Newsweek Articles

[TJ_98370]

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A well balanced article with respect to the economy IMHO. Author predicts next debacle may be with credit default swaps (Note: ACA Capital Holdings, a bond insurer, recently reported a loss of $1 billion last quarter):



There is a vast gap of perception and language between the real economy of production and jobs and the financial economy of loans and investments. The real economy, though weakening, is hardly in a state of collapse. In 2007, it has grown about 2 percent; since last December, payroll jobs are up by 1.3 million. Even among those economists who expect a recession, the dominant view is that it will be mild. Meanwhile, the financial economy is described in dire terms verging on hysteria. Markets are "in turmoil"; there is a "credit crisis."......
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Should we go back to using the old-fashioned rules for lending?


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[rose-colored-coolaid]

Why should we fear the unknown when the known is looking so bad? Oh yeah, the unknown is brought to us by the same people who brought us the known. It's like a Michael Bay movie. You don't know exactly why it will be bad until you see it, but then the Wild Wild West comes out and your fears were justified.

[Lake Hills Renter]