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Keyword: interest rate


A Nation of Money Hoarders (11/9/2001)

When the general price level keeps falling in a depressed economy with high unemployment, firms and consumers might not invest or consume more no matter how low the interest rate is. Instead, they would rather hold on to the money they already have or convert other assets into money.

Keywords: depreciation, downward spiral, interest rate, liquidity trap, savings, Yen

Bond Free? (5/12/2010)

Treasury bonds are important instruments in regulating the money supply.

Keywords: budget deficit, budget surplus, debt, interest rate, money supply, quantitative easing, Treasury bonds

Bubble Economics (6/17/2010)

Run-away securitization of housing mortgages abetted by loose credit rating, shaky credit default swaps, and cheap money led to a huge housing bubble in the US.

Keywords: ABS, Asset-backed securities, bubble, CDO, CDS, collateralized debt obligations, credit default swaps, interest rate, mortgage-backed securities, rating agencies, securitization, subprime loans

Deficit and Debt (11/2/2011)

Chronic budget deficits could lead to a ballooning debt/GDP ratio.

Keywords: debt, deficit, GDP, inflation, interest rate, solvency

Harvesting the Future (12/21/2001)

Injury victims might be prevented from selling their streams of future settlement payments for a lump sum for fear that they might not spend their quick cash wisely.

Keywords: annuity, car loans, credit card balance, discount, factoring, future payments, interest rate, lottery, lump sum cash, present value, structured settlements, time preference

Savers, Suckers? (5/12/2010)

Savers are collateral damage in the Fed’s attempt to resuscitate a comatose economy during the Great Recession.

Keywords: bailout, borrowers, CD, certificates of deposit, FDIC, Fed funds rates, housing bubble, interest rate, money market funds, mortgage, quantitative easing, recession, savers, Saving, spenders, the Fed, Treasury bonds, yield