Tag Archives: household debt

HBCU Money™ Dozen 11/24 – 11/28


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Did you miss HBCU Money™ Dozen via Twitter? No worry. We are now putting them on the site for you to visit at your leisure. We have made some changes here at HBCU Money™ Dozen. We are now solely focused on research and central bank articles from the previous week.

Research

The Konik: a little-known breed of horse equine l KY Equine Research ow.ly/F3FPC

Research addressing environmental concerns that impact tribal health/well-being l EPA Research ow.ly/F3FRP

Advanced drinking water treatment tech, water infrastructure, sensors l EPA Research ow.ly/F3FUn

Bloomberg Explores The Connected Home l Clean Technica dlvr.it/7g3gjH

BlackBerry’s deal to buy voice crypto company Secusmart blessed by German government l CIOonline trib.al/wpnQyiW

5 Ways PCI is Becoming More Security-Conscious Next Year l CIOonline trib.al/5xcpmaR

Federal Reserve, Central Banks, & Financial Departments

Does free food make for a happier office? l World Economic Forum wef.ch/1vXyIwk

$200bn of fake medicines are sold every year. An African entrepreneur fights back l World Economic Forum wef.ch/1Bef8it

Buying power of minimum wage varies across and within states l St. Louis Fed bit.ly/1zu7lez

Trying to get your personal finances in order? Start with these lessons on the basics l St. Louis Fed bit.ly/ViVxYQ

Household Debt Balances Increase as Deleveraging Period Concludes l NY Fed nyfed.org/1y97tNz

Despite Apple Pay buzz, cash is still popular l SF Fed bit.ly/1zviiJj

Thank you as always for joining us on Saturday for HBCU Money™ Dozen. The 12 most important research and finance articles of the week.

HBCU Money™ Business Book Feature – House of Debt: How They (and You) Caused the Great Recession


 

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The Great American Recession resulted in the loss of eight million jobs between 2007 and 2009. More than four million homes were lost to foreclosures. Is it a coincidence that the United States witnessed a dramatic rise in household debt in the years before the recession—that the total amount of debt for American households doubled between 2000 and 2007 to $14 trillion? Definitely not. Armed with clear and powerful evidence, Atif Mian and Amir Sufi reveal in House of Debt how the Great Recession and Great Depression, as well as the current economic malaise in Europe, were caused by a large run-up in household debt followed by a significantly large drop in household spending.

Though the banking crisis captured the public’s attention, Mian and Sufi argue strongly with actual data that current policy is too heavily biased toward protecting banks and creditors. Increasing the flow of credit, they show, is disastrously counterproductive when the fundamental problem is too much debt. As their research shows, excessive household debt leads to foreclosures, causing individuals to spend less and save more. Less spending means less demand for goods, followed by declines in production and huge job losses. How do we end such a cycle? With a direct attack on debt, say Mian and Sufi.  More aggressive debt forgiveness after the crash helps, but as they illustrate, we can be rid of painful bubble-and-bust episodes only if the financial system moves away from its reliance on inflexible debt contracts. As an example, they propose new mortgage contracts that are built on the principle of risk-sharing, a concept that would have prevented the housing bubble from emerging in the first place.

Thoroughly grounded in compelling economic evidence, House of Debt offers convincing answers to some of the most important questions facing the modern economy today: Why do severe recessions happen? Could we have prevented the Great Recession and its consequences? And what actions are needed to prevent such crises going forward?

HBCU Money™ Dozen 5/5 – 5/9


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Did you miss HBCU Money™ Dozen via Twitter? No worry. We are now putting them on the site for you to visit at your leisure. We have made some changes here at HBCU Money™ Dozen. We are now solely focused on research and central bank articles from the previous week.

Research

A Solar Commitment, From The White House To America l Clean Technica dlvr.it/5cxb9H

How the Boston Globe totally revamped its IT strategy l CIOonline trib.al/JY6OMFY

In the digital ocean, predators outnumber protectors l CSOonline ow.ly/wGSqp

Granular Materials Aren’t Like Liquids, Except When They Are l APSPhysics bit.ly/1oew8O4

Sandia shows off freshly renovated large-scale test facilities l Sandia National Labs bit.ly/1fUwEyf

31 people have been to Mars and back – plus other surprising space stats l New Scientist ow.ly/wFxOK

Federal Reserve, Central Banks, & Financial Departments

Teachers: St.Louis/Atlanta Fed offer 3 types of professional development options. l Econ Lowdown bit.ly/1iG22S9

Students challenged to come up with their innovative ideas for transforming life for girls l World Bank ow.ly/wHqp1

What can data tell us about Nigerian girls’ educational opportunities? l World Bank wrld.bg/wF7aR

60% of best jobs in the next 10 years haven’t been invented yet. What kind of jobs will Africans invent? l WEF wef.ch/1ixnff7

Why are Americans so bad with money? Is there a way to help them? l CEE ow.ly/wHqHn

Household debt inches higher. Our researchers say the housing data present a mixed picture l Cleveland Fed ow.ly/wHr2A

Thank you as always for joining us on Saturday for HBCU Money™ Dozen. The 12 most important research and finance articles of the week.