Posts Tagged ‘economic collapse


Capitalism in Crisis

Excerpt from wsj article:

Lending borrowed capital — the essence of banking — is risky. That risk is amplified when interest rates are very low, as they were in the early 2000s because of a mistaken decision made by the Federal Reserve under Alan Greenspan to force interest rates down and keep them down. Because houses are bought with debt (for example, an 80% first mortgage on a house), low interest rates spur demand for houses. And because the housing stock is so durable a surge in demand increases not only housing starts but also the prices of existing houses. When people saw house prices rising — and were assured by officials and other experts that they were rising because of favorable “fundamentals” — Americans decided that houses were a great investment, and so demand and prices kept on rising.


jon stewart’s jim cramer interview

cheers to jon stewart for sticking up for the little guy that got screwed by all the wall street casinos…


economic meltdown may threaten drug prohibition

i’ve been thinking this for a while – that if the economy really tanks (it has) that the US will no longer be able to afford the war on drugs. might actually have to put that money towards stuff that isn’t a money hole.

this wsj journal article today reinforces how top-of-mind this concept is today….

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