debt   16374

« earlier    

The origins of money are murky and mysterious | Science News
Thousands of years ago, money took different forms as a means of debt payment, archaeologists and anthropologists say.
debt  money  history 
yesterday by zesteur
Michael Hudson -- The Lehman's Limp
'...Well, banks don’t invest. That’s a myth. The pretense is that rescuing the banks rescued the economy. But the banks don’t make loans to the economy. Banks don’t make loans to fund factories. They don’t make loans for infrastructure. They make loans to buy assets already in place. They’re privatizing the structure to take it private, raise the rates the people have to pay for services. Essentially they lend to raiders taking over corporations. They won’t help a corporation put in more equipment and hire more people, but they’ll lend to a raider to break up a corporation, downsize the labor force, smash it up and leave it a bankrupt shell. That’s the financial management plan. That’s what they teach in business schools. -- Contrary to the idea that bailing out the banks helps the economy, the fact is that the economy today cannot recover without a bank failure. -- ... Debt grows exponentially. The interest charges grow year after year. If you have a savings account you can see it mount up, like if you have a retirement account you’ve seen the stocks go up. If you have it in bonds you see those go up. But the economy doesn’t go up anywhere near as much as the stock market. That means that the financial sector and the debt volume grows much faster than the economy can grow. So people – the economy, families – have to spend more and more of their money every month on their mortgage debt for housing, on their credit card debt, on their student loan debt, on their automobile debt, and also in health insurance. They have less and less money to spend on goods and services. -- So the starting point should be how are we going to bring the debt payments back in line so that the economy has room to grow? The only way to do this in any society is by writing down debt. Germany did that in 1948 with its economic miracle. They wrote down nearly all the domestic debt. Normally the function of a crisis like the Great Depression is to wipe out the bad debts. But when you wipe out the debts, you wipe out the savings, mainly of the One Percent. And the question is, who is the government going to make its policy for? The one percent of creditors, or the 99 Percent that the One Percent holds in debt? -- Well, obviously the One Percent is the donor class, and they’re writing the laws. The result of their leaving this debt in place is a rising debt-income ratio. That is, the proportion of corporate earnings that has to pay for debt service has been soaring because corporate raiders have gone to the banks, borrowed money and taken over corporations. Instead of using the corporate earnings to invest in more equipment, they’ve bought their own stock by stock buybacks that push up stock prices instead of investing. -- So the financial management philosophy that we have is diametrically opposed to what’s needed for economic growth. That should be what people are talking about, because more and more economists are warning that given the rising debt ratios, there’s going to be another crisis. What we should be talking about when we look back on the anniversary of Lehman’s bankruptcy is how to handle the next crisis in a way that doesn’t bail out banks, that bails out the economy by writing down the debts. -- If banks have bad debts, they’ve made bad loans. Banks used to be conservative and prudent. But if they make imprudent loans and they say, we don’t care the borrower can’t pay because we’ve sold the whole loan off to a pension fund or a German Landesbank, and somebody else is going to take the loss, you have to restructure the banking system and the financial management...'
economics  rentseeeking  financialization  deindustrialization  malspeculation  malinvestment  debt  ponzi  thegreatestdepression  MichaelHudson 
3 days ago by adamcrowe
Mis-sold, expensive and overhyped: why our universities are a con | Aditya Chakrabortty | Opinion | The Guardian
For two decades, Westminster has used universities as its magic answer for social mobility. Ministers did so with the connivance of highly paid vice-chancellors, and in the process they have trashed much of what was good about British higher education. What should be sites for speculative inquiry and critical thinking have instead turned into businesses that speculate on property deals, criticise academics who aren’t publishing in the right journals – and fail spectacularly to engage with the serious social and economic problems that confront the UK right now. As for the graduates, they largely wind up taking the same place in the queue as their parents – only this time with an expensive certificate detailing their newfound expertise.
education  higherEducation  universities  expansion  fees  tuitionFees  pay  wages  salaries  marketisation  debt  class  socialMobility  UK  policy  dctagged  dc:creator=ChakraborttyAditya 
4 days ago by petej
How Does Technical Debt Affect a Business Financially? | Toptal
ations of Technical Debt
View all articles

BY ERIK FREDERICK - FINANCE EXPERT @ TOPTAL

#Budgeting #BusinessModel #CFOs
128
SHARES






Read the Spanish version of this article translated by Yesica Danderfer
tech  debt 
5 days ago by marcina
The Real Cost of the 2008 Financial Crisis | The New Yorker
According to the Basel report, asset managers now control nearly a hundred and sixty trillion dollars, more than the worldwide holdings of the banking industry. During a market sell-off, the report warned, some of these firms could face pressures—such as a surge of investors eager to cash out—that would lead to a downward spiral. A recent McKinsey study showed that in the past ten years the amount of outstanding corporate debt has tripled across the world. In the United States, the study noted, almost two-thirds of non-financial debt is rated as junk or one notch above junk. Roughly three trillion dollars of this questionable credit is set to mature in the next five years. If the economy falters, or if interest rates rise sharply, many corporations may find themselves in the position of new mortgage holders a decade ago—unable to repay or roll over their debts.
finance  politics  debt  crash  bubble 
5 days ago by soobrosa
Trump Adviser Kudlow Blames Deficits on Spending, Not Tax Cuts - WSJ
“The gap is principally spending too much,” Mr. Kudlow said. “We have to be tougher on spending. People are quick to blame deficits on tax cuts, but I don’t buy that,” he said. The official added he expects the government to run deficits of 4% to 5% of the nation’s GDP, and said “it’s not a catastrophe.”
taxes  deficit  debt 
5 days ago by brycecovert

« earlier    

related tags

'print  "capitalism"  *  2018  academic  aging  ai  americana  architecture  argentina  argument  article  austerity  bailout  banking  banks  benefits  bethanymclean  beyond_one's_control  blame  book  bookies  bookmarks  bookmarks_bar  bookmarks_menu  brexit  britishcolumbia  browngordon  bubble  budget  budgeting  businesscycle  calculator  capitalism  ceos  china  cibc  class  code  collector  complacency  congress  consumer  consumption  control  corbynism  corbynjeremy  corpfinance  corporateincompetence  corruption  crash  credit-card-debt  credit  creditcrunch  creditreporting  crisis  crowdfunding  cryptocurrency  cult  currency  cuts  dailyintell  dc:creator=chakraborttyaditya  dc:creator=elliottlarry  dc:creator=harrisjohn  dc:creator=huttonwill  dctagged  ddd  dealing  debtors-prison  decrease  default  deficit  deindustrialization  deleveraging  delusion  deregulation  design  designdebt  dollar  donaldtrump  drugs  economics  economy  education  electricity  energy  equity  europe  expansion  fdi  fdpca  fedloan  fees  finance  finances  financialisation  financialization  fintech  forgiveness  forwork  fracking  france  fraud  frb  fsa  future  gangs  germany  getrichslowly  global_economy  globalization  google  gop  gov_usa  government  greece  guardian  health  healthcare  highereducation  history  home  housing  iceland  imf  imported  in  incarceration  insecurity  insurance  interconnectedness  interest  interest_rates  interestrates  internationalfinance  investment  irs  issue  jobs  kaiser.health.news  kredd  labourlive  labourparty  land  landcycle  landlordism  lehmanbrothers  lh  loan  loans  lukas  machinelearning  malinvestment  malspeculation  management  marketisation  meghan-daum  mentalhealth  michaelhudson  minimalistic  ml  money'  money  moneytrouble  mortgages  national  nationalism  ndc  netdebt  newdeal  newyorker.com  newyorker  nuclear  nyt  nytimes  obamabarack  of  offgrid  oil  op-ed  opacity  opinion  osbornegeorge  paper  paulsonhank  pay  pdf  pe  people  peoplesvote  pettiforann  pipelines  platform  policy  politics  ponzi  poverty  preparation  president  prices  product  productivity  programming  property  protectionism  pslf  public  publicservices  race  read  recession  recovery  referendum  reform  regulation  rent-to-own  rent  rentseeeking  rentseeking  reportedly  republican  resilience  review  risk  rooseveltfranklin  salaries  savings  schools  selfimprovement  smn  socialdemocracy  socialmobility  socialsafetynet  speeches  state  stevekeen  stimulus  student-loans  student  students  suggested  tax  taxes  tech  the  thegreatestdepression  theleft  threats  tips  to  toozeadam  trade  trump  tuitionfees  uk  uncertainty  universities  usa  ux  value  victor_dodig  video  violence  vulnerability  wages  wallstreet  walsall  war_for_talent  wealth  writing  wtf  zapan  zerohours 

Copy this bookmark:



description:


tags: