bw3 - Steve Flynn Business Week 3 01/30/2008 Tapped-Out...

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Steve Flynn Business Week 3 01/30/2008 Tapped-Out Consumers 1. Banks/lenders and financial markets are fearful that if people keep defaulting on their loans, they are going to have to set aside money to cover their losses, and each time a bank is forced to sock away money it eats into earnings. The Home Equity Crisis Ahead 2. Well a lender on a mortgage has first dibs on the underlying property, so in case of foreclosure they can sell the property to get at least some money back, the bank with the home-equity piece is usually out the money. This makes banks worried about the foreclosures that may happen on the homes they granted the home- equity. What Could Stave Off a Recession? 3. Health and Education A Better Way to Track the Economy 4. Innovation, possibly a “national innovation index”. You can’t Sue the Bean Counters 5. The Supreme Court ruled that the lawyers, bankers, accountants, basically anyone that can be involved in corporate fraud are virtually immune to fraud lawsuits brought against companies by upset shareholders. This is bad for the
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This note was uploaded on 04/21/2008 for the course BUS 1750 taught by Professor Reck during the Spring '07 term at Western Michigan.

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