View from the Past: Banks Preferred Lending to Businesses, Not Collateral
Why the rise of collateral-based lending has been bad for our economic health.
Read more...Category Archives: Credit markets
Scotland: the Moldovan Connection
How modest homes in some of Scotland’s poorest areas became prolific ‘company factories’, and how those companies were used in a giant Moldovan bank fraud
Read more...Greek Government Preparing Plans to Cross Red Lines to Avert Default
Greek government officials are preparing plans that would cross Syriza’s famed red lines in order to avert a default. Will Tsipras capitulate?
Read more...Wave of Defaults, Bankruptcies Spooks Bond Investors
Investors are exiting junk bond funds as bankruptcies rise despite the “recovery” allegedly picking up steam.
Read more...Banks are Not Intermediaries of Loanable Funds – and Why This Matters
Problems in the banking sector played a seriously damaging role in the Great Recession. In fact, they continue to. Macroeconomic models failed to explain the interaction between banks and the macro economy. The problem lies with thinking that banks create loans out of existing resources. Instead, they create new money in the form of loans. The traditional model greatly understates bank and macroeconomic risk.
Read more...What If There is No Deal on Greece?
The alarming part of the deadlock between Greece and its lenders is the lack of a plan on the creditor side to develop a Plan B, a sort of mirror image of the Greek government’s claim that its has bet everything on securing a favorable agreement.
Read more...Time to “Fire” Mary Jo White: SEC Covers Up for Bank Capital Accounting Scam Promoted by Her Former Firm, Debevoise
Pam Martens and Russ Martens published a mind-boggling expose yesterday on how the SEC is refusing to stop an abuse by major banks that increases systemic risk.
Read more...AIG Bailout Trial Judge Rebukes Fed for Overstepping Its Powers but Awards No Damages
The long-anticipated verdict in the AIG bailout trial came yesterday, and the Fed is not happy.
Read more...The Operational Issues of a Grexit Part Two: Organizational Capacity, Capital Controls and Bootstrapping a New Monetary System
Economics, law and politics are all crucial to the story of Greece, but in the moment of default or Grexit they take a back seat to something far more important: organizational capacity.
Read more...Greek Talks Collapse, Default Looms
Both sides in the Greece/creditor negotiations have said they have reached the limits of what they are prepared to give.
Read more...Michael Hudson: Global Financialization – The State of Play in Ukraine and Russia
Michael Hudson gives a wide-ranging interview on the state of financial capital, with emphasis on fresh events in Ukraine and Russia.
Read more...G-7 Throws Greece Under the Bus
Some observers thought that Greece might get a break in the G-7 summit this weekend. While the G-7 has one more day to run, the statements coming out of the summit strongly and uniformly back the creditor position.
Read more...Syriza Commits to Deep Austerity in Its Proposal to Creditors
Greece has already offered to continue with a program of significant austerity. No wonder the creditors are close to agreeing to that part of the government’s proposal.
Read more...Ilargi: QE Breeds Instability
Why both Keynes and Minsky regarded low interest rates as poor policy.
Read more...Wolf Richter: Get Used to Selloffs, Central Bankers Say as They Fret about the Terrifying Moment When Liquidity Evaporates
Investors act as if they have a right to liquidity. The authorities are trying to get them used to the new normal of higher spreads and risks.
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