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No, silly, there's nothing wrong with this scenario. The last time Freddie and Fannie were pushed to lend more, it was bad because house prices were trending up and the economy was doing well. This time, it's okay since the house prices are deflating, jobless rates are soaring and default...

Of course. Who doesn't like education. The problem is that legislation like this causes: a) Unsustainable bubbles in tuition fees and sky-rocketing loan amounts. b) Incentives for students and schools to go into non-productive and sometimes non-thinking endeavours. In normal times...

http://www.cnn.com/2009/US/06/24/college.loans/index.html?iref=mpstoryview So all of those arts majors who rack up massive school bills will have 85% of them dropped if they can't find mythical high-paying jobs that could pay down these loans. $800,000 loan? No problem. Become a novelist...

Because they lost 18 bankable sick days per year... http://www.theglobeandmail.com/news/national/toronto/no-hope-of-settling-strike-this-week-union-says/article1192905/ From the article: “Unless he is in Never Never Land, there is not a hope in hell of wrapping this up in a week,”...

http://www.shadowstats.com/article/consumer_price_index Inflation should be at least twice as high as recorded (cpi) over the past 20ish years. Main reasons: 1) Switch from arithmetic to geometric weighting was done simply to mathematically reduce any increase in the cpi over time...

Because in a short period of time, banks and financial institutions were hit by massive amounts of losses on loans and derivative instruments and had to scale back lending...? And for some financial institutions with debt obligations, they needed liquidity to remain being a going concern and...

Somewhat. Banks can securitize loans and get them off their balance sheets.

Thank you captain obvious. But increasing M2 / M3 is still inflationary if there isn't a corresponding and proportional increase in productivity / supply of goods.

Government / Fed: "Here are billions of dollars at 0 interest rates, go make some mortgages." Banks: "If you say so... Hey, you over there?" Walmart employee*looks around*: "... me?" Banks: "Yeah you. Come here, take this really low interest massive mortgage loan." Walmart employee...

Obviously when I say "create money" I am talking about credit. The two are virtually synonomous. Bank creates $10,000, gives to company. Company uses $10,000 to pay for supplies. Money enters system.

I've been struggling with this question for the past week and I just can't figure it out. I've come to the conclusion that it shouldn't be allowed for the following reasons: 1) Fairness In a fair capitalist free-market system, no one is able to generate wealth without accepting their...

I was thinking of using cc to compare the answers... But it's generally unheard of for a basic problem to use cc unless it's either specified in the question or in the pretext leading up to the question. And 19.5 isn't an answer anyways.

How does 19.5 work? And you mean 21.5 and not 25.5 right?

Actually, the US has been the global leader in the majority of technological, medical, legal, financial (the good ones), managerial and democratic innovations over the past century. That is not to say that automobile and other manufacturing has not been critically important to growth. But...

First of all, most of the manufacturing jobs being lost had inflated wages for the level of complexity of the work due to the power of American unions. In that light, a shift to lower paying service class jobs due to the destruction of the manufacturing industry is a direct cause of the inflated...

Hmm.. Does not compute.

See the equation I set up.

This question is flawed... there's no right answer (it's ALMOST 21.6 though)... To solve you just use the equation: 50 x (1 + i)^2 + 50 x (1 + i) + 50 = 125 x (1 + i)^2 and solve for i turns out to be 21.525% ...

I posted this in the other thread but here it is as well: I've determined that the ability of banks to create credit out of thin air ultimately provides the impetus for the banks to use any marketing technique at their disposal to increase lending due to negligible or zero real cost. This...