Archive - Aug 1, 2011 - Blog entry
A Simple Bailout Plan for Housing and the U.S. Economy
Submitted by Luc Vallee on 08/01/2011 08:27 -0500Now that everybody is busy the budget and the debt limit, we are forgetting that the single clear and present danger for the US economy is still the state of U.S. housing. As the economy is slowing again, it threatens to trigger more foreclosures. In turn, this would further damage banks' balance sheets and prevent already gun-shy banks from finally loosening credit. If banks decided to hoard even more reserves, it would have disastrous consequences for economic growth and job creation. At the end of my last entry, Dan wrote that a balance sheet recession requires a policy that would implement a speedy reduction in leverage. Here is how to do it!
On Your Mark, Get Set, (Bank) Run! The Dominos of Serial Lehman 2.0 (x 4) In The EU Are Falling Into Place At A Quickening Pace
Submitted by Reggie Middleton on 08/01/2011 07:36 -0500NPAs and devalued sovereign debt infect bank balance sheets, which are bailed out by sovereigns who assume too much debt for the bailouts, thus dropping the value of their bonds, further stressing bank balance sheets, thereby increasing the need for bailouts. Wash-Rinse-Repeat. Hey, he who panics first, panics best!
News that Matters
Submitted by thetrader on 08/01/2011 01:37 -0500All you need to know by www.thetrader.se
