mortgage tax deduction

48 results back to index


pages: 296 words: 76,284

The End of the Suburbs: Where the American Dream Is Moving by Leigh Gallagher

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

Airbnb, big-box store, Burning Man, call centre, car-free, Celebration, Florida, clean water, collaborative consumption, Columbine, crack epidemic, East Village, edge city, Edward Glaeser, extreme commuting, helicopter parent, Home mortgage interest deduction, housing crisis, Jane Jacobs, low skilled workers, Mark Zuckerberg, McMansion, Menlo Park, mortgage tax deduction, New Urbanism, peak oil, Ponzi scheme, Richard Florida, Robert Shiller, Robert Shiller, Sand Hill Road, Seaside, Florida, Silicon Valley, Steve Jobs, Stewart Brand, the built environment, The Death and Life of Great American Cities, Tony Hsieh, transit-oriented development, upwardly mobile, urban planning, urban sprawl, Victor Gruen, walkable city, white flight, young professional, Zipcar

For twenty years, housing starts averaged: U.S. Bureau of the Census, Historical Statistics of the United States, Colonial Times to 1970, part 2. The housing shortage was so severe: Jackson, Crabgrass Frontier, p. 232. Jackson’s quote about sleeping in his grandparents’ dining room comes from a transcript of the PBS series The First Measured Century, 2000. The mortgage interest tax deduction, a by-product: Lost in the current political debate over the mortgage interest tax deduction is the fact that the Revenue Act of 1913 didn’t refer to mortgage interest at all; rather, it simply provided a deduction for “all interest paid within the year by a taxable person on indebtedness.” More on this can be found in Dennis J. Ventry Jr., “The Accidental Deduction: A History and Critique of the Tax Subsidy for Mortgage Interest,” Law and Contemporary Problems 73 (Winter 2010): 233–84.

Before the Depression, mortgages were short-term and so expensive, covering only a small percentage of the home purchase price, that only the wealthy could afford paying so much up front for the cost of a home. But with the new government backing, private lenders were suddenly willing to lend on much more generous terms, extending the length of the loan to twenty and then thirty years and ultimately lending more than 90 percent of the cost of the home to buyers. The modern-day long-term fixed-rate mortgage was born, making it possible for almost anyone to get a home loan. The mortgage interest tax deduction, a by-product of the 1913 law that established the federal income tax—and still one of the biggest incentives for home ownership to this day—provided a welcome assist. Then in 1944, the government passed the Servicemen’s Readjustment Act, otherwise known as the GI Bill, which provided low-interest, zero-down-payment loans to millions of veterans. Combined, these moves were effectively like throwing a match on a pile of drywall.

” • • • For all the ideals of freedom our country was built on, our modern residential pattern of suburban development—and the notion that it provided a better way to live—was decidedly master-planned. It started with the federal policies that laid the groundwork for suburbia, the post-Depression inventions explored in the previous chapter that suddenly made home ownership affordable for the middle class. The mortgage interest tax deduction, which wasn’t even intended for mortgages but was an indirect product of the 1913 act that established the federal income tax, today provides nearly $400 billion in subsidies to home owners each year, propping up the market for single-family homes to the detriment of renters, who get no such help. The FHA put in place incentives that made it more lucrative for builders to invest in new construction than to improve existing houses—loans for repairs were smaller and shorter term than loans for new houses—as well as rules that eased the way for the construction of subdivisions.

 

pages: 93 words: 24,584

Walk Away by Douglas E. French

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

Elliott wave, forensic accounting, full employment, Home mortgage interest deduction, loss aversion, McMansion, mental accounting, mortgage debt, mortgage tax deduction, New Journalism, Own Your Own Home, Richard Thaler, Robert Shiller, Robert Shiller, the market place, transaction costs, unbiased observer

If they walk away and buy the similar house, with a 5% down payment of about $9,000—a couple of payments on the current underwater place—the total monthly payment would be $1,200 (compared to the $4,300 they pay now); or the couple could rent a similar house in the neighborhood for $1,000 per month. As professor White explains, “Assuming they intend to stay in their home ten years, [the couple] would save approximately $340,000 by walking away, including a monthly savings of at least $1,700 on rent versus mortgage payments, even after factoring in the mortgage interest tax deduction.” It would take 60 years for the couple to recover their equity assuming that the Salinas, California market had hit bottom and the home began appreciating at the historically typical rate of 3.5%. So what’s our young family to do? Or the bigger question is what are the millions of young families going to do: pay or walk away? And if mortgagees walk away en masse, will they be responsible for destroying modern American society?

Not having a mortgage is the equivalent of stuffing money in a mattress. REASON #2 You’re going to build equity anyway. Paying down the mortgage is a weak way to build equity. The home will appreciate in value anyway according to Edelman. REASON #3 A mortgage is relatively cheap money. Debt is inevitable in today’s society writes the financial expert, so load up on mortgage debt as opposed to credit card debt. REASON #4 Mortgage interest is tax-deductible. The after-tax interest rate that you pay on your mortgage is lower than other available credit. REASON #5 Mortgage interest is tax-favorable. Rather than pay down debt that is tax-deductable, invest that money in investments that are taxed as low as 15 percent. REASON #6 Mortgage payments generally get easier over time. Inflation will make your monthly payment shrink, relatively speaking.

 

pages: 357 words: 91,331

I Will Teach You To Be Rich by Sethi, Ramit

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

Albert Einstein, asset allocation, buy low sell high, diversification, diversified portfolio, index fund, late fees, mortgage debt, mortgage tax deduction, prediction markets, random walk, risk tolerance, Robert Shiller, Robert Shiller, shareholder value, Silicon Valley, Vanguard fund

See Earnings; Raises; Salary Index funds, 155, 156–57, 167, 177–80, 185, 186, 197, 201–2, 209, 211, 212, 258 buying into, 194–95, 198 choosing, 191–94, 198 constructing portfolio of, 188–95 expense ratios of, 157, 178, 192 rebalancing portfolio and, 180, 181, 189, 203–5, 206–7, 209 Swensen allocation model and, 189–91, 192, 195 Inflation, 7, 53, 70, 170, 240, 253, 256 Information glut, 4–5 ING Direct, 51, 62–63 Insurance: car, 18, 31, 248 homeowner’s, 216, 259 life, 216–17 Interest: on bank accounts, 51, 52, 53, 54, 59, 60, 61 on car loans, 248 on mortgages, tax deduction for, 256 on student loans, 220, 221 see also Annual percentage rates International equities, 157, 190, 203 Investing, 9, 11, 12, 69–90, 109, 143–215 active vs. passive management and, 155–58 in art, 182 asset allocation and, 166, 170–72, 175, 180–81, 183–85, 189–91, 202, 208–9 automatic, 162–64, 202–3 concerns about risks of, 164 Conscious Spending Plan and, 106 determining your style of, 160–61, 198 diversification and, 166, 170, 172–75, 181 dollar-cost averaging and, 197 five systematic steps for, 76–77 401(k)s and, 4, 81, 83, 185–86, 189, 198, 201, 209 high-interest savings accounts vs., 69–70 high-risk, high-potential-for-reward, 183 increasing monthly contribution and, 200–201 knowing when to sell and, 211–15 letting your parents manage your accounts and, 222–23 maintaining system of, 200–218 market downturns and, 163 myth of financial expertise and, 143–58 nonretirement accounts and, 77, 78, 79 paying off student loans vs., 220–21 Pyramid of Investing Options and, 167 in real estate, 182, 202, 251, 253–54, 256 rebalancing portfolio and, 180, 181, 189, 203–5, 206–7, 209 Roth IRAs and, 83, 186–95, 198, 209 for specific goal, 215 starting early and, 4–5 summary of advantages of, 81 tax concerns and, 205, 209, 210–11, 215 time to double money and, 187 underperformance and, 212–15 young people’s poor attitudes and behaviors and, 71–75 in your own career, 77 see also Bonds; Index funds; Lifecycle funds; Mutual funds; Stocks Investment brokerage accounts: automatic transfers to, 87, 88, 89, 90, 129, 132, 137, 187, 188, 195 choosing, 86–88 keeping track of, 88 IRAs, 81, 141, 209 see also Roth IRAs j Jenkins, Richard, 107 JLP at AllFinancialMatters, 152 Job offers: multiple, salary negotiations and, 235, 238, 239 negotiating, 236–37 l Ladder of Personal Finance, 76–77 Late fees, of credit cards, 22, 23, 24 Leasing cars, 246 Leverage, 256 Lifecycle funds (target-date funds), 167, 180–85, 186, 189, 203, 205, 211 buying into, 188, 198 choosing, 187–88, 198 Life insurance, 216–17 Loads, of mutual funds, 156, 177 Lynch, Peter, 149 m Malkiel, Burton G., 150 Materialism, 74 Media, personal advice and, 5–6 Millionaires, behaviors of, 73–74 Money-market funds, 4, 170, 186 Moody’s, 150 Morningstar, 148–50, 152 Mortgages, 50, 216, 253, 255, 258 credit scores and, 16–17, 256–57 paying extra on, 77, 258 tax deductions and, 256 Mutual funds, 167, 176–77, 180 active vs. passive management and, 155–58, 177, 178 fees of, 155–56, 157, 163, 176, 177, 178, 179 managers’ inability to predict or beat market and, 144–51, 155, 177, 178 ratings of, 148–50 see also Index funds n Negotiating: with car dealers, 248–49 for job offers, 236–37 for salary in new job, 120, 234–44 Newsletters, market-timing, 147 “Next $100” concept, 128 Nickel (of www.fivecentnickel.com), 208–9 o O’Neal, Edward S., 158 Online banks, 51 checking accounts of, 62, 68 high-interest savings accounts of, 51–52, 53, 54, 59, 62–63, 65, 68, 69–70 Online shopping, 135 Overdrafts, 50–51, 65–67, 110, 116 p Parents, 222–24 managing their kids’ money, 222–23 in severe debt, helping, 223–24 Partners.

 

pages: 397 words: 112,034

What's Next?: Unconventional Wisdom on the Future of the World Economy by David Hale, Lyric Hughes Hale

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

affirmative action, Asian financial crisis, asset-backed security, bank run, banking crisis, Basel III, Berlin Wall, Black Swan, Bretton Woods, capital controls, Cass Sunstein, central bank independence, cognitive bias, collapse of Lehman Brothers, collateralized debt obligation, corporate governance, corporate social responsibility, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, currency manipulation / currency intervention, currency peg, Daniel Kahneman / Amos Tversky, debt deflation, declining real wages, deindustrialization, diversification, energy security, Erik Brynjolfsson, Fall of the Berlin Wall, financial innovation, floating exchange rates, full employment, Gini coefficient, global reserve currency, global village, high net worth, Home mortgage interest deduction, housing crisis, index fund, inflation targeting, invisible hand, Just-in-time delivery, Kenneth Rogoff, labour market flexibility, labour mobility, Long Term Capital Management, Mahatma Gandhi, Martin Wolf, Mexican peso crisis / tequila crisis, Mikhail Gorbachev, money: store of value / unit of account / medium of exchange, mortgage tax deduction, Network effects, new economy, Nicholas Carr, oil shale / tar sands, oil shock, open economy, passive investing, payday loans, peak oil, Ponzi scheme, post-oil, price stability, private sector deleveraging, purchasing power parity, quantitative easing, race to the bottom, regulatory arbitrage, rent-seeking, reserve currency, Richard Thaler, risk/return, Robert Shiller, Robert Shiller, Ronald Reagan, sovereign wealth fund, special drawing rights, technology bubble, The Great Moderation, Thomas Kuhn: the structure of scientific revolutions, Tobin tax, too big to fail, total factor productivity, trade liberalization, Washington Consensus, women in the workforce, yield curve

Virtually all mortgages in Canada are “full recourse” loans, whereby the borrower remains obligated to repay the full value of the mortgage even if the borrower’s home is foreclosed upon. Thus, unlike in many jurisdictions in the United States, where the borrower can simply “mail the key to the bank and walk away,” if, for example, the value of the property falls below the mortgage principal, Canadian borrowers can have other assets and even future earnings attached by the lender. Home mortgage interest is not tax deductable in Canada either (but capital gains on a home are also not subject to tax). Full recourse mortgages and no mortgage interest tax deductibility significantly reduce the incentive to take out excessively large mortgages. Indeed, there is an incentive to accelerate mortgage repayment. Unsurprisingly, a large proportion of mortgages in Canada are insured. Any mortgage with less than a 20 percent down payment must be fully insured for the life of the mortgage.

 

pages: 222 words: 50,318

The Option of Urbanism: Investing in a New American Dream by Christopher B. Leinberger

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

American Society of Civil Engineers: Report Card, asset allocation, big-box store, centre right, credit crunch, David Brooks, desegregation, Donald Trump, drive until you qualify, edge city, full employment, Jane Jacobs, knowledge economy, McMansion, mortgage tax deduction, new economy, New Urbanism, peak oil, Ponzi scheme, postindustrial economy, RAND corporation, Report Card for America’s Infrastructure, reserve currency, Richard Florida, Seaside, Florida, the built environment, transit-oriented development, urban planning, urban renewal, urban sprawl, walkable city, white flight

Combining federal, state, and local laws, subsidy programs, and infrastructure investments encouraged and in actuality mandated only one kind of growth: low-density, drivable sub-urbanism. This American domestic policy has been dictating growth for the past sixty years and is still in force in the early twenty-first century. From one perspective, any domestic policy engages in social engineering. Whether it is the tax deductibility of home mortgages to increase home ownership, tax-deductible charitable contributions to encourage donations, or laws to try to keep citizens from buying illicit drugs, domestic policy is social engineering. The social engineering that promoted drivable sub-urbanism was not a conspiracy imposed on the American people; we wanted it and we truly believed it to be the best future. Federal programs sprang up during the 1930s Depression, but particularly after the Second World War, to encourage single-family housing in the car-accessible suburbs of the postwar era.

This $7,800 item in the family budget is paid for in after-tax dollars, which means that if the household’s combined state and federal tax bracket is twenty percent, the family would have to earn $9,750 in pretax salary to pay for each car ($7,800 divided by eighty percent). The result is that owning an average 78 | THE OPTION OF URBANISM car is the equivalent of having an additional $135,000 mortgage (mortgage interest is tax-deductible, and this calculation assumes six percent mortgage interest). In essence, drivable sub-urbanism has probably been shifting family spending away from investing in a long-term appreciating asset (e.g., a house) or savings to a short-term depreciating asset (e.g., a car). The above calculations were for a typical car-owning family, but the findings become even more grim for a working-class family.

 

pages: 430 words: 109,064

13 Bankers: The Wall Street Takeover and the Next Financial Meltdown by Simon Johnson, James Kwak

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

Andrei Shleifer, Asian financial crisis, asset-backed security, bank run, banking crisis, Bernie Madoff, Bonfire of the Vanities, bonus culture, capital controls, Carmen Reinhart, central bank independence, collapse of Lehman Brothers, collateralized debt obligation, corporate governance, Credit Default Swap, credit default swaps / collateralized debt obligations, crony capitalism, Edward Glaeser, Eugene Fama: efficient market hypothesis, financial deregulation, financial innovation, financial intermediation, financial repression, fixed income, George Akerlof, Gordon Gekko, greed is good, Home mortgage interest deduction, Hyman Minsky, income per capita, interest rate derivative, interest rate swap, Kenneth Rogoff, laissez-faire capitalism, late fees, Long Term Capital Management, market bubble, market fundamentalism, Martin Wolf, moral hazard, mortgage tax deduction, Ponzi scheme, price stability, profit maximization, race to the bottom, regulatory arbitrage, rent-seeking, Robert Shiller, Robert Shiller, Ronald Reagan, Saturday Night Live, sovereign wealth fund, The Myth of the Rational Market, too big to fail, transaction costs, value at risk, yield curve

Many families have made money from housing price appreciation (particularly if they took out mortgages before the inflation of the 1970s), but their high returns are primarily due to the high leverage built into a typical mortgage—leverage that produces massive defaults and foreclosures in a housing downturn such as the one that began in 2006. The things that make housing attractive as an investment are favorable government policies, such as the mortgage interest tax deduction, in which the government subsidizes mortgages for homeowners.* In any case, homeownership ranks alongside motherhood and apple pie in the firmament of American values, and helping more people buy houses is almost always seen as a good thing. Lewis Ranieri capitalized on this ideology when he created the market for private mortgage-backed securities beginning in the late 1970s. Mortgage-backed securities would enable lenders to replenish their coffers by tapping the entire world of securities investors, expanding the amount of credit available to homeowners and thereby allowing more people to buy houses at lower interest rates.

 

pages: 440 words: 108,137

The Meritocracy Myth by Stephen J. McNamee

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

affirmative action, Affordable Care Act / Obamacare, Bernie Madoff, British Empire, collective bargaining, computer age, conceptual framework, corporate governance, deindustrialization, delayed gratification, demographic transition, desegregation, deskilling, equal pay for equal work, estate planning, failed state, fixed income, gender pay gap, Gini coefficient, glass ceiling, helicopter parent, income inequality, informal economy, invisible hand, job automation, joint-stock company, labor-force participation, low-wage service sector, marginal employment, Mark Zuckerberg, mortgage debt, mortgage tax deduction, new economy, New Urbanism, obamacare, occupational segregation, pink-collar, Plutocrats, plutocrats, Ponzi scheme, post-industrial society, prediction markets, profit motive, race to the bottom, random walk, school choice, Scientific racism, Steve Jobs, The Bell Curve by Richard Herrnstein and Charles Murray, The Spirit Level, The Wealth of Nations by Adam Smith, too big to fail, trickle-down economics, upwardly mobile, We are the 99%, white flight, young professional

 

pages: 459 words: 123,220

Our Kids: The American Dream in Crisis by Robert D. Putnam

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

correlation does not imply causation, deindustrialization, demographic transition, desegregation, ending welfare as we know it, epigenetics, full employment, George Akerlof, helicopter parent, impulse control, income inequality, index card, low skilled workers, manufacturing employment, meta analysis, meta-analysis, mortgage tax deduction, new economy, Occupy movement, Ralph Waldo Emerson, randomized controlled trial, school choice, Socratic dialogue, The Bell Curve by Richard Herrnstein and Charles Murray, the built environment, upwardly mobile, Walter Mischel, white flight, working poor

Residential segregation is deeply rooted in growing income inequality, in people’s desire to live around people like themselves, and in the financial equity that middle-class Americans have embodied in their homes, so efforts to reduce class segregation are fiercely resisted. While some government policies are designed to reduce neighborhood inequality, other policies, such as exclusive zoning regulations and the home mortgage tax deduction, indirectly encourage residential segregation. But efforts to alter such policies, as well as school district boundaries and school siting, are objects of great political contention. Publicly subsidized mixed-income housing is one potential solution that has been tried in various forms for the past several decades. Propinquity does not automatically produce “bridging social capital,” that is, poor newcomers to a rich neighborhood are not automatically integrated into that neighborhood socially.

 

pages: 406 words: 113,841

The American Way of Poverty: How the Other Half Still Lives by Sasha Abramsky

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, Affordable Care Act / Obamacare, bank run, big-box store, collective bargaining, deindustrialization, Francis Fukuyama: the end of history, full employment, ghettoisation, Gini coefficient, housing crisis, illegal immigration, immigration reform, income inequality, indoor plumbing, job automation, Mark Zuckerberg, Maui Hawaii, microcredit, mortgage debt, mortgage tax deduction, new economy, Occupy movement, offshore financial centre, payday loans, Plutocrats, plutocrats, Ponzi scheme, Potemkin village, profit motive, Ronald Reagan, school vouchers, upwardly mobile, War on Poverty, Washington Consensus, women in the workforce, working poor, working-age population, Works Progress Administration

Warren Buffett and Mark Zuckerberg would get their checks as regularly as would an out-of-work single mother. But whereas the impoverished lady would keep it, Buffett and Zuckerberg would be expected to pay it back. Do this, she argued, with all the fervor of a convert to a cause, and one could do away with a slew of other bureaucratic, and costly-to-implement subsidies and social programs. There would, for example, be no need for the mortgage interest tax deduction, or for housing assistance, or food stamps, or the Earned Income Tax Credit. How much would it cost? At $6,000 per person, its first year would run to an eye-popping $2 trillion. But, Zelleke hurriedly explained, aware of the almost cartoonish nature of that number, most of that would be recouped through back-end taxes, through the elimination of other costly subsidies, and through the magnifier effects created as money more effectively circulated through some of the country’s most vulnerable regions.

Even if it proved cost-effective to give everyone a monthly check from the government in lieu of the hodge-podge of programs and non-cash assistance that people currently use and then to reclaim that money from more affluent Americans come April when people file their taxes, convincing people of this in a world of fifteen-second sound bites would be a monumental challenge. The huge initial sticker price would scare many people off, even if the bulk of it could be recouped through back-end taxes and the cutting of programs, such as housing assistance, made redundant by the minimum income safeguard. The loss of familiar perks such as the mortgage interest tax deduction would terrify many voters, even if the net result of the new system was a wash for their families, and the sense that ever more people were coming to rely on handouts would prove anathema to a society long suspicious of what conservatives have come to deride as an “entitlement culture.” Inertia is, as physicists will tell you, a powerful force of nature. If for no other reason than that, it’s unlikely that the entire tax code and the massive infrastructure of government programs that distribute benefits to the American populace will be scrapped and replaced with a more holistic anti-poverty framework such as the basic income guarantee anytime soon.

 

pages: 515 words: 132,295

Makers and Takers: The Rise of Finance and the Fall of American Business by Rana Foroohar

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

3D printing, accounting loophole / creative accounting, additive manufacturing, Airbnb, algorithmic trading, Asian financial crisis, asset allocation, bank run, Basel III, bonus culture, Bretton Woods, British Empire, call centre, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, carried interest, centralized clearinghouse, clean water, collateralized debt obligation, corporate governance, corporate social responsibility, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, crony capitalism, crowdsourcing, David Graeber, deskilling, Detroit bankruptcy, diversification, Double Irish / Dutch Sandwich, Emanuel Derman, Eugene Fama: efficient market hypothesis, financial deregulation, financial intermediation, Frederick Winslow Taylor, George Akerlof, gig economy, Goldman Sachs: Vampire Squid, Gordon Gekko, greed is good, High speed trading, Home mortgage interest deduction, housing crisis, Howard Rheingold, Hyman Minsky, income inequality, index fund, interest rate derivative, interest rate swap, Internet of things, invisible hand, joint-stock company, joint-stock limited liability company, Kenneth Rogoff, knowledge economy, labor-force participation, labour mobility, London Whale, Long Term Capital Management, manufacturing employment, market design, Martin Wolf, moral hazard, mortgage debt, mortgage tax deduction, new economy, non-tariff barriers, offshore financial centre, oil shock, passive investing, pensions crisis, Ponzi scheme, principal–agent problem, quantitative easing, quantitative trading / quantitative finance, race to the bottom, Ralph Nader, Rana Plaza, RAND corporation, random walk, rent control, Robert Shiller, Robert Shiller, Ronald Reagan, Second Machine Age, shareholder value, sharing economy, Silicon Valley, Silicon Valley startup, Snapchat, sovereign wealth fund, Steve Jobs, technology bubble, The Chicago School, The Spirit Level, The Wealth of Nations by Adam Smith, Tim Cook: Apple, Tobin tax, too big to fail, trickle-down economics, Tyler Cowen: Great Stagnation, Vanguard fund

Anyone who buys a house (or two houses) can deduct the interest payments on the loan to buy the property as long as it doesn’t exceed $1 million. One million bucks! That’s a lot of money. No one really needs that much house, but quite a few have it anyway. In my Brooklyn neighborhood, for example, $1 million down will get you a $3–4 million townhouse. But if wealthy people weren’t able to reduce their house payments via the mortgage interest tax deduction, the homes wouldn’t be going for those rates. This is a crucial point: debt inflates asset prices. That’s great for the wealthy, who own a lot of assets, and even better for their banks. But it’s not so good for poorer, more highly leveraged people who don’t have as much equity skin in the game and can be hit very hard when bubbles burst. (Consider that poorer people with higher debt loads lost about a quarter of their net worth in the housing crash, while the wealthy lost almost nothing on a net basis.)27 When you stand back and think about it, it really is a crazy kind of cycle—thanks to asset inflation, $1 million will barely buy you a two-bedroom apartment in a good public school district in Brooklyn.

A 2011 report by the IMF, for example, suggested that companies might be allowed deductions for equity returns, as well as for debt, crafting a system that balances the two more evenly, of the kind that already exists in many parts of Europe.48 Certainly top marginal rates for the rich should rise, out of basic fairness, and the performance pay loopholes and other exemptions that distort the pay of top earners should be closed. Capital gains tax deductions should be calculated on a sliding scale, so that people who hold a stock for, say, a year don’t benefit as much as those who hold it for many decades. And, as much as people like me benefit from it, it’s only fair that the mortgage interest tax deduction should be reformed (meaning, lowered or even abolished in some cases). This step would probably hurt consumption in the short term, since homeowners wouldn’t feel as rich, but in the longer term it would very likely help deflate housing asset bubbles and financially empower Millennials and older people who have trouble paying for housing in today’s market. We might also consider enacting a financial transaction tax, which would reflect the fact that the current system rewards the financial industry most of all, and that each debt-driven transaction that is made in the economy today generates profit that tends to stay in the hands of people who are the least likely to use it for economically productive purposes.

 

pages: 823 words: 206,070

The Making of Global Capitalism by Leo Panitch, Sam Gindin

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

accounting loophole / creative accounting, airline deregulation, anti-communist, Asian financial crisis, asset-backed security, bank run, banking crisis, barriers to entry, Basel III, Big bang: deregulation of the City of London, bilateral investment treaty, Branko Milanovic, Bretton Woods, BRICs, British Empire, call centre, capital controls, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, central bank independence, collective bargaining, continuous integration, corporate governance, Credit Default Swap, crony capitalism, currency manipulation / currency intervention, currency peg, dark matter, Deng Xiaoping, disintermediation, ending welfare as we know it, eurozone crisis, facts on the ground, financial deregulation, financial innovation, Financial Instability Hypothesis, financial intermediation, floating exchange rates, full employment, Gini coefficient, global value chain, guest worker program, Hyman Minsky, imperial preference, income inequality, inflation targeting, interchangeable parts, interest rate swap, Kenneth Rogoff, land reform, late capitalism, liquidity trap, London Interbank Offered Rate, Long Term Capital Management, manufacturing employment, market bubble, market fundamentalism, Martin Wolf, means of production, money: store of value / unit of account / medium of exchange, Monroe Doctrine, moral hazard, mortgage debt, mortgage tax deduction, new economy, non-tariff barriers, Northern Rock, oil shock, precariat, price stability, quantitative easing, Ralph Nader, RAND corporation, regulatory arbitrage, reserve currency, risk tolerance, Ronald Reagan, seigniorage, shareholder value, short selling, Silicon Valley, sovereign wealth fund, special drawing rights, special economic zone, structural adjustment programs, The Chicago School, The Great Moderation, the payments system, The Wealth of Nations by Adam Smith, too big to fail, trade liberalization, transcontinental railway, trickle-down economics, union organizing, very high income, Washington Consensus, Works Progress Administration, zero-coupon bond

As we saw earlier, a key factor in the steady expansion of Americans’ consumer and mortgage debt since the 1970s had been reformers’ faith that private finance could be used by the state in the public interest—in other words, that financial institutions could be so regulated and reformed as to ensure their functioning in the interest of social groups that they had hitherto excluded. The rising demand for home-ownership at lower income levels had been encouraged by government support for meeting housing needs through financial markets backed by mortgage tax deductions. Of course, the desire to realize the American dream of home-ownership on the part of so many of those who had previously been excluded was one thing; actual access to residential finance markets was another. Access for such unprecedented numbers by the turn of the century was only possible because financial intermediaries were frantically creating domestic mortgage debt in order to package and resell it in the market for structured credit.

 

pages: 246 words: 74,341

Financial Fiasco: How America's Infatuation With Homeownership and Easy Money Created the Economic Crisis by Johan Norberg

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

accounting loophole / creative accounting, bank run, banking crisis, Bernie Madoff, Black Swan, capital controls, central bank independence, collateralized debt obligation, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, David Brooks, diversification, financial deregulation, financial innovation, helicopter parent, Home mortgage interest deduction, housing crisis, Howard Zinn, Hyman Minsky, Isaac Newton, Joseph Schumpeter, Long Term Capital Management, market bubble, Martin Wolf, Mexican peso crisis / tequila crisis, millennium bug, moral hazard, mortgage tax deduction, Naomi Klein, new economy, Northern Rock, Own Your Own Home, price stability, Ronald Reagan, savings glut, short selling, Silicon Valley, South Sea Bubble, The Wealth of Nations by Adam Smith, too big to fail

In the recent words of leftwing economist James Galbraith, son of the legendary economist John Kenneth Galbraith: the housing sector exists on this scale thanks to a vast network of supporting financial institutions, subject to federal deposit insurance, the secondary mortgage markets provided by quasi-public corporations (Fannie Mae, Ginnie Mae, Freddie Mac), and the tax deductibility of mortgage interest. Since 1986, when the tax deductibility of other forms of interest was eliminated, homeownership rates rose-thanks to the state, not the market.2 On the other side of the political spectrum, enthusiasm was at least as strong. Former Fed chairman Alan Greenspan recently stated: I was aware that the loosening of mortgage credit terms for subprime borrowers increased financial risk, and that subsidized homeownership initiatives distort market outcomes.

 

pages: 255 words: 75,172

Sleeping Giant: How the New Working Class Will Transform America by Tamara Draut

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

affirmative action, Affordable Care Act / Obamacare, battle of ideas, big-box store, blue-collar work, collective bargaining, David Brooks, declining real wages, deindustrialization, desegregation, Detroit bankruptcy, Donald Trump, Edward Glaeser, ending welfare as we know it, Ferguson, Missouri, financial deregulation, full employment, immigration reform, income inequality, invisible hand, job satisfaction, knowledge economy, knowledge worker, low skilled workers, minimum wage unemployment, mortgage tax deduction, new economy, obamacare, occupational segregation, payday loans, pink-collar, Plutocrats, plutocrats, profit motive, race to the bottom, Ralph Nader, rent-seeking, rising living standards, Ronald Reagan, The Bell Curve by Richard Herrnstein and Charles Murray, The Wealth of Nations by Adam Smith, trickle-down economics, union organizing, upwardly mobile, War on Poverty, white flight, women in the workforce, young professional

Scott Walker, the Republican governor of Wisconsin and a former 2016 presidential candidate, has proposed testing people who apply for food stamps and unemployment benefits for drug use, joining twelve other states that have attached drug testing to at least some part of their public benefits programs.21 Some people who are reading this book may agree, finding themselves nodding their heads and thinking, “Sure, I don’t want my tax dollars going to drug addicts scamming the system.” But here’s the thing. We don’t require drug testing for public benefits that accrue to more affluent people, like the mortgage interest tax deduction. We don’t drug-test the real estate developers before handing over large tax abatements. We don’t drug-test middle-class parents who claim the child-care tax credit. And it defies the imagination that anyone would ever propose such a policy. Why? Because there’s an implicit assumption that all these individuals, by virtue of their middle-class or higher status, adhere to social norms and therefore have earned the right to such benefits.

 

pages: 263 words: 89,368

925 Ideas to Help You Save Money, Get Out of Debt and Retire a Millionaire So You Can Leave Your Mark on the World by Devin D. Thorpe

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

asset allocation, call centre, diversification, estate planning, Home mortgage interest deduction, index fund, knowledge economy, mortgage tax deduction, payday loans, random walk, risk tolerance, Skype, Steve Jobs, transaction costs, women in the workforce

They also feature relatively high interest rates. If your card has a grace period, you’ll likely be paying more than 12 percent annual interest (if you have good credit). If your credit is marginal, you could easily be paying above 20 percent. If you make late payments, you could be paying more than 24 percent interest. Compare that to a mortgage or a car loan at around four percent. Credit card interest, unlike mortgage interest is not tax deductible. This makes it effectively more expensive. If you allow your credit card issuer(s) to tell you when you can stop spending by bumping up against your limit, you may be able to control your spending, but at a high cost. If you could instead control your spending at the level allowed by your income supports with no credit card debt—that is, if you didn’t have the credit card loans on which you’re paying that interest, you’d have much more money to spend.

 

pages: 580 words: 168,476

The Price of Inequality: How Today's Divided Society Endangers Our Future by Joseph E. Stiglitz

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

affirmative action, Affordable Care Act / Obamacare, airline deregulation, Andrei Shleifer, banking crisis, barriers to entry, Basel III, battle of ideas, Berlin Wall, capital controls, Carmen Reinhart, Cass Sunstein, central bank independence, collapse of Lehman Brothers, collective bargaining, colonial rule, corporate governance, Credit Default Swap, Daniel Kahneman / Amos Tversky, Dava Sobel, declining real wages, deskilling, Exxon Valdez, Fall of the Berlin Wall, financial deregulation, financial innovation, Flash crash, framing effect, full employment, George Akerlof, Gini coefficient, income inequality, income per capita, indoor plumbing, inflation targeting, invisible hand, John Harrison: Longitude, John Maynard Keynes: Economic Possibilities for our Grandchildren, Kenneth Rogoff, labour market flexibility, London Interbank Offered Rate, lone genius, low skilled workers, Mark Zuckerberg, market bubble, market fundamentalism, medical bankruptcy, microcredit, moral hazard, mortgage tax deduction, obamacare, offshore financial centre, paper trading, patent troll, payday loans, price stability, profit maximization, profit motive, purchasing power parity, race to the bottom, rent-seeking, reserve currency, Richard Thaler, Robert Shiller, Robert Shiller, Ronald Coase, Ronald Reagan, shareholder value, short selling, Silicon Valley, Simon Kuznets, spectrum auction, Steve Jobs, technology bubble, The Chicago School, The Fortune at the Bottom of the Pyramid, The Myth of the Rational Market, The Spirit Level, The Wealth of Nations by Adam Smith, too big to fail, trade liberalization, transaction costs, trickle-down economics, ultimatum game, uranium enrichment, very high income, We are the 99%, women in the workforce

., 187–206 alternative frameworks for, 188, 202 banks’ deception in, 198, 199, 200, 201, 373 burden of proof in, 199–200 contracts in, 197 corporate advantages in, 66, 132, 189–90, 191, 203, 272, 327, 374 costs in, 100, 189–90, 202 distributive consequences of, 190, 193, 271, 317, 370 economic bias in, 44 Federal Reserve accountability in, 252 financial crisis prosecution in, xv–xvi, 70, 119, 199, 372, 373 financial sector’s favoring in, 191–202, 203, 204–6 information asymmetries in, 271, 368 political influence in, 44, 190–91, 200 property rights in, 190, 194, 197, 198, 199 purpose of, 100, 188–91 reform of, 273 rent seeking in, 42, 43, 203, 273 and social responsibility, 121 unfairness in, 42, 43, 100, 189–90, 191–202, 203, 206, 368, 373, 375 Lehman Brothers, 253, 313, 390 Leme, Paulo, 353 Lenin, Vladimir, 354 Lessig, Lawrence, xxiv LG, 203 Lincoln, Abraham, 137 List, John, 347 lobbying, 48, 95, 101, 185, 196, 319, 324, 325, 338 Lockheed Martin, 210 London Interbank Offered Rate (Libor), 47 Longitude (Sobel), 109 Lula da Silva, Luiz Inácio, 5, 139, 353 Luxembourg, 183, 286 manufacturing: compensation shifts in, 65, 328 job losses in, 54, 56, 57, 232–33, 285, 321 societal impact of, 156 marginal productivity theory, 30, 33, 77, 267 marketing, 150–51, 160, 162, 357, 359 Marlboro Man, 151, 354 marriage, economic insecurity and, 15, 303 Marshall, Alfred, 102 Marx, Karl, 30, 292 Massachusetts, 200–201 McCarty, Nolan, xxiv McDonald’s, 381 media, 128–29, 134, 135, 136, 160, 163, 252, 272, 286, 335, 348, 349, 358 Medicaid, 14, 228, 277, 378 Medicare, 17, 48, 97, 147, 163, 176, 210, 228–29, 265, 320, 355, 364, 378, 380 Mexico, 16, 42, 64, 138, 176, 365 MF Global Holdings, 313 microcredit, 196–97 Microsoft, 42, 44, 45–46, 74, 203, 317, 318, 319 middle class, 54, 117, 137 assistance to, 29, 274 economic insecurity of, xvii, 12–14, 23, 26, 103, 265–66 globalization’s effect on, 63, 64 Great Recession’s effect on, 10 hollowing out of, 2, 9, 25, 38, 84, 133, 300 income of, 3, 4, 7, 8, 9, 14, 25, 54, 56, 57, 63, 72, 240, 297, 298, 300, 385 recovery of, 29, 225 tax deductions for, 222–24, 379 unfair policies toward, xv, xxii wealth sources of, 3, 8, 13–14, 91, 167 Middle East, 40 see also Arab Spring Mill, John Stuart, 368 monetarism, 257, 258–59 monetary policy, 85, 86, 88, 133, 177, 208, 234, 239–40, 248, 250, 251, 252, 254, 257–58, 259, 261, 262, 263–64, 380, 382, 385, 389, 392 distributive consequences of, 243–45, 264, 279 idea-shaping in, 256–63 monopolies 31, 32, 35, 39–47, 95, 97, 140, 213, 270–71, 274, 316, 318 moral hazard, 171, 229, 256, 362, 363 Mortgage Electronic Registry System (MERS), 198, 201, 374 mortgage fraud, 198, 201, 372, 373 mortgage restructuring, 169–72, 201–2, 284–85, 362, 363 mortgages, tax deductions for, 222, 223, 379 mortgage securities, 205 Mosaic, 318 motivation, 102, 103, 111–12 Motorola, 203 Mozilo, Angelo, 333 Mueller, Edward, 42 Mullainathan, Sendhil, 103 municipal bonds, 212, 378 National Academy of Sciences, 26 National Center for Supercomputing Applications, 318 National Commission on the Causes of the Financial and Economic Crisis in the United States, 357, 358 National Economic Council, 180 Netherlands, 19, 22 Netscape, 45–46, 318 New Deal, xiii, 88, 231 Newfoundland, 138 New York Times, 11, 119, 205 Nokia, 203 North American Free Trade Agreement, 141 Norway, 22, 23, 183, 220 NTP, Inc., 203 Obama, Barack, x, 352 deficit reduction by, 207 and ethanol subsidy, 51 Federal Reserve nominees of, 319 financial crisis response of, xv, 168, 169, 361 health care program of, 14, 163, 276 tax position of, 395 Obama administration, xiv, 67, 170, 171, 200, 250, 284, 362, 396 Occupy Wall Street, ix–xiv, xix–xxi, 102, 116, 118, 127, 134, 345 “Of the 1%, for the 1%, by the 1%” (Stiglitz), xi Olin Foundation, 44, 359 1 percent: definition of, xxii economic framework’s favoring of, xx, xxii, 31, 34, 62, 67, 91, 117, 131, 142, 173, 174, 189, 191, 204, 239, 244, 245–46, 264, 348, 354 economic security of, 18, 19, 25 globalization’s benefits to, 62, 64, 142 idea-shaping by, 129, 134, 137, 146–86, 211, 236, 256, 287 income of, 2, 4, 8, 25, 52, 72, 85, 215, 267, 294, 295, 297, 298, 299, 300, 315, 332, 335 legal framework’s favoring of, 188, 191, 202, 206, 273 media’s control by, 129, 134, 286 political power of, xix, 32, 67, 83, 86, 89, 101, 118, 119, 120–21, 129, 131–33, 134, 137, 138, 146, 191, 267, 285, 348, 351 public perception of, 20–21, 146, 154, 159, 358 reform aimed at, 29, 268–74 rent seeking by, 32, 38, 41–43, 77 saving by, 85, 88, 223, 275 small government preference of, 93 social contract violation by, xvi–xvii social contributions of, 27, 41, 77–78, 96, 266 social norms’ shaping by, 53 taxation of, 5, 38, 42–43, 62, 71–73, 74, 76, 77, 84, 86, 87–88, 114, 115, 116, 138, 142, 159, 167, 208, 209, 211, 212, 214–15, 218, 221, 223, 224, 225, 226, 256, 274, 275, 294, 312, 335, 344, 360, 383, 394 value change in, 288 wealth of, 2, 3, 8, 25, 32, 38, 56, 72, 73, 80, 84, 166–67, 295 see also corporations; financial sector Organization for Economic Cooperation and Development (OECD), 16, 185 Orshansky, Mollie, 305 Ostrom, Elinor, 322 overdrafts, 194, 370 Pager, Devah, 69 Papua New Guinea, 184 patents, 43, 202, 203, 316, 374, 375 see also intellectual property pension funds, 227–28 Personal Responsibility and Work Opportunity Reconciliation Act, 17 Pew Foundation, 20 pharmaceutical industry: government munificence toward, 40, 48, 97, 210, 211, 224, 228, 272, 276 research in, 97 see also health industry Pierson, Paul, xxiv Piketty, Thomas, xxiii, 114 Pinochet, Augusto, 258 polarization, 8–9 Polarized America (McCarty, Poole, and Rosenthal), xxiv police lineups, 149 police states, 125 politics, U.S.: cognitive capture in, 161–62 corporate influence in, 34, 37, 41, 47, 48, 50, 51, 61, 62, 95, 99, 101, 111, 131–32, 135, 136–37, 200, 202, 285, 286, 319, 324, 325, 338, 350 distributive consequences of, 31, 52, 58, 239, 277, 278, 322 economy’s linkage with, xi, xix–xx, xxiv, 34, 38–39, 47, 52–53, 59, 65, 66, 89, 118, 131, 135, 138, 151, 173, 266, 287, 288–89, 348 idea-shaping in, 129, 137, 148, 149, 151–52, 153–55, 159–62, 163, 166–72, 175, 180, 185, 186, 285 legal consequences of, 190–91 media’s role in, 129, 134, 135, 136, 160, 163, 286 reform of, 135–36, 267, 285–86 regulatory capture in, 47–48, 248, 249–50, 253, 264 societal factors in, 64 unfairness in, x, xi, xii, xviii–xx, 31–32, 39, 41, 83, 101, 114–15, 118, 119, 120–21, 127, 129, 131–33, 134, 135, 136–37, 138, 144, 146, 191, 196, 200, 202, 267, 285, 286, 319, 324, 325, 338, 348, 350, 351 voting in, 119–21, 129–31, 133, 134, 135, 137, 286, 288, 325, 345, 349, 350, 351, 355 see also democracy, U.S.; government, U.S.

 

pages: 552 words: 168,518

MacroWikinomics: Rebooting Business and the World by Don Tapscott, Anthony D. Williams

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

accounting loophole / creative accounting, airport security, Andrew Keen, augmented reality, Ayatollah Khomeini, barriers to entry, bioinformatics, Bretton Woods, business climate, business process, car-free, carbon footprint, citizen journalism, Clayton Christensen, clean water, Climategate, Climatic Research Unit, cloud computing, collaborative editing, collapse of Lehman Brothers, collateralized debt obligation, colonial rule, corporate governance, corporate social responsibility, crowdsourcing, death of newspapers, demographic transition, distributed generation, don't be evil, en.wikipedia.org, energy security, energy transition, Exxon Valdez, failed state, fault tolerance, financial innovation, Galaxy Zoo, game design, global village, Google Earth, Hans Rosling, hive mind, Home mortgage interest deduction, interchangeable parts, Internet of things, invention of movable type, Isaac Newton, James Watt: steam engine, Jaron Lanier, jimmy wales, Joseph Schumpeter, Julian Assange, Kevin Kelly, knowledge economy, knowledge worker, Marshall McLuhan, medical bankruptcy, megacity, mortgage tax deduction, Netflix Prize, new economy, Nicholas Carr, oil shock, online collectivism, open borders, open economy, pattern recognition, peer-to-peer lending, personalized medicine, Ray Kurzweil, RFID, ride hailing / ride sharing, Ronald Reagan, scientific mainstream, shareholder value, Silicon Valley, Skype, smart grid, smart meter, social graph, social web, software patent, Steve Jobs, text mining, the scientific method, The Wisdom of Crowds, transaction costs, transfer pricing, University of East Anglia, urban sprawl, value at risk, WikiLeaks, X Prize, young professional, Zipcar

Fannie Mae and Freddie Mac, the Community Housing Act, and others all had vast programs to encourage lending money to low-income individuals. Banks could unload their mortgages on these institutions, guaranteed by the U.S. government. 3. “FT Global 500 2010,” Financial Times (May 29, 2010).. 4. There’s another factor, too. Canadians can’t write off their interest payments, so home buyers are most cautious. In the United States the mortgage tax deduction encourages people to stay in debt, and when they can’t make payments they simply walk away. Not so in Canada, where homeowners must personally guarantee their loans. 5. “Congress is pressed for bailout with dire warnings,” Reuters (September 24, 2008). 6. The call for greater transparency in financial services has a long backstory. From its early days in the nineteenth century, the New York Stock Exchange was the financial center of U.S. capitalism.

 

pages: 342 words: 99,390

The greatest trade ever: the behind-the-scenes story of how John Paulson defied Wall Street and made financial history by Gregory Zuckerman

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

1960s counterculture, banking crisis, collapse of Lehman Brothers, collateralized debt obligation, Credit Default Swap, credit default swaps / collateralized debt obligations, financial innovation, fixed income, index fund, Isaac Newton, Long Term Capital Management, margin call, Mark Zuckerberg, Menlo Park, merger arbitrage, mortgage debt, mortgage tax deduction, Ponzi scheme, Renaissance Technologies, rent control, Robert Shiller, Robert Shiller, rolodex, short selling, Silicon Valley, statistical arbitrage, Steve Ballmer, Steve Wozniak, technology bubble

So if a few of them went sour, it might have only a minor effect on investors who bought them, so the thinking went. The shift in attitude toward debt gave life to the real estate market. More than most nations, the United States worked at getting as many people in their own homes as possible. Academic data demonstrated that private-home ownership brought all kinds of positive benefits to neighborhoods, such as reduced crime and rising academic achievements. The government made the interest on mortgage payments tax deductible, and pressure on Congress from vested interests in the real estate business kept it that way; other benefits doled out to home sellers and buyers became equally sacred cows. Low-income consumers and those with poor credit histories who once had difficulty borrowing money found it easier, even before Alan Greenspan and the Federal Reserve started slashing interest rates. In 2000, more than $160 billion of mortgage loans were outstanding to “"subprime”" borrowers, a euphemistic phrase invented by lenders to describe those with credit below the top “"prime”" grade.

 

pages: 576 words: 105,655

Austerity: The History of a Dangerous Idea by Mark Blyth

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

accounting loophole / creative accounting, balance sheet recession, bank run, banking crisis, Black Swan, Bretton Woods, capital controls, Carmen Reinhart, Celtic Tiger, central bank independence, centre right, collateralized debt obligation, correlation does not imply causation, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, currency peg, debt deflation, deindustrialization, disintermediation, diversification, en.wikipedia.org, ending welfare as we know it, Eugene Fama: efficient market hypothesis, eurozone crisis, financial repression, fixed income, floating exchange rates, Fractional reserve banking, full employment, German hyperinflation, Gini coefficient, global reserve currency, Growth in a Time of Debt, Hyman Minsky, income inequality, interest rate swap, invisible hand, Irish property bubble, Joseph Schumpeter, Kenneth Rogoff, liquidationism / Banker’s doctrine / the Treasury view, Long Term Capital Management, market bubble, market clearing, Martin Wolf, moral hazard, mortgage debt, mortgage tax deduction, Occupy movement, offshore financial centre, paradox of thrift, price stability, quantitative easing, rent-seeking, reserve currency, road to serfdom, savings glut, short selling, structural adjustment programs, The Great Moderation, The Myth of the Rational Market, The Wealth of Nations by Adam Smith, Tobin tax, too big to fail, unorthodox policies, value at risk, Washington Consensus

. … This is not a misprint.30 If you reside in the middle or the bottom half of the income and wealth distribution, you rely on government services, both indirect (tax breaks and subsidies) and direct (transfers, public transport, public education, health care). These are the transfers across the income distribution that make the notion of a middle class possible. They don’t just happen by accident. Politics makes them happen. Americans did not wake up one morning to find that God had given them a mortgage-interest tax deduction. Those further up the income distribution who have private alternatives (and more deductions) are obviously less reliant upon such services, but even they will eventually feel the consequence of cutting state spending as the impact of austerity ripples back up the income distribution in the form of lower growth, higher unemployment, withered infrastructure, and an even more skewed distribution of resources and life chances.

 

pages: 432 words: 124,635

Happy City: Transforming Our Lives Through Urban Design by Charles Montgomery

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, agricultural Revolution, American Society of Civil Engineers: Report Card, Bernie Madoff, British Empire, Buckminster Fuller, car-free, carbon footprint, centre right, City Beautiful movement, clean water, congestion charging, correlation does not imply causation, East Village, edge city, energy security, Enrique Peñalosa, experimental subject, Frank Gehry, Google Earth, happiness index / gross national happiness, Home mortgage interest deduction, housing crisis, income inequality, income per capita, invisible hand, Jane Jacobs, license plate recognition, McMansion, means of production, megacity, Menlo Park, meta analysis, meta-analysis, mortgage tax deduction, New Urbanism, peak oil, Ponzi scheme, rent control, ride hailing / ride sharing, risk tolerance, science of happiness, Seaside, Florida, Silicon Valley, the built environment, The Death and Life of Great American Cities, the High Line, The Spirit Level, The Wealth of Nations by Adam Smith, trade route, transit-oriented development, upwardly mobile, urban planning, urban sprawl, wage slave, white flight, World Values Survey, Zipcar

Then there is the U.S. government’s accelerated depreciation tax deduction, which gives developers a generous tax break for creating new buildings rather than renovating or reusing old ones. It effectively rewards Walmart for abandoning older stores and building in regional power centers far from the communities they first promised to serve. Another misguided gift to sprawl is the home mortgage interest tax deduction. The United States is one of only a handful of countries in the world that gives individuals a tax break on interest for home mortgages. In practice, the deduction has given the biggest tax break to people who can afford to buy new homes on the suburban fringe rather than those who buy cheaper, modest homes in older neighborhoods. (Personal loans for renovations, for example, don’t get the deduction.)

 

pages: 368 words: 145,841

Financial Independence by John J. Vento

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

Affordable Care Act / Obamacare, Albert Einstein, asset allocation, diversification, diversified portfolio, estate planning, financial independence, fixed income, high net worth, Home mortgage interest deduction, mortgage debt, mortgage tax deduction, oil shock, Own Your Own Home, passive income, risk tolerance, time value of money, transaction costs, young professional, zero day

A house should meet your basic living standards (needs), and should not be based on your ego (wants). Still, a house can increase in value if you hang on to it for many years and maintain it well. It can also help you financially in other ways. Why a Mortgage Is Still Good Debt The reason a home mortgage is usually considered good debt is that from the moment you buy the house, it offers certain financial reliefs and leverage. For starters, your home mortgage interest may be tax deductible. (The federal government allows you to deduct mortgage interest expenses to the extent your mortgage does not exceed $1 million. Therefore, if you are in the 40 percent tax bracket and you are paying 6 percent interest on your mortgage, your after-tax cost for financing may actually be only 3.6 percent, which is 6 percent less the 40 percent tax savings). Real estate taxes are also tax deductible.

c04.indd 95 26/02/13 2:42 PM 96 Financial Independence (Getting to Point X ) Conversely, if you have a very strong balance sheet and your assets significantly exceed your liabilities, you may want to consider consolidating your high-interest consumer debt into your mortgage refinancing. Not only will you be able to significantly lower your interest rate, but the interest you pay on this mortgage may also be tax deductible for you. I would only recommend this to individuals who have already accumulated a comfortable financial net worth and believe their probability of defaulting on their loans does not exist. Once again, you cannot move forward effectively and efficiently on the road to financial independence until you clean up the liabilities section of your Statement of Financial position—in other words, your debts.

 

pages: 444 words: 151,136

Endless Money: The Moral Hazards of Socialism by William Baker, Addison Wiggin

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

Andy Kessler, asset allocation, backtesting, bank run, banking crisis, Berlin Wall, Bernie Madoff, Black Swan, Branko Milanovic, Bretton Woods, BRICs, business climate, capital asset pricing model, corporate governance, correlation does not imply causation, credit crunch, Credit Default Swap, crony capitalism, cuban missile crisis, currency manipulation / currency intervention, debt deflation, Elliott wave, en.wikipedia.org, Fall of the Berlin Wall, feminist movement, fiat currency, fixed income, floating exchange rates, Fractional reserve banking, full employment, German hyperinflation, housing crisis, income inequality, index fund, inflation targeting, Joseph Schumpeter, laissez-faire capitalism, land reform, liquidity trap, Long Term Capital Management, McMansion, moral hazard, mortgage tax deduction, naked short selling, offshore financial centre, Ponzi scheme, price stability, pushing on a string, quantitative easing, RAND corporation, rent control, reserve currency, riskless arbitrage, Ronald Reagan, school vouchers, seigniorage, short selling, Silicon Valley, six sigma, statistical arbitrage, statistical model, Steve Jobs, The Great Moderation, the scientific method, time value of money, too big to fail, upwardly mobile, War on Poverty, Yogi Berra, young professional

Even notable conservatives who shared power with a liberal Congress or executive branch, such as Ronald Reagan or Newt Gingrich, respectively, were unable to restrain the growth of government, much less undo the empowerment extended beyond its original constitutionally enumerated powers. Chapter 9 The Heart of the Financial System ousing is probably the most heavily subsidized industry in the United States. Mortgages are tax deductible, and $5 trillion of them piggyback upon the full faith and credit of the U.S. government, providing an interest rate subsidy to homeowners in addition to the tax savings1. By promoting home ownership so forcefully, might the demand for housing have been overly stimulated to the point that we now face a systemic financial crisis? Might the banking sector have been crowded out of the bread-and-butter section of the market and concentrated its bet upon jumbo mortgages, home equity loans, interest-only loans and other mortgages that did not compete directly with the government agencies?

 

pages: 2,045 words: 566,714

J.K. Lasser's Your Income Tax by J K Lasser Institute

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

Affordable Care Act / Obamacare, airline deregulation, asset allocation, collective bargaining, distributed generation, employer provided health coverage, estate planning, Home mortgage interest deduction, medical malpractice, medical residency, mortgage debt, mortgage tax deduction, passive income, Ponzi scheme, profit motive, rent control, telemarketer, transaction costs, urban renewal, zero-coupon bond

However, the Eleventh Circuit appeals court reversed the Tax Court, concluding that the parsonage allowance can apply only to one home. The church or local congregation must officially designate the part of the minister’s compensation that is a rental or housing allowance. To qualify for tax-free treatment, the designation must be made in advance of the payments. Official action may be shown by an employment contract, minutes, a resolution, or a budget allowance. - - - - - - - - - - Filing Tip Mortgage Interest and Taxes If you itemize deductions on Schedule A (Form 1040), deduct payments for qualifying home mortgage interest (15.1) and real estate taxes (16.6) on your home even if you use a tax-free housing allowance to finance the payments. - - - - - - - - - - Who qualifies for tax-free allowance? Tax-free treatment is allowed to ordained ministers, rabbis, and cantors who receive housing allowances as part of their compensation for ministerial duties.

If your personal use of a residence exceeds the 14-day/10% test (9.7), the residence was rented for at least 15 days during the year, and the allocable rental expenses (including depreciation) exceed rental income, you cannot deduct the net loss from other income. Some of the expenses will not be currently deductible. The allocable rental expenses are deducted from rental income in a specific order: Step 1. The rental portion of the following expenses is fully deductible on Schedule E of Form 1040, even if the total exceeds rental income: deductible home mortgage interest (15.1), real estate taxes (16.4), deductible casualty and theft losses (Chapter 18), and directly related rental expenses. Directly related rental expenses are rental expenses not related to the use or maintenance of the residence itself, such as office supplies, rental agency fees, advertising, and depreciation on office equipment used in the rental activity. Step 2. If there is any rental income remaining after the income is reduced by the expenses in Step 1, the balance is next offset by the rental portion of operating expenses for the residence itself, such as utilities, repairs, and insurance.

- - - - - - - - - - Court Decision Family Financing of Residence The Tax Court allowed a taxpayer to deduct mortgage interest payments on a loan that his brother obtained when the taxpayer’s poor credit rating prevented him from obtaining a mortgage loan. The taxpayer’s brother bought the house but allowed the taxpayer and his wife to live there on the condition that they make the mortgage payments directly to the bank. The IRS disallowed the taxpayer’s deduction for the mortgage interest on the grounds that he was not liable for the mortgage debt; his brother was. However, the Tax Court allowed the deduction, holding that the taxpayer was the equitable owner of the home and that he was legally obligated to his brother to pay off the mortgage. - - - - - - - - - - Loan limit for buying new home may be increased from $1million to $1.1million. The maximum home acquisition debt limit is $1,000,000, or $500,000 if you are married filing separately. However, there can be “home equity debt” on the initial purchase of a home, thereby increasing the allowable debt limit.

 

pages: 497 words: 150,205

European Spring: Why Our Economies and Politics Are in a Mess - and How to Put Them Right by Philippe Legrain

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

3D printing, Airbnb, Asian financial crisis, bank run, banking crisis, barriers to entry, Basel III, battle of ideas, Berlin Wall, Big bang: deregulation of the City of London, Bretton Woods, BRICs, British Empire, business process, capital controls, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, Celtic Tiger, central bank independence, centre right, cleantech, collaborative consumption, collapse of Lehman Brothers, collective bargaining, corporate governance, credit crunch, Credit Default Swap, crony capitalism, currency manipulation / currency intervention, currency peg, debt deflation, Diane Coyle, Downton Abbey, Edward Glaeser, Elon Musk, en.wikipedia.org, energy transition, eurozone crisis, fear of failure, financial deregulation, first-past-the-post, forward guidance, full employment, Gini coefficient, global supply chain, Growth in a Time of Debt, hiring and firing, hydraulic fracturing, Hyman Minsky, Hyperloop, immigration reform, income inequality, interest rate derivative, Irish property bubble, James Dyson, Jane Jacobs, job satisfaction, Joseph Schumpeter, Kenneth Rogoff, labour market flexibility, labour mobility, liquidity trap, margin call, Martin Wolf, mittelstand, moral hazard, mortgage debt, mortgage tax deduction, North Sea oil, Northern Rock, offshore financial centre, oil shale / tar sands, oil shock, open economy, price stability, private sector deleveraging, pushing on a string, quantitative easing, Richard Florida, rising living standards, risk-adjusted returns, Robert Gordon, savings glut, school vouchers, self-driving car, sharing economy, Silicon Valley, Silicon Valley startup, Skype, smart grid, smart meter, software patent, sovereign wealth fund, Steve Jobs, The Death and Life of Great American Cities, The Wealth of Nations by Adam Smith, too big to fail, total factor productivity, Tyler Cowen: Great Stagnation, working-age population, Zipcar

This also encourages property buyers to load up on debt, although they do face a bigger downside than bank bosses: the prospect of losing their home and – in countries that (unlike America) do not have non-recourse mortgages – personal bankruptcy. The tax system is even more skewed. When you own shares, both the income they yield (the dividends) and the capital gains you realise when you sell them are taxed. When you own property that you live in, the “income” you derive from it (the rent that you would otherwise have to pay) is generally not taxed, nor are the capital gains when you sell.549 Moreover, mortgage interest payments are tax-deductible in many European countries.550 While many countries do impose property taxes – for instance, council tax in Britain – these are typically payable by tenants as well as owner-occupiers, so they are not an additional cost of property investment. (They also tend to be based on outdated valuations: from 1991 in Britain, 1970 in France). There is thus a huge tax bias towards property speculation – sorry, home ownership – financed by fragile debt.

 

All About Asset Allocation, Second Edition by Richard Ferri

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

asset allocation, asset-backed security, barriers to entry, Bernie Madoff, capital controls, commodity trading advisor, correlation coefficient, Daniel Kahneman / Amos Tversky, diversification, diversified portfolio, equity premium, estate planning, financial independence, fixed income, full employment, high net worth, Home mortgage interest deduction, implied volatility, index fund, Long Term Capital Management, Mason jar, mortgage tax deduction, passive income, pattern recognition, random walk, Richard Thaler, risk tolerance, risk-adjusted returns, risk/return, Robert Shiller, Robert Shiller, Sharpe ratio, too big to fail, transaction costs, Vanguard fund, yield curve

HOME OWNERSHIP No chapter on real estate would be complete without a discussion of home ownership. In addition to providing living quarters, purchasing a home in a good location has proved to be a reliable longterm investment. Homeowners in the United States have enjoyed annual returns that have averaged slightly higher than the inflation rate over the decades. Despite a recent decline in the housing market, the interest on a mortgage remains a tax deduction, and some or all of the profit from selling your home is tax-free. Figure 9-8 represents the average price of a single-family home since 1987, as published by the S&P Case/Shiller Composite–10 Housing Index. The data are collected from local tax offices and represent the sale price of properties that have closed. The index is designed to capture changes in the value of single-family homes in 10 large metropolitan areas in the United States.

 

pages: 318 words: 85,824

A Brief History of Neoliberalism by David Harvey

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

affirmative action, Asian financial crisis, Berlin Wall, Bretton Woods, business climate, capital controls, centre right, collective bargaining, crony capitalism, debt deflation, declining real wages, deglobalization, deindustrialization, Deng Xiaoping, Fall of the Berlin Wall, financial deregulation, financial intermediation, financial repression, full employment, George Gilder, Gini coefficient, global reserve currency, illegal immigration, income inequality, informal economy, labour market flexibility, land tenure, late capitalism, Long Term Capital Management, low-wage service sector, manufacturing employment, market fundamentalism, means of production, Mexican peso crisis / tequila crisis, Mont Pelerin Society, mortgage tax deduction, neoliberal agenda, new economy, phenotype, Ponzi scheme, price mechanism, race to the bottom, rent-seeking, reserve currency, Ronald Reagan, Silicon Valley, special economic zone, structural adjustment programs, the built environment, The Chicago School, transaction costs, union organizing, urban renewal, urban sprawl, Washington Consensus, Winter of Discontent

The rate of corporate taxation in the US has steadily declined, and the Bush re-election was greeted with smiles by corporate leaders in anticipation of even further cuts in their tax obligations. The corporate welfare programmes that now exist in the US at federal, state, and local levels amount to a vast redirection of public moneys for corporate benefit (directly as in the case of subsidies to agribusiness and indirectly as in the case of the military-industrial sector), in much the same way that the mortgage interest rate tax deduction operates in the US as a subsidy to upper-income homeowners and the construction industry. The rise of surveillance and policing and, in the case of the US, incarceration of recalcitrant elements in the population indicates a more sinister turn towards intense social control. The prison-industrial complex is a thriving sector (alongside personal security services) in the US economy.

 

pages: 225 words: 11,355

Financial Market Meltdown: Everything You Need to Know to Understand and Survive the Global Credit Crisis by Kevin Mellyn

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

asset-backed security, bank run, banking crisis, Bernie Madoff, bonus culture, Bretton Woods, collateralized debt obligation, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, cuban missile crisis, disintermediation, diversification, fiat currency, financial deregulation, financial innovation, financial intermediation, fixed income, Francis Fukuyama: the end of history, global reserve currency, Home mortgage interest deduction, Isaac Newton, joint-stock company, liquidity trap, London Interbank Offered Rate, margin call, market clearing, moral hazard, mortgage tax deduction, Northern Rock, offshore financial centre, paradox of thrift, pattern recognition, pension reform, pets.com, Plutocrats, plutocrats, Ponzi scheme, profit maximization, pushing on a string, reserve currency, risk tolerance, risk-adjusted returns, road to serfdom, Ronald Reagan, shareholder value, Silicon Valley, South Sea Bubble, statistical model, The Great Moderation, the payments system, too big to fail, value at risk, very high income, War on Poverty, Y2K, yield curve

Congress believed that home ownership was so important that it required a financial industry of its own. First, it established a favorable charter for savings banks with their own, somewhat indulgent regulator. It also got the U.S. Post Office out of the savings bank business, making America one of the few countries where postal banks do not provide basic savings and payment services. Second, by making mortgage interest an income tax deduction, they made building up equity in a home one of the few ways ordinary people could accumulate retirement savings. Third, they created a government-run secondary market in mortgages through Federal Home Loan Banks. These were later joined by the GSEs (Fannie Mae and Freddie Mac) we met in Chapter Three. This housing finance industry had its own regulatory machinery and its own friends in Congress.

 

pages: 726 words: 172,988

The Bankers' New Clothes: What's Wrong With Banking and What to Do About It by Anat Admati, Martin Hellwig

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

Andrei Shleifer, asset-backed security, bank run, banking crisis, Basel III, Bernie Madoff, Big bang: deregulation of the City of London, Black Swan, bonus culture, Carmen Reinhart, central bank independence, centralized clearinghouse, collapse of Lehman Brothers, collateralized debt obligation, corporate governance, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, crony capitalism, diversified portfolio, en.wikipedia.org, Exxon Valdez, financial deregulation, financial innovation, financial intermediation, George Akerlof, Growth in a Time of Debt, income inequality, invisible hand, Jean Tirole, joint-stock company, joint-stock limited liability company, Kenneth Rogoff, London Interbank Offered Rate, Long Term Capital Management, margin call, Martin Wolf, moral hazard, mortgage debt, mortgage tax deduction, Nick Leeson, Northern Rock, open economy, peer-to-peer lending, regulatory arbitrage, risk tolerance, risk-adjusted returns, risk/return, Robert Shiller, Robert Shiller, shareholder value, sovereign wealth fund, technology bubble, The Market for Lemons, the payments system, too big to fail, Upton Sinclair, Yogi Berra

Tax Subsidies to Borrowing In addition to the incentives to economize on equity because of guarantees, borrowing by all corporations is encouraged by the tax systems of most countries. To see how this works, let us go back to Kate’s purchase of her house without Aunt Claire’s guarantees. Suppose Kate could pay for the house without borrowing but she considered borrowing anyway. Would it make a difference? In the United States, the answer is generally “Yes,” because the interest paid on mortgages is tax deductible. In determining her taxable income, Kate could deduct the mortgage interest payments as an expense.21 Borrowing could therefore reduce Kate’s taxes, essentially making Uncle Sam contribute to the purchase of her house.22 Corporations can similarly save on taxes by borrowing. In most countries, corporate taxes are paid on a corporation’s “income,” defined in such a way that interest paid on the corporation’s debt is considered a tax-deductible expense.23 The more debt and the less equity a corporation uses in its funding, the less it pays in taxes.

 

pages: 475 words: 155,554

The Default Line: The Inside Story of People, Banks and Entire Nations on the Edge by Faisal Islam

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

Asian financial crisis, asset-backed security, balance sheet recession, bank run, banking crisis, Basel III, Ben Bernanke: helicopter money, Berlin Wall, Big bang: deregulation of the City of London, British Empire, capital controls, carbon footprint, Celtic Tiger, central bank independence, centre right, collapse of Lehman Brothers, credit crunch, Credit Default Swap, crony capitalism, dark matter, deindustrialization, Deng Xiaoping, disintermediation, energy security, Eugene Fama: efficient market hypothesis, eurozone crisis, financial deregulation, financial innovation, financial repression, floating exchange rates, forensic accounting, forward guidance, full employment, ghettoisation, global rebalancing, global reserve currency, hiring and firing, inflation targeting, Irish property bubble, Just-in-time delivery, labour market flexibility, London Whale, Long Term Capital Management, margin call, market clearing, megacity, Mikhail Gorbachev, mini-job, mittelstand, moral hazard, mortgage debt, mortgage tax deduction, mutually assured destruction, North Sea oil, Northern Rock, offshore financial centre, open economy, paradox of thrift, pension reform, price mechanism, price stability, profit motive, quantitative easing, quantitative trading / quantitative finance, race to the bottom, regulatory arbitrage, reserve currency, reshoring, rising living standards, Ronald Reagan, savings glut, shareholder value, sovereign wealth fund, The Chicago School, the payments system, too big to fail, trade route, transaction costs, two tier labour market, unorthodox policies, uranium enrichment, urban planning, value at risk, working-age population

‘Eviction popcorn’ was being distributed by a law firm promoting its ability to turf out troublesome tenants. Estate agents explained that few locals could obtain a mortgage to buy a £120,000 house. BTL mortgages, however, were priced on the basis of likely rent received. As interest rates were at rock-bottom, these typically interest-only mortgages were dirt-cheap, and a killing was there to be made for anyone with the 25 per cent deposit required. Even better, the mortgage was entirely tax deductible. Brutally put, local Mancunians on a typical salary would have zero chance to out-compete the landlords. At the show, some landlords admitted that they were in a ‘battle’ for property with first-time buyers. ‘Yes we take the same property,’ said one landlord with ten flats. ‘I feel a bit guilty, but they should work harder.’ The highest yields in the country in 2010 were on offer in Newcastle upon Tyne.

 

pages: 183 words: 17,571

Broken Markets: A User's Guide to the Post-Finance Economy by Kevin Mellyn

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

banking crisis, banks create money, Basel III, Bernie Madoff, Big bang: deregulation of the City of London, Bonfire of the Vanities, bonus culture, Bretton Woods, BRICs, British Empire, call centre, Carmen Reinhart, central bank independence, centre right, cloud computing, collapse of Lehman Brothers, collateralized debt obligation, corporate governance, credit crunch, crony capitalism, currency manipulation / currency intervention, disintermediation, eurozone crisis, fiat currency, financial innovation, financial repression, floating exchange rates, Fractional reserve banking, global reserve currency, global supply chain, Home mortgage interest deduction, index fund, joint-stock company, Joseph Schumpeter, labor-force participation, labour market flexibility, liquidity trap, London Interbank Offered Rate, lump of labour, market bubble, market clearing, Martin Wolf, means of production, mobile money, moral hazard, mortgage debt, mortgage tax deduction, Ponzi scheme, profit motive, quantitative easing, Real Time Gross Settlement, regulatory arbitrage, reserve currency, rising living standards, Ronald Coase, seigniorage, shareholder value, Silicon Valley, statistical model, Steve Jobs, The Great Moderation, the payments system, Tobin tax, too big to fail, transaction costs, underbanked, Works Progress Administration, yield curve, Yogi Berra

 

pages: 280 words: 79,029

Smart Money: How High-Stakes Financial Innovation Is Reshaping Our WorldÑFor the Better by Andrew Palmer

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

Affordable Care Act / Obamacare, algorithmic trading, Andrei Shleifer, asset-backed security, availability heuristic, bank run, banking crisis, Black-Scholes formula, bonus culture, Bretton Woods, call centre, Carmen Reinhart, cloud computing, collapse of Lehman Brothers, collateralized debt obligation, corporate governance, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, Daniel Kahneman / Amos Tversky, David Graeber, diversification, diversified portfolio, Edmond Halley, Edward Glaeser, Eugene Fama: efficient market hypothesis, eurozone crisis, family office, financial deregulation, financial innovation, fixed income, Flash crash, Google Glasses, Gordon Gekko, high net worth, housing crisis, Hyman Minsky, implied volatility, income inequality, index fund, Innovator's Dilemma, interest rate swap, Kenneth Rogoff, Kickstarter, late fees, London Interbank Offered Rate, Long Term Capital Management, loss aversion, margin call, Mark Zuckerberg, McMansion, mortgage debt, mortgage tax deduction, Network effects, Northern Rock, obamacare, payday loans, peer-to-peer lending, Peter Thiel, principal–agent problem, profit maximization, quantitative trading / quantitative finance, railway mania, randomized controlled trial, Richard Feynman, Richard Feynman, Richard Thaler, risk tolerance, risk-adjusted returns, Robert Shiller, Robert Shiller, short selling, Silicon Valley, Silicon Valley startup, Skype, South Sea Bubble, sovereign wealth fund, statistical model, transaction costs, Tunguska event, unbanked and underbanked, underbanked, Vanguard fund, web application

 

pages: 251 words: 76,128

Borrow: The American Way of Debt by Louis Hyman

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

asset-backed security, barriers to entry, big-box store, cashless society, collateralized debt obligation, credit crunch, deindustrialization, deskilling, diversified portfolio, financial innovation, Ford paid five dollars a day, Home mortgage interest deduction, housing crisis, income inequality, market bubble, McMansion, mortgage debt, mortgage tax deduction, Network effects, new economy, Plutocrats, plutocrats, price stability, Ronald Reagan, statistical model, technology bubble, transaction costs, women in the workforce

 

pages: 269 words: 104,430

Carjacked: The Culture of the Automobile and Its Effect on Our Lives by Catherine Lutz, Anne Lutz Fernandez

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

barriers to entry, car-free, carbon footprint, collateralized debt obligation, failed state, feminist movement, fudge factor, Gordon Gekko, housing crisis, illegal immigration, income inequality, inventory management, market design, market fundamentalism, mortgage tax deduction, Naomi Klein, Nate Silver, New Urbanism, oil shock, peak oil, Ralph Nader, Ralph Waldo Emerson, ride hailing / ride sharing, Thorstein Veblen, traffic fines, Unsafe at Any Speed, urban planning, white flight, women in the workforce, working poor, Zipcar

Power and Associates’ resale data show that vehicles from brands with aboveaverage scores tend to hold $1,000 more of their value than brands with below-average dependability.11 Finally, you should factor in the possibility that you will be socked with a deductible charge for as much as $1,000 for even a fully insured car that is hit or stolen. Save to buy or finance carefully. Ideally, you would save up before buying a car and pay cash. You would then shoulder only the actual price of the vehicle, not hefty additional financing costs. As we have seen, under the worst circumstances, a $17,000 car can end up costing $34,000. And of course, unlike home mortgages, car loans are not tax-deductible. The reality is that, unfortunately, paying cash is not always possible. If you must borrow, read the cautionary tales and advice on the web site StopAutoFraud.com. It is also usually best to make a purchase with a sane car loan rather than leasing a vehicle, because although leasing can make for CONCLUSION 215 lower monthly payments, doing so can lead you to lease a more expensive car rather than pocket the monthly differential.

 

pages: 314 words: 101,452

Liar's Poker by Michael Lewis

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

barriers to entry, Bonfire of the Vanities, cognitive dissonance, corporate governance, financial independence, financial innovation, Home mortgage interest deduction, interest rate swap, London Interbank Offered Rate, margin call, mortgage tax deduction, nuclear winter, Ponzi scheme, The Predators' Ball, yield curve

 

pages: 1,104 words: 302,176

The Rise and Fall of American Growth: The U.S. Standard of Living Since the Civil War (The Princeton Economic History of the Western World) by Robert J. Gordon

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

3D printing, Affordable Care Act / Obamacare, airline deregulation, airport security, Apple II, barriers to entry, big-box store, blue-collar work, Capital in the Twenty-First Century by Thomas Piketty, clean water, collective bargaining, computer age, deindustrialization, Detroit bankruptcy, discovery of penicillin, Donner party, Downton Abbey, Edward Glaeser, en.wikipedia.org, Erik Brynjolfsson, everywhere but in the productivity statistics, feminist movement, financial innovation, full employment, George Akerlof, germ theory of disease, glass ceiling, high net worth, housing crisis, immigration reform, impulse control, income inequality, income per capita, indoor plumbing, industrial robot, inflight wifi, interchangeable parts, invention of agriculture, invention of air conditioning, invention of the telegraph, invention of the telephone, inventory management, James Watt: steam engine, Jeff Bezos, jitney, job automation, John Maynard Keynes: Economic Possibilities for our Grandchildren, labor-force participation, Loma Prieta earthquake, Louis Daguerre, Louis Pasteur, low skilled workers, manufacturing employment, Mark Zuckerberg, market fragmentation, Mason jar, McMansion, Menlo Park, minimum wage unemployment, mortgage debt, mortgage tax deduction, new economy, Norbert Wiener, obamacare, occupational segregation, oil shale / tar sands, oil shock, payday loans, Peter Thiel, pink-collar, Productivity paradox, Ralph Nader, Ralph Waldo Emerson, refrigerator car, rent control, Robert X Cringely, Ronald Coase, school choice, Second Machine Age, secular stagnation, Skype, stem cell, Steve Jobs, Steve Wozniak, Steven Pinker, The Market for Lemons, Thomas Malthus, total factor productivity, transaction costs, transcontinental railway, traveling salesman, Triangle Shirtwaist Factory, Unsafe at Any Speed, Upton Sinclair, upwardly mobile, urban decay, urban planning, urban sprawl, washing machines reduced drudgery, Washington Consensus, Watson beat the top human players on Jeopardy!, We wanted flying cars, instead we got 140 characters, working poor, working-age population, Works Progress Administration, yield management

., 167 McKinlay, John and Sonja, 213, 215 McNamara, Frank, 450 meat: consumption of, 66, 82, 333–34, 339; production of, 220–22; rationing of, 335 mechanical reaper, 263–64 Mecherle, George, 309 medical care: hospitals for, 226–31; paying for, 234–37; predicting future of, 594; See also health and health care medical professions, 207, 232–33, 244; in 1870, 50–51; after 1940, 476–77; doctors, 224–28; nurses, 230 medical research, 232–33, 480 medical schools, 226–27, 232–33; cost of medical care and, 234 medical technology, 478–82, 594 Medicare and Medicaid, 489–90, 518, 642 medium-sized cities, housing in, 110–12 Meeker, Edward, 215 Memphis (Tennessee), 217 men: elderly, in labor force, 252–53; erectile dysfunction in, 486; housework done by, 277; in labor force, 34, 248, 250; ratio of women to, 630–31; as stay-at-home husbands, 508; tastes in clothing for, 350; teenagers (1870), 58; in working class (1870), 56 mental health, 473 Mercedes (automobiles), 157 Meucci, Antonio, 574 Micro Instrumentation and Telemetry Systems (MITS), 452 Microsoft, 452, 453, 574 microwave ovens, 358, 362 middle class, 498; in 1870, 46–47; in 1950s and 1960s, 503; bungalow movement housing for, 108–10; housing for (late nineteenth century), 107; market-purchased clothing for, 85–86; small-town housing for, 111 Midwestern cities, housing in, 105–7 midwives, 231, 274 migrations: in 1870, 35–36; of blacks, 368; housing for, 100; westward, 54 milk, 81–82, 220, 245 Miller, Grant, 207, 217–18, 244 minimum wage, 616, 644, 645 mining industry, 266–67 Minneapolis (Minnesota), 151 Miron, Jeffrey, 646 Mitchell, Margaret, 202 mobile (cell) phones, 411, 430–32, 577–78; smartphones, 437–38, 581 Model A (Ford automobile), 155–56, 559 Model T (Ford automobile), 153–56, 165, 169, 382, 559 Mokyr, Joel, 31; on access to running water, 216; on forecasting innovation, 590; on germ theory of disease, 219; on household production, 208, 278 Montgomery Ward catalog, 63, 90–91, 294, 332 Moore, Gordon, 444, 458 Moore’s Law, 444–47, 458, 524, 588–89, 593, 636 Morrill Acts (1862; 1890), 311–12 Morse, Samuel F. B., 178, 568 mortality rates: water quality and, 213–18; See also deaths; life expectancy mortgage financing, 288, 300–303; as tax deduction, 367 Mosaic (web browser), 454 Moses, Robert, 166 motels, 166–67, 392 motion pictures. See movies Motorola 8000 (mobile phone), 431 motor vehicles: registrations of, 161–62, 376–77; See also automobiles movies, 7, 173, 198–205, 322; invention of, 197–98; television’s competition with, 410, 420–21; during World War II, 414–15 MP3 (file format), 435 Mumford, Lewis, 104 Muncie (Indiana): automobile ownership in, 165; diet in, 68; gardens in, 46; heating systems in, 126; home ownership in, 301, 303; housing in, 110–13; migration to, 101; running water in, 124; telephones in, 182; work hours in, 260 municipal water systems, 217 municipal waterworks, 123, 124 Munos, Bernard, 479 Murphy, Kevin, 243 Murray, Charles, 631, 632 Murrow, Edward R., 196, 414 music, 411; digital media for, 435–38; on phonograph records, 186–90, 204, 411; post-World War II, 427–29, 439; on radio, 192, 195, 196, 421 Myspace (social network), 456 Nader, Ralph, 400 nails, 110 narcotic drugs, 222–23 National Broadcasting Company (NBC), 194, 413 National Bureau of Casualty and Surety Underwriters, 309 National Bureau of Standards, 562 National Cancer Act (1971), 470 National Industrial Recovery Act (1933–1935), 542 National Labor Relations Act (Wagner Act; 1935), 543 natural gas, 634 NBC Symphony, 196 Nelson, Richard, 573 Netflix, 436–37 net investment, 586–87 networks: for cell phones, 430–31; Internet as, 442–43, 453–57; for medical care, 494–95; radio, 194; social, 456–57; television, 416–17, 425–26 Newcomen,, Thomas, 568 New Deal, 15, 18; legislation and programs of, 315–17; Social Security during, 516; wages increased during, 541–43, 548 new molecular entities (NMEs), 479 New Orleans, Battle of, 4 news, 433–35; Internet for, 443; movie newsreels, 200; post-World War II broadcasting of, 411; radio broadcasting of, 196; World War II broadcasts of, 413–14 newspapers, 172, 174–77; in 1870, 49; decline of, 433–35 Newsweek (magazine), 434 New York (New York): air travel between Chicago and, 396–97; air travel between Los Angeles and, 398; bacteriological laboratory in, 218; buses in, 160; early television in, 415–16; elevated trains in, 147; General Slocum disaster in, 239; housing in, 102–3; Ladies’ Protective Health Association in, 221; long-distance telephone service for, 183, 185; omnibus service in, 143–44; rail transport between Chicago and, 133, 135, 136, 140; subways in, 130, 148; tenements in, 97; Triangle Shirtwaist Factory fire in, 272; World’s Fair (1939–1940) in, 356, 363, 413, 592 New York Stock Exchange, 582 nickelodeons, 198–99, 205 Nixon, Richard, 357, 419 nonwhites: life expectancy of, 212; See also blacks Nordhaus, William: on global warming, 634; on Moore’s Law, 446; on price of light, 119; on value of health and life expectancy, 242–44, 323 nursing schools, 230 nutrition.

 

pages: 416 words: 118,592

A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing by Burton G. Malkiel

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

accounting loophole / creative accounting, Albert Einstein, asset allocation, asset-backed security, backtesting, Bernie Madoff, BRICs, capital asset pricing model, compound rate of return, correlation coefficient, Credit Default Swap, Daniel Kahneman / Amos Tversky, diversification, diversified portfolio, Elliott wave, Eugene Fama: efficient market hypothesis, experimental subject, feminist movement, financial innovation, fixed income, framing effect, hindsight bias, Home mortgage interest deduction, index fund, invisible hand, Isaac Newton, Long Term Capital Management, loss aversion, margin call, market bubble, mortgage tax deduction, new economy, Own Your Own Home, passive investing, pets.com, Ponzi scheme, price stability, profit maximization, publish or perish, purchasing power parity, RAND corporation, random walk, Richard Thaler, risk tolerance, risk-adjusted returns, risk/return, Robert Shiller, Robert Shiller, short selling, Silicon Valley, South Sea Bubble, The Myth of the Rational Market, The Wisdom of Crowds, transaction costs, Vanguard fund, zero-coupon bond

The natural real estate investment for most people is the single-family home or the condominium. You have to live somewhere, and buying has several tax advantages over renting. Because Congress wanted to encourage home ownership and the values associated with it, it gave the homeowner two important tax breaks: (1) Although rent is not deductible from income taxes, the two major expenses associated with home ownership—interest payments on your mortgage and property taxes—are deductible; (2) realized gains in the value of your house up to substantial amounts are tax-exempt. In addition, ownership of a house is a good way to force yourself to save, and a house provides enormous emotional satisfaction. My advice is: Own your own home if you can possibly afford it. You may also wish to consider ownership of commercial real estate through the medium of real estate investment trusts (REITs, pronounced “reets”).

 

pages: 391 words: 22,799

To Serve God and Wal-Mart: The Making of Christian Free Enterprise by Bethany Moreton

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

affirmative action, anti-communist, Berlin Wall, big-box store, Bretton Woods, Buckminster Fuller, collective bargaining, corporate personhood, deindustrialization, desegregation, Donald Trump, estate planning, Fall of the Berlin Wall, Frederick Winslow Taylor, George Gilder, global village, informal economy, invisible hand, market fundamentalism, Mont Pelerin Society, mortgage tax deduction, Naomi Klein, new economy, New Urbanism, post-industrial society, postindustrial economy, prediction markets, price anchoring, Ralph Nader, RFID, road to serfdom, Ronald Reagan, Silicon Valley, Stewart Brand, strikebreaker, The Wealth of Nations by Adam Smith, union organizing, walkable city, Washington Consensus, white flight, Whole Earth Catalog, Works Progress Administration

Casualization, “flexÂ�iÂ� bilÂ�ity,” part-Â�time or temp work, and the erosion of beneÂ�fits, seniority, and tenure—the conditions that had once best described most Â�women’s work in an industrial economy became generalized to the work force as€a whole. Unwaged household labor, personal relationships, and part-Â� time jobs had supported the American breadwinner all along. This breadwinner was a husband whose wife packed his lunch box, a father whose children were trained by the state, an imaginary homesteader whose mortgage was subsidized with tax deductions, a craft worker—Â� union carpenter or university professor—whose job was explicitly Â�reserved for him by race and sex. Without the exclusions that had invisibly supported him, he disappeared from the economic landscape with frightening suddenness. By adapting the management/labor dyad to a “natural” family hierarchy, Wal-Â�Mart performed another of the Sun Belt’s innovative sleights of hand.

 

pages: 204 words: 67,922

Elsewhere, U.S.A: How We Got From the Company Man, Family Dinners, and the Affluent Society to the Home Office, BlackBerry Moms,and Economic Anxiety by Dalton Conley

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

3D printing, call centre, clean water, dematerialisation, demographic transition, Edward Glaeser, extreme commuting, feminist movement, financial independence, Firefox, Frank Levy and Richard Murnane: The New Division of Labor, Home mortgage interest deduction, income inequality, informal economy, Jane Jacobs, John Maynard Keynes: Economic Possibilities for our Grandchildren, knowledge economy, knowledge worker, labor-force participation, late capitalism, low skilled workers, manufacturing employment, McMansion, mortgage tax deduction, new economy, oil shock, PageRank, Ponzi scheme, positional goods, post-industrial society, Post-materialism, post-materialism, principal–agent problem, recommendation engine, Richard Florida, rolodex, Ronald Reagan, Silicon Valley, Skype, statistical model, The Death and Life of Great American Cities, The Great Moderation, The Wealth of Nations by Adam Smith, Thomas Malthus, Thorstein Veblen, transaction costs, women in the workforce, Yom Kippur War

Even the bacchanal thrown by Wired magazine—replete with custom martinis and corporate goodie bags—is really an investment in customer relations. Consumption is redefined as investment, as all these expenses are seen as the cost of doing business. And as long as business or the real estate market is chugging briskly along, they do perhaps pay for themselves— even if they require a second mortgage to finance. In short, everything is tax-deductible, even if the IRS would not agree. This is the new form of spending, what I’ll call convestment—the sometimes rocky marriage of consumption and investment. We can also see this new form of spending, for instance, in the rise of gambling as a recreational activity. Today betting losses represent one-quarter of personal consumer expenditures, up from 5 percent in 1970.3 Who would have thought that trying to make money—against the odds stacked in the house’s favor, no less—was a relaxing way to spend our time away from the rat race?

 

pages: 322 words: 77,341

I.O.U.: Why Everyone Owes Everyone and No One Can Pay by John Lanchester

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

asset-backed security, bank run, banking crisis, Berlin Wall, Bernie Madoff, Big bang: deregulation of the City of London, Black-Scholes formula, Celtic Tiger, collateralized debt obligation, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, Daniel Kahneman / Amos Tversky, diversified portfolio, double entry bookkeeping, Exxon Valdez, Fall of the Berlin Wall, financial deregulation, financial innovation, fixed income, George Akerlof, greed is good, hindsight bias, housing crisis, Hyman Minsky, interest rate swap, invisible hand, Jane Jacobs, John Maynard Keynes: Economic Possibilities for our Grandchildren, laissez-faire capitalism, liquidity trap, Long Term Capital Management, loss aversion, Martin Wolf, mortgage debt, mortgage tax deduction, mutually assured destruction, new economy, Nick Leeson, Northern Rock, Own Your Own Home, Ponzi scheme, quantitative easing, reserve currency, risk-adjusted returns, Robert Shiller, Robert Shiller, Ronald Reagan, shareholder value, South Sea Bubble, statistical model, The Great Moderation, the payments system, too big to fail, tulip mania, value at risk

 

pages: 268 words: 74,724

Who Needs the Fed?: What Taylor Swift, Uber, and Robots Tell Us About Money, Credit, and Why We Should Abolish America's Central Bank by John Tamny

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

Airbnb, bank run, banks create money, Bernie Madoff, bitcoin, Bretton Woods, Carmen Reinhart, correlation does not imply causation, Credit Default Swap, crony capitalism, crowdsourcing, Donald Trump, Downton Abbey, fiat currency, financial innovation, Fractional reserve banking, full employment, George Gilder, Home mortgage interest deduction, Jeff Bezos, job automation, Joseph Schumpeter, Kenneth Rogoff, Kickstarter, liquidity trap, Mark Zuckerberg, market bubble, moral hazard, mortgage tax deduction, NetJets, offshore financial centre, oil shock, peak oil, Peter Thiel, price stability, profit motive, quantitative easing, race to the bottom, Ronald Reagan, self-driving car, sharing economy, Silicon Valley, Silicon Valley startup, Steve Jobs, The Wealth of Nations by Adam Smith, too big to fail, Uber for X, War on Poverty, yield curve

 

pages: 598 words: 140,612

Triumph of the City: How Our Greatest Invention Makes Us Richer, Smarter, Greener, Healthier, and Happier by Edward L. Glaeser

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

affirmative action, Andrei Shleifer, Berlin Wall, British Empire, Broken windows theory, carbon footprint, Celebration, Florida, clean water, congestion charging, declining real wages, desegregation, diversified portfolio, Edward Glaeser, endowment effect, European colonialism, financial innovation, Frank Gehry, global village, Guggenheim Bilbao, haute cuisine, Home mortgage interest deduction, James Watt: steam engine, Jane Jacobs, job-hopping, John Snow's cholera map, Mahatma Gandhi, McMansion, megacity, mortgage debt, mortgage tax deduction, New Urbanism, place-making, Ponzi scheme, Potemkin village, Ralph Waldo Emerson, rent control, RFID, Richard Florida, Rosa Parks, school vouchers, Seaside, Florida, Silicon Valley, Skype, smart cities, Steven Pinker, strikebreaker, the built environment, The Death and Life of Great American Cities, The Wealth of Nations by Adam Smith, trade route, transatlantic slave trade, upwardly mobile, urban planning, urban renewal, urban sprawl, William Shockley: the traitorous eight, Works Progress Administration, young professional

 

pages: 471 words: 124,585

The Ascent of Money: A Financial History of the World by Niall Ferguson

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

Admiral Zheng, Andrei Shleifer, Asian financial crisis, asset allocation, asset-backed security, Atahualpa, bank run, banking crisis, banks create money, Black Swan, Black-Scholes formula, Bonfire of the Vanities, Bretton Woods, BRICs, British Empire, capital asset pricing model, capital controls, Carmen Reinhart, Cass Sunstein, central bank independence, collateralized debt obligation, colonial exploitation, Corn Laws, corporate governance, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, currency manipulation / currency intervention, currency peg, Daniel Kahneman / Amos Tversky, deglobalization, diversification, diversified portfolio, double entry bookkeeping, Edmond Halley, Edward Glaeser, Edward Lloyd's coffeehouse, financial innovation, financial intermediation, fixed income, floating exchange rates, Fractional reserve banking, Francisco Pizarro, full employment, German hyperinflation, Hernando de Soto, high net worth, hindsight bias, Home mortgage interest deduction, Hyman Minsky, income inequality, interest rate swap, Isaac Newton, iterative process, joint-stock company, joint-stock limited liability company, Joseph Schumpeter, Kenneth Rogoff, knowledge economy, labour mobility, London Interbank Offered Rate, Long Term Capital Management, market bubble, market fundamentalism, means of production, Mikhail Gorbachev, money: store of value / unit of account / medium of exchange, moral hazard, mortgage debt, mortgage tax deduction, Naomi Klein, Nick Leeson, Northern Rock, pension reform, price anchoring, price stability, principal–agent problem, probability theory / Blaise Pascal / Pierre de Fermat, profit motive, quantitative hedge fund, RAND corporation, random walk, rent control, rent-seeking, reserve currency, Richard Thaler, Robert Shiller, Robert Shiller, Ronald Reagan, savings glut, seigniorage, short selling, Silicon Valley, South Sea Bubble, sovereign wealth fund, spice trade, structural adjustment programs, technology bubble, The Wealth of Nations by Adam Smith, The Wisdom of Crowds, Thomas Malthus, Thorstein Veblen, too big to fail, transaction costs, value at risk, Washington Consensus, Yom Kippur War

The only real difference between Right and Left was the readiness of the Conservatives to deregulate the private rental market, in the hope of encouraging private landlords, and the equal and opposite resolve of Labour to reimpose rent controls and stamp out ‘Rachmanism’ (exploitative behaviour by landlords), exemplified by Peter Rachman, who used intimidation to evict the sitting tenants of rent-controlled properties, replacing them with West Indian immigrants who had to pay market rents.31 As late as 1971, fewer than half of British homes were owner-occupied. In the United States, where public housing was never so important, mortgage interest payments were always tax deductible, from the inception of the federal income tax in 1913.32 As Ronald Reagan said when the rationality of this tax break was challenged, mortgage interest relief was ‘part of the American dream’.ao It played a much smaller role in Britain until 1983, when a more radically Conservative government led by Margaret Thatcher introduced Mortgage Interest Relief At Source (MIRAS) for the first £30,000 of a qualifying mortgage.

 

pages: 519 words: 118,095

Your Money: The Missing Manual by J.D. Roth

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

Airbnb, asset allocation, bank run, buy low sell high, car-free, Community Supported Agriculture, delayed gratification, diversification, diversified portfolio, estate planning, Firefox, fixed income, full employment, Home mortgage interest deduction, index card, index fund, late fees, mortgage tax deduction, Own Your Own Home, passive investing, Paul Graham, random walk, Richard Bolles, risk tolerance, Robert Shiller, Robert Shiller, speech recognition, traveling salesman, Vanguard fund, web application, Zipcar

 

pages: 311 words: 130,761

Framing Class: Media Representations of Wealth and Poverty in America by Diana Elizabeth Kendall

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

Bernie Madoff, blue-collar work, Bonfire of the Vanities, call centre, David Brooks, declining real wages, Donald Trump, employer provided health coverage, ending welfare as we know it, framing effect, Georg Cantor, Gordon Gekko, greed is good, haute couture, housing crisis, illegal immigration, income inequality, lump of labour, mortgage tax deduction, new economy, payday loans, Ponzi scheme, Ray Oldenburg, Richard Florida, Ronald Reagan, Saturday Night Live, telemarketer, The Great Good Place, Thorstein Veblen, trickle-down economics, union organizing, upwardly mobile, urban planning, working poor

 

pages: 586 words: 159,901

Wall Street: How It Works And for Whom by Doug Henwood

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

accounting loophole / creative accounting, affirmative action, Andrei Shleifer, asset allocation, asset-backed security, bank run, banking crisis, barriers to entry, borderless world, Bretton Woods, British Empire, capital asset pricing model, capital controls, central bank independence, corporate governance, correlation coefficient, correlation does not imply causation, credit crunch, currency manipulation / currency intervention, David Ricardo: comparative advantage, debt deflation, declining real wages, deindustrialization, dematerialisation, diversification, diversified portfolio, Donald Trump, equity premium, Eugene Fama: efficient market hypothesis, experimental subject, facts on the ground, financial deregulation, financial innovation, Financial Instability Hypothesis, floating exchange rates, full employment, George Akerlof, George Gilder, hiring and firing, Hyman Minsky, implied volatility, index arbitrage, index fund, interest rate swap, Internet Archive, invisible hand, Isaac Newton, joint-stock company, Joseph Schumpeter, kremlinology, labor-force participation, late capitalism, law of one price, liquidationism / Banker’s doctrine / the Treasury view, London Interbank Offered Rate, Louis Bachelier, market bubble, Mexican peso crisis / tequila crisis, microcredit, minimum wage unemployment, moral hazard, mortgage debt, mortgage tax deduction, oil shock, payday loans, pension reform, Plutocrats, plutocrats, price mechanism, price stability, prisoner's dilemma, profit maximization, Ralph Nader, random walk, reserve currency, Richard Thaler, risk tolerance, Robert Gordon, Robert Shiller, Robert Shiller, shareholder value, short selling, Slavoj Žižek, South Sea Bubble, The Market for Lemons, The Nature of the Firm, The Predators' Ball, The Wealth of Nations by Adam Smith, transaction costs, transcontinental railway, women in the workforce, yield curve, zero-coupon bond

 

pages: 741 words: 179,454

Extreme Money: Masters of the Universe and the Cult of Risk by Satyajit Das

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

affirmative action, Albert Einstein, algorithmic trading, Andy Kessler, Asian financial crisis, asset allocation, asset-backed security, bank run, banking crisis, banks create money, Basel III, Benoit Mandelbrot, Berlin Wall, Bernie Madoff, Big bang: deregulation of the City of London, Black Swan, Bonfire of the Vanities, bonus culture, Bretton Woods, BRICs, British Empire, capital asset pricing model, Carmen Reinhart, carried interest, Celtic Tiger, clean water, cognitive dissonance, collapse of Lehman Brothers, collateralized debt obligation, corporate governance, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, Daniel Kahneman / Amos Tversky, debt deflation, Deng Xiaoping, deskilling, discrete time, diversification, diversified portfolio, Doomsday Clock, Emanuel Derman, en.wikipedia.org, Eugene Fama: efficient market hypothesis, eurozone crisis, Fall of the Berlin Wall, financial independence, financial innovation, fixed income, full employment, global reserve currency, Goldman Sachs: Vampire Squid, Gordon Gekko, greed is good, happiness index / gross national happiness, haute cuisine, high net worth, Hyman Minsky, index fund, interest rate swap, invention of the wheel, invisible hand, Isaac Newton, job automation, Johann Wolfgang von Goethe, joint-stock company, Joseph Schumpeter, Kenneth Rogoff, Kevin Kelly, labour market flexibility, laissez-faire capitalism, load shedding, locking in a profit, Long Term Capital Management, Louis Bachelier, margin call, market bubble, market fundamentalism, Marshall McLuhan, Martin Wolf, merger arbitrage, Mikhail Gorbachev, Milgram experiment, Mont Pelerin Society, moral hazard, mortgage debt, mortgage tax deduction, mutually assured destruction, Naomi Klein, Network effects, new economy, Nick Leeson, Nixon shock, Northern Rock, nuclear winter, oil shock, Own Your Own Home, pets.com, Plutocrats, plutocrats, Ponzi scheme, price anchoring, price stability, profit maximization, quantitative easing, quantitative trading / quantitative finance, Ralph Nader, RAND corporation, random walk, Ray Kurzweil, regulatory arbitrage, rent control, rent-seeking, reserve currency, Richard Feynman, Richard Feynman, Richard Thaler, risk-adjusted returns, risk/return, road to serfdom, Robert Shiller, Robert Shiller, Rod Stewart played at Stephen Schwarzman birthday party, rolodex, Ronald Reagan, Ronald Reagan: Tear down this wall, savings glut, shareholder value, Sharpe ratio, short selling, Silicon Valley, six sigma, Slavoj Žižek, South Sea Bubble, special economic zone, statistical model, Stephen Hawking, Steve Jobs, The Chicago School, The Great Moderation, the market place, the medium is the message, The Myth of the Rational Market, The Nature of the Firm, The Predators' Ball, The Wealth of Nations by Adam Smith, Thorstein Veblen, too big to fail, trickle-down economics, Turing test, Upton Sinclair, value at risk, Yogi Berra, zero-coupon bond

 

Understanding Power by Noam Chomsky

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

anti-communist, Ayatollah Khomeini, Berlin Wall, Bretton Woods, British Empire, Burning Man, business climate, cognitive dissonance, continuous integration, Corn Laws, cuban missile crisis, dark matter, David Ricardo: comparative advantage, deindustrialization, Deng Xiaoping, deskilling, European colonialism, Fall of the Berlin Wall, feminist movement, global reserve currency, Howard Zinn, labour market flexibility, Mahatma Gandhi, Mikhail Gorbachev, Monroe Doctrine, mortgage tax deduction, Ralph Nader, reserve currency, Ronald Reagan, Rosa Parks, school choice, strikebreaker, structural adjustment programs, the scientific method, The Wealth of Nations by Adam Smith, union organizing, wage slave, women in the workforce

 

Debtor Nation: The History of America in Red Ink (Politics and Society in Modern America) by Louis Hyman

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

asset-backed security, bank run, barriers to entry, Bretton Woods, card file, central bank independence, computer age, corporate governance, credit crunch, declining real wages, deindustrialization, diversified portfolio, financial independence, financial innovation, Gini coefficient, Home mortgage interest deduction, housing crisis, income inequality, invisible hand, late fees, London Interbank Offered Rate, market fundamentalism, means of production, mortgage debt, mortgage tax deduction, p-value, pattern recognition, profit maximization, profit motive, risk/return, Ronald Reagan, Silicon Valley, statistical model, technology bubble, the built environment, transaction costs, union organizing, white flight, women in the workforce, working poor

 

pages: 935 words: 267,358

Capital in the Twenty-First Century by Thomas Piketty

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

accounting loophole / creative accounting, Asian financial crisis, banking crisis, banks create money, Berlin Wall, Branko Milanovic, British Empire, capital controls, Capital in the Twenty-First Century by Thomas Piketty, carbon footprint, central bank independence, collapse of Lehman Brothers, conceptual framework, corporate governance, correlation coefficient, David Ricardo: comparative advantage, demographic transition, distributed generation, diversification, diversified portfolio, European colonialism, eurozone crisis, Fall of the Berlin Wall, financial intermediation, full employment, German hyperinflation, Gini coefficient, high net worth, Honoré de Balzac, immigration reform, income inequality, income per capita, index card, inflation targeting, informal economy, invention of the steam engine, invisible hand, joint-stock company, Joseph Schumpeter, market bubble, means of production, mortgage debt, mortgage tax deduction, new economy, New Urbanism, offshore financial centre, open economy, pension reform, purchasing power parity, race to the bottom, randomized controlled trial, refrigerator car, regulatory arbitrage, rent control, rent-seeking, Robert Gordon, Ronald Reagan, Simon Kuznets, sovereign wealth fund, Steve Jobs, The Nature of the Firm, the payments system, The Wealth of Nations by Adam Smith, Thomas Malthus, Thorstein Veblen, trade liberalization, very high income, We are the 99%