Housing’s “Deadly Embrace” in Financial Cycles
The IMF argues that regulating mortgages is not sufficient to prevent housing booms and busts.
Read more...Category Archives: Credit markets
Fed Suddenly Having Emergency Meetings as European Banks Also Wobble
The Fed is suddenly looking very nervous, and by contrast, the Europeans don’t seem anywhere nervous enough on the banking front.
Read more...Caesars Bankruptcy Fight Over Alleged Fraudulent Transfers Opens Window on Private Equity Looting
Creditor suits against private equity kingpins Apollo and TPG for the failed Caesars’ deal have already revealed a lot of dirt, with more sure to follow.
Read more...Paul Krugman Crosses the Line
Krugman is increasingly discrediting himself as a commentator on economics.
Read more...Jamie Dimon Tells Us We Need to Leave Too Big to Fail Banks Alone
Jamie Dimon likes to write grandiose letters to shareholders. This year’s version is no exception.
Read more...Negative Interest Rates – Are There Any Positives?
The more you look at negative interest rates, the harder it is to find anything to like.
Read more...The US is Beginning to Dominate Global Investment Banking: Implications for Europe
Europe’s banks are in retreat from playing a global investment banking role.
Read more...Good Booms, Bad Booms: Why Only Some Credit Booms End in a Crisis
Credit booms are not rare and usually precede financial crises. However, some end in a crisis while others do not. This column argues that credit booms start with an increase in productivity, which subsequently falls much faster during ‘bad booms’. When this decline is severe enough, it changes the informational regime in credit markets, leading to a drying up of credit. A crisis may be the result of an exhausted credit boom and not necessarily of a negative productivity shock.
Read more...The Hidden Health Costs of the Global Financial Crisis
Why the hidden health cost of the financial crisis will span decades.
Read more...Bill Black Speaks to TaxCast About the Political Coalition Against Financial Regulation
This month’s TaxCast features Bill Black on the Whistleblowers United regulatory reform proposals plus why tax amnesties are a bad idea.
Read more...Yale Law Journal: “In Defense of ‘Free Houses'”
State court abuse of the principle of res judicata, out of reluctance to give borrowers “free houses,” encourages poor foreclosure practices and causes broader social harm.
Read more...Misunderstanding the Great Recession
How many of the textbook explanations of the Great Depression were proven wrong, yet despite that, were misapplied to the Great Recession.
Read more...Michael Hudson and Chris Hedges: The Real World Cost of Turning Classical Economics Upside Down
Classical economics recognized the costs of rent extraction, excessive borrowing, and encouraging speculation over commerce. Ideologues have turned those lessons on their head.
Read more...The Oil and Gas Fire Sale: How Bad Will Losses to Banks and Investors Be?
Energy-bust inflicted to banks and other lenders has only just begun to bite.
Read more...Michael Hudson on Debt Deflation, the Rentier Economy, and the Coming Financial Cold War
Michael Hudson speaks with Justin Ritchie on his favorite topics, such as debt deflation, austerity, classical economists on rentiers, and the coming financial cold war.
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