Monthly Archives: August 2011

Housing Fix: End the Government’s Subsidy ‘Ponzi Scheme,’ Says NYU Professor

More bad news on the housing front today, as the housing market can’t seem to find a bottom. New-home sales fell in July by 0.7% to the lowest point since February, the Commerce Department said Tuesday. Sales for June were … Continue reading

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Bank Of America’s Stock Collapse Brings Back Nightmares Of 2008

NYU finance professor Viral Acharya, the author of Guaranteed to Fail, says that Bank of  America is the most vulnerable of the major banks, as well as the most “systemically risky.”  He thinks it’s possible that, under some economic scenarios, … Continue reading

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The Downsides Of Mortgage Tax Breaks

Every year, homeowners deduct the interest paid on their mortgage from federal taxes,  saving a combined total of more than $100 billion a year. Viral Acharya argues it’s time to wean homeowners off of those subsidies because they favor the … Continue reading

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Should The Government Subsidize Your House?

Excerpt from NPR: Say you own a house in Gainesville, Fla., or St. Paul, Minn. It cost you $172,000 — that’s  the median sales price of a single family home in the United States. You put 20 percent  down when … Continue reading

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White Picket Fence? Not So Fast

Excerpt from The New York Times: The United States spends more than $100 billion annually to subsidize homeowners. Renters get no breaks; homeowners get tons of them. Their mortgage rates are subsidized through the government-sponsored enterprises Fannie Mae and Freddie … Continue reading

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Risk Management Gains Seat at the CEO Table Study Finds

One of the largest risk management surveys of its kind, the Accenture 2011 Global Risk Management Study finds that advanced risk management capabilities are high on the executive agenda and now seen as a critical business driver and source of … Continue reading

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US’ Political Economy has Crossed Its Rubicon

Professor Viral Acharya raises the question–Will the polarization in the US keep rising and foster further political risk and downgrades of US treasuries? Earlier this year, many observers wondered why the cost of buying protection against the risk of default … Continue reading

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Roubini Warns of Global Recession Risk

NYU Stern professor Nouriel Roubini says the risk of a global recession is greater than 50  percent, and the next two to three months will reveal the economy’s direction. In an  interview with WSJ’s Simon Constable, Roubini also says he’s … Continue reading

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Bank of America

Professor Viral Acharya says Bank of America will continue to face challenges beyond the  weak economy. Its exposure to mortgage markets and greater leverage has made it  vulnerable. Watch video at PBS.com

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Global Financial Markets

Professor Nouriel Roubini talks to Charlie Rose about global financial markets. Watch video here.

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