Clipmarks | tabsey's 'economics' clips

How Fraud Fueled the Mortgage Crisis

Mon, 05 May 2008 09:51:13 GMT

clipped by: tabsey
clipper's remarks: Brokers pushed borrowers to lie, lenders misled and ratings agencies looked the other way.
Free range banking can't be allowed while greed is the sole motivator.

Clip Source: www.truthout.org

The debate over what caused the mortgage mess and how best to fix it is now taking a sharp turn, as new problems surrounding liar's loans and payment-option mortgages reveal the pervasive fraud, lying and deceit that permeated the market at its height.

As loans made to borrowers with decent credit begin to fail at a surprisingly rapid rate, it's becoming clear that widespread fraud helped support the entire mortgage system - from borrowers who lied on their loans, to brokers who encouraged it, to lenders who misled some low income borrowers, to the many lenders, investors and ratings agencies that conveniently and deliberately looked the other way as profits rolled in.

Tags: economics, fraud, who, pays

Food and the Spectre of Malthus

Fri, 29 Feb 2008 06:34:02 GMT

clipped by: tabsey
clipper's remarks: A well written article presenting reasons for food shortages and the impact we have and can expect. Where are those recipes for offal?

Clip Source: www.truthout.org

February has been the month for revisiting old and unpleasant economic concepts. Last week, financial markets experienced that 1970s feeling, as a combination of rising inflation and unemployment in the US triggered unwelcome memories of the decade of stagflation that ended the postwar golden age and the Keynesian consensus. Then came this week's report that the United Nations' world food programme might have to ration food aid. Set against a backdrop of rising food prices worldwide - global food prices have now risen by more than 75 per cent since their lows of 2000, jumping more than 20 per cent in 2007 alone - the news revived fears from a much earlier era, conjuring up the Reverend Thomas Malthus.

Tags: economics, food

The (economic) Revolution Comes

Wed, 20 Feb 2008 09:28:29 GMT

clipped by: tabsey
clipper's remarks: I understood this, so can recommend it to any who are not great economists. Some may disagree, but it fits with most that I have read recently. 5 mins well spent finding why we are in financial that may even reach the kids money boxes

Clip Source: www.theage.com.au

Martin Jacques is visiting research fellow at the Asia research centre, London School of Economics.

Clip Source: www.theage.com.au

A global power shift is in the making, as the growing economic crisis takes hold, writes Martin Jacques.

THE world is holding its breath, still trying to grasp the potential enormity of what is unfolding. Economic downturns and stock-market crashes are hardly unfamiliar, of course, even if a decade or so seems a long time ago for Western consumers habituated to rising house prices and non-stop shopping. But this crisis threatens to be rather different, a Big One.

Already it has forced the British Government to engage in what has been a heresy for almost three decades: nationalisation. Major crises — such as the Northern Rock debacle in Britain — are not matters of punctuation or pauses for reflection, but defining historical moments, marking the end of one era and the beginning of another.

Tags: current, economics, explained

How Bush Destroyed the Dollar

Mon, 11 Feb 2008 11:44:14 GMT

clipped by: tabsey
clipper's remarks: Manufacturing & Technology News, Washington
Some will enjoy but most won't.

Clip Source: www.informationliberation.com

It is difficult to know where Bush has accomplished the most destruction, the Iraqi economy or the US economy.

In the current issue of Manufacturing & Technology News, Washington economist Charles McMillion observes that seven years of Bush has seen the federal debt increase by two-thirds while US household debt doubled.

This massive Keynesian stimulus produced pitiful economic results. Median real income has declined. The labor force participation rate has declined. Job growth has been pathetic, with 28% of the new jobs being in the government sector. All the new private sector jobs are accounted for by private education and health care bureaucracies, bars and restaurants. Three and a quarter million manufacturing jobs and a half million supervisory jobs were lost. The number of manufacturing jobs has fallen to the level of 65 years ago.

This is the profile of a third world economy.

Tags: economics

FBI wiretaps cut for unpaid bills

Fri, 11 Jan 2008 06:20:02 GMT

clipped by: tabsey
clipper's remarks: If it isn't going to effect operations, why was it needed in the first place?
I wonder how many workers used the tapping for personal investigations.

Clip Source: news.bbc.co.uk

In one office, the unpaid costs for wire taps came to $66,000

The FBI has had some of its telephone wiretaps disconnected because it failed to pay its bills on time, a US government audit has found.

The Department of Justice said some of the agency's surveillance operations had been jeopardised by late payments and an "antiquated" accounting system.

The audit also revealed an FBI employee had admitted stealing $25,000 (£12,745) intended for undercover phone services.

The FBI said the operations in question had not been significantly affected.

In August, President George W Bush updated the Foreign Intelligence Surveillance Act (FISA) to allow the tapping without warrants of telephone calls and e-mails routed through the US.

Previously the government had to seek approval from a special court in advance.

Tags: economics

Hope is bleak as subprime hurricane leaves a disaster trail

Sat, 08 Dec 2007 13:07:18 GMT

clipped by: tabsey
clipper's remarks: A very well written article which explains the actions to help those in mortgage trouble. It includes the inaction and further explains what a liar Bush is on this matter. Well worth reading as it is also entertaining (if that is possible on this issue).

Clip Source: business.theage.com.au

WITH millions of Americans delinquent on their home mortgages, in foreclosure, on or facing the streets, the man of action — "the go to guy" — went on air to unleash a plan devised by the two amigos, Henry Paulson and Ben Bernanke, and a cast of thousands.

A rescue no less. One could hear the faint sound of bugles as the nation stood and the Commander-In-Chief, hero of countless campaigns, a Patton abroad, a Roosevelt at home, waited before their TV sets or listened as the saviour of New Orleans spoke.

The plan was revealed; the evictions would cease. A moratorium no less for those facing ruin. Salvation was at hand. It even came with a distress hotline where counsellors awaited consumers in crisis. Salvation indeed, as the President announced the number 1-800-995-HOPE.

Tags: economics

Defaults soar as borrowing levels grow

Fri, 14 Sep 2007 12:11:43 GMT

clipped by: tabsey
clipper's remarks: Is it the same in other countries?

Clip Source: www.theage.com.au

Loan defaults rose by almost 30 per cent in the last financial year with failures to pay the bills on time up in every Australian state and territory, figures from the nation's biggest credit check firm have revealed.

And economists say consumers who haven't experienced a recession are upping their borrowing to levels more than double their income because they are confident the good economic times will continue.

The Australian Law Reform Commission (ALRC) has recommended credit check companies be allowed to tell the banks more about consumer credit files in a bid to stop lenders giving people loans they can't afford.

Veda Advantage has revealed that defaults - where bills are not paid for 60 days - went up by 28.6 per cent in the 2006/07 financial year.

Veda's head of external affairs Chris Gration said the data showed consumers were increasingly facing debt stress.

Tags: economics

Bank’s £4.4bn market injection

Thu, 06 Sep 2007 12:53:33 GMT

clipped by: tabsey
clipper's remarks: Banks all over the world are in trouble because of Greenspan's 1% housing loans to boost the US economy for Bush.

Clip Source: www.thefirstpost.co.uk

The Bank of England has broken its silence on the ongoing liquidity crisis by offering to inject £4.4bn of funds into money markets next week if overnight inter-bank interest rates remain high. The move came after the benchmark Libor – the rate at which banks borrow from each other – hit a nine-year high of 6.8 per cent yesterday.

Tags: economics, housing, greenspan