Low Interest Rates — Then & Now Three (four?) years into the housing market downturn, what conclusion is it possible to draw? In retrospect, it seems obvious (at least to me) that it was a liquidity-driven phenomenon. Add a tsunami of cash, subtract any vestige of underwriting standards, and real estate will go up. Subtract...Read More
Limits to “Hair of the Dog” Fix For Sovereign Borrowing Hangover Can you get out of a debt crisis by piling on another layer of debt? The answer, of course, is that “it depends.” Replacing corporate and mortgage debt with a government checkbook is initially beneficial because the sovereign is assumed to be more creditworthy...Read More
