Aug 12th 2010, 20:37 by R.A. | WASHINGTON
TODAY'S recommended economics writing:
• Getting the housing market back on track (Felix Salmon)
• The great false choice, stimulus or austerity (Financial Times)
• It's such a silly analysis (Tim Duy)
• Six essential questions about the deficit (Nieman Watchdog)
• Persistent large output gaps, disinflation, and deflation (Econbrowser)
In this blog, our correspondents consider the fluctuations in the world economy and the policies intended to produce more booms than busts. Adam Smith argued that in a free exchange both parties benefit, and this blog's aim is to encourage a free exchange of views on economic matters.
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ONE!
One was this week's lucky number for
FDIC Friday!
The bank closed was:
Palos Bank and Trust Company, Palos Heights, IL
It cost the FDIC $72.0 million
110 banks closed this year vs. 77 last year at this time.
Sorry no winners this week.
FDIC Friday! Scoreboard
------------------------------
jouris 3
Tzimisces 2
Doug 2
HFGuy 1
AnterraCon 0
Jer_X 0
NotAGenius 0
OneAegis 0
Regards
Re: Getting the housing market...
How about lenders returning to sane standards such as decent
credit scores, limiting homeowner mortgages to 2.5x thier income, and checking that thier credit card limits are sane?
Remember, it was the sub-prime loans that pushed up the "value" of homes, and people used the extra "equity" to borrow and spend via the HELOCs.
I don't see the value of securitizing loans. My home loan (old days) was bought and sold by different instituions. If I were to have run into a problem, I could call the institution and work something out. Under securitization, I'd probably be chasing after whichever daytrader owned the bundle in which my loan was in.
---
Re:False Choice
Sorry, couldn't read it. I have enough passwords, and I subscribe to the Economist.
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Re:Such a silly analysis
I already slammed the teenage job article.
Regards
What are all of these numbers everyone is putting in?
Well, it's thier guesses for this week's
========================
FDIC Friday!
========================
They are guessing how many banks the FDIC will close tonight.
Last week it was one bank closed.
Since June 1st, the weekly number of banks closed on Friday have been: 3,1,1,3,4,6,7,5,1
I'll go with 2 banks closed tonight.
Get your picks in,
as you can't win if you don't play.
Regards
(Doug, Jer_X, jouris, and Tzimisces, I got your numbers)
I'm in for 5.
Bampbs, I didn't know those were real articles. It's Thursday. Where's Hedgie? Come back, Hedgie!
Collender is *exactly* right.
I'll take 3 . . . and hope the results get posted.
I'm in for 6!
Four. And I'm going home.