Sheila Bair keeps speaking out, and certainly deserves respect as a clear-thinker in these abominable economic times. Bair reiterates the same message week after week, although most likely the cause of a few ‘Paulson & Co’ migraines.
Bair understands something that most taxpayers could have told Paulson a long time ago. While the Treasury busily attempts [...]

The big difference between the perpetual motion “engineer” of yesteryear and the social “engineer” of today is that the former was playing with toys, things that didn’t have much effect on others. The latter is very dangerous because his or her irresponsible and ill fated experiments affect millions, even billions of people.

What you always wanted to know abotu economics but never dared to ask.

Some people who attack capitalism don’t realize they are capitalists themselves. Their indictment of capitalism is an indictment of themselves.

Mortgages on houses, and in fact all situations where the payment of a certain service is spread out over a period of time, change the laws of economics in a curious way that sometimes leads to grotesque results. The particular law I am talking about here is the law of supply and demand.
Occasionally, in order [...]

Paulson has spoken. Yet again.
The Treasury decided to increase the spending stakes. Paulson sang a familiar tune today, humming $600 billion for mortgage backed securities, and $200 billion meant to thaw credit for consumers. He aims at greater credit availability for student loans, car loans, and healthy new mortgage loans.
For average Jack and Jill citizens [...]

Today, Barrack Obama announced the core of his economic team.  Timothy Geithner will lead Treasury, Larry Summers will head the National Economic Council, and Christina Romer will chair the Council of Economic Advisers.  In his news conference, President-elect Obama stated that they would “do whatever it takes” to pull the US economy out of its current [...]

How I thought America was the land of the Free, and how I was wrong.

Can the U.S. economy possibly get any scarier or more complicated?
The short answer is yes, it can. The longer, more complicated answer is that the looming (potential) failures of Ford, GM, and Chrysler present long term sustainability problems for a middle class that is already clamoring for short term, emergency solutions.
Ford recently announced [...]

Demonstrates the Key aspects of Adverse Selection and how Insurance companies want the business of those who least need it.