living to maintain their trade surplus in an era of global wage arbitrage.
Countries heavily dependent on exporting manufactured goods must deny their own citizens higher standard of living to maintain their trade surplus in an era of global wage arbitrage.
Too Big to Fail (6/18/2010)
Some financial institutions could commit moral hazard by leveraging their implicit high credit ratings and tax-payer guarantees to load up on high-risk debts and obligations.
Some financial institutions could commit moral hazard by leveraging their implicit high credit ratings and tax-payer guarantees to load up on high-risk debts and obligations.
Liquidity Trap (6/17/2010)
Even with short-term interest rates close to zero, the US economy has failed to respond to cheap money because of anemic bank lending.
Even with short-term interest rates close to zero, the US economy has failed to respond to cheap money because of anemic bank lending.
Bubble Economics (6/17/2010)
Run-away securitization of housing mortgages abetted by loose credit rating, shaky credit default swaps, and cheap money led to a huge housing bubble in the US.
Run-away securitization of housing mortgages abetted by loose credit rating, shaky credit default swaps, and cheap money led to a huge housing bubble in the US.
Who Rates the Raters? (6/17/2010)
Bond rating agencies found it hard to serve both the interests of bond investors and bond issuers since they were directly paid by bond issuers for favorable ratings.
Bond rating agencies found it hard to serve both the interests of bond investors and bond issuers since they were directly paid by bond issuers for favorable ratings.
