All Posts Tagged With: "sub prime mortgage"
Today’s Ebook – The Mystery of Banking
Chris McClelland | RSS | Tue, Nov 03 2009 | 1 CommentToday’s featured ebook download is The Mystery of Banking (1.48 MB, 320 pg) – Although first published 25 years ago, Murray Rothbard’s The Mystery of Banking continues to be the only book that clearly and concisely explains the modern fractional reserve banking system, its origins, and its devastating effects on the lives of every man, woman, and child.
What you can learn from this ebook
Long out of print, The Mystery of Banking is perhaps the least appreciated work among Murray Rothbard’s prodigious body of output. This is a shame because it is a model of how to apply sound economic theory, dispassionately and objectively, to the origins and development of real-world institutions and to assess their consequences. It is “institutional economics” at its best. In this book, the institution under scrutiny is central banking as historically embodied in the Federal Reserve System—the “Fed” for short—the central bank of the United States.
The Fed has long been taken for granted in American life and, since the mid-1980s until very recently, had even come to be venerated. Economists, financial experts, corporate CEOs, Wall Street bankers, media pundits, and even the small business owners and investors on Main Street began to speak or write about the Fed in awed and reverential terms. Fed Chairmen Paul Volcker and especially his successor Alan Greenspan achieved mythic stature during this period and were the subjects of a blizzard of fawning media stories and biographies. With the bursting of the high-tech bubble in the late 1990s, the image of the Fed as the deft and all-seeing helmsman of the economy began to tarnish. But it was the completely unforeseen eruption of the wave of sub-prime mortgage defaults in the middle of this decade, followed by the Fed’s panicky bailout of major financial institutions and the onset of incipient stagflation, that has profoundly shaken the widespread confidence in the wisdom and competence of the Fed. Never was the time more propitious for the radical and penetrating critique of the Fed and fractional-reserve banking that Rothbard offers in this volume.
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Tags: fractional reserve banking, world institutions, fractional reserve banking system
Things that the bailout should include
Jennifer McClelland | RSS | Wed, Sep 24 2008 | 0 CommentsThe government bailout of the big Wall Street banks has yet to pass. Congress is holding out because they just can’t agree on the terms of the bailout. Unfortunately, with every day that passes these banks get closer and closer to failure, and Bank of America can only buy so many of them.
So, if I could make the terms of the bailout, I would make sure that NO executive of any of the bailed out companies would receive any sort of super bonus for leaving the company.
Also, i would like to see legislation passed in the bailout that would prevent any of the banks from holding enough of the market share to collapse the entire financial system.
Another plus is for everyone who willingly and knowingly issued a sub prime mortgage be convicted of some kind of crime. If nothing else, some should be charged with falsifying documents.
If the bailout is passed, hopefully the money will be given to a bipartisan group to decide where the money goes rather than just Paulson.
Related posts:The Fed may lose its ability to bailout huge companies
Stocks jump back up as Dubai is thrown a lifeline and Citi announces it will pay $20 billion back.
Tags: wall street, collapse, government
HSBC is feeling the sting of the American mortgage crisis also.
Jennifer McClelland | RSS | Mon, Aug 04 2008 | 0 CommentsEuropean bank HSBC reported a 29% drop in first half profits. In the same half in 2007, HSBC posted a $10.9 billion profit, while in the same half this year they posted a $7.7 billion profit.
HSBC holds Household International Inc. partially responsible for the decline. In 2003, HSBC purchased the Illinois based lender. This was a pretty poor decision because it made the bank the largest U.S. sub prime mortgage lender.
I do not feel bad for any bank that makes these mistakes. They became greedy and purchased other banks participating in sub prime lending. Shame on them.
Related posts:What is a Reverse Mortgage?
American banking CEOs simply make too much money
Tags: hsbc, crisis, greed
