Bailing out the Bubble’s Enablers

Karl FitzgeraldCommentary, International1 Comment

photo credit: laurenatclemson Michael Hudson July 14, 2008 I am writing this article about Fannie Mae and Freddie Mac while sitting in the Queens Botanical Garden. This was not my plan today. The central air conditioning in my apartment broke down six weeks ago, and still has not been fixed. (It’s a nice condominium building, but accidents happen.) It is … Read More

Overworked, Over thinking

Karl FitzgeraldCommentary1 Comment

Carol Nader reports in the Age that HUNDREDS of children are spending 60 hours or more a week in child care, a Federal Government report has revealed. The article then critiques the Federal Government’s policy of encouraging as many mothers as possible into the workforce. What are the underlying economic forces encouraging such workforce participation? We know that home owners … Read More

Will Higher Handouts Help Uni Students?

Karl FitzgeraldCommentary1 Comment

Is marrying your housemate the way to survive uni? That’s the question Farrah Tomazin puts forward in today’s blockbuster edition of the Age as she discusses recomendations for higher Austudy payments. This will see a short term benefit for students being able to afford more food. However, those versed in economics will understand that in the near future landlords will … Read More

Recessionary forces building fast – $5K US homes

Karl FitzgeraldCommentaryLeave a Comment

A home bought for $110,000 in Flint, Michigan (2005) was recently foreclosed and can’t be sold for even $5,000. In an ominous sign of financial troubles; Fannie Mae acquired twice as many homes through foreclosure in the first quarter as it sold, regulatory filings show. The oversupply of homes is now coming home to hurt the US and increasingly the … Read More

The Subprime Primer – Stickman style

Karl FitzgeraldCommentary2 Comments

With more banks reporting massive write downs this week (Bank of America reported a 41% drop in quarterly earnings), we thought it timely to publish this funny take on how the subprime banking model was supposed to work. Flick through this humorous powerpoint, complete with lively stickman descriptions on how this financial quagmire makes sense/ cents for some. Please Note: … Read More