How Financial Crises Produce Political Polarization
Financial crises move the struggles between debtors and creditors into the political sphere.
Read more...Category Archives: Credit markets
North Carolina Threatens to Cancel Toll Road Project, Showing Political Risk of Infrastructure Deals
North Carolina’s House has voted to exit a toll road deal despite high expected cancellation costs.
Read more...Chaos Theory, Shocks, and Fragility, Australia and Elsewhere
Australia and other countries had the opportunity to reduce financial fragility. They may soon discover the cost of doing too little.
Read more...Wolf Richter: These Debt Slaves are the Government’s Largest Asset Class, and It Will Haunt the Economy for Years
Student debt isn’t just a millstone around young people’s necks; it’s weighing down the economy.
Read more...And Now, Price Deflation in India and China?
Price deflation, and classic debt deflation dynamics, are staring to appear in India and China.
Read more...Global Money: A Work in Progress
Bagehot outlined some of the requirements for global money. Are we closer to a solution?
Read more...More Collateral Damage From Negative Interest Rates (Updated and Corrected)
Spain demonstrates some of the costs and dislocations created by negative interest rate policies.
Read more...Mortgage Document Fabrication is Alive and Well…
Sadly, mortgage servicers are still very much in the document fabrication and forgery business.
Read more...Bond Market Flight to Safety as Investors Sweat Over Brexit Risk, Wobbly US Economy, Negative Rates
Investors got a big dose of bad news about the economy and geopolitics and reacted accordingly.
Read more...“Finance is Just Another Industry”
A debunkng of the claim that finance is special and should be treated accordingly.
Read more...Hensarling’s “Market Regulation” Replacement to Dodd Frank Proves He Does Not Understand Banking
Yves here. Steve Waldman wrote a definitive post in 2009, Capital can’t be measured, on a core issue that Black discusses here. A key section: So, for large complex financials, capital cannot be measured precisely enough to distinguish conservatively solvent from insolvent banks, and capital positions are always optimistically padded. Given these facts, and I […]
Read more...Banks Rebel Against Negative Interest Rates
Banks have had it with negative interest rates and are starting to push back.
Read more...Steve Keen: Zombie-to-Be Economies and the Walking Dead of Debt Include China, South Korea, Canada, Finland
Steve Keen’s macroeconomic model allows him to identify zombies-in-the-making. It’s not pretty.
Read more...Wall Street Journal Tallies DoJ and SEC’s Pathetic Record in Tackling Wall Street Crime
The officialdom continues to defend the half-hearted effort by the DoJ and SEC to pursue financial services industry misconduct.
Read more...IMF Not Funding July Greece Deal, Still Wants Serious Debt Relief Before Committing New Dough
The IMF has not given up on debt relief for Greece, but due to the upcoming Brexit vote, is holding off on the fight until fall.
Read more...