Debt: The First 5,000 Years by David Graeber, a conversation

April 30, 2012 by · Leave a Comment
Filed under: Videos 

I have just finished his book (Debt: The First 5,000 Years) on a history of debt and this is a subject that I have been intellectually exploring for almost a decade now.   Having read many booking on theories on the nature of money, wealth and banking.  I have a coffee table book called “The origins of value”, yes I know, just what you want to see on a coffee table.   When I heard about this book, I realized that I didn’t have a history book on debt so I had to grab a copy and read.

Wow, is what I have to say after reading through it.  He really hit at some very interesting and quite core points.  I will be re-reading the book soon because I need to contempt these concepts some more and I have a few books that have now been elevated on my reading list so I can read some more facts and opinions.   Here is a nice video with the author talking about the book and its concepts.   I believe he really hit a “home run” with this book and if you see the amount of notes and the bibliography, you can tell he did his homework.   I will end with my mind is not made up yet but he has been very persuasive so it has now put the ball back in my court to accept or contradict, he has set the bar high so I will see what I can come up with and write some thoughts in a later post.

Video:

Direct Link (Youtube)

Delinquencies on all U.S. credit card debt soared to a record 6.60%

July 7, 2009 by · Leave a Comment
Filed under: Economic News 

The market is down at the time of this writing.  With rising unemployment, foreclosures are sure to continue and this does not bode well for consumer debt either.   In this article they mention a rising of late payments on home equity lines of credit as well.  I am sorry to say, but until we can stop losing so many jobs and put a bottom in the job market, these trends will continue.  You have to have income to support debt service and asset prices at what ever level they were before the downturn started.  That is how a market-based economy works and that is not going to change here.  My advice is to keep yourself protected and continue to reduce your expenses and debt.

News (Reuters):

Soaring U.S. unemployment and a shrinking economy drove delinquencies on credit card debt and home equity loans to all-time highs in the first quarter as a record number of cash-strapped consumers fell behind on their bills.

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Ecuador default on debt declared by President Correa

December 12, 2008 by · Leave a Comment
Filed under: Global News 

This is one of many more sovereign debts defaults to be declared.  This debt based fractional reserve system is not sustainable and it will become more and more evident in the long run.  I am currently working with a monetary reform group that has come up with a system of issuing currency that does not involve a debt-backing.  Personally I am working on a system for international gold backed trade only currency and a act to address personal savings in the U.S.  I not only try to call the problems out but work on solutions at the same time.

News:

Ecuador’s sovereign dollar-denominated Global 2012 bond fell more on Friday after President Rafael Correa declared default, saying the government would not pay a $31 million coupon payment on its debt.

Correa’s announcement triggers the country’s second default in less than a decade. He said a debt restructuring plan would be present to bond holders in coming days.

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WaMu debt downgraded to “junk,” projects $4.5 billion loss reserve

September 11, 2008 by · Leave a Comment
Filed under: Industry News 

Good to hear they have long term funding in place so this hopefully won’t affect them too much.  They did re-affirm their commitment to maintaining there preferred dividend in this volatile market.  Their stock is down to 1990 levels which is not a good sign.

They are still the largest deposit bank in the U.S., it would be ashame to see them lose their independence because of the aggressive lending practices.  With their deposit base they will retain value in any acquisition.

Release:

In a statement, the thrift called the Moody’s downgrade “inconsistent” with its finances, but said it does not expect a “material” impact on borrowings, collateral or margin requirements, or to suspend dividends on its preferred stock.

It also said it has $50 billion of liquidity from “reliable funding sources,” and expects capital to remain “significantly above” regulatory minimums for “well-capitalized” lenders.

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