Money and Banking

Money and Banking - suppliers. In the fourth paragraph GM...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
In chapter 3 R. Glenn Hubbard author of “Money the Financial System and the Economy,” discusses liquidity. On page 35 paragraph three Hubbard says, “Liquidity is the ease with which an asset can be exchanged for money to purchase other assets or exchanged for goods and service.” Writer Kenneth R. Harney of the Los Angeles Times describes the new supply of jumbo financing in pipeline. Writer Kendra Marr describes how the United States releases aid to auto supplier. In the Los Angeles Times article Harney writes about how Bank of America and other banks are stepping up to offer loans to home buyers. In the thirteenth paragraph Veronica Johnson, chief executive of Luxury Loans says, she welcomes Bank of America's entry into the mass-market jumbo arena. "We need them," she says, "There’s been a really serious lack of liquidity at this end of the market." What Johnson is trying to explain is that mortgages have not been selling very well. Marr describes how the treasury backs their payments to the auto
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: suppliers. In the fourth paragraph GM spokesman Dan Flores says, "This program will help suppliers access much needed liquidity during these difficult economic times." What Flores is saying is that by the government helping auto suppliers they can have a better chance of selling cars. In the times we are living in it is obvious to see that mortgages and cars arent as liquid as they were a couple of years ago. Mortgages and cars are labeled personal property and personal property is not a liquid asset. If the economy rebounds anytime soon both the real estate industry and auto industry may be able to rebound Hubbard, R Glenn 2007 Money, the Financial System and the Economy, Money and the Payments System (pp. 35) R. Harney, Kenneth (2009, March 22) The New Supply of Jumbo Financing in Pipeline. LA Times (Los Angeles, CA) Marr, Kendra (2009, April 9) U.S. releases aid to Auto Supplier. Washington Post (Washington DC)...
View Full Document

Page1 / 2

Money and Banking - suppliers. In the fourth paragraph GM...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online