tag:blogger.com,1999:blog-4900303239154048192.post865080031067087850..comments2024-03-06T06:34:42.881-05:00Comments on EconoSpeak: You Wouldn’t Know that Banking Is a BusinessUnknownnoreply@blogger.comBlogger2125tag:blogger.com,1999:blog-4900303239154048192.post-86294781690820503752010-11-01T06:06:01.612-04:002010-11-01T06:06:01.612-04:00The situation described in Spain involves "re...The situation described in Spain involves "recourse" mortgage loans, which have been traditional in America for home mortgages for years; but of course America also has had "non-recourse" mortgage financing for commercial developers/property owners, where the lender relies upon the underlying property for its security. Fortunately, America does provide some bankruptcy relief for a foreclosed homeowner for the shortfall from the foreclosure. Query: what happens when the commercial real estate bubble hits the fan?Shag from Brooklinehttps://www.blogger.com/profile/07312591102812315460noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-5939768824846500042010-10-31T15:22:41.492-04:002010-10-31T15:22:41.492-04:00Polonius said, Neither a borrower nor a lender be,...Polonius said, Neither a borrower nor a lender be, especially in Spain. Maybe I'll have to brush up my Shakespeare. In Europe the bond markets are calling the shots, and tax revenues are dropping as austerity measures (higher taxes and lower public spending to achieve balanced government budgets) are slowing things down. I'm foggy about the solution, it seems to have to do with developing institutions the spread wealth instead of concentrating it. Utility banking, utility housing, land trusts, child trust accounts, individual development accounts to build wealth and spread it, higher wages, higher earned income tax credits, taxes on wealth at the top --- a concerted effort to provide security to citizens and their governments. It's balling up in a mess in my mind. Slowly reforms will take shape in that direction. I see that 80% of households earned 40% of U.S. income, and wages amounted to 29% of it. The other 11% were transfers such as social security, pensions, alimony, etc.. If the non-supervisory workers only earn 29% of what the economy produces, there is room for higher wages. (Brookings/Urban Institute, Tax Policy Center).BenL8https://www.blogger.com/profile/08630681621947995219noreply@blogger.com