Thursday, December 6, 2007
The subprime bailout plan being orchestrated by the U.S. Treasury Department will have a deflationary effect because it increases risks to lenders and discourages further lending. Interest rates cannot be lowered enough to compensate.
Friday, November 30, 2007
A report in the New York Times describes a run on an investment pool run by the state of Florida on behalf of local schools. The pool, which has some exposure to subprime mortgage loans, stopped honoring requests for withdrawals November 29.