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The sub-prime crisis and the credit crunch are about the failure of a lending system creating by Wall Street. Instead of banks keeping loans on their balance sheets, they pooled them and sold them...
We've talked a lot about how the Fed's purchase of Mortgage Backed Securities has kept rates low. The chart below shows the Fed's balance sheet and how it has changes with the aggressive purchase...
By publicly revealing that they sent requests to a bunch of hedge funds to keep trading records related to the Euro currency, the U.S. government is in effect telling hedge funds not to profit from...
This is an extraordinary article about the over-leveraged foreigners who came to Dubai for the good life and then are forced to rush out, leaving their homes and even their Mercedeses with the keys...
Most people, as well as politicians and the government, think unemployment is lower than 10% nationally. At least that's what they'd have you believe. Well don't believe it!
While accountants make for a good scapegoat because of their inability to properly value bad mortgage securities, the blame doesn't rest on them. In defense of accountants everywhere.
It is pretty funny that the Chinese- who seem to think that poisons belong in both foods and toys- are critical of GE's manufacturing standards.
More seriously though, this kind of posturing may...
Doug Kass is a noted bear so he obviously has his own perspective, but in this interesting article he rips Ben Stein for suggesting that these credit problems are not a serious threat to the economy.
The problems with Fannie Mae and Freddie Mac are one other example of how the old financial system is collapsing. The result will be higher rates for everyone and sinking home prices.
Veteran hedge fund manager George Soros says he does not expect interest rates to rise in the US. He also has some interesting views on the massive growth currenty being experienced in China.