In my last post I attempted to make sense of the origins of the current economic crisis in the subprime mortgage debacle. In this post I look at the solutions being offered and ask: Why do we need a bailout? As explained in the last post (make sure to view the cartoon slideshow on the [...]
This post is the first of my attempts to make sense for myself of the current financial crisis. In this post I ask the question: How did we get into this mess? The simplest explanation is that encouraging people to take mortgages was the easiest way to create investment opportunities for surplus capital: The result [...]