There is a great blog written by a group of economics professor, essentially all of them considering themselves "Modern Money Theorists." Their writing almost always centers around issues about the crisis--which many of them refer to in the present tense rather than past (i.e. the current crisis, not the past/2007 crisis).
Here is an interesting take on the reaction to Michael Lewis' new book which Prof. McKinney spoke about in class last week. Prof. William Black writes about the overreaction of the media (and regulatory authorities), especially compared to their timid reaction to actual major events and revelations.
An excellent alternative perspective:
http://neweconomicperspectives.org/2014/04/three-passages-akerlof-romers-1993-article-prevented-crisis.html
What do you make of it?
Here is an interesting take on the reaction to Michael Lewis' new book which Prof. McKinney spoke about in class last week. Prof. William Black writes about the overreaction of the media (and regulatory authorities), especially compared to their timid reaction to actual major events and revelations.
An excellent alternative perspective:
http://neweconomicperspectives.org/2014/04/three-passages-akerlof-romers-1993-article-prevented-crisis.html
What do you make of it?
Sorry, I should've noted that this is part 1 of a 3 part article, and it talks about a very particular thing: loan origination fraud. I promise it is more interesting than it sounds!
ReplyDeleteHey Rasheed, could you help me understand why "Inflating the appraisal and the borrower’s income is certain to cause massive loan losses, but it is also guaranteed to optimize accounting control fraud?" Thanks
ReplyDeleteOkay....the appraisal is too high. But the borrower's income is wrongly given as a high amount when it is in fact low. So the borrower borrows too much money to pay for a house or other asset whose price is overly inflated. The only ones who win are the financial intermediaries who collect larger fees.
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