Treasury Secretary Henry Paulson announced a major shift in the government’s bailout program Wednesday, saying the $700 billion rescue package will not be used to purchase troubled assets as originally planned. Continue reading
Question/Comment: For the non-accountants among us: Hypothesize that a bank has $1000 in bad mortgages (cdos, etc) that have dropped to $100 in value. How does this adversely affect the bank if it simply holds onto them and no longer … Continue reading
Congressional leaders are showing signs of fatigue and frustration over continuing negotiations. Reps. Barney Frank and Mike Pence discuss the progress towards a workable plan. Continue reading
Question/Comment: Fannie Mae and Freddie Mac, we are told, are so big, we can’t allow them to fail. We taxpayers could end up footing the bill for as much as $200 billion. Where will that money come from? How will … Continue reading
Shares of government-chartered mortgage giants Fannie Mae and Freddie Mac plunged to their lowest levels since 1991 in Thursday trading over concerns the companies won’t be able to raise necessary capital. Continue reading
- Do you think that overproduction or declining profit rates have contributed to the present subprime loan crisis?
Question/Comment: Karl Marx, in his work “Capital,” alluded to the idea that overproduction contributed to a general historical tendency of capitalism to be undermined by declining returns on capital. Do you think that overproduction or declining profit rates have contributed … Continue reading