Article of the Week: 1 Mar
Congratulations to Sobia Ijaz, winner of Article of the Week (1 Mar)!
A ghoulish prospect
This article discusses some of the possible pitfalls of nationalizing banks. The author discusses the effect on raising capital, bond markets, and the housing market. Overall though, the author argues that some nationalization may be the best option when considering the difficulty in revamping banks with government intervention.
This article discusses some of the possible pitfalls of nationalizing banks. The author discusses the effect on raising capital, bond markets, and the housing market. Overall though, the author argues that some nationalization may be the best option when considering the difficulty in revamping banks with government intervention.
posted by Professor Cramton at
7:07 AM
12 Comments:
http://www.economist.com/specialreports/displayStory.cfm?story_id=12957709
In this special report the author talks about the flawed system of finance. He says the question is not whether we should punish or banish financial markets but impose the best mix of state regulation and capitalism to reastablish our economy.
http://www.financialpost.com/story.html?id=1340780
An article about the government taking more control over Citigroup, for anyone interested. Personally, I don't want to have to get loans from the government and think that banks should be allowed to fail (or sold to other banks, etc) rather than be nationalized.
http://www.time.com/time/world/article/0,8599,1882172,00.html
This is an article about how China is trying to take a different route in helping out their auto industry. Instead of following the footsteps of the U.S., China has decided to try to get consumers to buy more cars through a sales tax break and targeted subsidies for rural buyers.
http://www.bls.gov/news.release/empsit.nr0.htm
This is the report from the bureau of Labor Statistics. It is the official unemployment rate for Jan 2009. The numbers are quite staggering considering almost half of it came within the last three months.
http://www.nytimes.com/2009/03/01/business/economy/01view.html?_r=1&ref=business
This is an interesting article describing the pros and cons of three different methods that could be used to reform the US banking system. Tyler Cowen, an economics professor at George Mason University debates which method would be best to reform our system, but doesn't say for sure which method would be most effective. Perhaps a three-pronged approach with elements of all 3 plans would be the most efficient way for banks to maintain a certain amount of independence and also to stay solvent in the time of crisis.
Jake said...
http://www.nytimes.com/2009/03/01/business/economy/01view.html?_r=1&ref=business
This is an interesting article describing the pros and cons of three different methods that could be used to reform the US banking system. Tyler Cowen, an economics professor at George Mason University debates which method would be best to reform our system, but doesn't say for sure which method would be most effective. Perhaps a three-pronged approach with elements of all 3 plans would be the most efficient way for banks to maintain a certain amount of independence and also to stay solvent in the time of crisis.
http://money.cnn.com/2008/11/19/news/companies/gm_failure_consumers/index.htm?postversion=2008112610
Here's an article about what happens to consumers if GM goes declares bankruptcy; imports are expected to rise, relating to the concept of substitution which we are covering soon.
http://www.hulu.com/watch/1389/saturday-night-live-dont-buy-stuff
should have listened to this SNL video about staying out of debt...?
http://www.economist.com/world/unitedstates/displayStory.cfm?story_id=13185415&source=most_read
This article dissects President Obama's speech last Thursday and looks ahead at how feasible his goal of shrinking the deficit by the end of his term. It also looks ahead at what the possible results of the stimulus plan will be
Gaming the Financial System - Newsweek
http://www.newsweek.com/id/169699/page/1
In this Newsweek article, Professor Cramton is interviewed about how a reverse auction could potentially work and be successful in pricing toxic assets. Former Treasury Secretary Hank Paulson's plan of injecting equity into banks has thus far not worked out as planned because banks are still not lending to creditworthy institutions. Professor Cramton, through an experiment with his graduate students, demonstrates that the Treasury's fears that the toxic assets can't be priced are unfounded.
A ghoulish prospect
http://www.economist.com/displaystory.cfm?story_id=13185284
This article discusses some of the possible pitfalls of nationalizing banks. The author discusses the effect on raising capital, bond markets, and the housing market. Overall though, the author argues that some nationalization may be the best option when considering the difficulty in revamping banks with government intervention.
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