Banks piling into auto loans as demand picks up
Given the relatively low default rates in auto loans, banks' credit departments have loosened lending requirements.
Sign in
Sign in
Recover your password.
A password will be e-mailed to you.
Browsing Tag
banks
The perils of private sector deleveraging in the Eurozone
Private and public debt in the Eurozone increased since the 2000s, and especially so in certain countries. This column presents evidence that high levels of private and public debt, together with deleveraging of all sectors, are especially…
ECB rate cut highlights dichotomies within Euroland; watch Italy
Yesterday the European Central Bank cut the interest rate on its main refinancing operations by 25 basis points to a record low 0.25%. It also cut the rate on the marginal lending facility by 25 basis points to 0.75%. The news was…
Paul Krugman, Nick Rowe and an Endogenous Money Model
Paul Krugman's use of the unexpected phrase 'endogenous money' has motivated me to publish, ahead of schedule, a model comparing Loanable Funds to Endogenous Money that I promised to provide in the discussion on Nick Rowe's blog.
Hidden debt must still be repaid
Five or six years ago, a few skeptics first started pointing out that the credit dynamics underlying Chinese growth was creating an unsustainable increase in debt. This, they warned, would ultimately undermine the banking system and cause…
Sallie Krawcheck on the Fed Chair selection process
As major central bankers meet in Jackson Hole, Wyoming, Bloomberg, Bloomberg Surveillance was talking about who is going to replace Bernanke as the head of the Federal Reserve. I especially like the way that Sallie Krawcheck discusses the…
A new approach to deposit insurance
Recent developments in the Eurozone, specifically Cyprus where the first EU-dictated bail-in of bank depositors took place, brought to light an important issue which had been hiding in the shadows: the flawed nature of current deposit…
The agency problem and how to create a criminogenic environment
The problem of not understanding fraud mechanisms is most intense among economists, who typically do not study fraud, do not understand fraud mechanisms, and have a tribal taboo against even writing or speaking the word “fraud.”
How the United States gets deflation and becomes the next Japan
I spoke at a Euromoney conference on inflation-linked products last year. My thesis at the time that deflation is the real problem and that inflation isn't going to be a concern - which has largely proved right - was out of step with most…
Bank runs: who’s going to clean up the mess afterwards?
By Frances Coppola
In my post on the anatomy of a bank run, I suggested that the rule should be "provide central bank liquidity support to everything, taxpayer support to nothing". This is because in a bank run/liquidity crisis, it isn't…