Boom and Bust (Macro)
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.
From Help Wanted to Job Wanted (1/22/2010)
The unemployment rate closely tracks the business cycle and reflects the vicissitudes of economic fortunes.
Garlic Bubble? (1/22/2010)
Easy money to stimulate China’s economy has inadvertently led to a speculative garlic bubble.
Hong Kong Housing Boom (1/21/2010)
The low interest rates intended to stimulate the recessed US economy after the US housing bust in 2007 – 2009 have inadvertently led to a housing boom in Hong Kong when Hong Kong has to lower its interest rates to defend its dollar peg.
Household Formation (8/12/2011)
Consumption in the economy is inversely affected by household size.
Jobless Safety Net (5/13/2010)
Jobless benefits cushion the fall of disposable income during economic recessions.
Leveraging and Deleveraging (5/13/2010)
The leverage cycle could amplify business cycles apart from routine monetary policies via interest rates.
Too Big to Fail (6/18/2010)
Some financial institutions could commit moral hazard by leveraging their implicit high credit ratings and tax-payer guarantees to load up on high-risk debts and obligations.
Under Water (1/22/2010)
Securitization of mortgage loans has fueled a US housing bubble whose bursting has put one in four mortgages under water.