Brain Scanners Can See Your Decisions Before You Make Them Wired
Flowers Losing Smell Live Science
Central bank independence James Hamilton, Econbrowser. Hamilton argues that Congress, not the Fed, should determine how much fiscal risk the central bank assumes (I for one am still gobsmacked that the Joint Economic Committee hearings on the Bear bailout failed to send a shot across the Fed’s bow).
“Do People Care about Inequality?” Mark Thoma
Apocalypse Soon Garden Rant (hat tip reader Peter). Summarizes the main points of an article at New Scientist on the collapse of civilization and how ours will die of complexity. Discusses subprime and mutilating sheep.
Drugs Cost a Few Dollars, Sell for Tens of Thousands, NYT Doesn’t Notice Dean Baker
Ben Stein Watch: April 13, 2008 Felix Salmon
Mortgage-backed securities could help house prices and pension funds Willem Buiter, Telegraph
Case closed: A savings glut, not an investment drought Brad Setser
Antidote du jour:
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Ben Stein Watch: April 13, 2008 Felix Salmon
Bad link
Sorry. Should work now.
Re: (I for one am still gobsmacked that the Joint Economic Committee hearings on the Bear bailout failed to send a shot across the Fed’s bow).
Amazing!!!
Title 12: Banks and Banking
PART 226—TRUTH IN LENDING (REGULATION Z)
http://ecfr.gpoaccess.gov/cgi/t/…0.1.1.7& idno=12
§ 226.5b Requirements for home equity plans.
(A) The value of the dwelling that secures the plan declines significantly below the dwelling’s appraised value for purposes of the plan;
6. Significant decline defined. What constitutes a significant decline for purposes of §226.5b(f)(3)(vi)(A) will vary according to individual circumstances. In any event, if the value of the dwelling declines such that the initial difference between the credit limit and the available equity (based on the property’s appraised value for purposes of the plan) is reduced by fifty percent, this constitutes a significant decline in the value of the dwelling for purposes of §226.5b(f)(3)(vi)(A). For example, assume that a house with a first mortgage of $50,000 is appraised at $100,000 and the credit limit is $30,000. The difference between the credit limit and the available equity is $20,000, half of which is $10,000. The creditor could prohibit further advances or reduce the credit limit if the value of the property declines from $100,000 to $90,000. This provision does not require a creditor to obtain an appraisal before suspending credit privileges although a significant decline must occur before suspension can occur….