Entries Tagged 'Banks' ↓

Banks and People (part 3 of 3)

At the start of the crisis, the U.S. government said it wanted banks to switch from making investments back to making loans, loans that were sorely needed by businesses and consumers. Now, with TARP about to end, President Obama is still saying the same thing.
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Banks and People (part 2 of 3)

“I’ve been here for three years and never once heard the word ‘people’.” [handwritten note posted on bulletin board in graduate department of Economics at University of Wisconsin-Madison]

Last time we looked at two key pairs of opposites that played a role in the financial crisis.

Liquidity vs Leverage (or “Illiquidity)
Solvency vs. Debt (or “insolvency” )

This time we’ll look at how these pairs of “variables” apply to people and to banks.
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Banks and People (part 1 of 3)

The first laws of library science are:
For every reader a book.
For every book a reader.

The first law of economics, the “law of supply and demand” is:
For every seller a buyer.
For every buyer a seller.

In other words, you can’t have a “market transaction” without both a buyer and a seller.

Keep these laws in mind as we explore the relationship between banks and people.
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