by Joe McAuliffe | Dec 13, 2010 | Cup O' Joe, Economic Considerations
The Housing Bubble A ‘bubble’ was created when people decided to go into debt and bid up housing prices because they expected to sell and make money. As Fed Chairman from 2001-2005, Allen Greenspan helped create the housing bubble by cutting interest rates and...
by Joe McAuliffe | Dec 9, 2010 | Cup O' Joe, Economic Considerations
BANK LIABILITY FOR SUB-PRIME LENDING Was the mortgage mess a result of an unanticipated collapse of home prices nationwide? Or, did the banks misrepresent the securities that they sold thus causing the financial meltdown? Banks may face yet another major setback in...
by Joe McAuliffe | Dec 8, 2010 | Economic Considerations, Uncategorized
Beware the Moral Hazard Last year the government bailed out the banking systems and investors by buying more than one trillion dollars in troubled assets. This action caused a lot of concern among economists and regulators who feared that doing so would only encourage...
by Joe McAuliffe | Dec 7, 2010 | Cup O' Joe, Economic Considerations
The China Effect How will China’s Investment Policy dramatically impact the United States, economic recovery, and the real estate market? China’s Investment Policy has dramatically changed. According to Joe Quinlan, chief strategist at U.S. Trust, China will reduce...
by Joe McAuliffe | Dec 1, 2010 | Cup O' Joe, Economic Considerations
Canary in the Coal Mine If a canary were in a coal mine and stopped chirping due to lack of oxygen, it would let the miners know that they needed to get out of the coal mine to avoid death. This analogy can be applied to the present situation with European and...