Economics @ ITT

The Banking Revolution that Would Wipe Out Britain’s Debts

Posted in economics by ittecon on June 11, 2013

Banking reform has been back in the headlines over the past week, with calls from a parliamentary committee for consideration to be given to more radical options – including the break-up of the Royal Bank of Scotland – and a scathing attack by MPs on Dame Clara Furse’s fitness to serve on the Bank of England’s new financial stability committee.

via The banking revolution that would wipe out Britains debts – Telegraph.

Let it Bleed?

Posted in economics, macroeconomics by ittecon on March 30, 2013

In the 12 years of the Great Depression – between the stock-market crash of 1929 and America’s mobilization for World War II – production in the United States averaged roughly 15% below the pre-depression trend, implying a total output shortfall equal to 1.8 years of GDP. Today, even if US production returns to its stable-inflation output potential by 2017 – a huge “if” – the US will have incurred an output shortfall equivalent to 60% of a year’s GDP.

via Let it Bleed? by J. Bradford DeLong – Project Syndicate.

US Banks Post $37.6B in Third-Quarter Profits

Posted in economics, Policy Issues by ittecon on December 5, 2012

The massive bailout is not over. If I had access to funds near 0% and know that I am TBTF, I might be earning near record profits, too.

Four years after a massive federal bailout, banks are recording near-record profits — a development welcomed by regulators but met with fresh demands by critics that the financial firms do more to benefit mainstream America.

via U.S. banks post $37.6 billion in third-quarter profits –