Newsweek Articles
Posted: Wed Dec 19, 2007 10:45 am.
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?
.
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?
.