With the drop in bank stock prices today, Citi and Bank of America both lost about 20% of their value, it will not be long before nationalization is inevitable. Two key Senators, Dodd and Schumer, both have made comments today that they could see nationalization as a distinct possibility. Meanwhile the market is surely signaling […]

I have been accused by some of you for having been too general in my listing of causes of the current mess, particularly with respect to the financial side of things. So here is my interpretation of the list given during a speech by Alan Blinder of Princeton University. He spoke last November 11th, but […]

Just a short refresher on why we are in the current mess. There is a long term cause and a short term cause. Economics is never straightforward! The short term cause is the bursting of the real estate bubble and the subsequent collapse of home prices. This had two effects. First, it destroyed bank balance […]