Author Archives: Yves Smith

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.

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.

Links 3/23/16

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.

Robert Reich: 5 Reasons Why Trump’s and Cruz’s Tax Plans are Huge Giveaways to the Rich

Trump’s tax plan reveals that his economic populism is three-card Monte.

Assuming Away Unemployment and Trade Deficits from the TPP

It should come as no surprise that the Peterson Institute has managed to model the impact of the TPP so that it does not increase unemployment.

Links 3/22/16

Is California Treasurer John Chiang Serious About His Private Equity Fee Transparency Bill?

Looking beneath the surface of the lackluster arguments e by Treasurer John Chiang and Assemblyman Ken Cooley for their private equity transparency bill.

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.

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.

Banks Once Burned, Now Twice Shy About Taking on More Takeover-Deal-Related Junk Debt

Banks have gotten a painful reminder that originating risky assets like junk bonds and loans can leave them holding the bag.

Links 3/19/16