The Real Cause of the Credit Crisis

March 21, 2020

| general, government, law, Legal, politic

Politicians and other talking heads (and thus the general public) seem to agree that the current credit crisis was caused by lack of governmental oversight of the big bad bankers. In actual fact, it was just the opposite. The cause of the crisis was Government pressure (mostly but not entirely from Democrats in the White House and Congress) imposed on the mortgage lending industry as far back as the beginning of the Clinton era. Semi-government institutions, Freddie Mac and Fannie Mae, caved in to the pressure, and by readily buying ever-increasing numbers of shaky loans, they made it highly profitable for loan originators (mostly local brokers and bankers) and loan "bundlers" ( Wall Street) to willingly go along.

Starting in 1992, a majority-Democratic Congress mandated that Fannie and Freddie increase their purchases of mortgages for low-income and medium-income borrowers. Operating under that requirement, Fannie Mae, in particular, became aggressive and … Read More

Financial Crisis Affects Timeshare Industry

March 21, 2020

| No Comments

| general, government, law, Legal, politic

The current global financial crisis has created a troubling situation for timeshare owners. As most sectors of the economy are feeling the squeeze, the nation’s timeshare industry is being pounded from both sides as banks cut back on lending and consumers cut back on spending.

As a result, at the same time as individuals have to deal with stagnating or falling incomes, deteriorating retirement funds, and a higher cost of living, timeshare resort companies that are feeling the pinch are passing their financial burdens on to the consumer.

Consumer Spending

Currently individuals, families and companies are severely cutting back on leisure and travel spending faster than was anticipated, reports Bloomberg.com. The October 23rd article notes “forecasts [show] that the deterioration in leisure and business travel is accelerating as corporations and consumers contend with higher food prices, declining home values, job losses and scarce credit.”

Lisa Ann Schreier, author and expert … Read More

The Effects Of The Financial Crisis

March 21, 2020

| No Comments

| general, government, law, Legal, politic

The financial crisis is an ugly situation that no sane person would want to experience because it comes with very drastic results that can reduce wealth and standard of living. Unfortunately, recession is sometimes unavoidable. Unavoidable cases come as a result of bad government policies, unemployment, and unfavorable economic conditions. The good news is that human beings can find solutions to any problem they face, so when there is hyperinflation, it's still very possible to survive.

In the past, top countries in the world have witnessed several economic recessions. Their downfall also affects other countries, especially those that depend on them for the supply of goods and services. Just recently in 2008, America faced a similar situation, though the country is already making efforts to recover from it. If they don't employ the correct procedures, it is possible that they may witness the recession again. European countries are not exempted … Read More

Crisis Point

March 21, 2020

| No Comments

| general, government, law, Legal, politic

Thinking back to the financial crisis of 2008, one would think that another such economic catastrophe would somehow elude us. It was just ten years ago that the United States plunged the world into the worst financial disaster since the Great Depression. Yet here we are, a decade later, no wiser and even more foolish. You would have thought that we would have learned from our mistakes, but time and time again, history proves that we are still prone to repeat mistakes of the past. When will we ever learn? Today, what we have is déjà vu of the 2008 financial crisis. So what we have now are almost the same set of circumstances that are poised to unleash an economic debacle more sinister and more devastating than the one in 2008. To understand how this is happening, we first have to look at what transpired leading up to the … Read More

Genuine Crisis and Tricone Prices: What’s the Link?

March 20, 2020

| No Comments

| general, government, law, Legal, politic

When the poet John Donne observed that "no man is an island", was he referring to the impact of world events on tricone prices? We'll never know for sure, but we DO know that oil and tricone prices, like anything in a free market economy, do not exist in a vacuum.

Generally speaking, greater demand leads to higher oil prices, sparking more drilling activity. This increases the need for drilling supplies such as tricone drill bits, and likely increases their cost as well.

There are several factors that impact oil and tricone demand and prices. One of the most significant is a crisis in the form of war, economic upheaval or disaster.

War

Not all wars are created equal. A conflict in Belgium or Paraguay is unlikely to affect tricone demand. Shift the scene to a major oil-producing country, however, and it's a different story. Yet the influence of war … Read More

The Corporate Crisis: Executive Misconduct

March 20, 2020

| No Comments

| general, government, law, Legal, politic

How a corporation responds to a potential crisis involving allegations of an ethical lapse on the part of a senior executive has the potential to shape its corporate image long after the initial event is over. As Toyota and the Subway corporation are currently discovering, despite all best corporate governance efforts, including expertly crafted corporate compliance programs and codes of conduct, no corporation is immune from the damage that can be sustained from the alleged ethical lapse or misconduct on the part of a senior executive or corporate spokesperson. Mitigation efforts can be especially challenging when the senior executive’s alleged unethical or illegal conduct is unrelated to the corporation’s operations.

A comprehensive understanding of the underlying relevant facts is critical to the corporation’s decision making process. As well as a proactive and focused mitigation protocol that provides the corporation with the ability to demonstrate a good faith response to the … Read More

Current Economic Crisis (Bailout Or Buyout)

March 20, 2020

| No Comments

| general, government, law, Legal, politic

Lately, it seems as if we are living through history every day. Not since the Great Depression has the United States seen such turmoil in the financial markets. What started in the subprime mortgage industry has now bled over into Wall Street.

When investment houses that have been around since the Civil War close their doors, it's a sure sign that something's gone terribly wrong. First Bear Stearns, then Lehman Brothers and then Merrill Lynch and Washington Mutual.

We all can't help but be a little rattled by what's going on. But while I and others have been pointing out that the markets are only going through a "correction", you may be asking, "Denise, how much of a correction do we need to make?"

Obviously, a big one. Too much money lent to too many people who couldn't afford to pay it back is a surefire recipe for disaster. Now … Read More

M	T	W	T	F	S	S
				1	2	3
4	5	6	7	8	9	10
11	12	13	14	15	16	17
18	19	20	21	22	23	24
25	26	27	28	29	30	31

Bibliolimpo

Tag: Crisis