Under the clunkers program, trade-in cars must get no more than 18 miles per gallon, have been built in 1984 or after, and have been owned and insured by the purchaser for at least a year.
This should come as no surprise: Financial troubles at some of the Federal Home Loan Banks are raising questions about how well directors of these institutions are supervising their executives.
This seems like small potatoes now, but those Bear Stearns and AIG loans made by the Fed aren't doing too well. As of May 6, the Fed is under water by over $8 billion.
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Article link is here - it will not allow me to correct it on the link page. Sorry:-( Here is a clip from the article:
The asset bubble in the United States that has recently burst has wiped out an estimated $13-$14 trillion of net worth between declines in stock and real estate prices. The impact of this value loss is working its way through the economy with dramatic effect.
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This is a summary of some very interesting research on income inequality in the United States from WWI through 2006.
This is a long article but gets to the heart of so much of what has become difficult to follow. Perhaps that is why it's long.
I just finished listening to President Obama's speech regarding the auto industry and I found it refreshing compared to the rhetoric that has been dealt us up to this point.
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The table to the right shows a summary of the payments disclosed by AIG Sunday. For the detailed list you can go here.
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I haven't read anything about the Federal Home Loan Banks since they published their preliminary third quarter results.
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I have been reading about monetarism around the web lately and find the topic interesting. Most of the writings I have seen look to money supply measures as an indicator of whether we should expect inflation and discuss the monetary aggregates, M1 and M2.
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There is interesting discussion on Paul Krugman's NYT blog today regarding monetary expansion and the Great Depression. For the current crisis, I think you need to look at the divergence of M2 and M3.
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GMAC LLC, the big lender co-owned by General Motors Corp.
I have heard commentators (Larry Kudlow) making the argument that the credit markets are working OK because bank loans are up by some pretty high numbers.
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I am posting these charts in response to some debate regarding tax policy here on the Vine. The first chart is Private Fixed Investment, and the data come from here. It shows that Clinton had a better result in fixed investment than Bush after the Bush tax cuts.
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When the subprime credit crisis began to unfold in 2007 I believed it was a sign of deeper problems in the credit markets. Easy money and unchecked leverage puts pressure on banks to lend. First they make the good loans, then the not so good ones, and then they make bad loans.
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What should be done? The United States and Europe should just say "Yes, prime minister." The British plan isn't perfect, but there's widespread agreement among economists that it offers by far the best available template for a broader rescue effort.
Today was one of the most interesting days I have ever witnessed in the markets. I am not a market expert so take all of this with a grain of salt, but it was watching history in the making.
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The Federal Reserve announced today that it will form a special purpose vehicle (the Commercial Paper Funding Facility or CPFF) that will purchase commercial paper in the marketplace from qualified issuers.
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The Federal Reserve is going nuclear. The TAF is doubling to $900 billion, interest will be paid on reserves beginning October 9, and the rules prohibiting commercial banks from purchasing assets from affiliated money market mutual funds is being relaxed.
I really like this idea at first blush. I'm not sure if it could be implemented fast enough, but I think the idea deserves consideration as we proceed with whatever plan comes out of Congress.
I have been working on a way to conceptualize where our economy is and how we got here.
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Now that it appears Congress will pass the bailout plan the next logical question is "what's next?" I don't know the answer, but I have my concerns.
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"For amber waves of grain" - is an old familiar phrase to anyone who has ever sung, or heard Ray Charles sing this song. Amber waves of grain - embodies the very image of cereal grain fields like wheat, barley or corn. Wheat fields at harvest, in particular.
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Polecolaw has some of the best writing on economics across the Vine. Read his articles if you want to understand the current crisis we're in. (You will still be confused, but less so...) Thanks!
— E.D.Kain
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Polecolaw, good to hear from you. I've been pretty busy trying to keep my business going in this crazy economy. I've had a chance to read some of your articles from time to time. Great stuff. Keep up the good work. Take care.
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Thanks for your input! Thats quite an impressive list or articles you've written as well.
— RVD
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Cash for Clunkers
Amber Waves of Grain and Green Bubbles of Greed
Cash for Clunkers
Cash for Clunkers
A Staggering Budget Gap and a Reluctance to Fill It
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Analysis: Climate bill may spur energy revolution
The Collapse of Left Wing Ideology
The Collapse of Left Wing Ideology