Comments on: Turmoil in the Financial System - How it started, What it means, Where are we headed?, by Shobhit Mathur http://www.hinduyuva.org/tattva-blog/2008/10/turmoil-in-the-financial-system/ Hindu Magazine for Youth Wed, 08 Feb 2012 07:45:56 +0000 http://wordpress.org/?v=2.6 By: Balu http://www.hinduyuva.org/tattva-blog/2008/10/turmoil-in-the-financial-system/#comment-14620 Balu Thu, 02 Apr 2009 19:56:34 +0000 http://www.hinduyuva.org/tattva-blog/?p=466#comment-14620 to briefly answer Pratik-ji, Community reinvesment act alone can't be blamed for the crisis. The existence of a secondary mortgage market because of Fannie/Freddie, repeal of the Glass Steagall Act, allowing investment banks to lever up 30:1, no regulation of CDS (where one would not only buy/sell insurance to hedge but also to make speculative bets), Alan Greenspan lowering interest rates so low so as to induce a housing bubble after the tech bubble, all these are factors. Rating agencies were asleep at the wheels also. So it was a combination of many factors. Only blaming Community Reinvestment is rather short-sighted. to briefly answer Pratik-ji, Community reinvesment act alone can’t be blamed for the crisis. The existence of a secondary mortgage market because of Fannie/Freddie, repeal of the Glass Steagall Act, allowing investment banks to lever up 30:1, no regulation of CDS (where one would not only buy/sell insurance to hedge but also to make speculative bets), Alan Greenspan lowering interest rates so low so as to induce a housing bubble after the tech bubble, all these are factors. Rating agencies were asleep at the wheels also. So it was a combination of many factors. Only blaming Community Reinvestment is rather short-sighted.

]]> By: Pratik Desh. http://www.hinduyuva.org/tattva-blog/2008/10/turmoil-in-the-financial-system/#comment-3575 Pratik Desh. Mon, 27 Oct 2008 23:29:06 +0000 http://www.hinduyuva.org/tattva-blog/?p=466#comment-3575 Sir, I have heard conservatives put blame on the Community Reinvestment Act of 1977 for this crisis. They argue that this compelled banks to give loans to low income people with shaky credit and backed up the shaky loans with federal vehicles (Freddie Mae and Fannie Mac). Can you qualify or refute this statement? It would be much appreciated. Sir, I have heard conservatives put blame on the Community Reinvestment Act of 1977 for this crisis. They argue that this compelled banks to give loans to low income people with shaky credit and backed up the shaky loans with federal vehicles (Freddie Mae and Fannie Mac).

Can you qualify or refute this statement? It would be much appreciated.

]]> By: interest only mortgages uk http://www.hinduyuva.org/tattva-blog/2008/10/turmoil-in-the-financial-system/#comment-2313 interest only mortgages uk Sun, 12 Oct 2008 02:13:33 +0000 http://www.hinduyuva.org/tattva-blog/?p=466#comment-2313 <strong>interest only mortgages uk...</strong> Well spoken. I have to research more on this as it is really vital info.... interest only mortgages uk…

Well spoken. I have to research more on this as it is really vital info….

]]> By: Rupesh Kothari http://www.hinduyuva.org/tattva-blog/2008/10/turmoil-in-the-financial-system/#comment-2205 Rupesh Kothari Fri, 10 Oct 2008 15:32:14 +0000 http://www.hinduyuva.org/tattva-blog/?p=466#comment-2205 There are fundamental problems with the US economy. The US consumers are overloaded with debts. The jobs losses over the past few years and the recent loss of wealth due to the stock market crash is going to increase the influx of Seniors in the job pool, as they decide to delay retirement or get back to part time work. This is going to place pressure on wages. Listed below is the link to a presentation made by an Indian Economist in February 2008. Listen to his insight and straight forward talk. http://video.google.com/videoplay?docid=4343898391323537541 There are fundamental problems with the US economy. The US consumers are overloaded with debts. The jobs losses over the past few years and the recent loss of wealth due to the stock market crash is going to increase the influx of Seniors in the job pool, as they decide to delay retirement or get back to part time work. This is going to place pressure on wages.

Listed below is the link to a presentation made by an Indian Economist in February 2008. Listen to his insight and straight forward talk.

http://video.google.com/videoplay?docid=4343898391323537541

]]> By: mamta rani http://www.hinduyuva.org/tattva-blog/2008/10/turmoil-in-the-financial-system/#comment-1479 mamta rani Wed, 01 Oct 2008 16:13:54 +0000 http://www.hinduyuva.org/tattva-blog/?p=466#comment-1479 An enlightening article on the present american economic scenerio affecting banks in the world. Awakening article for every individual. good work An enlightening article on the present american economic scenerio affecting banks in the world. Awakening article for every individual.
good work

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