Tag Archive for Banking Industry

Spanish Lender Seeks $24 Billion Bailout – Ratings Cut on 5 Banks – NYTimes.com

Spain’s banking crisis worsened Friday as the board of Bankia, the country’s biggest mortgage lender, warned that it would need an additional 19 billion euros ($23.88 billion), far beyond what the government estimated when it seized the bank and its portfolio of delinquent real estate loans earlier this month. When Spain seized Bankia May 9,…

Revisiting the Theory of Moral Sentiment

Economist Adam Smith wrote  about ethics in economics in his “Theory of Moral Sentiments” and came to two principle conclusions regarding man’s conceit for his own ideal plan for government and the tendency for the public to act independently of those plans: If those two principles coincide and act in the same direction, the game of human society will go on easily and harmoniously, and is very likely to be happy and successful. If they are opposite or different, the game will go on miserably, and the society must be at all times in the highest degree of disorder. Fast forward to 2010 and it should be obvious that  a high degree of social tension is the consequence of this bizarre attempt to keep the fraud going to save the economy. A compelling argument can also be made that the purpose of keeping the economy going is to save the fraud. Take your pick or take both. Any thoughtful person would walk away confused as to the current sorry state of ethical, economic and political affairs and would have to conclude that the ultimate outcome will very much be a high degree of disorder. Richard Koo writes a piece that pretty much [...]