Tag: finance

Republicans do not live up to their ideals of small government (and also, we need to spend right now)

Regardless of whether or not you agree that slashing spending, fiscal austerity, balanced budgets, and a low federal deficit are good ideas, the fact remains that the Republican Party does not generally live up to its aims of expense reduction and small government. As hard as it is to believe, there are still some people who think that Reagan cut the size of government, although Reagan was a big spender and laid the groundwork for the immense national debt we live with today. (even the Austrian School agrees) Note: Full historical budget tables, FY 2015 Then there was Ol' Dubya with his two disgraceful wars, TARP bailout, auto bailouts, fiscal stimulus, and tax cuts. Not to mention yanking the election out from under Al Gore's ...

On behalf of the unmeasurable

"So, for large complex financials, capital cannot be measured precisely enough to distinguish conservatively solvent from insolvent banks, and capital positions are always optimistically padded. Given these facts, and I think they are facts, even “hard" capital and leverage restraints are unlikely to prevent misbehavior. Can anything be done about this? Are we doomed to some post-modern quantum mechanical nightmare wherein “Schrödinger’s Banks" are simultaneously alive and dead until some politically-shaped measurement by a regulator forces a collapse of the superposition of states into hunky-doriness?" -- steve randy waldman

Racism *and* predatory lending, a stellar "business-savvy" 1-2 punch from Toyota

Oh look, Yet Another Case of "financing while brown" -- this time from Toyota: "Here’s how the markup worked: Auto dealers often offer in-house financing. And when a person chooses that route, the dealer sends the buyer’s credit score and other loan risk factors to, in this case Toyota Motor Credit Corporation. The dealer learns the rates the buyer has qualified for, but then is allowed increase it, as the dealer sees fit. That inflated rate can translate into profit for the dealer. It’s usually a small amount—Toyota allowed its dealers to increase rates up to 2.5 percent. But that adds up over years of interest. The CFPB found that, when the dealer was allowed to decide which customers to charge more, people of color, regardless of th...