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Subprimes Were Not The Culprit In Most Mortgage Meltdowns

By Guest PostOctober 23, 2010Economyelena gouskova, foreclosure, frank stafford, national bank of granddad, panel study of income dynamics (psid), subprime, u s economy, underwater, university of michigan

ANN ARBOR, Mich.—Subprime mortgages were not the main reason behind the housing crisis that started in 2009 and continues to bedevil the faltering U.S. economy, according to a University of Michigan study.

“Our analysis shows that the major underlying driver of the continuing foreclosure crisis was aggressive refinancing using adjustable rate mortgage loans that looked safe at the time because of increasing housing prices,” said Frank Stafford, an economist at the U-M Institute for Social Research (ISR). (more…)

‘Market Changes Affect Risk Tolerance’

By Guest PostSeptember 28, 2010EconomyEconomy, risk tolerance, rui yao, stock market, u s economy, university of missouri

COLUMBIA, Mo. – As the U.S. economy continues to lag, many investors remain wary about taking risks with the stock market. Now, researchers at MU have concluded that this attitude toward investment risk-taking is more than just a recent trend.

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The Horrific Derivatives Bubble That Could One Day Destroy The Entire World Financial System

By Guest PostAugust 9, 20101 commentEconomyAIG, city of london, congress, credit default swaps, derivatives, derivatives bubble, financial instruments, french president, global economy, jacques chirac, quadrillion, taxpayer, tsunami, u s economy, Wall Street, Warren Buffet, world financial system

Today there is a horrific derivatives bubble that threatens to destroy not only the U.S. economy but the entire world financial system as well, but unfortunately the vast majority of people do not understand it. When you say the word “derivatives” to most Americans, they have no idea what you are talking about. In fact, even most members of the U.S. Congress don’t really seem to understand them. But you don’t have to get into all the technicalities to understand the bigger picture.

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Tag Archives: u s economy

Subprimes Were Not The Culprit In Most Mortgage Meltdowns

‘Market Changes Affect Risk Tolerance’

The Horrific Derivatives Bubble That Could One Day Destroy The Entire World Financial System