Will the bailout for Democratic Capitalism avert Depression?

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For years US banks and their off-balance sheet subsidiaries originated mortgages with no money down, easy to meet, first year payment terms and then sold them to Fannie Mae, Freddie Mac and Ginnie Mae which guaranteed them enticing worldwide investors to purchase them in the secondary market. These same banks also structured derivative contracts to […]

An Open Letter to Congress on Financial Reform

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Dear Members of Congress,
You are undertaking the task of studying the current financial crisis with the objectives of strengthening regulation of the US financial system to encourage capital formation and to increase efficiency and order.  Reportedly, first up is gathering facts and information to understand what happened in the

Regulatory Protection and Public Trust. Time for Change?

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US Financial companies (banks and brokers) continue to take write-offs for bad and risky loans. Exacerbating the credit crisis is the new, illiquidity of Auction Rate Securities (ARS)– fixed income securities issued by companies, municipalities, schools and hospitals with long term maturities that have variable interest rates that are typically reset every 7 - 35 days. Now […]

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