Table of Content
- Wells Fargo to pay $3.7B over consumer loan violations
- Zelensky arrives at White House for Biden talks
- News of rising Covid cases in China is concerning, says Adar Poonawalla
- Downfall of FTX and Bankman-Fried: By the numbers
- China’s soaring Covid cases send people to black market for pills
- Views from the public, politicians, financiers, economists, and journalists
It is common today to become misty-eyed about the old black ghetto, where doctors and lawyers lived next door to meatpackers and steelworkers, who themselves lived next door to prostitutes and the unemployed. This segregationist nostalgia ignores the actual conditions endured by the people living there—vermin and arson, for instance—and ignores the fact that the old ghetto was premised on denying black people privileges enjoyed by white Americans. Like the Home Owners’ Loan Corporation, the Federal Housing Administration initially insisted on restrictive covenants, which helped bar blacks and other ethnic undesirables from receiving federally backed home loans. By the 1940s, Chicago led the nation in the use of these restrictive covenants, and about half of all residential neighborhoods in the city were effectively off-limits to blacks.
These commitments can be characterized as investments, loans, and loan guarantees, rather than direct expenditures. In many cases, the government purchased financial assets such as commercial paper, mortgage-backed securities, or other types of asset-backed paper, to enhance liquidity in frozen markets. As the crisis has progressed, the Fed has expanded the collateral against which it is willing to lend to include higher-risk assets.
Wells Fargo to pay $3.7B over consumer loan violations
When we think of white supremacy, we picture Colored Only signs, but we should picture pirate flags.Perhaps after a serious discussion and debate—the kind that HR 40 proposes—we may find that the country can never fully repay African Americans. But we stand to discover much about ourselves in such a discussion—and that is perhaps what scares us. The idea of reparations is frightening not simply because we might lack the ability to pay. The idea of reparations threatens something much deeper—America’s heritage, history, and standing in the world. From the White House on down, the myth holds that fatherhood is the great antidote to all that ails black people. Adhering to middle-class norms has never shielded black people from plunder.
An honest assessment of America’s relationship to the black family reveals the country to be not its nurturer but its destroyer. To celebrate freedom and democracy while forgetting America’s origins in a slavery economy is patriotism à la carte. Today, progressives are loath to invoke white supremacy as an explanation for anything. On a practical level, the hesitation comes from the dim view the Supreme Court has taken of the reforms of the 1960s.
Zelensky arrives at White House for Biden talks
There was concern that the current plan created a conflict of interest for Paulson. Paulson was a former CEO of Goldman Sachs, which stood to benefit from the bailout. Paulson had hired Goldman executives as advisors and Paulson's former advisors had joined banks that were also to benefit from the bailout. Furthermore, the original proposal exempted Paulson from judicial oversight.
The sum of the surpluses or deficits across these three sectors must be zero by definition. In the U.S., a foreign financial surplus exists because capital is imported to fund the trade deficit. Further, there is a private sector financial surplus due to household savings exceeding business investment. By definition, there must therefore exist a government budget deficit so all three net to zero. For example, the government budget deficit in 2011 was approximately 10% GDP (8.6% GDP of which was federal), offsetting a capital surplus of 4% GDP and a private sector surplus of 6% GDP.
News of rising Covid cases in China is concerning, says Adar Poonawalla
This program is referred to as the Homeowner Affordability and Stability Plan. The crisis had a significant and long-lasting impact on U.S. employment. During the Great Recession, 8.5 million jobs were lost from the peak employment in early 2008 of approximately 138 million to the trough in February 2010 of 129 million, roughly 6% of the workforce. From February 2010 to September 2012, approximately 4.3 million jobs were added, offsetting roughly half the losses.
With the high down payments and credit scores of the conforming mortgages used by GSE, this danger was minimal.Investment banks however, wanted to enter the market and avoid competing with the GSEs. They did so by developing mortgage-backed securities in the riskier non-conforming subprime and Alt-A market. Unlike the GSEs the issuers generally did not guarantee the securities against default of the underlying mortgages.
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The events were compounded by news from Europe that Dutch-Belgian Fortis Bank was given a $16.4 billion lifeline to avoid collapse, failing British bank Bradford & Bingley was nationalized, and Germany extended banking and real estate giant Hypo Real Estate billions to ensure its survival. Investor Warren Buffett believes the government should pay market price for the assets rather than an artificially high hold-to-maturity price. The market price would be determined by selling a portion of the assets to private investors. Economist Paul Krugman recommended equity investments in the banks, an approach similar to what happened during the S&L crisis, the GSE bailout, and the 1990s Swedish banking rescue. On September 21, Paulson announced that the original proposal, which would have excluded foreign banks, had been revised to include foreign financial institutions with a presence in the United States.
Krugman does agree that it is "arguable is that financial innovation ... spread the bust to financial institutions around the world" and its inherent fragmentation of loans has made post-bubble "cleanup" through debt renegotiation extremely difficult. The housing bubble preceding the crisis was financed with mortgage-backed securities and collateralized debt obligations , which initially offered higher interest rates (i.e. better returns) than government securities, along with attractive risk ratings from rating agencies. While elements of the crisis first became more visible during 2007, several major financial institutions collapsed in September 2008, with significant disruption in the flow of credit to businesses and consumers and the onset of a severe global recession. One man said his black neighbor was “probably a nice guy, but every time I look at him I see $2,000 drop off the value of my house.”“For perhaps the first time, the federal government embraced the discriminatory attitudes of the marketplace,” the historian Kenneth T. Jackson wrote in his 1985 book, Crabgrass Frontier, a history of suburbanization. “Previously, prejudices were personalized and individualized; FHA exhorted segregation and enshrined it as public policy. Whole areas of cities were declared ineligible for loan guarantees.” Redlining was not officially outlawed until 1968, by the Fair Housing Act.
The number of new homes sold in 2007 was 26.4% less than in the preceding year. By January 2008, the inventory of unsold new homes was 9.8 times the December 2007 sales volume, the highest value of this ratio since 1981. Furthermore, nearly four million existing homes were for sale, of which roughly 2.2 million were vacant.
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